Deloitte delivers optimal nationwide logistics

Февраль 22, 2018 Gavin Wilkinson

Deloitte delivers optimal nationwide logistics

Reduce costs and improve service. Simple in principle, more of a challenge if you have 20,000 sites serving customers, businesses, operators, and government in the world’s largest country. Using anyLogistix supply chain software, Deloitte CIS delivered success for a major Russian telecoms provider. How?

Targets met, costs reduced

Deloitte CIS were chosen to develop an optimal logistics network that would meet future optimization targets and demand-forecasts while also maintaining a high level of service. In meeting these requirements, logistics costs were reduced 9%.

With the stakeholders, three optimization hypotheses were defined. Initiatives to meet these hypotheses were then developed and their business cases calculated. Additionally, six non-cost effects on the network were also defined. Broad in nature, the project involved determining:

  • The optimal network hierarchy
  • The cost and effect of simultaneous inventory optimization and network optimization
  • Future warehouse capacity and location requirements
  • An optimal transformation plan

To objectively measure the project, it was necessary to capture the existing logistics network.

Good foundations

A baseline model of the logistics network was built and calibrated using data from the enterprise resource platform (ERP). The process involved several stages and resulted in a stakeholder approved model that was ~99% accurate.

Part of the work to establish a baseline model produced a dashboard to show logistics network performance. This would also be used when evaluating potential development scenarios.

Realizing potential

Six scenarios were designed – three network structures, each with two inventory policies. Modeling and simulation then generated cost predictions which, combined with estimated transformation costs, were used to evaluate the scenarios. The dashboard provided visual reports for stakeholder validation.

Scenarios that best fit each of the seven regions formed an overall target scenario. This was then modeled, including the ability to assess the transformation costs.

A logistical triumph

Bringing the case to a close, Deloitte delivered the results requested. From a clear step-by-step plan of transition, to ongoing benefits, the outcome brought not only integral logistics costs that were reduced by 9%, but also many other key measures of success. To read more about them and dive into the details, take a look at the Deloitte Case Study.

⚡ ALX will be presenting the latest developments in its supply chain software and revealing the roadmap ahead at this year’s AnyLogic Conference in Baltimore, April 18-19, 2018. Find out more and reserve a place today! >>