Outbound Distribution

Optimize Your Distribution Network

Who is it for?

Manufacturers seeking to enhance their distribution networks and improve profitability.

What is it for?

Our Outbound Distribution service helps manufacturers:

• Align distribution with customer needs: Ensure timely and efficient delivery of finished goods to meet customer service level agreements.
• Optimize distribution costs: Reduce transportation, warehousing, and inventory costs across the entire supply chain.
• Improve profitability: Increase EBITDA by identifying and implementing cost-effective distribution strategies.

How we achieve this:

• Advanced analytics: Utilize sophisticated simulation models to analyze millions of potential distribution scenarios. Note: our simulation models combine static (transportation and warehouse) and time-series (forecast) coding.  We do not use (code, lease or buy) linear programming enigines!
• Data-driven insights: Leverage comprehensive data analysis and rigorous modeling to identify optimal solutions.
• Expert guidance: Benefit from our team's deep expertise in supply chain management, logistics, and data analysis.

Value Proposition:

• Significant cost savings: Achieve 0.5% - 1% EBITDA improvement per $1 billion in revenue through optimized distribution.
• Enhanced customer service: Ensure timely and reliable delivery of products to meet customer expectations.
• Improved operational efficiency: Streamline distribution processes and reduce operational costs.
• Data-driven decision making: Gain valuable insights to support informed strategic decisions.

Brand Promise:

• Unbiased and comprehensive analysis: Explore a wide range of feasible scenarios to identify the optimal solution for your unique needs.
• Collaborative approach: Work closely with your team to gather data, analyze results, and ensure successful implementation.
• Ongoing support: Provide ongoing support to adapt to changing market conditions and ensure long-term success.

Key Features:

• Comprehensive scenario analysis: Evaluate a wide range of distribution options, including facility locations, inventory strategies, and transportation modes.
• Data-driven optimization: Utilize advanced analytical techniques to identify the most cost-effective and efficient solutions.
• Expert guidance: Benefit from our team's expertise in supply chain design, implementation, and change management.
• Focus on customer service: Ensure that the chosen distribution strategy meets your specific customer service requirements.
• Every in-scope scenario: CSD is the only service in this industry that will provide thousands of fully-costed alternative in-scope scenarios (top 10% of lowest cost).  

Contact us today to learn how our Outbound Distribution service can help you optimize your supply chain and drive significant improvements to your bottom line.

A specialty chemical company partnered with CSD to optimize their outbound distribution network. The client sought to understand the "Cost to Serve" for 2-day shipping and identify the most effective network configuration.

CSD employed a rigorous, data-driven approach, developing a unique network simulation model that incorporated cycle times, transportation rates, warhouseing labor cost and, inventory forecasting to locate, size and cost each scenario.

Through this analysis, we demonstrated a consistent ~85% service differential between service-optimized and cost-optimized networks across various warehouse configurations (4-9 locations).

The client ultimately selected a network with 4 cost-optimal locations (see below -Scenario Run # 00768), enabling 2-day service to 84% of the market. This optimized solution resulted in a significant $28.9 million increase in EBITDA.

Need to Reshore Manufacturing?

Use Core Strategy Design to create a Strategic Reshoring Plan!  Imagine locating manufacturing locations based on workforce local competencies, wage compression, customer service level(s) and, overall inbound/outbound logistics.  Need a Five Year Plan? 

Core Strategy Design will get you there!

Below are a sample of Core Strategy Design's Past Projects