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Logistics
Assessment With the aid of DPM technology and additional reliable simulation instruments, Toolsgroup is able to evaluate actual logistic performance, quantifying benefits achievable as a result of the implementation of a correct planning methodology and improved logistics processes. In order for this type of assessment to be performed, it is sufficient for the client to provide basic master file information, replenishment parameters and historical demand data. |
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Click to download/view printer-friendly pdfWhat is the DPM Logistics Assessment? The DPM Logistics Assessment is a quantitative strategic performance diagnostic for single or multiple tier distribution networks. The Assessment evaluates the efficiency of a distribution operation and planning process in terms of fulfilment (service) levels at each tier and the related costs (inventory) at each warehouse. On the basis of fulfilment targets, the Assessment will provide the optimised inventory requirement and related costs for any range of products in the distribution network. Output of the Assessment: • current inventory/fulfilment performance • optimal inventory requirements • a database of optimal stock levels by sku/l • benefits and efficiencies obtainable by implementing an enhanced planning process • inventory and warehousing requirements under new business, distribution, demand or fulfilment scenarios. Frequently Asked Questions How can the DPM Logisitics Assessment help my business? The Logisitics Assessment establishes an essential benchmark for logistic projects concerning distribution and inventory. Through a quantitative analysis of the costs and benefits which may be obtained through improvement in the inventory mix and planning process, the Assessment provides the guidelines for investment and ROI planning. What kinds of scenarios can be examined? The Assessment provides cost-benefit analysis for: • alternative fulfilment scenarios (performance) • alternative network design • new demand scenarios • different stocking policies • various replenishment scenarios (lead-times, lot sizes, supplier reliability,...) • and more. What data are needed? Elementary transactional data, that can be supplied in Excel, Access or text files. At what level of detail does the Assessment work? Results can be provided at different levels of detail ranging from total business down to single sku/l. How long will it take to complete the Assessment? The Assessment can be performed in two to three weeks. Can the Assessment results be applied to recover the investment? The output includes the optimal stock control levels for all sku/l’s in the sample. These can immediately be implemented to pilot operations at the warehouses. What range of the business does the Assessment cover? The Assessment usually examines a representative subset of the product portfolio, up to about 5,000 items, product range permitting. What if I need to assess inventory requirements for a new business where no data are available? The DPM Assessment can generate dynamic demand models for items with no history. Inventory requirements can then be assessed merely by inputting reasonable assumptions regarding lot sizes, leadtimes and demand stability. Is the Assessment repeatable? The Assessment database can be used to evaluate any number of alternative scenarios. |
