Supply Chain Network Design and Optimization
Design the Right Distribution Network for Cost and Service
Right-size your footprint. Model the cost. Protect service.
CPC helps shippers determine how many distribution centers they need and where those facilities should be located. We model freight flows and estimate how proposed network changes could affect cost, capacity and customer service.
The Smarter Networks Advantage
Lower Total Cost
Model facility, freight and inventory effects together.
Better Service
Align customer coverage with realistic service targets.
Right-Sized Footprint
Test whether the network has too many or too few facilities.
Smarter Inventory Positioning
Consider where products should sit relative to demand.
More Resilient Decisions
Compare scenarios before committing capital or changing flows.
How Many Distribution Centers Do You Really Need?
CPC frames network design with practical questions: could ten distribution centers serve customers more efficiently as three, and where should the next distribution center be located?
The recommended network depends on:
Facility costs
Customer and demand locations
Inbound and outbound transportation
Facility capacity
Inventory strategy
Service commitments
Expected growth
Business risk and operating constraints
Network Decisions CPC Can Model
| Decision | Question | What the model should compare |
|---|---|---|
| Facility count | How many distribution centers are justified? | Fixed cost, capacity, inventory, freight and service coverage |
| Facility location | Where should each distribution center be located? | Demand geography, inbound/outbound flows, labor/facility assumptions and service |
| Customer assignment | Which facility should serve each customer or region? | Distance, service, cost, capacity and operating constraints |
| Inventory positioning | What products belong at which nodes? | Demand patterns, service, inventory complexity and replenishment flow |
| Transportation | How do network changes alter freight economics? | Origin-destination patterns, modes, shipment size, rates and consolidation |
| Implementation | What changes are required to move from baseline to future state? | Facility, warehouse, transportation, systems, vendor and project-management work |
How CPC Evaluates a Smarter Network
CPC begins by establishing the current network baseline and documenting the assumptions used in the analysis. We then model alternative facility, inventory and transportation scenarios and compare each option against cost, service, capacity and business requirements.
Define
Set scope, constraints and measures of success.
Baseline
Map facilities, customers, flows, cost and service.
Model
Build alternative footprints and assignments.
Compare
Re-rate scenarios and test total cost and service.
Decide
Select the best-fit future-state roadmap.
Implement
Execute, measure and refine the approved design.
Balance Cost and Service - Not Just Facility Count
A smaller footprint may reduce fixed and inventory complexity but increase outbound distance. A larger footprint may improve proximity while adding facility and inventory cost.
CPC compares the complete network instead of optimizing one cost category in isolation. The analysis considers transportation, service, capacity, inventory, facility economics and business constraints together.
For freight-flow context, the Bureau of Transportation Statistics Freight Analysis Framework provides U.S. freight flow estimates by origin, destination, commodity and mode. The Commodity Flow Survey is a primary federal source for domestic shipment characteristics.
From Network Recommendation to Operational Execution
A future-state network creates value only when the recommended changes can be implemented. CPC can connect network-design recommendations with warehouse operations, transportation, procurement, project management, business-process redesign and savings measurement.
Network design establishes the future facility and freight-flow structure. CPC’s Freight Optimization, Mode Optimization and Planning and Forecasting services can then support execution within the approved network.
This warehouse project demonstrates CPC’s ability to support operational implementation. The results reflect the warehouse engagement and should not be interpreted as network-design savings.
Model the Move Before You Make It
CPC can re-rate current freight activity to estimate the potential cost or savings associated with proposed network changes. This analysis helps clients evaluate a facility opening, closure or customer reassignment before implementation.
Supply Chain Network Design FAQs.
▸What is supply chain network design?
▸How many distribution centers should my company have?
▸How does CPC evaluate distribution center locations?
▸Can network design reduce transportation costs?
▸Does a smaller warehouse footprint always cost less?
▸How often should a distribution network be reviewed?
▸What data is needed for a network study?
▸Can CPC help implement the recommended network?
Ready to Evaluate Your Supply Chain Network?
CPC can model facility, inventory and freight-flow alternatives against your current cost, service and capacity requirements.