Tips To Handle The Essentials Of Distribution Network Design -


Tips To Handle The Essentials Of Distribution Network Design

By Carl Cox

Among the many elements of commerce, perhaps none has changed as drastically as logistics has over the last few decades. The modern supply chain now has to deal with competitive pressures, huge product lines and huge expectations from the market. Handling this continuum of change is key to ensuring a business remains profitable in both the short- and the long-term. And to do this effectively, the factors that greatly influence distribution network design must be considered when updating operational models.

Because the modern business climate is largely unpredictable, a flexible approach is required when developing a logistics network. Planning for likely (and unlikely) shifts in the supply chain profile should drive the formulation of policies and equipment specifications as well. This way, firms are able to create an integrated yet simple network that makes it easy to take advantage of emerging opportunities.

A dynamic supply chain is one developed with the global market in mind. All nodes within your logistics network have to support a global end-to-end strategy. During the streamlining process, pay special attention to incoming raw materials and outbound products. Customer service functions may also need to operate round-the-clock to assist individuals in various time zones.

As you may be aware, laws from all levels of government greatly impact supply chain operations. And it's the responsibility of business executives to learn these policies and how they affect their respective niches. Taking up an active role in legislative processes is also required in order to track regulations and make your concerns known. Being proactive is the best way to know what policies will positively (or negatively) impact on your own logistics operations.

Paperwork and keypunching in daily distribution activity are not only tedious, but also lead to errors. This is far from ideal, especially in logistics, an area where timely and accurate information is always required. The best solution would be a paperless system that enforces protocol in addition to ensuring that the right products are picked and packed. Your firm would greatly benefit from standardized, industry-tailored programs that can support the high growth associated with a successful distribution operation.

Businesses that aren't able to speedily fulfill orders can't be competitive for long. An efficient, quick supply chain is highly critical, especially in this digital era. From vendor compliance to execution systems, your entire logistics network needs to keep pace with current e-commerce speeds. Streamlining your distribution nodes would greatly help in matching your clients' expectations. Besides, you'll be better placed to account for the increased inventory turnover, short product lives and other elements that characterize modern commerce.

Accountability is absolutely crucial in distribution departments. And it's the responsibility of managers to make the difficult calls needed to enforce accountability. When outlining related protocols, care must always be taken that each policy works for the good of the entire organization.

To ensure the success of your network design project, it would be advisable to engage experienced consultants. Such professionals will help you gather high quality data, validate models and come up with a practical structure that works well for your business. Remember that no two logistics networks can be the same; the design will always vary depending on factors like costs, the market and external environment. Hiring a specialist is thus critical in facilitating a successful redesign process.

About the Author:

No comments:

Post a Comment