In many markets you may be supplying products that are very similar. However, these products are likely very different in terms of their landed costs. Maximizing total profitability- by optimizing the mix of product offerings, plant production capacities and supply channels- can be a competitive advantage for your operation.
We work with you to develop opportunities to improve both the overall distribution strategy as well as capturing efficiency improvements.
Sometimes, due to the complexity of some distribution networks and trade-offs between economic drivers, it is not a simple “back-of-the-envelope” exercise to quantify the opportunity and other costs, or to assess the potential remedies for profitable moves. In most cases like these, linear program solving is required.
Types of problems we fix:
Forecasting: Determining the effect of seasonal factors on historical sales to improve forecasting
Multi-period inventory management: Managing inventory across multiple period to minimize holding costs while maintaining sufficient stock
Product Mix: Using available resources to manufacture a mix of products that yield the highest profit
Network optimization: Maximizing the profit from several plants while minimizing the cost of shipping from multiple sites
Greenfield modeling: Locating plants or warehouses to maximize overall profit
Shipping cost reduction: Minimizing shipping costs on routes with fixed costs while meeting demand