What questions should be considered in GLC supply chain logistics planning?

GLC Logistics (and supply chain) planning platform continuously in the logistics business scene model and algorithm iterative, for enterprise logistics and logistics enterprises to provide logistics planning and design decision-making basis for the logistics of colleges and universities to provide logistics and supply chain learning and education tool support. Platform functions are divided into warehousing logistics, supply chain logistics network, urban logistics distribution network, logistics operations management and other modules, the current supply chain Logistics Network planning module description and display.

The Supply chain logistics network in social environment mainly includes: production and supply network, manufacturing network, product distribution network, product after-sale service Network, waste recycling network and so on.

The Logistics network planning problem originates from the logical model as shown in the above figure, the establishment of a distribution center between the upstream node and the downstream node is intuitively easy to see and can reduce transport costs and logistics response times, but increases warehousing and inventory costs. Theoretically, the relationship between transport cost and warehousing inventory cost is beneficial, as shown in the following figure.

Therefore, the designer of supply chain logistics network needs a set of methods and tools to calculate and weigh the effect of different distribution center configuration schemes on the operation cost and response time of the whole supply chain network.

Logistics network planning should consider the problem (for reference)

1. Balance of supply and demand

• What products are produced? When will it be produced?

• Which factory will supply which customers?

• What market needs should be prioritized to provide better returns on profits?

2. Distribution Network Layout planning

• How many branches do you need?

• How to optimize the existing warehouse layout to achieve cost and time balance optimization?

• Do different product/customer needs to adopt different distribution strategies?

3. Capacity Design

• Should production line capacity be increased? or other factory production?

4. Safety Stock

• How much is the security stock level set?

• How much is the replenishment frequency appropriate?

• Can such inventory level guarantee customer service level?

5. Transportation route

• How many cars should be deployed?

• How is the transport path configured?

• Can you reasonably design the customer's distribution frequency?

• Is the arrangement of the car and the delivery staff reasonable?

Solution Introduction

1. Distribution Network Layout optimization

Distribution Center, vehicles, inventory are logistics resources, build several distribution centers? How many vehicles do you need? What is the most reasonable amount of inventory? These are the problems to be considered in network layout optimization.

Key Benefits and Methodologies:

• According to the demand of the enterprise, allocate the quantity and position of distribution center rationally, reduce the operation cost of enterprise.

• According to the distribution center location and storage capacity, further optimize the radiation of the two-level distribution center, optimize the location based on the further optimization of the network, and thus reduce transport costs.

• Based on the data of distribution network, such as quantity, coordinates, distance and the operating cost, vehicle loading capacity and storage mode of logistics node, the model is modeled, and the GLC logistics planning and decision platform background algorithm is used.

Enter：

Enterprise business data, including the distribution Center name, order volume, latitude and longitude of the basic business data.

Data analysis and algorithm calculation

GLC Logistics planning and decision-making platform background analysis of the status of Distribution center distribution and customer order volume distribution, as shown in the following figure.

Output：

Distribution Center Location: Operating platform background algorithm, can be met the needs of enterprises distribution center location results.

Transport network Optimization: According to the distribution center warehousing capacity and radiation customer orders and distance constraints to further optimize the transport network, to meet customer demand while reducing transport distance, thereby reducing transport costs.

Additional function: Optimize the transportation network without changing the number and location of distribution centers.

2. Demand Analysis and Inventory optimization

Adequate inventory, fast and timely logistics services, standing in the product sales point of view is perfect, but at the same time will increase the cost of inventory and logistics enterprises. How to achieve the balance of several key elements is the problem that most enterprises face, once the solution will bring considerable benefits.

Key Benefits and Methodologies:

• Improve customer service level

• Effectively reduce the level of inventory capital consumption

• More flexible Inventory management strategies

• Design for general demand distribution type (normal distribution)

• Identify the optimal inventory storage point and inventory strategy in supply chain structure

3. Vehicle routing optimization

Key Benefits and Methodologies:

• Efficient allocation of resources (vehicles and personnel)

• Reduce shipping distances to reduce transport costs and distribution costs

• Improve customer service level

• Zoning of customer outlets

• Circular distribution

• Match customer order volume to vehicle stowage capability

• The customer order quantity needs to cooperate, the customer distance is within the coordination scope