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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 dynamic supply chain is one developed with the global market in mind. All nodes within your logistics network have to support a global end-to-end strategy. During the streamlining process, pay special attention to incoming raw materials and outbound products. Customer service functions may also need to operate round-the-clock to assist individuals in various time zones.

As you may be aware, laws from all levels of government greatly impact supply chain operations. And it's the responsibility of business executives to learn these policies and how they affect their respective niches. Taking up an active role in legislative processes is also required in order to track regulations and make your concerns known. Being proactive is the best way to know what policies will positively (or negatively) impact on your own logistics operations.

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.

The pace of distribution needs to increase significantly if a firm is to meet the speedy transactions made possible by digital technologies. This calls for streamlining the entire supply chain, from compliance to information and execution systems. Businesses that aren't able to quickly fulfill orders won't be competitive for long.

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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