Objective of logistics consolidation is to lower the costs,

improving the shipping coordination and realizing the efficiency in

supply chain by providing improved service level
APPRO Inbound and Outbound Consolidation

ACH Define Baseline Distribution Network Guiding

Gather Data and Validate, cleanse & clarify data Principles:
Distribution Current State Mapping (Baseline Creation)

Baseline verification with Operations Steering Committee (As is cost Balance customer service
spend analysis) level requirements with
Build Target State Optimized Network logistics cost and inventory
levels
Analyze alternative transport modes

Choosing among different warehouses , evaluating basis the

capacity
Build a strategic, flexible,
cost-appropriate distribution
Present output of model and initial recommendations
network that provides
Validate & Refine Network Optimization Recommendations competitive transportation
rates
Identify implications of distribution & logistics network changes
Refine & finalize location and number of warehouses, distribution
center and inventory levels,.
Scenario running
Scenario 1 (tentative) Changes in future oil prices
Scenario 2 (tentative) LTL to TL
Scenario 3 (tentative) Throughput constraint, service
constraints etc.

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