Logistics Network Optimization – a Vital Link in the Supply Chain

Transportation management is different from other processes in the supply chain as many of those processes happen only once, but transportation must be addressed again and again throughout the life cycle of product development and delivery. With a shortage of capacity, tighter regulations, reduced staffing, and shrinking IT budgets, framed against a backdrop of increased customer demand,  it is more important than ever to have a strategic and dynamic supply chain that can quickly adapt and optimize  activities in a feasible and executable way.

The AVATA Logistics Network Optimization (LNO) environment allows for distribution network modeling decisions to be made from a holistic perspective by giving companies complete end-to-end supply chain visibility.  As solutions are explored and results simulated, decisions can be vetted to understand their total effect on the supply chain.  The ability to manage and simulate the entire supply chain enables you to move from a static collection of discrete points and events to a dynamic, connected “DATA CHAIN” that flows and adapts with ever changing supply chain events and business conditions.

Logistics Network Optimization Questions

LNO Helps Answer the Tough Questions:

  • What is the real total cost of outsourcing including the impact on working capital and cash flow?
  • What is the impact of mergers and acquisitions on my supply network and capital asset budget?
  • How could I react to a disruption in supply due to unforeseen events? Should I multi-source?
  • How do demand changes coupled with sourcing from multiple manufacturing/supplier locations impact my supply chain delivery, and cost?  How can it be optimized from sourcing through logistics?
  • What are my most profitable channels or products to invest in?
  • What should my network look like to minimize overall logistics cost?
  • Which one of my DC’s should service which stores?
  • What carrier capacity levels will I need to meet my demand?
  • What happens if I enter a new market, encounter a new competitor?
  • What happens if my product mix changes dramatically?
  • What happens if one of my key suppliers goes out of business?
  • How quickly do I understand the ripple effects caused by a problem in one of my facilities?
  • What customers are impacted tomorrow when I get a bad component shipments today?

LNO graphic

The Benefits of Logistics Network Optimization:

LNO, leveraging Oracle’s SCM and logistics suite of products, solves complex transportation network problems, improves agility and responsiveness and enables continuous refinement.  A strategic supply chain with the visibility, capability and fluidity to execute more competitively results in a host of efficiencies.

  • Reduced logistics costs
  • Improved distribution network and asset utilization
  • Increased inventory turns
  • Improved customer delivery compliance
  • Increased carrier capacity and collaboration
  • Improved cost to service
  • Reduced cross functional waste
  • Increased visibility to out of plan/network activity to promote root cause awareness and corrective action
  • Supply chain resiliency – ability to survive, adapt, and grow during turbulent change

AVATA has developed industry thought leadership around Logistics Network Optimization that can be delivered as a Cloud or on premise solution.  Contact AVATA to discuss how LNO can help provide your organization with a more streamlined, end-to-end network planning process with the ability to measure the value of changes made to current network.