SimFlex Logistics Network Design

Logistics network design. Logistics Network Design relates to the establishment of supply, warehousing and distribution infrastructure. It encapsulates procurement, value-add and postponement activities and inventory control policies. Logistics Network Design seeks to minimize logistics cost while offering the right level of flexibility to meet service level requirements. A logistics network design initiative typically covers three elements - the inbound and internal supply chain, outbound logistics, and return logistics. What is the optimal number and location of suppliers? What is the optimal number and location of production sites, and what build strategy should be in place at each site? What is the optimal number and location of distribution centers, and what level of activity should be carried out in each? What should be the allocation of warehouses/distribution centers to product plants and allocation of customer demand points to warehouses/distribution centers? What are the optimal transportation modes and routings to meet delivery requirements? What return network should be in place, and what repair activity should be carried out in each site? SimFlex Logistics Network Design Solution# It is important not to ignore the after-sales supply chain, where products need to be returned for repair and return, or swap and scrap/refurbish. A poorly designed reverse logistics network can have serious consequences for company profitability, especially in the case of product design flaws or component recalls. SimFlex Logistics Network Design solution enables reverse logistics network modeling independently or in conjunction with a forward logistics network. Case Study# PC Comp is a global computer components manufacturer. The Fortune 500 company is currently the market leader, but facing strong and aggressive competition from numerous OEMs in different markets. Solution Brief# SimFlex Logistics Network Design solution enables companies to analyze and determine the most cost optimal logistics network that meets serviceability requirements. Logistics Network Design relates to the establishment of supply, warehousing and distribution footprint.