Overview
Even a business with strong potential due to optimal pricing and human resource management can be crippled by poor networking. Mismanaged networks can result in a chaotic, unpredictable business environment which will result in long, costly, and disorganized operations. Network optimization allows effective allocation of inventory, reduced costs and lead times, and a stronger bottom line.
The network optimization research has allowed our company to continue to stay ahead of our competition and excel in customer service.”
-Tim Miller, Vice President – Operations Security Contractor Services, Inc.
Hats off to Texas A&M for taking common industry problems with complex components and developing scientific methodologies that are flexible enough to work for any company.”
-Jimmy Roark, Regional Sales Manager NOV Wilson
Challenges
- Unplanned Organic Growth
- Multiple Facilities through M&A’s
- Long Lead Times
- Excessive Inventory
- Competition Driven
- Ineffective Routing/Scheduling
- Poor Truck Capacity Utilization (loading or cubing) Market
- High Cost-to-Serve
Solutions
- Facility Network Optimization
- Hub and Spoke Design
- Service vs. Cost Matrix
Benefits
- Facility Reduction/Expansion, Optimal Network Capacity, and Reduced Operating Expenses
- Optimal Network Configuration
- Aligned Inventory Deployment
- Insight Into Service-cost Trade-offs
- High Profitability
- Reduced Delivery Cost Per Order
- Increased Capacity Utilization
