With the increasing level of vertical integration, the eight Rs of logistics become more and more crucial. Besides the right (“R”) place, good, quantity, quality, costs, customer, information and time a 9Th “R” is vital to profit in the upcoming Hyper-VUCA world: The right consultancy. It is crucial to have the right consulting partner on your side who has the understanding, tools and proof to face upcoming challenges affecting the way you do business tomorrow.
In our first article we have presented CAMELOT’s capabilities as a logistics and supply chain expert from a strategic point of view. One method of choice is CAMELOT’s value stream mapping respectively logistics assessment. The findings here can be used to initiate a deep dive into the next level of complexity. The tactical level.
As mentioned in the first article, CAMELOT has a distinct expertise in post-merger support services along the value stream. Especially, networks are sensitive after a conducted merger as many former elements and now added ones have to be harmonized to ensure an efficient process flow.
Weak point: above average transportation costs
Typical inefficiencies in an unharmonized distribution or purchasing network are e.g. above average transportation costs and high safety stocks. Often, we observe a non-correlation of the number of warehouses and desired service level. Additionally, there are often too many logistics service providers (short: LSP) contracted which forms a non-transparent, inefficient mosaic of services and can lead to e.g. non-exploited freight rate contracts. Cost-efficiently exploited freight rate contracts show the right amount of volume to deliver best cost-levels per shipment. Furthermore, it has to be reviewed if your current portfolio of LSP enables you to choose the right value add services you might need for your customer service level defined in your new logistics strategy. Like e.g. in-room-delivery services, adjustable returns services etc.
CAMELOT Logistics Analyzer
In order to tackle these challenges, CAMELOT developed an approach which employs high-end data analytics and optimization tools as well as personal expertise of our logistics experts. However, also on a tactical level we strongly believe in pragmatical quick wins. Therefore, we have created CAMELOT’s logistics analyzer allowing us to give you first advice on what can be optimized in terms of e.g. costs and lead time. With results of the logistics analyzer it is possible to determine further entry points for additional deep dives in specific areas like your sourcing markets, your service level for shipment volumes to a specific market etc. Especially, for the review and the selection and of your LSP portfolio, we have created ready-to-use tendering templates. We will show more about our tendering practices in the next article.
Logistics Analyzer #1 – Primary Flows
Logistics Analyzer #2 – Logistics Heatmap
Another part of our network re-design is to consider demand driven approaches. Just in time (JIT) or even just in sequence (JIS) concepts might be suitable as well as having a look into your value stream in regard to demand-driven-readiness. Becoming demand-driven can first increase agility & service levels, second, reduce costs and third increase your profitability. However, your logistics has to be prepared and first analyzed to setup the right follow ups. Moreover, your inventory as well as risk management may be required to be analyzed and optimized by CAMELOT logistics experts as well.
One advantage: Improved lead times
What is the benefit of engaging CAMELOT to review and re-design your network? We have seen double digit cost reductions, improved lead times, lower (safety) stock and a reviewed portfolio of your LSPs as key wins for you and your organization. Plus, you have a proven frontrunner awarded for project excellence in many fields.
Click here to learn more about CAMELOT’s Network Design.
In the following article we continue our deep dive into CAMELOT’S service offerings and reach the operational level. Here, we will show our approach to simplify your LSP-tendering processes by avoiding typical pitfalls, increase automation level implementing best-practices.
All articles of the series at a glance:
The 9th “R” of logistics (part 1)
The 9th “R” of logistics (part 3)
The 9th “R” of logistics (part 4)