Our experience has demonstrated that the decisions taken when defining the configuration of logistics (service policy, distribution networks) determine their cost structure, potential flexibility and stock levels to a considerable extent.

Therefore, it is very important to regularly take a step back from the customer service policy / distribution network and to adjust or resize them in order to offer just the right service level, at the lowest cost, while minimizing risks and anticipating changes in the business.

Before deciding to make any changes to the logistics network, it is necessary to make a critical analysis of the customer service policy (lead time, availability, MTS/MTO, direct delivery or via a warehouse, etc.).

Then an in-depth study must be made of the number and precise location of sites, their stocks and dimensions(surface area, costs, headcount, etc.), using optimization and cost modeling tools.

Operational constraints (labor, taxes, real estate, etc.) must be taken into consideration to produce a workable plan. Finally, the decision must be taken to operate the warehouse yourself or to outsource operations.

Argon Consulting helps its customers in:

• the analysis of the existing service offer and its suitability to the commercial strategy,
• the assessment of the performance of the existing logistics network in terms of transport, stock, warehousing and logistical organization, using its renowned know-how and benchmarks that cover all types of industries,
• formally defining developments in the strategy, activities, markets and customers that may impact the distribution network,
• modeling the existing logistics network to create a reference and comparison framework to assess the possible change scenarios,
• command of most distribution network optimization tools on the market (i2/Supply Chain Strategist - radical – barloworld/Cast -  llamasoft /Supply Chain Guru) and development of modules that make the best possible use of these tools (definition of transport and warehousing costs, modeling of stocks),
• the design of in-house tools to optimize logistics networks that are often better in adapting to customer specifics than tools on the open market,
• the identification of the target logistics network using a range of realistic scenarios, built using methods that are:
  • analytical, thanks to our modeling tools,
  • pragmatic, thanks to our knowledge of markets from a geographical perspective (highways network, concentrations of employment, infrastructures, etc.) and in terms of regulations (customs laws, export/import restrictions, etc.),
  • consensual, through the identification and selection of the scenarios by the project teams in a transparent and open manner.
• changes in quantitative and qualitative factors associated with the scenarios (service, stocks, transport, surface area occupied, productivity, etc.) and identification of business impacts (organization and processes),
• the definition of the migration plan of the existing network to the target network, while minimizing risks by managing the change,
• the creation of KPIs, scorecards and alerts to measure whether the goals associated with the target scenario are achieved,
• the issue of calls for tender, assistance with the implementation, project management and management of risks in the deployment process.