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If youve followed our blog over the years, youll know that weve shared lots of information about distribution network design, why its vital to get it right, how long it should take, the importance of reviewing the network every so often, and various elements of design such as determining the number of warehouses and where to locate them.
Schneider Electric’s Journey with Network Design Lee Botham is the global director of modeling and network design at Schneider Electric. As Schneider Electric matured with the network design tool, they also found they could drive savings through shipment consolidation. Initially, regions generating lower revenue were modeled.
Inventory Management The key starting point is implementing proper ABC analysis, and you need to look at it from multiple angles. It’s not enough to just categorise by product groups; you’ve got to dig deeper into line item analysis. Distribution Network Distribution networks need regular health checks to stay healthy.
ProRail manages the Dutch rail network (owned by Nederlandse Spoorwegen ). For industry participants, data analysis presents an opportunity to optimize railway operations without adding costly infrastructure. “We Data generated by IoT sensors enables ProRail to understand conditions it couldn’t previously, with human analysis alone.
Speaker: Brian Dooley, Director SC Navigator, AIMMS, and Paul van Nierop, Supply Chain Planning Specialist, AIMMS
You have tough decisions to make about your network design. You need answers to urgent network questions, but weeks go by. When you finally have the analysis, everything has changed, and it is no longer relevant. It's easier than you think. We’ve all been there. Lack of skilled resources. Lengthy time to plan/execute.
If you’ve followed our blog over the years, you’ll know that we’ve shared lots of information about distribution network design, why it’s vital to get it right, how long it should take, the importance of reviewing the network every so often, and various elements of design such as determining the number of warehouses and where to locate them.
Transportation Networks and Modal Shifts A good transportation strategy is one of the best ways to reduce emissions. Through network optimization. For example, switching from air to ocean freight for non-time sensitive shipments can reduce carbon emissions by up to 95% per unit shipped. How can we help?
For example, if delivery times consistently exceed targets, further analysis may reveal specific routes that require optimization or additional resources. 3) Customer Feedback and Behavior Analysis Understanding customer feedback is crucial for optimizing last-mile delivery.
Global trade networks have been strained in many different ways and fashions that have unexpectedly changed our outlook in logistics in the past few years. For example, we are currently facing issues in the Red Sea that disrupt trade in amounts to what would be close to 15%. Either example would not be good for any of the players.
We wanted to have a robust analysis that we fully understood. But the speed of analysis did not match the speed of decision-making required by the business. We thought our only choice was to upgrade to the vendor’s costly new network design package. Are you struggling with unsupported network design software for now?
A prominent example of such a partnership is between Hapag-Lloyd and Maersk, announced in January 2024 and set to launch on February 1, 2025, under the name “Gemini.” This network will include 29 mainline services and 28 regional shuttle routes, covering major trade routes between Asia, Europe, the Americas, and Oceania.
Transloading: A Comprehensive Guide With Client Examples . For example, a shipment of heavy machinery may be transferred from a cargo ship to a truck using a break-bulk method, with the machinery being stored temporarily in a warehouse before being loaded onto the truck for the final leg of the journey.
ITR Economics analysis shows rising and unmet demand for electric power from sustainability initiatives, coupled with the proliferation of data center construction ($27.3 For example, the global logistics automation market is expected to grow from $50 billion in 2023 to $120 billion by 2030, according to Allied Market Research.
Research conducted by AIMMS found that 38% of supply chain professionals require multiple weeks to address their network-related?questions. Let’s explore some example s. . don’t read signals fast enough and cannot produce the answers?we we need q uickly.? questions. 30% of respondents achieve answers within days.
For example, for one of YQN’s e-commerce customers, RPA technology enabled seamless integration with the customer’s ERP system, shipping company system, and supplier system, building an efficient intelligent logistics network. Dora Zhu is a Senior Research Analyst at ARC Advisory Group China.
For example, an analysis carried out by AIR on the potential impact of Hurricane Harvey on regional manufacturing found that, based on percentage of the total potential revenue loss, the top three subsectors are petroleum and coal products manufacturing (37%), chemical manufacturing (13%), and oil and gas extraction (12%).
Putting the right distribution network in place is critical for performance, especially as complexity and uncertainty increase. Supply chain network design — the process of determining a supply chain's physical configuration and infrastructure — is a powerful, strategic tool that executives can use to optimize a supply chain's functionality.
I’ve noticed a trend in recent years in that when businesses want to check their distribution networks or design a distribution network , they immediately jump into loads and loads of detail. Four Ways to Streamline Your Network Design. I’ve been doing network design for all of 25 years.
There are many working parts, network partners, and opportunities for things to go wrong that some are often overlooked. How Managed Transportation Enables Ongoing Optimization Across Your Network. These processes are intrinsically linked and require shared data and collaboration across all network partners.
Transloading: A Comprehensive Guide With Client Examples Transloading is a process that involves transferring cargo from one mode of transportation to another during the shipping process. We conducted a cost analysis of truck vs. rail shipping from Long Beach to Chicago. This could have had a significant impact on their profits.
Three months into 2025, we have seen a barrage of on-again, off-again tariffs that have supply chain and logistics teams reeling, as they must rethink everything from next weeks shipping route to their foundational network models. They are also limited by their supplier, carrier, and trading partner networks.
The Wall Street Journal’s recent analysis of retailers’ logistical challenges highlights the appeal and success of alternative solutions to traditional warehousing in retail and beyond. Dissatisfied with its current provider (including concerns with quality), this supplier chose STORD’s networked distribution solution.
He cites as current examples capacity issues, the need for efficient supply chains, which Jim says, “are great until they break,” and customer empowerment, such as customers’ desire to have their orders delivered next day. This has created the need for more complex options like continuous optimization within multi-tiered pool networks.
Common Forms of AI Computer Vision Face recognition is one example of Computer Vision. Common applications include facial recognition, object detection, medical image analysis, and autonomous vehicles. Machine Learning (ML) Predictive analytics is one example of Machine Learning. Deep Learning is a subset of machine learning.
Looking to real-life examples for inspiration, we can ask, ‘Who does reverse logistics well?’ For regulators and the public, reverse logistics may be judged by how safe and how green the process is, for example, recycling products instead of throwing them into a landfill. Persuade the customer otherwise.
Supply chain network design (SCND) is a powerful tool for improving business operations. Demand is at the Heart of Supply Chain Network Design The first step in the SCND process is translating business rules into a set of data inputs: demand, products, customers, sites, shipment rules, production details, and various constraints.
When we think of globalization, we automatically think of the modern sense of the word: a world in which we are all connected through trade networks and supply chains that encapsulates the globe as a whole. Often our trade networks and trade routes have been looked at as something new, something recent generations just came up with.
The digital twin, for example, can be subjected to numerous stress tests that mimic real-world conditions and observe how different variables interact and impact the entire network. An example is insight beyond your four walls to understand how tier one, two, three, etc. suppliers impact your ability to deliver.
To achieve these goals, corporate leadership must focus on two key areas: shift from internally focused supply chains to collaborative supply networks and actively design their supply chains. The bullwhip effect is one example of this disruptive effect, when small changes in demand cause huge demand spikes downstream.
For example, go to the Walmart, turn right, and it is the third house on the left. This digital twin contains network costs – the inventory carrying cost is X for this product, by Y for this one. On top of this cost network model, the solution allows for various scenarios to be kept and compared. Logistics can be a challenge.
For example, running a batch process that now takes 8 hours instead of 12 does not translate into supply chain agility. Planners spend considerable time preparing scenario planning and not the actual analysis. Executing the scenario fast provides diminishing returns when non-value-added tasks take up most of the planner’s day.
Use tools to automate root cause analysis and reduce dependency on manual reporting. Collaboration Across the Network Collaboration remains pivotal, particularly in industries like healthcare. Examples include: Labor Planning: Optimize workforce productivity based on real-time data.
However, the element that takes our shipping solutions to new heights is our “Virtual Carrier Network” (VCN). What is a Virtual Carrier Network? ShipMonk’s Virtual Carrier Network (VCN) is an advanced transportation management strategy that guarantees orders are delivered on-time at the best possible rate.
We wanted to have a robust analysis that we fully understood. But the speed of analysis did not match the speed of decision-making required by the business. We thought our only choice was to upgrade to the vendor’s costly new network design package. Are you struggling with unsupported network design software for now?
Too much leads to resources being monopolised on gathering tons of data and a subsequent risk of “paralysis by analysis” Cost to Serve (CTS) is an approach that helps you avoid both extremes. The tools for determining Cost To Serve include standard spreadsheet applications, such as MS Excel, and network design modeling software.
With the innovative system EFA-SmartConnect, high-speed door manufacturer EFAFLEX says is sets new standards in the intelligent networking of door systems. The module enables both the operation and the planning of customer service and maintenance processes in their own, protected WLAN network. Doors communicate in a network.
For example: Compared to selling a product in-store, the cost to deliver that same item as a small parcel can be several times higher. The above examples reflect costs that include picking, packing, and last-mile delivery. Those expenses can increase the cost to serve by a considerable amount. Identifying Cost Elements and Drivers.
Michelle Sodomka, a Senior Director in charge of Open Sky Group ’s transportation management practice has 15 years’ experience in risk analysis and mitigation within the logistics industry. Simultaneously, Emerge is messaging carriers that they have a shipper that needs carriage on a lane that is a good fit for that carrier’s network.
In this article we will look at the topic of customer service: getting it right in your business, understanding the implications for your distribution network, and how you can extract more value —and get more cost—out of your business. 3) Optimise your distribution network to deliver on your customer service offer.
By using strong management and analysis processes, supply chains can maximize value and stay competitive. Streamline data capture and analysis. Data for the sake of data is meaningless without proper, automated analysis and data capture. Truck fleet management has always been intensely focused on knowledge of the freight market.
This technology allows businesses to unify their procurement, expense management, invoicing, payments, contract management, and spend analysis processes and reporting. The supply chain design solution, for example, continues to grow in depth and usability. Just as with BSM, the bigger the SCCN network, the more effective the solution.
To reduce costs and shipping delays, and to optimize inventory, manufacturers like his need to know precisely when, for example, to manufacture boxes that its retailer customer will use to ship the products it sells. But those new sourcing strategies must be informed by an accurate data platform that can conduct risk analysis.
Air cargo or air transport is a vital component of many international logistics networks. To provide maximum trading flexibility they are usually geared and modern examples are fitted for the carriage of containers and grains. Transportation Service #2 – Air Cargo. Air transportation is used to transport air cargo by plane.
This example illustrates why supply chain visibility isn’t enough. What you really need is full transparency into the impact of this delay, not just on part lead times but how their late arrival will affect all the links in your network ending with your customer. Why transparency is better than visibility. Analytics inform decisions.
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