Supply Chain Network Strategy

Network strategy is concerned with determining the best supply chain infrastructure for a business, including the location and function of Distribution Centres, Cross-dock Centres and outbases. This needs to take account of business requirements and planned developments.

The starting point in developing network strategy is to analyse the performance of the existing logistics infrastructure and to understand the dependencies within the supply chain. Particular focus needs to be placed on customer service requirements.

Centre of gravity modelling allows the best location(s) to be identified from a supply chain logistics viewpoint, considering both inbound and outbound flows. Detailed scenario modelling can then be carried out for combinations of locations, taking into account transportation requirements, space costs, staffing costs and other local factors.

Total Logistics has developed Centre of Gravity models and Network Optimisation models within the Insight suite of supply chain modelling tools.