Distribution

  • Supply Chain Management

Optimization of The Distribution Networks

Problem

  • Over the past decades, many businesses have struggled with the number of fundamental issues such as sourcing, production, warehousing, distribution and customer service. However, in today's global demand-driven market, Supply Chain Management has become an urgent need for product and service providers all around the world.
  • The increasing customer expectations, highly competitive global marketplace and rising transportation costs due to inflated and volatile fuel prices are driving the development and investment of new distribution network designs.
  • In the case of one US-based manufacturer of industrial materials, a supply chain management study resulted an annual warehousing costs reduction by about $300,000 for an investment of approximately $100,000 in the network modeling and warehouse redesign. Because of the global nature of the company, there were also significant potentials for additional transportation savings, approximately $2.5 million annually only by investing about $420,000 to develop and implement optimal processes.

Solution

Refunds

Sales

Factory

Warehouse

Stores

Daily flow

  • Distribution Network Optimization guarantees the quality and safety of the product flow from the manufacturer to the retailers and end users. However, Supply Chain and Distribution Network Optimization are possible if they rely on an accurate forecasting of the needed products or services. Since the prediction of the product demand and supply is an input for the optimization models, the forecasting methods are extremely important to yield highly reliable results.
  • At Eris Innovation we have developed a comprehensive solution for the product flow management which contains a forecasting module, an optimizer unit as its central component, as well as a risk analyzer section to monitor the certainty and uncertainty level of the obtained optimal solutions