Challenges:
In the face of a particularly complex distribution network, Flogas needed to validate operational changes to shareholders. The company’s challenges included:
- In winter, vehicles typically made 10-12 deliveries each day across wide geographies, often involving small volumes per drop to customers with differing service contracts
- Flogas needed to objectively validate ideas for change to shareholders
- The company wanted to ensure its approach to modelling a true cost/benefit of network alterations was as effective as it could be
Solutions Implemented:
A CLASS consultancy enabled the team to quickly simulate the baseline model and run at forecast volumes, selecting the optimum design to ensure it met the project’s goals. Flogas implemented:
- COST2SERV
Benefits:
The project provided a raft of validated information which has become the basis for change in the Flogas network. Additional benefits include:
- By running a series of ‘What if?’ scenarios with depots allowed to close one at a time, relative savings were identified
- The team was able to progress towards the best possible distribution network in the real world
Related Solutions
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