PSIglobal Location optimization

Location optimization management in supply chain network design

Are you facing the challenge of defining the optimal number and location of logistics locations in your new network to be developed? Or would you like to know the impact of an additional location, relocation or consolidation on the costs, delivery times and service levels of your procurement or distribution network? How can optimal transport costs and an optimal service level be achieved through location optimization?

PSIglobal provides answers.

Create an optimal network structure

The core objective of many supply chain network design projects is still network optimization by cost and service level. Increasingly, however, other dimensions such as sustainability and resilience of supply chains are also becoming increasingly important. To cope with this development and to design a sustainable supply chain, a regular review of the location structure of your network is recommended.

PSIglobal determines the optimal number and location of logistics locations and the corresponding assignment of customers and suppliers based on a historical or forecast shipment structure. The calculations are based on real road kilometers and transport tariffs. In addition, other parameters such as warehouse capacity, item allocations and handling costs can be considered in PSIglobal. A comparison of the scenarios provides you with a holistic perspective on possible optimization options, increasing your certainty of results.

Comparison of transport costs as part of a scenario calculation to determine an optimal location

Brownfield, greenfield and real scenarios in supply chain network design

PSIglobal supports you in determining the optimal number and location of logistics locations or production facilities within your supply chain. The results are presented to you visually as a map display and in the form of KPIs. You receive a transparent basis for your business decisions.

There is a variety of use cases for location optimization, such as e.g.:

The optimal allocation of suppliers and customers to logistics nodes in an existing network (allocation optimization)
The review of existing networks to determine the extent to which an expansion or consolidation of locations leads to an optimization of the supply chain
The expansion of networks to include additional locations to increase resilience and network capacities
The development of new sales markets or the expansion of the portfolio to include new products
The consolidation of logistics networks as part of M&A projects
The determination of the impact of market developments on the network structure

An iterative approach in scenarios has proven successful in finding solutions. Starting from pure greenfield and brownfield scenarios, you obtain step-by-step insights into the network structure and into sensible measures for its optimization. The network structure to be implemented is designed in real scenarios derived from this – usually a mixture of existing locations and optimal locations to be newly established.

In summary, PSIglobal location optimization is an important tool for the fundamental review of the supply chain structure.

Our videos – insight into PSIglobal location optimization

Optimization of logistics networks: Procurement logistics for the supply of production sites

Optimizing distribution logistics – how to achieve a forward-looking supply chain network design

Network Optimization in Distribution Logistics using strategic software

Your benefits

Develop different solution scenarios for your logistics network: Greenfield, brownfield, real scenarios
Consider realistic transport tariffs as well as the costs and capacities of logistics locations
Find the optimal cost efficiency, service orientation, robustness and sustainability for your logistics network
Calculate optimal distribution warehouse locations for cost- and service-optimized supply to your customers and optimal consolidation points for structured supply to production locations
Determine optimal inventory levels to reduce tied-up capital
Build a resilient supply chain