Supply chain modelling using world leading software

A company delivering to the high street from 14 depots nationwide wished to review its depot network. They had a large product range and the picking operation had to be very accurate. Automation had been selectively introduced to facilitate low-cost accurate order picking. The high investment cost of automation pointed to fewer depots, but delivery lead times were very short so depots had to be close to customers to achieve the service economically. For some sparsely populated areas, volumes would not warrant highly automated picking systems

We conducted a number of studies, focussed on separate regions of the UK. In those areas where high technology facilities had already been introduced we confirmed the existing strategy and refined the serving areas of the depots. In other areas, we established whether new facilities were warranted and where they should be located. A series of computer modelling techniques were employed. We used the Infor Network Design tool to balance competing transport and site costs to find the best combination. The Paragon route planning system was used to size the vehicle fleet. Spreadsheets and mapping software were also used.

In one area, a planned depot closure was averted due to adverse impact on service. In another, two old fashioned depots were closed and a new high technology facility was built. After the strategic work was completed, we carried out an account profitability study, which enabled the company to understand the contribution being made to its business by different types of customer.