Wednesday, December 28, 2016

Factors That Influence Distribution Network Design

By Carl Cox


In the recent past, logistics managers have found themselves faced with new product lines, more expectations from clients and other dynamic demands. And as supply chains continue to evolve, handling these elements in the right manner could make a huge difference in business. To remain competitive, entities have been forced to reconfigure logistics operations to handle the ever-changing requirements. Paying attention to significant elements while doing this is the key to effective distribution network design.

In a world fraught with unpredictable elements, flexibility is critical. Planning for both expected and surprise changes should thus drive the development of distribution facilities. All processes and equipment within the network have to be versatile while still retaining an acceptable degree of practicality. And this comes in handy whenever there's need to exploit new channels for purposes of enhancing efficiency.

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.

Government policy has a far-reaching effect on logistics operations. Knowing the laws that regulate your industry and getting involved in their formulation is thus critical. Managers need to assume an active role in the review of regulations affecting taxes, infrastructure and transport. By collaborating in the legislative process, government bodies and businesses are able to draw up policies that benefit both of them.

The days of keypunching in logistics activities and arduous paperwork are fast becoming a distant memory. In today's digital world, information needs to be delivered precisely and promptly. Modern distribution execution systems come packed with standardized features and real-time interfaces. To keep up, you need to invest in industry-tailored programs that will facilitate smoother processes.

The pace of distribution needs to increase significantly if a firm is to meet the speedy transactions made possible by digital technologies. This calls for streamlining the entire supply chain, from compliance to information and execution systems. Businesses that aren't able to quickly fulfill orders won't be competitive for long.

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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