Logistics and distribution refers to the effective management of the whole network of flow (of material, services and information) across the supply chain including the storage facilities and 3PLs.
Benefits of an effective logistics and distribution network
An efficient logistics and distribution system affects the whole supply chain. In its absence, the firm may lose out to its competitors in spite of a having a better product and better value proposition. The logistics network forms backbone of the supply chain connecting various functions together.
Benefits of an effective logistics and distribution system:
- Lower costs due to better utilization of resources
- Faster cash-to-cash cycle
- Lesser inventory levels
- Increased reliability of delivery to customers
- Decreased response time
Questions/Issues
- How to minimize the total landed cost (production, inventory handling and transportation cost) within acceptable service levels?
- In-case of global sourcing, how to manage the complex logistic network?
- Where to locate your new warehouse to reach your changing customer base?
- Does consolidation of DCs make sense for my firm?
- Which mode (air, water, road (LTL or FTL)) to use in which lane?
- What should be the capacity of each lane?
- How will the service levels be affected for a given change in my distribution network?
- How will my distribution network affect inventory levels?
- Should a firm collaborate with another firm (might be competitor as well) for a common warehouse/transport network for mutual benefit?
Aqua MCG Solutions & Offerings
Aqua MCG helps you co-ordinate the link between manufacturing, distributors, warehouses and 3PLs through an effective logistics and distribution network with the help of these solutions:
| Inbound / outbound logistics |
Network Planning |
- Logistics maturity assessment
- Logistics network design and optimization
- Network Optimization:
- Fleet optimization
- Route optimization
- Contract optimization
- Warehouse and Distribution centre location
- Number of warehouses and capacities
- Reverse logistics network design
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| Transportation vendor selection |
- Transportation vendor evaluation framework
- Vendor election, capability and readiness assessment
- Transportation Management System: Transportation Management System or TMS ensures that the decision making process for transportation incorporates inventory level, production planning, forecasting and scheduling and warehousing concerns so as to provide a globally efficient (time and cost) solution. This also increases the visibility in the whole system and ensures that functional silos are not created.
- Shipment tracking solution : RFID & GPS implementation
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| Transportation vendor evaluation and performance management |
- Performance evaluation criteria identification,
- Vendor balance score carding
- Vendor classification (partner, transactional etc.)
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| Warehousing |
Warehouse location strategies |
- Warehouse location strategies
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| Own vs. outsource decisions |
- Outsourcing logistics services: Assessing a firms need for outsourcing logistics services and selecting the right 3PL (3rd party logistics service provider)
- Own vs. Outsource decision criteria
- Outsource partner evaluation framework & capability assessment
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| Warehouse Design |
- Warehouse type selection and layout: Conventional, Flow through or cross-dock
- Warehouse management: Warehouse operations optimization, Warehouse Management Systems (WMS) implementation
- Storage Layout, Storage Medium, Palletization
- Stacking methods
- Equipment selection
- Simulation of warehouse layout and flows
- WMS Evaluation, selection and implementation
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| Inventory Management |
Inventory Strategies |
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| Inventory Planning & Optimization |
- Procurement organization performance evaluation metrics
- Performance evaluation and improvement areas (including realignment & change management)
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A well organized, transparent and effective logistics and distribution network greatly enhances customer satisfaction levels and cost reduction opportunities. Aqua MCG provides a complete end-to-end solution to all your logistics and distribution needs to achieve best-in-class supply chain performance.
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