Data-to-Dollars
This document outlines the value of key data analysis in designing
the most cost-effective distribution center for improving productivity
and operating performance. A systematic process for the identification,
collection and analysis of critical data elements is described
in detail. An approach for transforming data into solutions
is also presented, with a focus on how to effectively evaluate
alternatives for generating the highest return on investment
(ROI). A case study from an actual project is used to illustrate
how various concepts and solutions were successfully implemented.
Science
& Economics; a process of successful DC design
The demands placed on distribution operations have changed significantly
over the last several years. Moreover, there are increasing
pressures to reduce costs and cycle times, improve service and
outperform the competition.
With
these factors in mind, two questions arise. First, how does
a company analyze and evaluate the effect of these factors on
its distribution operations? Second, and more importantly, how
can it utilize this information to improve its overall distribution
operations and performance?
This
white paper answers both questions by describing the "science
and economics of successful DC design". A case study at
the end of this paper will illustrate how the concepts and approaches
described were applied in a real world situation.
The
Great Balancing Act
Senior Executives across all industries share two common goals:
Increasing Shareholder Value and Delivering Bottom Line Results.
A proven approach to reducing the overall supply chain "cost
to serve" is the optimal deployment of distribution network
assets. This is done by understanding the true cost of the current
distribution network and achieving the proper balance of the
desired service level at the most optimal cost.
"The
Great Balancing Act" configuration can be
determined through network modeling and refined through sensitivity
analysis to determine the most cost effective network strategy
prior to making significant investments in infrastructure or
operational transition.
This
paper defines distribution network modeling and the reasons
a company would undertake network design initiatives. It also
explores the cost factors to consider, the types of data necessary,
as well as the approach, timing, and benefits of network modeling.
Real life examples are included and the impact of corporate
income tax, which is often overlooked, is also addressed.
