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
- …
