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Introduction to LPC - Facility Design And Re-Engineering
1. Introduction to LPC
Distribution Network and Transport Studies
LPC International Ltd – Wellington House, 57 Dyer Street, Cirencester, Gloucestershire, GL7 2PP
Presentation
By Kenneth Paine
2. ARE YOU CONSIDERING A REVIEW OF YOUR SUPPLY CHAIN?
LPC International Ltd
LPC HAS HELPED MULTIPLE CLIENTS WITH THEIR TRANSPORT REVIEWS AT BOTH STRATEGIC AND
OPERATIONAL LEVEL
LPC’s solutions incorporate as much detail as made
available including delivery windows, vehicle size
restrictions, unloading and reloading times and much
more in addition to road speeds and distances travelled.
Our solutions are developed by actually routing and
scheduling historical delivery data order by order, day by
day and vehicle by vehicle until the minimum vehicle,
driver and mileage requirement necessary to meet all
constraints is established. Accurate costs can then be
applied to the accurate resource requirement calculation
for each scenario. Our solutions are not “black-box” nor
do they use averages or factors applied to the data. The
work carried out for each vehicle on each day of the
period modelled can be inspected. This methodology
leads to the most robust and confidence inspiring
solutions.
3. ABOUT LPC
LPC International Ltd
Logistics and Supply Chain Consultancy Specialising in Warehouse Design
Established in 1984.
Professional team plus wide associate base.
Based in Cirencester in the United Kingdom – working worldwide
Extensive client base with customers ranging from third party logistics providers to retail, manufacture and
wholesale blue-chip companies.
Proven skills, reputation and extensive experience in Distribution Facility Design and Supply Chain
Implementation.
4. INTRODUCTION TO LPC – DISTRIBUTION NETWORK DESIGN & TRANSPORT STUDIES
Countries we have worked in:-
LPC International Ltd
Argentina
Brazil
Canada
Chile
Ireland
Jordan
Kuwait
Malawi
Malta
Mozambique
New Zealand
Nigeria
Oman
Poland
South Africa
Spain
Sweden
Uganda
UAE
United Kingdom
Greece
Ghana
India
Singapore
Germany
Holland
France
Czech Republic
5. DISTRIBUTION NETWORK DESIGN & TRANSPORT STUDIES
WHAT WE DO
Modern computing power allows the realistic and detailed simulation of logistics operations both at
strategic supply chain level and tactical or operational transport level.
Unlike spreadsheet and other high-level approaches which involve heavy use of ratios and assumptions, dedicated
modelling software works by replicating real life operations with real life restrictions. In essence modelling software
greatly accelerates a planner’s work to, for each scenario, build route by route, drop by drop, mile by mile and therefore
arrive at an accurate solution based on workable routes and fleet profiles.
At high level, different supply chain strategies can be compared to rapidly and accurately enough to identify
the alternatives closest to the optimum. Once the preferred strategies are selected, these can be simulated
in detail to prepare accurate resource requirements for planning, comparison, budgetary or decision-
making purposes.
LPC International Ltd
6. DISTRIBUTION NETWORK DESIGN & TRANSPORT STUDIES
LPC International Ltd
HOW WE DO IT
Transport modelling is usually split into 2 elements, Strategic and 0perational. We can help with both.
Where should products be sourced, manufactured, assembled and stored
Studies at Strategic level can address, for example, the following:
Which is the cheapest route to market in a multi-supplier and multi-depot network
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The effect of adding or removing production points
The effect of adding or removing production points
The effect of changing the output of production points in terms of quantity or product range
The effect of adding or removing outbases
7. DISTRIBUTION NETWORK DESIGN & TRANSPORT STUDIES
LPC International Ltd
HOW WE DO IT - Studies at Tactical and Operational Level
Shortlists at strategic level must
then be studied in detail at
operational level to determine
impact of the alternatives in terms
of resource requirement and cost.
These studies go into a lot of detail
and are very accurate, for they are
often the basis for a proposal, the
preparation of a rates table or
budget plans.
8. DISTRIBUTION NEWORK DESIGN & TRANSPORT STUDIES
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LPC International Ltd
WHAT ARE THE OUTPUTS?
The outputs of the tactical
studies include for each
scenario:
- Fleet number profile at each site -
- Driver numbers and hours -
- Mileages by vehicle type -
- Detailed routes -
- Detailed costs -
- All necessary KPIs -
All of the above for trunking and radial
distribution.
Illustrative maps of the network layout, depot boundaries -- What ought to go on a carrier and what ought to go on the
core fleets.
This way all scenarios can be compared with the added reassurance that the solutions are workable, resource and cost
accurate and representative of real world operations.
Studying the outputs provides insight into what areas of the supply chain need improving and shows the
effect of different proposed solutions.
9. DISTRIBUTION NEWORK DESIGN & TRANSPORT STUDIES
LPC International Ltd
HOW CLIENTS BENEFIT
Clients can see the costs and benefits of restructuring or working their networks in different ways, without
having to take the commercial risk of actually trying it!
It is often a requirement to run such models when companies are tendering for large contracts or
undertaking network reengineering, and this is often when the benefit is most keenly felt.