Warehouse network optimization
Supply chain professionals routinely tell me, “If you haven’t completed a network optimization study recently, you are probably leaving a major savings opportunity on the table.” I agree. This is a strategic activity, and can result in a major breakthrough in the total distribution center network cost structure.
Both retailers and manufacturers can evaluate and change the structure of their distribution center network to produce major savings. Some firms carry out a network optimization review on a periodic schedule, usually every two to five years.
How many distribution centers should you have?
Where should they be located?
Which customers or locations should each serve?