Electronic Device Retailer

THE LOGISTICS BUSINESS has recently completed a project to model a same day delivery transport network for a major Electronic Device Retailer.  The Project provided the client with the infrastructure, stock holding and costs of a network of hubs and delivery vehicles to provide a same day delivery service anywhere in the UK.

THE LOGISTICS BUSINESS suite of i-flow models was used to develop the supply chain network and costs.

Geographic Models

Initially data on the existing operations was collected and analysed to understand customer demand across the different geographic and demographic areas within the UK.  This demand information was modelled geographically to plot demand density and establish the optimum locations for transport hubs.  Vehicle drive times to satisfy the customer demand and inbound transport times were taken into account within the models.  The geographic models were used to determine the optimum delivery routes taking account of mileage, time taken, number of drops, stem mileage, average speeds and time with the customer.

Supply Chain Models

The information generated from the Geographic Models provided the base data for the Supply Chain Model.  These models provide information on volumes of products moved within the network and stock holding at National Distribution Centres, Hubs and delivery vehicles.  The sizes and functions of each of the facilities was determined from this information as was the optimum vehicle types in the different parts of the network.

Cost Models

Information on the physical movement of products from the Supply Chain Model is integrated with the Cost Model.  This provides detailed information on the total delivery costs to each customer.  These costs are broken down into the different elements of the supply chain such as vehicle costs, driver costs, hub handling costs, inbound transport costs, costs of stock etc.

All models are driven by a comprehensive set of parameters that provided the user with the ability to change volumes of demand, stock levels, vehicle speeds, road congestion, time with customers etc.  Peak periods during the year and seasonal demand patters were all taken into account.

Reporting Functions

The reporting capabilities within i-flow enable tables of results to be produced to understand the effects of parameter changes on service levels and costs.  These reporting facilities were one of the key tools in defining the optimum supply chain to provide the same day delivery of electronic devices.
THE LOGISTICS BUSINESS, a leading specialist supply chain and logistics consultancy, has experience in planning and developing supply chain, distribution and warehousing operations throughout the world. From supply chain and distribution strategy, to development of distribution operations, warehouse design and layout, as well as manufacturing logistics and IT systems design, its clients include many blue chip companies.

We have also worked on government initiatives on sustainable transport and waste minimisation.For further information please call:Helen Morris, THE LOGISTICS BUSINESS on +44(0)1527 889 060, email helen.morris@logistics.co.uk