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Logistic Strategies and Structures

Logistic strategies and structures establish the setting for company competitiveness. The definition of the strategy often has a long-term, sustainable effect on costs.

Important questions that must be answered on the strategic level are:

  • Which network and location structures are necessary for my business strategy?
  • How do I develop markets and establish logistic structures?
  • Are national or border-crossing concepts necessary for the delivery area?
  • Which procurement and distribution strategies fit to my products and my service strategy?
  • Are my company’s logistics (or a component thereof) in a position to be outsourced or would it be better to keep logistics within the company?

When determining logistic strategies and structures, it is important to recognize and evaluate the cost driver and its working mechanisms as early as possible.

We support you with word and deed in the conception of:

  • Network and location optimization
  • Outsourcing of logistic efforts
  • Tender management
Networks & Locations
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Networks and Locations

Optimal network structures and locations are important prerequisites for cost and service oriented client shipment distribution. Decentralized stock in regional warehouses was, for a long time, the only way to guarantee fast delivery. Because of shorter run-times in transport networks, however, the tendency today is to dissolve regional warehouses and to centralize stock, which leads to significant reductions in stock and warehousing costs.

Nevertheless, as the level of service in many industries is still defined by client proximity, the question of the optimal logistic network configuration arises. What influence does a location change have on transport and warehousing costs? How many locations are necessary to fulfill the service requirements of your clients?

Our consultants create transparency in your company’s network demands and offer qualified support in location decisions. Defining and knowing the trade-off between stock/warehousing costs and transport costs is crucial when making these decisions.

We use simulation technology to determine result variations for optimizing existing locations or reorganizing logistic networks. Geographic and freight cost oriented criteria and weight are thereby considered. The transport scenarios obtained in this way are evaluated by determining concrete market potential through benchmarking actual freight with the help of current market prices from our freight database.

Our Consulting Services:

  • Supply Chain optimization
  • Client, sales and shipment structure analysis
  • Service requirement analysis
  • Development of various future scenarios
  • Location optimization according to number and position
  • Warehousing and transport cost evaluation
  • Determination of synergy in inbound and outbound traffic
  • Alternative transport scenario analysis and evaluation (e.g.: multimodal transport)
  • Determination of logistic points (e.g.: cross docking) in logistic networks
  • Transport network organization in reference to structures and processes
  • Determination of logistic infrastructure as well as the flow of information and goods through the network
Evaluation of warehousing and transport costs

Outsourcing
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Outsourcing

A critical decision area in the logistics system is determining how logistic functions should be handled. Should they be undertaken by an external company, or kept internal? As numerous, very specific factors must be observed during outsourcing, the expediency of outsourcing arrangements is not to be judged solely according to cost saving potential.

The following may be reasons to consider outsourcing:

  • Avoidance of direct investments in (for example) warehousing and transport
  • Concentration on core business
  • Generation of capacity and investment potential for core business
  • Increased efficiency through awarding the process to professionals
  • More flexible peak absorption
  • Fixed costs become variable
  • Cost oriented utilization of synergy effects

However, every outsourcing project must undergo high-level risk management processes; in particular, conceptual preparation with evaluation of all advantages and disadvantages of external assignment.

Our approach to outsourcing projects:

  • Detailed recording of eligible logistic processes
  • Potential determination (which processes could be outsourced, and what are the risks?)
  • Creation of future-oriented outsourcing concepts
  • Advertisement and allocation, as well as contract negotiations
  • Reduction of personnel and temporal expenses for outsourcing projects
  • Cost-calculative evaluation of outsourcing project
  • Guarantee of seamless changeover of goods and services (to avoid transfer risks or service and quality deficiencies)
  • Effortless infrastructure and personnel transfer (to avoid cost increases and personnel risks)

If, at the end of a thorough analysis, the decision is not in favour of outsourcing, our clients still have the opportunity to improve their profitability and self-directed logistic services with the aid of the analysis results.

Tender Management for Contract Logistics
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Tender Management for Contract Logistics

The awarding and execution of logistics performances in transport and warehousing often determine the competitiveness of the purchaser and supplier, rendering professional preparation and processing of the tender by both parties all the more important.

In addition, market offers are becoming increasingly non transparent for purchasers and cost structures are becoming ever more complex.

The service provider often lacks the resources and personnel to analyze lucrative contract logistics business in detail and to provide attractive offers. Logistic service providers are finding it difficult to prove that cooperation can create a profitable situation for both parties.

Our Consulting Services for Tendering Companies

Mistakes are often made as early as in the beginning stages of preparing service tenders. Incomplete tenders, in terms of requirements, processes and quantity structures, can lead to misunderstandings – especially for the supplier. At the very latest, the result of the tender and the success of the assignment will be significantly influenced in the supplier pool.

Purchaser benefits:

  • Absolutely no resource binding throughout the entire tendering phase
  • Professional tools for tender preparation and evaluation
  • Optional anonymity for project protection
  • Benchmarks for optimal tender results

Our consulting services for the logistic service provider

Two things are crucial for the bidder when considering bid submission: first, the bidder must determine to which extent the required services fit his portfolio and strategic direction.

Second, while large service providers have professional sales and project management at their disposal, high-capacity middle sized companies fail quickly if they are not able to procure the necessary resources for the tendering process. Staedtler-Logistics’ consultants offer the following services to help these companies succeed:

  • Tender document analysis
  • Determination of project feasibility
  • Definition of necessary measures for the bidder
  • Support in preparing offer and presentation documents
  • Accompaniment in presentation and negotiation
  • Implementation management

Service provider benefits

  • Competent resources for strategically decisive topics
  • Use of experience from a multiplicity of supervised tenders
  • Professional preparation of tender documents