Interested in our supply chain analysis?
In case you want to talk to me about our supply chain analysis, please request a call and I will meet with you shortly.
Jordy van de Griend, Sales manager
Do you buy at the right depots? Do you have the right number of trucks? Are trucks parked at the right locations? Do truck specifics match your customer requirements? Are planners achieving the right balance between high truck productivity and low number of stock-outs? Bottomline has developed a Supply Chain Analysis method to answer these questions. In case you believe you can improve and like to know by how much, please contact us.
Bottomline has developed a 3-step process to analyse whether your supply chain is set-up and managed in an optimal way. It starts with data collection, continues with the set-up of a matching model and ends with the running of multiple simulations. With often surprising results.
The Supply Chain Analysis study starts with a data collection phase. Bottomline has developed a data template for that purpose that we will explain to you in detail before you start. In this template you fill out for the last 12 months where you have loaded, where you have delivered and which vehicles you have used. This gives us a good insight in the set-up of your supply chain. But we also would like to know how you manage your supply chain and this requires disclosure of cost, capacity and performance data.
After all the required data is collected and validated, we start with the development of a matching model. We take all your data and put it in our simulation model. The model builds trips for all depot-delivery site combinations based on assumptions on loading time, driving time and delivery time, but also based on load size, drop size and inter customer distance. It is key that the assumptions that we use are realistic, but also that our model matches with what you have achieved. This model finetuning is always done in close collaboration with the customer.
Once we have made the match together, you are ready to start with running the simulations. In this last phase we evaluate what cost savings can be achieved for different scenarios. With regard to where to buy the product, we evaluate for which depot-delivery site combination the total supply cost is the lowest. With regard to planning, we compare your truck performance with results that we have achieved ourselves or seen at our customers. We calculate what the saving would be if this performance level could be met.
“Bottomline has first given us the insights that we can improve our cryo-service planning and now as a follow-up we have asked Bottomline to take care of this.”
“The simulation model developed by Bottomline was a valuable tool for us in optimizing our propane distribution.”
“Bottomline's experience allows them to do in-depth analysis and deliver real savings whilst challenging the status quo and 'myths' of the supply chain.”
Whatever your preferred purchasing method is, Bottomline is able to help you to achieve the maximum financial result. In case you buy products on a spot basis, you need to continually compare the product prices from suppliers to ensure loading on the most attractive spot contract. In case your buy your products on a contract basis, you need to negotiate with suppliers once per year and agree on volume per depot and price formula.
In both cases there is a need to make a decision based on the total supply chain cost which is defined as depot cost plus transport cost. Although this sounds as a logic strategy, we often see that fuel retailers make sub optimal decisions and buy their products based on either the lowest depot cost or based on the lowest transport cost.
Bottomline can help you to find the optimum. In case you buy products on a spot basis, we can support you in this daily optimization with our BX platform that does the decision making on behalf of you 7/24 in real time. In case you buy products on a contract basis, we can build a customized simulation model for you and advise you on how much volume you have to buy from which suppliers and depots, but also on how many of which trucks you need from which locations, to meet the customer demand.