Manufacturing and distribution sites are usually selected as a result of the company growth, without a thorough analysis. As a result, there are great opportunities for savings by revising the network configuration and applying optimization. Shark Optimization has the capacity to analyze dozens of options for moving products from suppliers to end customers, offering the best option for your supply chain.
How do we optimize the network?
We collect and analyze data from your current operations: locations, product flows, costs and capacities. Our processes allow us to differentiate fixed and variable costs for your operations and we can precisely model capacity restrictions for your manufacturing and distribution sites. Then, we run optimization algorithms to choose a route that minimize operations costs or improve the time for products to reach customers.
What happen if relocating facilities is not an option?
If the company is not looking into opening/closing facilities, we can work with the objective of finding the most efficient way to get products to the market. We run what-if scenarios to evaluate direct distribution vs hubs, cross-docking scenarios and different transportation modes: direct/consolidated shipments, air/ocean/intermodal transportation.
Our experience in transportation and local processes for import/export enhance the optimization analysis with customized recommendations for the local market.
Network Optimization and Greenfield Analysis for meat products’ company
A leader producer of meat products had the need to optimize the production and distribution capacities of its six plants and five distribution centers to serve both the local and international markets.
The company sought to minimize transportation costs between plants and distribution centers; and consider the production capacity restrictions of each plant. Besides, the producer wanted to define the optimal location for an additional distribution center.
The team of consultants created the network model for production and distribution with its associated restrictions. Using the base model, the network was optimized to find the optimal assignments for the plant-plant and plant-DC flows for both current and future demand.
Finally, the team evaluated different locations for the new distribution center and their economic impact.
The project allowed the company to discover the best assignment between plants and distribution centers, and at the same time provided valuable insights:
Better understanding of the transportation costs in the primary network.
Definition of a roadmap for changes needed in production and distribution.
Creation of a scalable model to include additional costs and capabilities in future analysis.
Supply Chain Digitalization
Tel: + (507) 304 8280
Ave. Omar Torrijos Herrera, Ancón, Corozal Este, Edificio #201, Ciudad de Panamá, al lado de la estación del tren de pasajeros.