Strategic planning of development of the logistics network for business or Warcraft

The most important features

This article describes methods of planning the strategic development of the logistics network for your business. What are the objectives are achieved as a result of the project? How to turn the strategy into concrete tactical steps? On this and not only, read on ...

Signs of a revolutionary situation or "Why is it necessary?"


♦ Logistics costs are constantly increasing​
♦ Logistics can not cope with the volume of tasks

♦ Expand sales geography, there were customers in new regions​


It's time to change something, and then there is a lot of questions and options:

Where to open a new warehouse? What stores close?
Is it possible to reduce the current logistics costs?
What effect will be obtained and how it will affect the level of service?
View more warehouses in the regions and / or expand the area of existing RCs?
Build your own stores or rent?
How much will cost the service level increase for customers?
Will the existing infrastructure to ensure the intended development plans for 5-10 years?
How to change the delivery time to customers in the event of a mass transition to w / d transportation?​

Correct answers to these and other questions and make optimal strategy of development of logistics for your business. And the wider the geography of the sales network, the greater the counterparties included in the interaction, the more difficult to conduct a comprehensive multi-factor analysis and obtain reliable results.

The methodology of strategic planning​

Quite often, when referring to the consulting companies to hear the question from the category - mark your targets in absolute figures - the volume of sales, delivery time, logistics costs, and we will reply to you how to achieve this. The answer to the question "how" is certainly important, but equally important is the question "What is the goal?" How to choose the right targets?

Strategic planning involves the answers to both questions. As a result you get the planning and informed choices objectives and specific tactics to achieve this goal.

1st Step - "the creation of business models"

At this stage, created a computer model of your business. We establish the relationship between all parties to the logistics network: Producers, Suppliers, Distributors, Warehouses of custody, transportation routes, stores, customers, etc. Determined tariffs, formalized the cost calculation methodology and the profit on each component of the process.

The created model is tested for reliability and compliance with the real state of affairs. To do this, the model is loaded historical data on the volume of shipments / sales / production and the calculation is carried out for longer periods of the past, such as during the previous year. And then compare the results of calculations with the fact. Model specify until until reaching the required accuracy of simulation.

Step 2nd - "choice of development strategy"

In the matter of the choice of strategy is not only the right decision. You can not enter data into the computer and pressing a button to get a definite answer.

"Business Model" allows you to calculate a variety of options, and sitting with a cup of coffee leisurely weigh the "pros" and "cons." In absolute terms, the cost to see achieve certain targets. And even calculate the absolute risk scenarios for the implementation of which you would never have dared to reality.

"Business Model" - is a powerful tool that allows you to carry out a detailed calculation and make a conscious and informed choice of further development of the strategy.

3rd Step - "tactical steps to achieve the goals"

Having defined the strategic goal to move tactics. By answering the questions, what and where to open? What modes of transport, and in what ratio to use in different directions? What are the areas reserved for storage? What are the delivery terms specified in the contracts clients? Etc.

With all the seriousness and importance of the work tasks to their own business model carries - a sort of "Warcraft for the CEO"!

Instruments INFOR Strategic Network Designer and Tactical Planner

As part of the logistics network of strategic planning projects, the company "Logicon" uses a specialized tool of strategic and tactical planning from the company INFOR - Strategic Network Designer and Tactical Planner.

These systems provide a ready tool for building a "business model" and allow the analyst to concentrate on solving the main tasks, removing all the questions the application of discrete methods of higher mathematics to find the optimal solution.

Smehnov Anton, leader consulting group of companies Logicon​.


For more information on the strategic planning tools, you can contact our specialists.

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