Supply Chain Network Optimization & Distribution Strategy
Improving Distribution Efficiency Through Scenario-Based Network Analysis
OpenAxis LLC conducted a strategic supply chain and distribution network analysis for a manufacturing organization evaluating opportunities to improve operational efficiency, reduce distribution costs, and optimize inventory allocation across its national logistics network.
The engagement focused on assessing the operational and financial impact of transitioning from a decentralized regional distribution model to a more centralized distribution strategy supported by scenario-based modeling and inventory optimization analysis.
Business Challenge
The organization’s existing distribution structure relied on multiple regional distribution centers that created elevated inventory carrying costs, operational complexity, and inefficiencies in inventory allocation across product categories and geographic regions.
Leadership required a data-driven evaluation of:
transportation and inventory cost tradeoffs,
distribution network redesign opportunities,
demand variability impacts,
and operational risks associated with centralization strategies.
OpenAxis Support
OpenAxis LLC provided strategic analysis and operational optimization support through:
Evaluating distribution network scenarios and supply chain configurations
Reviewing and validating simulation and optimization models
Conducting operational and cost tradeoff analysis
Interpreting scenario-modeling results and sensitivity analyses
Developing strategic supply chain redesign recommendations
Structuring operational strategy findings and executive recommendations
Supporting inventory optimization and distribution planning analysis
Tools and platforms utilized included:
Excel
Excel Solver
AnyLogistix
Outcomes & Results
The analysis identified a more efficient hybrid distribution configuration that improved operational efficiency while reducing projected annual distribution costs.
Key outcomes included:
Identified projected annual operational savings opportunities exceeding $27K
Reduced projected inventory carrying costs through improved inventory pooling strategies
Developed scenario-based distribution optimization recommendations
Improved visibility into transportation and inventory tradeoffs
Supported strategic decision-making through sensitivity and demand-correlation analysis
Recommended a redesigned supply chain configuration balancing cost efficiency and service reliability
Capabilities Demonstrated
Supply Chain Optimization
Strategic Planning
Scenario Modeling
Operational Efficiency Analysis
Distribution Network Design
Inventory Optimization
Data Analysis & Decision Support
Operational Strategy Development