Hi All,
Recently I got asked - A heavy metals manufacturer wants to design its logistics network. How should they go about it? For scoping, you have to focus on just the transportation from mine to facility and facility to customers. Can I get some ideas on it? How should we approach such non conventional cases?
There is not a lot to go off of here but the following are things to consider when designing an optimal logistics channel
Udayan
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Hi there,
There are a few ways to approach this, but first we need to know our objective? Are we looking to minimize costs, maximize output/capacity, etc etc.
For this, I might recommend a people, processes, tools approach. Or, you could approach it from the value-chain. Finally, you can look at it in stages (e.g. set up x, then y, then z).
I was asked - what should the criteria be? I answered - cost minimization with the best delivery timelines thus - minimum opportunity cost.
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It's a great case - makes you actually think!
What do you think? How would you approach?
Why don't you give it a try first and get people to help you refine. Practice makes perfect!
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Yeah, I have solved it already - breaking it down into cost structure of the transportation incl. Fleet costing, vendor/in house considerations, cost/quantity, etc..
