DecisionMaps™ help analyze & control distribution costs.
Distribution systems are usually complex. Picturing them in your head is not possible. A DecisionMap™ (picture) is an excellent way to grasp the total distribution system. Where are the supply points? Where are the ultimate consumers? How does product get from the supply points to the consuming points? What are the costs associated with each step and path along the way?
Executives, and other key decision-makers, use DecisionMaps™ to visualize their distribution system with all the relevant costs and other variables. DecisionMaps™ show them opportunites for savings without reducing customer service.
When was the last time your company did a complete analysis of the distribution system? When was the last time there was a major improvement in the distribution system? How much value could be generated by adjusting your distribution system?
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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DecisionMaps and DecisionMap are service marks of GAPuzey Consultants.
