Supply Chain Apps Case Study: Shipment Cost Simulation
Based on the shops’ locations in new markets and warehouse locations, we created a couple of scenarios. First, we calculated shipment costs from a centralized warehouse in Lille to all shops’ locations. These costs are used as a base and compared with different decentralized warehouse options.
We simulate scenarios with distribution centers in Lille and Lyon, then in Lille, Lyon and Bordeaux, and in Lyon, Bordeaux and Strasburg. When compared with a base, scenario 03 generates the most savings (25,29%).
Based on this, the company decided on using a decentralized warehousing system with distribution centers in Lyon, Bordeaux and Strasburg.