Benefits of Distribution Network Analysis

July 29, 2021 Published by Becky Barclay

The efficiency of a distribution network directly impacts supply chain expenses, profitability, and customer satisfaction. The best way to optimize your network is to assess it regularly; however, many companies do not have the tools or expertise to evaluate supply chain health holistically.

Partnering with a supply chain consulting expert to analyze your distribution network is advantageous for multiple reasons. These logistics professionals allow you to stay focused on your core business in a competitive market by bringing a neutral, fresh perspective and concentrating entirely on leveraging their expertise to benefit your business. They develop solutions for your complex supply chain needs by analyzing all aspects of your distribution network including labor, warehouse layout and design, transportation, and location. Frequently, the main component affecting network health is facility location, which, in turn, affects transportation costs.

Facility Location

Site selection can significantly enhance a company’s ability to compete and effectively serve its customers. The location of a company’s warehouses affects output efficiency, overall storage and distribution costs, and profitability. A consultant evaluates these key factors when assessing distribution network locations:

  • Workforce availability
  • Building layout, size, and capacity
  • Environmental factors
  • Distance from major suppliers, carriers, and customers
  • Ease of accessibility

The right warehouse location ensures quick deliveries, reduces shipping costs, and boosts customer service. The layout of the building should also support inventory levels, product types, service requirements, and inventory flow.

Reduced Transportation Costs

Finding the right location for your warehouse leads to reduced transportation expenses which rank highest among supply chain costs. Transportation costs are affected by numerous variables, including:

  • Highway and exit accessibly
  • Road safety and conditions
  • Average traffic speed and volume
  • Peak traffic hours

Consultants consider congested highways and inadequate safety conditions when conducting their analysis. These factors increase fuel consumption and accident rates.

WOW Logistics’ Network Analysis Study

WOW Logistics is the fastest-growing supply chain solutions provider in the country. More than 40 years of supply chain expertise back our network analysis studies. WOW has the right resources to thoroughly analyze a company’s distribution network and identify optimum warehouse locations that streamline distribution and reduce costs. Then, following a careful examination of your supply chain, WOW provides strategic, economical solutions. On average, customers save 10 percent in total supply chain costs as a result of our analyses.

Network analysis is just one supply chain consulting solution WOW Logistics offers. We also provide Supply Chain Health Checks, Warehouse Layout and Design Services, and Warehouse Inventory Strategies.

Explore our website to learn more.