Saturday, December 31, 2016

What Factors Would Affect Distribution Network Design?

By Carl Cox


In the recent past, logistics managers have found themselves faced with new product lines, more expectations from clients and other dynamic demands. And as supply chains continue to evolve, handling these elements in the right manner could make a huge difference in business. To remain competitive, entities have been forced to reconfigure logistics operations to handle the ever-changing requirements. Paying attention to significant elements while doing this is the key to effective distribution network design.

In a world fraught with unpredictable elements, flexibility is critical. Planning for both expected and surprise changes should thus drive the development of distribution facilities. All processes and equipment within the network have to be versatile while still retaining an acceptable degree of practicality. And this comes in handy whenever there's need to exploit new channels for purposes of enhancing efficiency.

A demand-driven supply network requires having products at the most suitable location all the time. And with global clients knocking at your door, preparedness is highly critical. Operations should be tailored to support a streamlined network from end to end. Key areas to optimize include the inbound flow of raw materials and the outbound flow of finished products. You may also be required to adjust your client support systems to function round the clock.

Just as government policy has an effect on business, logistics managers have an obligation to be involved and aware of laws that involve their niches. Rules on taxation, infrastructure and labor are constantly changed on all levels of government. Without the right input, uninformed decisions could dramatically affect supply chain operations. So it's important to not only familiarize yourself in the regulations, but also take up an active role in the formulation of these policies.

Today's reality is that distribution systems need to provide accurate information at the right time. And with the emergence of standardized information management systems, developing and maintaining in-house programs is no longer fashionable. Switching to industry-tailored, paperless solution would be your best bet.

With consumers now using the internet to make purchases, businesses need to speedily fulfill orders if they're to remain competitive. This translates to increasing the pace of distribution significantly in order to meet market expectations. Additionally, your supply chain needs to properly handle the shorter product lives and reduced lead times. Such elements are typical of the modern commercial arena.

Upholding accountability within a logistics department is critical for a number of reasons. And this requires establishing performance benchmarks, exploring improvement opportunities and constantly tracking resources. Also necessary is a form of reward for exceptional performers. However, care must be taken that any incentives are tied to something that benefits the entire organization.

No matter how well-designed, a distribution network will start to show signs of age as time goes by. Regular optimization is thus needed to create streamlined delivery processes. And to pull this off, you need to gather some data and develop models suitable for your own entity, since no two supply networks can be identical. To ensure you get the right results, it would help to engage an experienced consultant throughout your project.




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