Supply chain modelling using world leading software

A contract logistics company wanted to assess the warehouse and depots that would be required as a retailer rolled out a home delivery service.

 

Data on existing and potential deliveries was provided and a picture of the delivery profile by post code sector was compiled using demographic characteristics. The Paragon route planning system was used to calculate the vehicle requirements for a nominated time service that included evening deliveries. Delivery costs by geographic area were then calculated for the base year and extrapolated to year 5 to form the basis for network planning.

 

We then used the Infor Network Design software to assess delivery infrastructure and channels. We firstly optimised the network based on the year 5 profile, then optimised each year individually to obtain the migration path.

 

The project provided a clear roadmap for the retailer and distribution company, indicating the distribution infrastructure required year by year and illustrating the cost of the home delivery service.