Network redesign

Why consider a network redesign?

In case of
  • Cost increases : labour cost, km charge, fuel cost …
  • Geographical shift in supply and/or production 
  • Market differentiation, new geographical markets, new service requirements, new distribution channels,…
  • Government regulation : transport charges (Maut, …), …
  • Product portfolio increase or a shift in product life cycle
  • Competition

The goal of a network redesign?

Set-up (number of nodes, locations, function per node,…)
with a focus on cost reduction

  • Transport cost
  • Handling cost
  • Infrastructure cost
  • Inventory holding cost

with a focus on customer service improvement

  • Delivery lead time
  • Delivery reliability
  • Completeness
  • Accuracy