Today at SCOPE FALL, Mark Kaiser, Manager of Distribution Operations at Myers Tire Supply co-presented with Jeff Cook, President of Blue Horseshoe’s TransTech Division. The topic of discussion was “Optimizing Your Distribution Network to Improve Service Levels While Reducing Costs”

We shared with the attendees ways to optimize their distribution network in order to reduce operating costs, improve overall service levels, simplify the supply chain and address the concerns of various stakeholders at the most economical costs.

Some Q&A from a contest held at the presentation. How many can you get correct?

1. Where is the “epicenter” for US population?
2. Where is the “epicenter” for UPS and FedEx shipments to minimize service days and costs to US population?
3. Using standard UPS/FedEx ground service, what % of US population can be serviced by 1 facility in 1, 2, and 3 days?
4. Using standard UPS /FedEx ground service, how many facilities are required to service nearly 100% of US in 2 days?
5. Using standard UPS/FedEx ground service, how many facilities are required to service nearly 100% of US in 1 day?
6. Evenly divide 1 facility into 2. What is the % Increase (Industry Standard) in overall inventory to support those 2 facilities?
7. Does inbound or outbound activity have a larger impact on the number of DC’s and the location?
8. Do inbound and outbound freight costs increase or decrease with additional facilities?
9. What is the latest time carriers can pick up freight in order to meet their published delivery day service?
10. How many distribution facilities did Myers eliminate as part of their Network Optimization Project?

Answers:

1. Plato, Missouri. 170 miles SW of St. Louis
2. Louisville, KY
3. 1 Day – 15%, 2 Days – 75%, 3 Days-82%
4. 3
5. 18
6. 41.4% SQRT(2)
7. Typically Outbound, as there is a larger # of shipments for same volume/weight.
8. Inbound costs increase due to more shipments. Outbound costs decrease due to shorter distances
9. Varies, Target is 8:30pm
10. 29 total (From 33 facilities down to 4)

If you are interested in the full presentation and would like to talk with our team about ways to optimize your own Distribution Network, contact us today!