The world business is on the verge of complete digitalization and every day many new companies are adapting to e-commerce practice for their business. With the new ways and opportunities, there are new challenges as well. The clients and customers trying to purchase goods online are always looking for fast deliveries and lower prices and in the end, the vendor providing both at maximum gets to make the sales and thrive in the market. The logistics and supply chain services providers strive to meet the new challenges and requirements with innovation and updated technologies. Increasingly large warehousing centers, distribution centers close to customers, great automation and reliable transportation modals with the capability to deliver the goods exactly in the way that customer wants within the shortest lead time.
The leading companies in the market use modeling exercises in their supply chain to test different scenarios for improving customer delivery time. Factors such as storage and distribution capacity, processing times, transportation times and costs in the last mile need to be considered to compare different improvement alternatives.
In addition to considering these factors, it is necessary to understand the relationship between them. For example, to provide superior service with delivery on the same day that the order is placed (same day delivery) it is very possible that you need to expand the number of distribution centers, increasing the operating costs of the company. In order to make the decision, it is necessary to evaluate the location of current and potential customers with respect to the distribution centers and define whether the company’s resources are sufficient to deliver to customers on the same day.
Analyzing location, capacity, time, and cost data to make the best decision is not easy. In Shark Optimization we rely on modeling tools to include all the factors and relationships that influence the performance of the logistics supply chain. Our experience in logistics and transportation for Latin America complements the modeling and allows us to analyze and choose the optimal option for your business.