Overview: Warehouse & Logistics

As the last link before the client, Logistics must guarantee the service offering within cost constraints. Its industrialization is therefore key.

Logistics performance is highly dependent on decisions regarding the distribution network structure, the skills of teams, and the quality of operational process management (e.g. industrialization of processes, suitable equipment and information systems, most relevant partners, etc.). These decisions contribute to cost cutting, acceleration of flow circulation, and compliance with regulations.

Context

Companies are being forced to develop flexible and efficient logistics to manage the increasingly complex flows, due to factors including globalized trade, competitive pressure, sophisticated offers such as multi-channel, accelerated cycles, and changing regulations.

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Companies are having to constantly monitor the relevance of the resources employed in both logistics and transportation, by implementing differentiated models that are suited to each type of flow, engaging with the best partners and prioritizing innovation.

 

Challenges

To maintain competitive advantage, the logistics function has to be able to adapt its resources and organization to changes in the commercial offer, geographical specificities, the high number of stakeholders to coordinate and regulatory requirements. It must do so while handling the day-to-day management of flows, and maintaining quality service and optimal financial performance. The logistics function must also provide a reliable, robust and flexible solution to flow management and execution, at the lowest cost and with the best service.

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The logistics function must also provide a reliable, robust, and flexible solution to flow management and execution, at the lowest cost and with the best service.
Our experience has taught us that decisions made when defining the logistics configuration (service policy, distribution networks, etc.) greatly affect its cost structure, potential for flexibility, and inventory levels.

How can Argon Consulting help you?

  • Ensuring that the logistics strategy supports the company's ambitions by confirming that performance levels are in line with best practice and that resources are sufficiently flexible and adaptable. Argon has developed the tools to audit the maturity of logistics organizations and assess the relevance of alternative distribution patterns, by providing decision-makers with a clear overview of opportunities and of risks, as well as the roadmap to be used
  • Transforming fixed costs into variable costs, which will be relative to the activity taken on by improving organizational flexibility, assessing in-house or outsourcing opportunities (make-or-buy), developing innovative partnerships to achieve economies of scale through resource pooling
  • Deploying Lean Logistics systems to industrialize processes and reduce operations with no added value by optimizing operating modes, defining target cost benchmarks, and selecting the most suitable resources (equipment, information technology, etc.)
  • Being able to anticipate the use of new technologies in logistics to boost productivity, ensure better visibility and control of operations, and improve working conditions (safety, ergonomics, etc.)
  • Defining an organizational model that guarantees total control of performance, while ensuring that best practices are cascaded and applied locally
  • Implementing logistics dashboards to manage performance and focus on the most appropriate corrective action plans
  • Supporting operational teams to manage change, taking a co-construction approach, and ensuring the transfer of expertise and the necessary training

 

Case Studies

Definition of a target distribution master plan to support the development of high added value activities in Asia/Pacific countries