STRATEGIC & OPERATIONAL LOGISTICS SERVICES
A well-structured logistics strategy is an essential element for business success and will directly support the achievement of the organization's overall objectives.
Approach
​
While it is important to understand how logistics chains work and to identify and explore opportunities, it is essential to first understand the business context in which this chain operates. We approach the strategy and design of the logistics chain from the perspective of the entire business: what is the business objective, where is it going, who and where are its customers (and how they are projected in the future), how the business plans meet your goals in the coming years? We work with business leaders to capture and clarify the intent and purpose of the business - we work to understand it as if it were ours.
Once the business strategy is clear, we define how the supply chain should respond to it, now and as it evolves. We considered:
​
-
what should be produced or purchased and in which locations
-
how products should be distributed
-
where and how much product must be kept to satisfy the business objective
-
what are the cost-drivers and how sensitive is the end result for them
-
the ability to operate the supply chain and execute the strategy
-
when, or if, to make a choice between outsourced and in-house logistics chain management
​
Benefits and results
​
-
a clearly defined logistics strategy plan and adherent to your business objectives
-
clarity on what is needed to develop, implement and maintain an efficient logistics chain
-
a deep understanding of the financial impacts of logistics design options
-
a logistics chain with the potential to incorporate best practices and resilience in the business environment
-
roadmap for the implementation of a logistics chain strategy and its associated operational design
-
a well-founded and well-understood business case
Challenges
​
The needs of the logistics chain are transformed over time: what was a perfect design for a business model a few years ago, may no longer be appropriate. The supply chain changes for a number of reasons, such as:
​
-
growth of the company, the market, the competitors, etc ...
-
supplier changes
-
changes in customer service expectations
-
transport, labor and facilities costs
-
mergers, acquisitions and divestments
-
product and market changes
-
changing cost or profitability expectations, margins, etc.
-
the proliferation of go-to-market channels (e.g. omni-channel retail and online service)
​
Opportunities
​
The redesign of a logistics strategy plan should allow the delivery of products and services to customers in a timely manner, with a level of integrity that meets their expectations and with the best cost-benefit trade-off. Redesigned logistics chains often show increases in flexibility (the ability to accommodate unexpected changes in customer expectations or events along the supply chain), visibility (the ability of operators to know what's going on) and control (the ability to act to decrease the impact of changes and events). This usually results in:
​
-
increased customer satisfaction (and associated loyalty benefits)
-
reduction in overall inventory retention (and the associated increase in available capital)
-
lower costs in the logistics chain (and greater competitiveness)
-
greater satisfaction and engagement of teams and internal and external customers
​
COST TO "SERVE"
-
Understanding the costs associated with different routes to the market and different customer behaviors is the key to developing a coherent customer service strategy.
-
Understanding which customers are profitable and which are not. This allows an organization to consider alternative service options to increase profitability.
-
Understanding which products are profitable and whether some should be discontinued. The information can drive the desired prices for new products.
-
Improve your business decisions.
-
Support for using service cost data to build service models to better serve the customer.
-
Extraction of costs, orders and logistics data for analysis.
-
Feedback on the main costs related to customer service. Customer analysis can demonstrate the relative profitability of different accounts.
-
Channel analysis, including use of distributors, agents, etc. and the profitability of each channel.
-
Changes in the product portfolio, service levels for different groups of customers, emphasis on different sales channels and the use of various distribution channels can be adjusted to improve business profitability and focus limited resources on the areas of greatest value.
NETWORK OPTIMISATION
-
These types of projects are typically carried out as a result of significant business growth, acquisitions or the need to reduce supply chain complexity and costs.
-
Determine the ideal supply chain or distribution network to satisfy customer demand at specified service levels and at the lowest cost. The network can be modeled from the factory to the consumer, taking into account all the main costs and service factors, such as:
-
-
best location
-
order size and frequency
-
transportation costs
-
types of transport vehicles
-
transport modes
-
warehouse size (Distribution Center), location, resources, costs
-
service level requirements
-
plant and supplier locations
-
ports of entry for imported products and many other key variables
-
-
Resources and benefits include:
-
reduced distribution costs
-
better understanding of customer service needs and options
-
better understanding of service costs
-
proper balance of storage, inventory and transportation costs
-
graphical mapping of customer demand and density
-
this type of work is often linked to customer profitability analysis, product profitability analysis and cost of service audits (CTS)
-
TRANSPORT & DISTRIBUTION
-
Mapping of transport processes, reviewing and identifying opportunities for redesigning distribution operations.
-
The modeling and analysis of alternative transportation options can determine the ideal solution for your current activity and identify how and where costs can be reduced and service levels improved by reconfiguring the operation.
-
Alternative stock locations.
-
Evaluation of different types of vehicles. assessment of modes and intermodal transport.
-
Shorter / longer delivery times, review of desired service level.
-
Selective use of carriers according to the order value, delivery region or order size.
-
Complete report covering the results of the modeling, with a presentation to review the findings and the next steps.
-
Evaluate the incident rate during the transport operation and prepare an effective action plan.
-
Analysis of the scope of contracted service, procedures, processes, performance indicators, goals and agreed service levels. preparation,
-
Presentation, validation and implementation of the operational improvement plan.
WAREHOUSING
-
Critically examine all structures and processes with regard to their efficiency,
-
Identify deficiencies, and establish the potential for optimization. Does the warehouse or DC meets the desired requirements? Does the team have properly trained on business rules? Are KPIs implemented?
-
Emergency and safety action plan. Contingency plan.
-
Can the cubic utilization and density of occupation and general use be improved?
-
Is the layout helping or hindering productivity? Is the current MHE (Mechanical Handling Equipment) suitable for the planned operation?
-
Can productivity and capacity be improved with alternative equipment?
-
Are the SKUs in the right area? Is general movement through the warehouse minimized? Are there unnecessary points of congestion?
-
Develop ways to make the design of your processes, IT support, use of technology and staff organization more efficient.
-
Support in the implementation and training of personnel. Evaluation of results using a cost-benefit analysis, both qualitatively and quantitatively, and selecting the appropriate measures accordingly.
-
Does the current WMS support the planned operation? What functionality is needed to improve productivity? Is the investment in a new functionality economical? What is the return?
-
Analysis of the scope of contracted service, procedures, processes, performance indicators, goals and agreed service levels.
-
Preparation, presentation, validation and implementation of the operational improvement plan.
PROCESS IMPROVEMENT
-
A process improvement program will bring benefits that far outweigh the effort.
-
Small, incremental changes can produce high-impact results.
-
A commitment to a consistent and structured approach can help logistics operations become more efficient.
-
Assessing and recognizing the current state of your operation will make it easier to distinguish the problem points and then implement improvement strategies.
-
Identify the main problem by addressing the discrepancy between where you are and where you want to be.
-
Before mapping out a solid improvement strategy, it is important to establish your target goal (s) so that you know what to work on and how to measure progress.
-
Map a strategy - including team members in the strategy mapping process is extremely important as it increases compliance and raises morale.
-
Measure effectiveness - In order to assess the effectiveness of your improvements, it is important to analyze the effectiveness of your actions in relation to your goals.
-
Track projects and measure improvements on a monthly, quarterly and annual basis to maximize the impact of the continuous improvement process.
FOREIGN TRADE
-
Performance evaluation in lead times and costs of international logistics (modes, port of origin and destination, transit times...).
-
Port logistics, port costs, customs broker, terminals, port storage (primary and secondary areas), intermodality (ocean - road - rail).
-
Analysis and improvements in on-carriage / pre-carriage services.
-
Assessment of customs broker services: analysis of the scope of the contracted service, KPIs, costs, goals, deadlines, activities that can be outsourced, among others.
-
Reduction of leadtimes and costs by increasing operational efficiency through the implementation of a service level agreement.
-
Demurrage: analysis and negotiation.
