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4flow consulting offers consulting services to companies that wish to modify and replan their logistics and production networks.
The Challenge
Global networks of enterprises are becoming larger and more complex. Manufacturing, distribution and supplier networks are overlapping. Production sites of industrial companies are found in all important markets of the world. At the same time, clients are being supplied on a global basis. This fact is particularly noticeable in the automotive industry, the chemical industry and in the field of high-tech. But in the retail industry, too, networks of global suppliers and clients have to be managed. There are close intensive ties between network partners spread all over the world. A global logistics network, however, was not planned systematically, but has grown historically.
The result: standardized supply chains are rare. When it comes to cross-continental transportation, logistics costs frequently exceed the value of the goods and components. Responsibilities in the world-wide network are completely fragmented. This leads to intransparent material flows and cost allocation. Global network structures usually feature enormous potential for improvement. These are:
- strategic replanning of logistics networks to develop new markets with optimal performance and cost,
- optimization of network structures by reducing, relocating or creating network elements, such as warehouses,
- optimization of the utilization of existing network elements like factories, hubs, and warehouses,
- optimized allocation of the flow of goods to logistic process chains and
- collective use of logistics networks with suppliers and clients.
Our Approach
Under the phase-model of 4flow consulting, 4flow projects for logistics network optimization start with an analysis. Here the complexity of the network, structures of logistics, actual and future planned volume flows, processes, capacities of network elements, carriers, cycle times, inventory, and cost data are recorded over a short period. The creation of transparency through a visualization of the network and the calculation of the total logistics costs in the network is an essential part of this analysis. Based on feasible strategies, the given capabilities can be evaluated.
The optimization follows in the second phase, if the capabilities are promising. It can be based on the existing network as well as on future scenarios. Establishing standardized logistics processes helps to facilitate the optimization of individual material flows in the network later on. At the end of this second phase, we produce a statement concerning the potential for gains and the respective measures to be taken, assuming ideal conditions.
A multitude of constraints often interfere with the implementation of ideal solutions. In global networks these are not only capacity contraints, but also tariff regulations, local content regulations or country specific risk factors. We therefore set forth an important and intensive third phase, a project phase, dedicated to identifying and planning feasible solutions and realizable potentials. In this phase, constraints are identified, planning is performed and measures of implementation are prioritized, working together in a team.
Consistently following the approach of 4flow, we assist businesses to realize their potential and to implement the planning results. Only at this stage it is possible to assess whether the ideas developed together will be successful.
 - Network planning
The consultants at 4flow consulting usually use the software 4flow vista when working on projects that focus on network planning. Thus, velocity and sustainability of the project success can be increased signifcantly. If applicable, the customer can later use the software and the project-specific data for further planning.
Results
Typical results achieved by 4flow consulting for its customers in the field of network planning are:
- Transparency of the network, volume flows, and cost - for the first time,
- identification of quick-wins and their immediate realization,
- future-proof planning of the future network,
- significant reduction of the network-wide logistics cost up 25 % by modification of the structure and by consolidation,
- reduction of delivery times und improvement of service level,
- establishment of a sustained process for realizing potential gains and for network planning.
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