Service Offering - Regional Distribution Strategy
When one takes a continent wide strategic view of distribution, the questions that must be addressed are different in nature to those that would be examined tactically at an individual site level.
- What is the correct configuration of distribution centres?
- Are distribution operations better outsourced or insourced?
- How does product differentiation impact distribution chain configuration?
- Do centre of gravity approaches add value?
- Is there a role for 3PL's.
- What drives cost? and what are appropriate frameworks for assessing the costs of alternative distribution options?
- Are measures such as cost per delivered pick, storage cost per pallet, distribution cost as a % of CGS and inter nodal movement cost matrix's informative.
- In the case of Pharmaceutical Corporations, what is the appropriate strategy for engaging with Wholesalers?
- What about pre-wholesale?
- Should the ideas in efficient consumer response influence our strategy?
- How should the distribution chain link to the factories and 3rd Party Supply?
- What is the role of information systems in bridging these organizations?
- Is there strategic sourcing leverage in taking regional or global wide view of distribution service procurement?
- How should the distribution chain be parameterized?
Deliverables :
- Characterization of current distribution network
- Comparison with alternative configurations
- Initiative identification as appropriate for the business context.
Typical Duration : (contingent on operating unit complexity, system capability and robustness of the current process)
Typical Sponsor
- Regional Director Logistics or Finance
Related Offerings : Site Logistics Optimization