The following case example is highly summarized.
Case 497: Controlling Distribution Costs
Problem: How to reduce distribution costs while maintaining product availability?
Situation: Distribution costs were spiraling out of control because slowly evolving changes in supply and consuming points were not noticed.
DecisionMap: The costs associated with delivering to specific served areas from alternative company distribution points were symbolically represented on a map.
Revealed: Reassigning some customers to different supply points could lower distribution costs.
Result: Realigning delivery territories reduced distribution costs.
Application: For companies with multiple warehouse and retail locations, it is important to clearly see all the costs associated with supplying specific customers from specific locations. If the customer can negotiate the price with more than one company outlet it is even more important to understand the costs associated with accepting the negotiated price.
DecisionMaps reveal important relationships that would never be considered without such a tool. DecisionMaps can be customized to analyze historic results, current sales (even the current "negotiation" in real time), and projected future results.
How much could your distribution costs be reduced with a DecisionMap? For help now email the best time and way to contact you.
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