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Copyright © 2019 Logistix Solutions LLC. All Right Reserved.
SUPPLY CHAIN NETWORK DESIGN An Instant Assessment of
Supplier Direct, Domestic and
Import Distribution in
Australia and New Zealand
Logix Rapid Response® is a free service that
allows you to compare your distribution
network to the ‘Optimum’ network using
Logistix Solutions’ Logix Supply Chain
Optimization software. This assessment is
an approximation only. A complete network
design would require additional input and
refinements.
Contact [email protected] for a free comparison using your current distribution center locations.
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LOGISTIX SOLUTIONS IS THE LEADING PROVIDER OF ON-DEMAND SUPPLY CHAIN OPTIMIZATION SOLUTIONS. LOGIX SOFTWARE IS USED BY FORTUNE 500 COMPANIES, THIRD PARTY LOGISTICS PROVIDERS, CONSULTANTS AND FAST-GROWING ENTERPRISES WORLDWIDE TO OPTIMIZE THEIR DISTRIBUTION NETWORKS FOR OPTIMUM PERFORMANCE, SERVICE AND COST.
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Copyright © 2019 Logistix Solutions LLC. All Right Reserved.
Assessment Model
Distribution to customers
throughout Australia and
New Zealand with domestic
and international suppliers. Ports of Entry /
Suppliers
Candidate DCs
Customers
Logix optimally selects suppliers, ports of entry and the optimum combination of Distribution Center sites using average transportation rates and demand represented by population data for over 500 cities and towns. The assessment also optimizes Supplier Direct distribution from an Australian supplier to determine which customers can be more economically served directly from the Supplier vs. through a Distribution Center.
Two Site Solution
Auckland NZL
Sydney AUS Inbound Cost: $2,878,840
Outbound Cost: $10,615,220
Warehousing Cost: $1,675,903
Total Cost: $15,169,963
A minimum of two Distribution Centers
are used in this assessment due to
the unique geographic logistics between
Australia and New Zealand.
Supplier Direct Distribution Logix can also determine the optimal distribution allowing any Supplier to distribute products directly bypassing Distribution Centers in the network.
In our example, Aus Supplier located in Geelong VIC directly ships to over 170 customers throughout Australia even though charging a premium of $10.00 per shipment for a savings of over $65,000.
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Copyright © 2019 Logistix Solutions LLC. All Right Reserved.
Three Site Solution
Auckland NZL,
Sydney AUS and
Perth AUS
Inbound Cost: $2,944,440
Outbound Cost: $10,131,860
Warehousing Cost: $1,700,904
Total Cost: $14,777,204
Each Distribution Center has a Fixed
Cost of $25,000 plus a Variable Cost per
unit which varies for each DC by product.
Predictive Analytics
ProLogix’ Predictive Analytics pinpoints each of your supply chain problem areas including a comparison of average vs site specific cost and service for each customer location.
The transportation cost for Cairns AUS from the distribution Center in Sydney is slightly above average (shown in yellow in this example), whereas the service level (shown in red) is critically above average.
Proximity Analytics
Using a unique feature called Proximity Analytics, Logix can pinpoint the exact optimum site location in relation to any
existing or candidate facilities or even
Greenfield.
In this example, the exact optimum
Is located anywhere up to 100 km
West of the facility in Oxley Park with
essentially no difference in cost or 0%.
The clear advantage is finding the
right facility at the right cost in this area.
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Copyright © 2019 Logistix Solutions LLC. All Right Reserved.
Four Site Solution
Auckland NZL
Sydney, Perth and Melbourne Inbound Cost: $2,994,141
Outbound Cost: $9,771,306
Warehousing Cost: $2,487,024
Total Cost: $14,491,351
Service has improved to 95% one day
delivery from 79% using only two DCs.
Five Site Solution
Auckland NZL, Brisbane,
Sydney, Perth and Melbourne
Inbound Cost: $3,081,641
Outbound Cost: $9,578,729
Warehousing Cost: $1,750,904
Total Cost: $14,411,274
The Six and Seven site solutions both an
increase in cost to $14,436,526 and
$14,462,533 indicating no further benefit
from expanding the network at this time.
Charts, Analytics and Metrics
Complete the picture showing
potential trouble spots, capacity issues, long term trends, best and worst case service and cost and areas for potential improvement.
Logix can also incorporate
pooling facilities, cross docks,
inventory costs, green house
gas emissions, greenfield,
DC capacities and other factors
in its optimum calculations.
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Copyright © 2019 Logistix Solutions LLC. All Right Reserved.
Free Assessment of Your Distribution Network
For a free assessment of your distribution network compared to this model supply chain, contact [email protected]. Just tell us the location of your distribution centers and we’ll send you a free analysis and comparison via email. Here’s an example of what you’d receive showing a side by side comparison of your distribution network and the ‘optimum’ solution if your distribution centers are located in Melbourne VIC and Auckland NZL.
Two Site “Your Network”
Auckland NZL and Melbourne VIC
Inbound Cost: $3,004,940
Outbound Cost: $10,678,723
Warehousing Cost: $1,675,903
Total Cost: $15,359,566
Two Site Optimum Solution
Auckland NZL
Sydney AUS Inbound Cost: $2,878,840
Outbound Cost: $10,615,220
Warehousing Cost: $1,675,903
Total Cost: $15,169,963
Savings Potential: $189,603 and a 9% Service Level Improvement
If you’d like to add more details or make further refinements to the assessment model, download the Logix Supply Chain Optimization and Distribution Network Design software and we’ll help you set up your supply chain model.
Contact [email protected] for a free demo or for a subscription to Logix or call us at 571 426 5951. You can also visit www.logistixsolutions.com for more information.
mailto:[email protected]:[email protected]://www.logistixsolutions.com/