How does the future look for your Logistics Operation?

Unfortunately, none of us has a crystal ball, however it is important for all businesses to occasionally push out their planning horizons and sense check whether their operational capability can support their projected growth strategy.

Triggers for a review might come from a change in customer base, entry into new product categories, expansion into new geographical markets, or just from significant volume throughput increase related to planned incremental sales growth.

Alternatively, it could be that there is no major change in circumstances but a business wants to check that it is making the best use of its existing resources, and that is has the most cost-effective set up in place.

Some things you may wish to consider:

A centre of gravity analysis : Are your existing distribution points optimally located for your markets? Are there any expected changes to your customer base that could change this?

A network design review: Do you have the right number of warehouses in the right places? Could you save money by centralising to one distribution centre? Based on future growth / service level requirements, will you need to be nearer to customers and require more distribution centres?

Warehouse optimisation: Is your current warehouse able to support your projected growth or a change in fulfilment profile (e.g. an increase in ecom)? Both in terms of storage capacity and volume throughput? Do you need to consider new storage solutions? Automation? Outsourcing to a third party to leverage their space and technology capabilities?

Warehouse design: With many businesses in facilities that are increasingly dated and with poor energy efficiency, does it make sense to invest in a new build, either on an existing or greenfield site? New builds allow a business to make use of all the latest technology and future proofing operations for years to come.

I.T. & systems: As fulfilment models become more complex, do you have the systems in place that will support your growth i.e. WMS / WCS / TMS / multi-echelon inventory management / marketplace and drop ship integrations?

S&OP / IBP / forecasting: With unpredictability in both supply and demand becoming almost the norm, having processes and systems in place that can help bring stability to a network are key. Increasingly new supply chain planning systems are augmented with AI and ML to pull in a plethora of available data sources, and suggest optimised solutions.

Sourcing strategies: Are your existing production facilities able to cope with projected growth? Are they located to give you an optimal balance of cost, stability of supply and environmental sensitivity?

Here at SCALA we are experts in all above the above. For over twenty years we have been helping businesses plan for the future by leveraging our expertise in modelling combined with deep operational experience. We can help provide companies with a number of potential scenarios, allowing them to pick what they feel is right for them.

If you would like some help planning for the future of your business, then we would love to have a conversation around how we might support.