Network & Logistics Design
Complexity in distribution networks usually accumulates without a deliberate decision. Network redesign has to start with 'why,' not with moving warehouses around on a map.
What We See
Warehouse count and location have never been redesigned from scratch
The current network is usually the product of separate decisions made over years — a warehouse for one big customer, a warehouse for a cheap lease opportunity — not one integrated design.
Exception routes have become a large share of volume
Each exception route made sense when it was created, but together they've built a parallel, costly network that no one has reviewed as a whole.
The target service level is defined the same for every region
A 24-hour delivery commitment to a remote region drives up network cost without real customer need — because no one has segmented service level by the actual value of each market segment.
The outsource-vs-own-fleet decision was never made deliberately
Many organizations run a mix of dedicated fleet and outsourced transport that reflects historical constraints, not an up-to-date cost-benefit analysis.
Our Approach (The DDIT Framework)
Diagnose
Fully mapping the current network (warehouses, routes, flow volume between nodes) and identifying routes or warehouses whose cost is out of proportion to the value they create.
Design
Designing alternative network configurations with different warehouse counts and locations, along with defining a distinct target service level per market segment based on actual customer value.
Implement
Rolling out network changes in phases — usually starting with eliminating or consolidating low-volume exception routes before any larger warehouse-location change.
Transfer Capability
Documenting the network design logic and training the logistics team to evaluate future requests (a new customer, a new region) against that same logic, rather than as a new exception.
Deliverables
- Full current-network map with inter-node flow volume
- Cost-value analysis of each warehouse and route
- Alternative network design options with cost/speed trade-off analysis
- Target service-level segmentation by customer value
- Outsource-vs-own-fleet decision analysis
- Phased roadmap for network changes
Engagement Models
Diagnostic Sprint
A rapid mapping of the current network and identifying the three to five highest-impact opportunities, in three weeks.
Full Transformation
A full distribution network redesign, with support through the phased execution of changes.
Ongoing Advisory
Periodic evaluation of network expansion requests (new customer or region) against the approved design.
Who This Is For
For distributors or manufacturers with more than one warehouse or distribution center, particularly those that have grown geographically fast in recent years or seen a noticeable rise in logistics cost.
Frequently Asked Questions
The analysis and design phase typically takes four to eight weeks; executing physical changes (relocating or consolidating warehouses) varies from a few months to over a year, depending on scale.
No. The usual approach starts with the network's most expensive or least productive node, then gradually extends the design logic to the rest of the network once initial results stabilize.
The outsourcing decision is part of network design, not separate from it — because transport cost and flexibility directly affect how many warehouses are needed and where.
Yes. Even in small networks, a wrong call on a warehouse's location or scale can have a disproportionate effect on total cost; structured analysis at this scale is also faster and cheaper to run.
Based on that market segment's actual value (sales volume, margin, customer sensitivity to delivery time) — not a single standard applied across the whole network.
Ready to talk about this domain?
Tell us about your organization's specific challenge, and we'll recommend the right engagement model.