Gartner Research

Combine Strategic Alignment and Detailed Cost Analysis for Effective Distribution Network Design

Published: 10 November 2016

ID: G00293449

Analyst(s): Kamala Raman

Summary

Distribution network design must involve consideration for both strategic priorities and a detailed look at cost elements impacting the network. Supply chain leaders in logistics must combine quantitative and qualitative elements when optimizing their network to achieve stated design objectives.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • A purely quantitative focus on identifying and refining network scenarios could lead supply chain leaders in logistics to select a design for the future network that does not fully support strategic objectives
  • The complexity of cost elements in network modeling can lead supply chain leaders in logistics to make inaccurate assumptions, resulting in incorrect design choices for the distribution network

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