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Redesign and planning of the logistic network

Redesign and planning of the logistic network
23/03/2022 zweiarts

The logistic network is commonly referred to as the distribution chain of a company, starting with the elaboration and manufacturing of its products up to the point where they will be delivered, basically the set of all points where products will be shipped or received, going through different types of modals to better adapt each product and its transportation needs.

For a company to be able to ship its products and receive them successfully, an optimized logistic network is a necessity, as well as its frequent redesign and replanning to optimize the logistic process even more, even if the size of the company remains the same.

Reasons to redesign a logistic network

Great specialists in logistics, such as MAC Logistic, from Brazil and around the world recommend a frequent redesign of the logistic network, with the objective of optimizing the different processes, even if the company does not undergo any significant change. This recommendation comes from the most varied reasons that are not directly related to the company, such as

New suppliers: a market will always have a constant change of the players involved in it, with new ones appearing and old ones expanding or even becoming unviable. The search for new suppliers that can bring transportation or economic benefits compared to the old ones is constant, even more so when we seek to reduce costs and delivery times.

New alternatives: new technologies and changes in the transportation scenario are constant in a changing world like ours. Changes in laws and the opening of new roads or ports can have a great impact – both positively and negatively, on logistical transportation.

Expansion and mergers of companies: While your company may not necessarily change, your suppliers or buyers may, with new warehouses or distribution centers, maintain the current process can cause higher costs without you knowing that an optimization is possible.

Why design a logistic network

The need to optimize processes and build a logistics network comes naturally to every company, but it is necessary to do it in the right way to understand the scenarios and what combinations can happen based on the logistics needs.

Let’s consider a scenario in which you need to send a product to a distribution center in another country. To do this, you will have access to numerous highways, a railroad, five ports (two here and three in the destination country), and an airport. What is the best possible way to get the product to its destination at the lowest possible cost? Sometimes, what seems to be the most obvious may not necessarily be the easiest, even more so when we consider future scenarios of expansion in these paths and tax knowledge that can be applied in one of these modalities and that will not be applied in another.

Experts can analyze the different scenarios and combinations for your needs and explain which will be the best decision path, redesigning your network and thus optimizing the final process.