The Solution

To simplify the process, we split the project into two phases. During phase one, we took the following steps:

• A review of all logistics and delivery options for the continental U.S. revealed that existing records were in disarray, featuring multiple brands with disparate item numbers. These required conversion into standard nomenclature.
• We extracted and compiled retail sales data to get a better idea of how operations were running throughout the country, and then analyzed historical retail data to develop preliminary distribution points.
• We compared our client’s historical sales data to the retailer’s data to identify synergies in the distribution of similar products. From this, we forecasted projected growth rates for one year, three years and five years.
• To help the client avoid scenarios where the retailer’s sales could potentially threaten its own, we used demand projections as well as possible locations for distribution centers.
• We projected inventory costs to find the best distribution strategy. We used preliminary footprint requirements to determine the optimal balance between service levels and cost scenarios.

Taking things a step further in phase two, we:

• Developed a dynamic logistics and distribution modeling tool and determined key performance indicators to be measured.
• Updated contractor address information and developed a standard nomenclature for all retail sales.
• Created a master file to keep track of dimension and weight information for truck-loading purposes.
• Ran models to identify the proper number and location of distribution centers to meet the retailer’s terms.
• Revised distribution maps based on our client’s preferred manufacturing sites.
• Defined storage and outbound costs and linked them to the location selections, calculated by region and varied delivery pricing.