Distribution Network Modeling is a key component of our strategic approach to Supply Chain Logistics
Distribution Network Modeling is a key component of our strategic approach to Supply Chain Logistics. However, too few people recognize that modeling has limited, or even negative, usefulness when attempted as a stand-alone set of calculations. An analysis of current and historical data can yield an answer that is, at best, insufficient for the needs of the future.
The real power and value of network modeling result from its application in the context of:
1) a fresh definition of a company's distribution and service strategies (including flexibility for change), going forward; and
2) the inclusion of projected business dimensions of volume and geography in the alternatives considered by the model.
Too often, a modeling exercise embarks on a search for the lowest transportation cost solution. The real key to building the right distribution network lies in understanding the realities of customer service imperatives - then finding the right balance in service, mode, and cost alternatives. Its not just as simple as plotting a few nodes on the map.
We apply a variety of modeling and analytic tools, depending on the complexity and business needs of the situation. As important, we apply the judgment and thought leadership of seasoned professionals to the construct and analysis of a model and its results.
The Progress Group, LLC, 1080 Holcomb Bridge Road, Suite 300, Roswell, GA 30076. Tel: 770-804-9920; Fax: 770-804-9925.