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Distribution Strategy

 


Sintec Consulting

 


Sintec Consulting

Comparte
 

January 3, 2012

Distribution Strategy

 


Sintec Consulting

 


Sintec Consulting

Comparte

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Companies today are faced with contradictory requirements in their supply chain: flexibility and quick response together with a low cost and precise service. How can these requirements be harmonized and how to design an optimal distribution network?

 

The distribution network design must take into account the tradeoff between flexibility and efficiency, guaranteeing the alignment with corporate strategy and the service level objectives. The objectives can be to achieve efficiencies in all service costs, or to support a growth in demand that the business hopes to achieve.

The supply networks are complex systems with multiple elements that interact dynamically. There are many variables that must be considered; the main ones are:

  •  Different Service Levels of channels or customers
  •  Demand of the current and future market
  •  Operation and transportation cost structure
  •  Current and future restrictions on supply chain flow, especially supplies, production, and distribution
  •  Location of raw material and/or product suppliers
  •  Restrictions in freshness and product management
  •  Communication infrastructure

Sintec Distribution Network Design Solution
Our network design solution optimizes the allocation of geographic locations for operation points and the placement of inventories and production capacity, analyzing the whole value chain from suppliers to customers. This analysis is based on the service offer to the market and thecomplete physical infrastructure capacity to support expected growth from demand.

We use optimization models according to the complexity of the network (number of variables) and according to the objectives (minimize cost, maximize flexibility). The key themes of our solutions are the mapping and modeling of the supply chain, service and distribution strategies, distribution network strategies, and sensitivity analysis.

Business benefits:

  •  Increased service level to the market
  •  Total logistical cost reduction
  •  Reduced working capital
  •  Optimized asset use

Recommended publication:
Sintec Success Story – Optimization of the Distribution Network

 

Sintec Consulting

This is the "wpengine" admin user that our staff uses to gain access to your admin area to provide support and troubleshooting. It can only be accessed by a button in our secure log that auto generates a password and dumps that password after the staff member has logged in. We have taken extreme measures to ensure that our own user is not going to be misused to harm any of our clients sites.

 

Sintec Consulting


This is the "wpengine" admin user that our staff uses to gain access to your admin area to provide support and troubleshooting. It can only be accessed by a button in our secure log that auto generates a password and dumps that password after the staff member has logged in. We have taken extreme measures to ensure that our own user is not going to be misused to harm any of our clients sites.