Thursday, December 29, 2016

Tips To Handle The Essentials Of Distribution Network Design

By Carl Cox


Among the many elements of commerce, perhaps none has changed as drastically as logistics has over the last few decades. The modern supply chain now has to deal with competitive pressures, huge product lines and huge expectations from the market. Handling this continuum of change is key to ensuring a business remains profitable in both the short- and the long-term. And to do this effectively, the factors that greatly influence distribution network design must be considered when updating operational models.

The unpredictable elements that characterize the modern business environment must be taken into account while developing a distribution network. Here, you need to take into account both planned and unplanned events that may have an impact on your operations. Perhaps the biggest inhibitors to flexibility are the equipment and operations that support the supply chain. The capability to exploit emerging channels and uphold efficiency can only be acquired with versatile resources. So even if it means putting up with some hiccups in the short term, carry out the radical changes required to update your distribution facilities and tools.

In a global marketplace, it's always important to have the right product, at the right place at the right time. After all, this is what a demand-driven supply chain is about. Successful firms have focused on an end-to-end strategy that streamlines the flow of both incoming raw materials and outbound finished products.

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.

Paperwork and keypunching in daily distribution activity are not only tedious, but also lead to errors. This is far from ideal, especially in logistics, an area where timely and accurate information is always required. The best solution would be a paperless system that enforces protocol in addition to ensuring that the right products are picked and packed. Your firm would greatly benefit from standardized, industry-tailored programs that can support the high growth associated with a successful distribution operation.

Businesses that aren't able to speedily fulfill orders can't be competitive for long. An efficient, quick supply chain is highly critical, especially in this digital era. From vendor compliance to execution systems, your entire logistics network needs to keep pace with current e-commerce speeds. Streamlining your distribution nodes would greatly help in matching your clients' expectations. Besides, you'll be better placed to account for the increased inventory turnover, short product lives and other elements that characterize modern commerce.

Accountability is absolutely crucial in distribution departments. And it's the responsibility of managers to make the difficult calls needed to enforce accountability. When outlining related protocols, care must always be taken that each policy works for the good of the entire organization.

Even the most advanced supply chains need constant optimization to keep up with upcoming developments. Redeveloping your logistics network periodically will help you face whatever the market throws your way. Engaging an experienced consultant in the process is crucial in guaranteeing the success of your project.




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