Is your distribution still as efficient as it could be? If you haven’t reviewed it in over five years, it’s time for a change.
Watch the video below to learn what might be holding you back.
If you haven’t looked at your distribution network in the last five years, it’s time to do so. Distribution networks are intricate systems with many moving parts, and even small tweaks can lead to significant improvements. Regular reviews ensure your network remains efficient and capable of supporting your business’s growth.
Mergers and Acquisitions
Mergers and acquisitions often require a fresh look at distribution networks. When companies merge, their distribution networks must be integrated and optimized to achieve the synergies expected from the merger. This process involves assessing the combined network’s efficiency and finding ways to enhance it. If your company has recently undergone a merger or acquisition, now is the perfect time to review your network.
Adapting to New Channels and Services
The rise of omnichannel distribution and new service offers, like home deliveries, has transformed how companies operate their networks. Traditional distribution models may not be equipped to handle the demands of multiple channels, leading to inefficiencies. Companies are increasingly finding that their existing networks need to be modified or expanded to meet the challenges of fulfilling orders across different channels.
Cost Changes and Network Efficiency
Changes in freight costs, warehouse demands, and other cost factors can significantly impact your distribution network. Fluctuations in ocean freight costs, for example, can alter where and how you import goods, affecting your entire supply chain. Regularly reviewing your network in light of these changes ensures that you’re not only keeping costs in check but also staying competitive in evolving market.
Related articles on this topic have appeared throughout our website, check them out:
- How to Operate Your Distribution Truck Fleet at Less Cost
- The 7 Principles of Warehouse and Distribution Centre Design
- 7 “Costequences” of Distribution Network Misalignment
- Do You Know the Signs of Poor Distribution Network Design?
- Spotlight On: Robots In Distribution Centres
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated July 19, 2023, under the title “Why Should You Review Your Distribution Network?“.
