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Case · Network analysis

19% lower transport cost, within today’s capacity

A Belgian technical wholesaler with three warehouses. The question: which warehouse should ship which order?

−19%transport cost in the recommended scenario
~85%of the theoretical maximum saving (−23%) captured
58%of baseline cost sat in one warehouse’s flows

The challenge

With several warehouses, habit decided where an order shipped from, not cost. Every warehouse had to keep roughly today’s workload: the cheapest scenario on paper is worthless if it overloads one site.

The approach

  1. Data baseline. Orders, shipments, pallets and revenue per region, straight from ERP, WMS and TMS.
  2. Scenario model. From today’s allocation to the unconstrained cost optimum, and the realistic options in between.
  3. Cost vs. capacity. Transport cost, workload per warehouse and operational simplicity, side by side.
  4. Decision. One recommended scenario the operation can actually run, with the saving quantified.

Delivered as expertise on demand: we built the model with the client’s team and handed it over.

The result

“The cheapest scenario on paper overloads one warehouse. We advised the one the operation can actually run.”

Based on 4 months of data: 50,000+ shipments, 75,000 pallets, 16 regions, 5 scenarios. One province was kept split across two warehouses.

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