Positioning of Warehouses

Based on the material flows, the cost and type of transport and operational guidelines, Network Optimum allows you to analyze and determine the ideal number of facilities and their optimal location.

More than 5 000 locations available in Europe, Turkey, Ukraine and Russia

Network Optimum allows you to choose between more than 5 000 locations in Europe, Turkey, Ukraine and Russia. These locations have typically more than 20 000 inhabitants. The location quantity and specification can vary depending on each of the client’s particular needs.

Calculation of transport costs, inventory costs and warehouse costs

Transport costs are in most cases a large part of the total operational cost of physical distribution of goods. Network Optimum allows calculating the difference in cost between a warehouse in the optimal location and a warehouse at a suboptimal location.

Network Optimum enables its users to evaluate its existing distribution and sourcing logistics operations and to simulate the effect of other parameters.

It allows the user to enter a wide range of data, including network outlets (clients, suppliers), network nodes (distribution centres, consolidation hubs), transport methods, costing parameters (transport fleet, warehouse operational costs, etc), product groups and delivery orders. The user can then amend the parameters to simulate alternative scenarios. Each simulation produces a detailed analysis of the associated transport, warehousing and inventory costs, allowing the client to constantly assess its logistics strategy and operations. In addition, it visualizes the client’s existing and optimized logistics network.

Modelling of consolidation hubs

The costs of transportation and warehousing dominate retail distribution costs. The transportation expenses can be lowered by the introduction of consolidation terminals and direct shipments. In these consolidation centres (CC) goods are usually “cross-docked”: typically, storage takes place for only a few hours. We define two sorts of consolidation centres:

Sourcing consolidation centres: small shipments arriving from suppliers with a relatively small number of pallets are grouped into larger shipments. From the CC these new shipments are shipped to the DC(s).

Distribution consolidation centres: larger shipments arriving from the DC are split into smaller shipments that are leaving for the shops.

We consider the possibility of combined sourcing- and distribution centres; hence trucks can profit from reverse logistics.