More than a cost of doing business, your distribution operations are essential to business growth and competitive advantage. But, it’s tough to keep up with the growing demand for better, faster service at lower costs. And the competition is relentless.
How will you align the stakeholders around a vision and requirements for the new operation? And how will you ensure the design optimizes cost and service, supports the business strategy, and delivers a compelling ROI? The design has to be flexible enough to grow with you into an unknown future. And you’ll need a compelling financial and business justification to make it through the rigorous approval process.
Building a highly-complex distribution operation isn’t your core competency. Yet falling short on any of these can delay the effort, or result in a sub-optimal solution, in spite of the growing need for change.
What is the Solution?
Success requires getting all the stakeholders together and having tough discussions about the future of the business. It takes analyzing historical data with sophisticated software to make sure requirements are based on facts, without bias. It takes both knowing the latest distribution technologies and trends, and having the practical experience to design a solution that will be just right for your company.
You’ll need to perform high-level trade-off analysis to create and refine the design that optimizes service, cost and flexibility – by answering questions like — What if your business grows at twice the rate you project? What if one channel’s growth outpaces the plan?
And the design needs to go far beyond the layout of material handling equipment. It must include the design of new processes and new incentive programs, changes to IT systems, and an understanding of the impacts on the facility, for a holistic solution that will perform as promised at go-live. Finally, that complete solution must be addressed in an “all-in” business case that will gain the approval of the decision makers.
Fortna Can Help
Let us help you design your distribution operations to meet your customer’s service requirements, enable growth and drive competitive advantage.
Align on Future Vision Involve all the impacted stakeholders to get consensus on the vision, define the requirements and enlist champions for the program.
Analyze Data & Determine Requirements Use sophisticated software to gain a deep understanding of the business so that inventory, facilities and automation can be right-sized.
Solution Hypothesis and Refinement Get to the design that meets the requirements with the best balance of labor, automation, technology, processes, cost and flexibility.
Design Solution Develop a comprehensive solution that includes all the components needed for a successful operation including systems, labor, processes and equipment.
Create Business Case Build a business case that communicates the vision for the distribution operation, makes a compelling case for change and provides an implementation roadmap for making it all happen.
Distribution operations can’t support growth and/or new service requirements.
Hard to get stakeholders aligned on a solution.
Difficult to answer hundreds of interconnected questions to design an operation that meets cost, service and ROI requirements.