Outdated distribution structures that have not recently been optimized from the bottom up often fail to meet current requirements. An increasingly broader product assortment with ever-shorter product life cycles calls for fast-responding supply chains. With consumer behavior changing and new distribution channels opening up, the process of distributing goods is becoming more complex.

Comprising a significant share of overall cost, distribution costs are a relevant starting point for reducing supply chain costs and boosting performance. A continuous end-to-end optimization of the distribution structure, however, is only possible if all the relevant factors such as transportation, handling, and inventory are considered.

End-to-end cost reduction and improved performance

End-to-end cost reduction and iWith targeted improvements, 4flow helps clients reduce distribution costs and boost performance.

Some of the results we achieve for clients include:

  • Reduction of transportation costs
  • Increased delivery performance to customers
  • Capability for multi-channel deliveries
  • Better responsiveness within the distribution network
  • Higher availability of goods for customers
  • Inventory optimization throughout the entire distribution chain

Identifying future parameters across functions and establishing planning principles are essential to optimize distribution structures. The focus here is on service requirements, changes in volume and network data. With our supply chain software 4flow vista®, various scenarios can be modeled, analyzed, and compared.

A single-stage distribution system as a possible structural alternative to a conventional regional approach can save up to 30 percent in costs
A single-stage distribution system as a possible structural alternative to a conventional regional approach can save up to 30 percent in costs

An end-to-end business case calculation forms the basis of the final recommendation for action. 4flow also supports the  implementation of the actions and can manage complex distribution networks within a 4PL service framework as a single provider.

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