Logistics (Distribution and Transportation) is a key component of an overall Supply Chain strategy.
The Context Group works with every stage in the supply chain: manufacturing, wholesalers, retailers, and 3PL service providers to improve the efficiency of their logistics operations
Distribution Strategy & Planning
Review requirements driven by corporate strategy and plans, develop options, recommendations, and action plans. A typical review includes evaluation of:
- Facility Location – Review criteria, evaluate options and costs, conduct due diligence, and recommend location with implementation schedule.
- Facility Planning & Design – Design criteria, operations analysis/design, support operations, building, equipment, service requirements, costs, ROI, & schedule.
- Facility, Material Handling Equipment Selection – RFP preparation, competitive bidding, evaluation of bids, due diligence
- 3PL Selection & Management – Preparation of requirements, RFP, analysis of proposals, recommendations and performance monitoring.
- Operations productivity and capacity improvement
The recommendations may result in a facility start up, a 3PL selection process, or an operations productivity and capacity improvement initiative for existing operations.
Operations Productivity and Capacity Improvement
These initiatives typically involve all or several of the following:
- Capacity Improvements – Processing, storage, facilities utilization
- Operations Re-engineering – Analyze & implement improvements (work aids, equipment, layouts, productivity, quality, training, supervisory effectiveness)
- Pay for Performance – Work count, individual work standards and incentives, group programs, gain sharing, labor pool and cross training, team programs, union relations and contract modification, payroll admin,
- Management & Supervisor Development – Analysis of requirements, description of responsibilities and tasks, job descriptions and measures of performance, training in supervisory effectiveness.
- Cost Reduction – Supervision, direct labor, transportation, charge backs, reverse logistics, occupancy, packaging and supplies, inventory, support staff.
- Systems & Controls – Systems requirements to handle shipping, receiving, order processing, inventory control, & control of labor, supervision, purchasing, etc)
- Service Performance – Metrics to monitor internal & external performance
- Returns & Allowance Control. – Vendor requirements, process changes, accuracy monitoring, follow up, vendor negotiation on charge backs.
- Plant maintenance – Planned maintenance, OSHA, safety, security, employee comfort, housekeeping.
An initial evaluation is conducted of the potential operations savings, a plan of implementation is developed, and we assist our clients in implementing changes to accomplish the projected operations improvements and savings.
Transportation
- Cost Assessment (modeling and optimization, freight spend, cube utilization improvements, LTL/TL weight break analysis by lane, LTL consolidation design, review of consolidation rate structures, order consolidation, parcel zone-skipping, etc.)
- Strategies (cross-dock, fleet outsourcing, backhaul, 3PL, etc.)
- Best Practices
- Rate Negotiations (core carrier programs, low-cost carrier selection)
- Systems & Controls (transportation management system, dock scheduling, freight audit and payment processes)
Logistics Network Design
- Transportation Model (service requirements, supply lead times, product cost, transportation cost, and cost of inventory)
- Facilities (number and location of facilities, type of facility, location studies)