Distribution Planning
Challenges
Large corporations with extensive supply chain operations often have millions of transportation lanes, making it challenging for their logistics division to coordinate with the production, inventory, and demand plans.
Despite having planning systems in place, the current distribution plan is based on rule-based logic instead of optimization, which results in missed savings opportunities.
This often leads to customers receiving shipments from multiple locations, requiring companies to transfer stock between locations to fulfill their needs, with transfer costs reaching as high as 20% of the logistics spend.
Sophus Solution
An optimized distribution plan that integrates with production, inventory availability, and demand plans to reduce cost and improve customer experiences.
Optimized rules and routes prioritization can be loaded into ordering systems for efficient execution on a daily or weekly basis.
Benefits
A reduction in stock transfer costs of up to
30-40%
A reduction in distribution costs of up to
10-12%
Improved customer satisfaction.
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