LOGISTICS NETWORK STRATEGY
As an end-to-end supply chain partner, we engineer logistics networks to help minimize total logistics costs (transportation, facilities, inventory) while maximizing service-level requirements. Aligned with our customers’ overall business strategy, LeanCor’s logistics network strategy solutions locate and rationalize facilities within supply chain, determining their size and capacity. We determine the right inventory levels to meet customer demand, how to source demand through the network, and a transportation strategy that delivers the 10 rights: 1) the right products, 2) to the right customers, 3) in the right quantities, 4) in the right quality, 5) at the right times, 6) from the right sources, 7) at the right prices, 8) at the right total cost, 9) with the right services, 10) all within the right amount of required complexity (effort).
We work collaboratively with you and with your data to understand your logistics costs. In this phase, we also highlight quick-win opportunities to make an immediate impact on operations cost.
Once we gather your feedback, we start engineering your network to meet overall business strategy. We start with a Center of Gravity exercise to identify ideal locations of your facilities (warehouse, distribution center (DC), manufacturing plant). We then compare that with our knowledge of local markets, labor pools, taxation laws, etc. Once locations are finalized, we create an inventory strategy to meet the overall service level objectives. Ideal inventory levels help us understand capacity requirements for facilities as well as build a transportation network to support the right replenishment strategies. Once the network is designed, we model the future-state total logistics cost to understand impact to the bottom-line. Our models also allow for “what-if” scenarios where we can simulate total logistics cost for variable decisions (facility quantity, locations, transportation modes, etc.).
After this phase, you’ll receive an in-depth road map to successfully execute your new logistics network.
We lead, support, and audit the execution of your new logistics network by:
- Developing world-class processes
- Preparing people to perform jobs at a high level
- Managing deployment timelines and budgets
- Deploying a continuous improvement process
- Understanding opportunities for outsourcing transportation functions
- Comprehensive list of your current logistics costs (includes the costs of transportation, facilities, inventory, & carrying inventory)
- Quick-win opportunities for your existing network
- Center of Gravity analysis to support your business strategy (location of new facilities)
- Inventory strategy and stocking (optional)
- Facilities capacity analysis
- New facilities design (optional)
- Transportation network design
- Future state total logistics costs
- Implementation road map
- We work collaboratively with our clients to understand their business needs.
- We customize our approach to your specific needs.
- We have the technical expertise to understand your challenges and develop world-class solutions.
- We implement a variety of real-world logistics network designs daily for our managed transportation (3PL) clients.
With an optimally designed network, you’re positioned to make better supply chain-centric decisions, resulting in:
- Reduced total logistics cost: 10%-20%
- Increased service levels
- Greater supply chain flexibility