Logistics Strategy

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Logistics Strategy is the science of evaluating the most cost effective methodology of distributing goods to market while achieving service level objectives. It is important for companies to recognize that logistics strategy can be product-specific, customer-specific, location-specific and that supply chains for each industry are dynamic and evolving.

KOM International works with clients to develop and execute logistics strategies that optimize the flow of products and information within the supply chain, within your distribution network and within each distribution center. To achieve supply chain excellence, it is critical to continuously evaluate alternative cost-cutting strategies that enable competitive advantage. Some examples follow:

Fast / Slow

  • Does your company have a logistics strategy to handle fast moving products differently from slow and medium moving products? Within your distribution center(s)? Within your distribution network? Is it economically beneficial to set up regional "fast" facilities and a centralized "slow" facility?

DSD / Non-stock

  • Does your company have a clear understanding of all of the cost components and lost profit opportunities for products that are deemed "Direct store Delivery" or "non-stock" items? Is there a logistics strategy in place that clearly delineates when an item should be inventoried?

Third Party Services

  • Does your company need to own and/or operate its own distribution facilities or is it more effective to have third party logistics providers manage some or all aspects of your logistics functions? What are the economical, service and other considerations your company needs to consider before taking these steps?

Hub and Spoke

  • Are there economical cost of goods advantages to sourcing products into a centralized distribution center that subsequently distributes to regional facilities or branches through a hub and spoke distribution network?

Inbound Logistics

  • Are there opportunities to reduce your landed cost of goods through improved inbound logistics strategy including load consolidation, reduced handling, backhauls, etc.?

Outbound Logistics

  • Are there opportunities to reduce your outbound transportation costs through improved private fleet routing? Through improved carrier rate shopping? Through load consolidation opportunities, Etc.

Facility Consolidation

  • Is your company operating too many distribution centers that are underutilized? What are the economical benefits and service impacts of closing one or more of your distribution points?

Inventory reduction

  • Is your company carrying the right assortment and inventory levels to achieve service level objectives? To minimize inventory assets? To minimize storage and handling costs?

Supply Chain

  • Are there opportunities to work with your trading partners to reduce supply chain complexities and improve service levels for specific products / vendor product lines? Are there internal supply chain policies that hinder cost-effective operations?

Global Logistics

  • Are there opportunities to improve global logistics to reduce inventory levels in the supply chain? To reduce order cycle times? To reduce supplier lead times? To reduce logistics costs?

New Business opportunities

  • Is there a new business opportunity that will increase sales and logistics costs? Will the opportunity be profitable? What will the incremental business and logistics costs be as a result of this new business?

KOM International's Approach

To conduct logistics strategy studies, KOM International uses a combination of proprietary data gathering techniques and advanced analytical tools that enable our clients to achieve a clear, in-depth understanding of the most effective logistics strategy to pursue for each product, customer, supplier, distribution center, operating division and country. Most importantly, KOM International works with our clients to formulate conclusions that are easily understood by all members of the executive team.

Regardless of the size of your company, supply chains are complex and transcend multiple departments within your firm. To make the most effective decisions for your business and your customers, a qualified supply chain consulting firm can provide value by conducting an unbiased evaluation of the facts and statistics behind your enterprise. By translating detailed operating data into meaningful logistics strategies, KOM International has helped hundreds of companies add millions of dollars to the bottom line.