Faced with extensive product sourcing and distribution options, companies can struggle to identify the most cost-effective method for fulfilling supply chain demand.
This presents a number of associated challenges:
By determining infrastructure strategy, Körber’s network design solution supports industries with complex multimodal distribution networks to reduce their total cost-to-serve.
Not only does it enable companies to review the number, location and capacities of their depots to forecast demand, it identifies the network’s impact on margins and service levels.
This helps companies determine the most cost-effective routes for each demand point, the mode of distribution, the demand points of depots, the resource requirements and the cost-to-serve model for each customer.
The system can also indicate additional costs that might be incurred by serving a demand point from the “next best” depot, for example. Where product sourcing exchange agreements exist, managers can analyze their cost-effectiveness and structure, empowering the contract negotiation process.