For many major B2B enterprises, logistics networks have never been more complex. The increasing prevalence of operations that are global—with growing numbers of production sites and clients that could be anywhere on earth—has introduced challenges that didn’t exist to the same degree at an earlier time. The good news is that there has also never before been a moment when there were more tools and more opportunities to optimize logistics costs than now.
Most B2B players have already improved their ability to minimize logistics costs on a route-by-route level. They know how to find the least expensive route for shipping products from a given production facility to an individual client location.
However, few have a holistic view of their logistics network or of the associated costs. Such a view considers all supplier and customer flows simultaneously. It tracks not only transportation and handling but also warehousing and inventory working-capital costs, specifically by end customer. Without such a picture, companies might miss opportunities to capture greater value from their network.