Build Logistics Network for Business Growth

THE CHALLENGE

Build Logistics Network for Business Growth

As businesses expand, supply chains often struggle to keep up with growing logistics demands. Decisions around distribution center location, size, design, and technology must carefully balance service level agreements, total cost, resilience, and operational risk—including labor, IT, real estate, and financial considerations. We help design and implement logistics networks that support growth while optimizing performance and minimizing risk.

The Opportunity

Many organizations have the data needed for network analysis, such as growth forecasts, vendor and customer locations, inventory turnover, labor and transport costs, construction cost, labour availability, and risk factors. But without clean, structured data, models can yield unreliable results.

Effective modeling requires not only quality data but also clear scenarios, sound techniques, and the flexibility to adjust scenarios and financials quickly as needed.

GET IN TOUCH

Our Approach

We evaluate logistics network scenarios with financial metrics (CAPEX, OPEX, NPV, IRR) and operational factors like service levels, resilience, and simplicity. Our dynamic models let you adjust sales growth, inventory, and distribution policies, automatically updating results and executive summaries for fast, informed decision-making.

Collect & prepare data
for modelling

We come ready with data request templates and adapt to the data available in your business. With experience working across both business and IT teams, we ensure inputs are accurate, complete, and agreed upon for reliable modeling.

Modelling
of scenarios

Drawing on extensive experience in network design, 5-year updates, and over 50 DSD conversions, we complement the scenarios your team is considering. Our approach covers dynamic, conventional, automated, and hybrid DC technologies, with sensitivity analysis to test the impact of different assumptions.

Financials & executive
review documents

We deliver comprehensive, dynamic outputs, including detailed financial metrics (CAPEX, OPEX, NPV, IRR) and executive review documents with decision matrices. Our models update automatically to reflect different assumptions and policies, enabling rapid scenario testing and confident, informed choices.

GET IN TOUCH

What We Deliver

Key data on sales, inventory, productivity, transport costs, and more, validated for modeling.
Scenario-based breakdowns of SKU counts and throughput by selected technologies.
Detailed DC layouts, service and common areas, and yard capacity for each proposed scenario.
A roadmap showing volume and capacity projections by quarter, leading to steady state.
Forecasted P&Ls for DC and transportation operations until steady state for all scenarios.
Comprehensive breakdowns of OPEX, CAPEX, NPV, and IRR for each network design scenario.

Core Capabilities
We Help You Activate

GET IN TOUCH

01

Service & Inventory Visibility

Understand differences across products and customers to see how service levels and inventory interact, uncover hidden costs, and prioritize improvement opportunities.

02

Benchmarking & Targeting

Move beyond intuition with clear internal and external benchmarks. We enable teams to compare performance objectively, set realistic targets, and identify the biggest improvement opportunities.

03

Analytical Root-Cause Thinking

We go beyond symptoms to identify the true drivers of poor service or excess inventory. Using structured, data-driven analysis, we pinpoint whether issues stem from planning parameters, process execution, or team behavior, providing clear guidance for corrective action.

04

Performance Monitoring & Governance

We implement the tools, reports, and routines needed to track adherence to planning guidelines. By highlighting deviations and quantifying their financial impact, we help you sustain best practices, drive accountability, and ensure long-term, measurable results.

GET IN TOUCH

FAQ

Planning Smarter: Common Questions

How do you determine the best locations and sizes for new distribution centers?

We start the location discussion by focusing on service level requirements. In high-level terms, service has three components: reaction, reliability, and efficiency. For example, if certain segments require a 24-hour turnaround, proximity to customers—and therefore the DC location in a specific city—becomes critical. Factors such as labor availability, union restrictions, and operational constraints also influence the decision. Finally, the economics of inbound and outbound transportation are evaluated: opening more DCs generally increases cost, but supply chain efficiencies, drop sizes, and network design can offset this. By analyzing these elements together, we determine the optimal location and size for each distribution center.

Do you consider both cost and service levels in your analysis?

Yes, we factor in both cost and service levels. Costs—including CAPEX and OPEX—are calculated using a mathematical, supply chain–driven approach with well-defined assumptions. Service levels are incorporated as constraints in the model; for example, certain product segments—such as high-velocity, seasonal, or high-margin items—may need to be stocked within 48 hours of major metropolitan areas. We also quantify the potential sales uplift from improved service levels by analyzing historical data and benchmarks. This allows us to estimate how a more reactive service for each segment can enhance on-shelf availability and drive revenue, combining both data-driven analysis and practical insight.

What financial metrics do you provide to support decision-making?

Early in the process, we work with your logistics team to collect general ledger data and use your template to summarize OPEX and CAPEX projections for the next 5–15 years. Based on assumptions around sales, inventory growth, and inflation, we calculate warehousing, transportation, and home office expenses year by year for each scenario. CAPEX and depreciation are also factored in based on mutually agreed assumptions. Finally, each scenario is compared against a “do-nothing” baseline, and we compute NPV and IRR to quantify the financial impact.

Do you provide guidance on DC layout, yard capacity, and operational efficiency?

Yes. We can specify the DC down to the last detail, working alongside technology providers to design layouts, racking, high-bay or tray warehouses, case-pack and break-pack picking systems, staging, loading areas, yard, and common or service areas. Our goal is to ensure your distribution centers are optimized for productivity, efficiency, and service level requirements.

How long does the analysis take, and what level of involvement is required from our team?

The timeline depends on the level of analysis. A high-level study—without detailed DC design—typically takes around 12 weeks, including data collection, assumptions alignment, and gathering 3PL rates. More complex analyses, involving multiple business units and 4–5 scenarios, can take 24 weeks or more, especially when including detailed DC designs (greenfield or brownfield), real estate considerations, city limitations, and bylaws. We work closely with your team, including engineering and real estate experts, to provide data, validate assumptions, and review outputs, while managing the modeling, scenario analysis, financial assessments, and transition plans to ensure smooth implementation.

Build Logistics Network for Business Growth

The Opportunity