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Logistics & Transport Assets · Supply Chain & Network Operations

Supply Chain Network & Warehouse Optimization

Design a supply chain network that serves customers faster at a lower total landed cost

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What it is

Supply Chain Network & Warehouse Optimization

Supply Chain Network Design uses optimisation modelling to decide the right number, location, capacity, and role of plants, regional distribution centres, and local warehouses. We balance transport cost, facility cost, inventory holding, and customer lead-time requirements.

Typical duration
6 to 10 weeks

The business problem

Why clients need this

Many networks grew piece by piece through acquisitions or ad hoc expansion, leaving redundant warehouses, high transport costs, and slow delivery.

  1. 01

    Too many small warehouses push up fixed costs and spread inventory thinly.

  2. 02

    Plants and distribution centres sit far from where demand has moved, adding transit days.

  3. 03

    A disruption at one site or region can cut off supply to whole customer segments.

Our approach

How we deliver it

  1. 1

    Demand & Flow Baseline

    Mapping customer demand to pin-code level, SKU flows, transit times, and facility cost structures.

  2. 2

    Network Optimisation Modelling

    Building mixed-integer linear programming (MILP) models that test trade-offs between facility count, transport cost, and service levels.

  3. 3

    Scenario & Sensitivity Testing

    Testing designs against fuel price spikes, demand surges, and supplier or site disruptions.

  4. 4

    Implementation Roadmap

    Sequencing warehouse consolidation, lease exits, new hubs, and inventory rebalancing over a 6-to-18-month plan.

Data & AI

How technology strengthens this service

Optimisation solvers evaluate a very large number of network configurations to find the lowest-cost design that still meets your service-level constraints, and show what each constraint costs.

How we use AI across our work

Typical deliverables

What you receive

  • Supply Chain Network Optimisation Model
  • Recommended Facility Footprint Map with capacities
  • Total Landed Cost Comparison (Current vs. Future Network)
  • Phased Warehouse Consolidation & Migration Plan

Outcomes

What changes for you

  • A network design that lowers total logistics and warehousing cost while meeting defined service levels
  • Shorter order-to-delivery lead times for priority customer segments
  • Working capital released by holding safety stock in fewer, better-placed locations

Who it is for

  • National consumer brands & distributors
  • Heavy equipment & auto component manufacturers
  • E-commerce & omni-channel fulfilment operators
  • Pharmaceutical & medical device distributors

FAQs

Common questions

How does network design account for tax and service requirements?+

We can include relevant state and local tax assumptions, delivery commitments, facility costs, and operating constraints in the model. The right network depends on the client's footprint and customer requirements.

Will fewer warehouses mean slower delivery?+

Not necessarily. Placing fast-moving inventory in well-located regional hubs can shorten average delivery times while reducing total inventory. The model shows the trade-off explicitly for each scenario.

How often should we review our network?+

Every 2 to 3 years, or sooner after significant demand growth, an acquisition, or new transport infrastructure such as expressways or freight corridors.

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Tell us about your site, plant or network. A senior consultant will reply within two business days.

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