Changes in the computer services landscape has led to an increased demand for an ever evolving range of products and services, placing a new emphasis on distribution networks.
Products are more diverse and smaller, stock cube has reduced and pressures on service levels increased. There is also more emphasis on value added services and the space needed to deliver these.
This step change led the company to call on the services of The Logistics Business. We were asked to review the company’s European logistics network and to develop a distribution strategy to meet the needs of a changing market and customer demands. Our first step was to visit the company’s distribution centres throughout Western Europe and carry out an audit of operations. We built a model of the network so that we could review a range of options for change.
Options included reducing distribution points and centralising all distribution operations into one European distribution centre. Consideration was given to customer service, warehouse location, transport costs, and the costs of change. This was both a theoretical and practical exercise taking into account the need to retain skilled staff and the maintenance of customer relationships.
We worked closely with the client team to combine their business knowledge with our experience of other European networks. Form this collaboration we identified three options which offered potential benefits and, once approved by the Directors, we were asked to develop these further into a full business case.
This required a more detailed analysis of distribution centre productivity and development of detailed budgets for changes to distribution centre layouts. We also placed emphasis on customer needs and expectations as well as the likely impact on supplier arrangements. This additional consultation enabled us to make evidence based recommendations to the Board who then gave go ahead for the changes to take place.
29th July 2015