10 Reasons to Review Your Distribution Network Design

Lilian Quane

Staff member
I wonder if anyone else is as concerned about distribution network design as I am. Did you know that a design review can save a company some 10% on network costs?

Here are 10 signs that an overhaul is overdue:

1). Network Never Designed
If your network has never been designed, only a review will ascertain if it is optimised.

2). Merger/Acquisition Activity
Acquisitions and mergers can affect the distribution networks of the various parties to the deal.

3). Divesting/Downsizing
You can be sure that your network will be affected if your company is downsizing or divesting.

4). Range Change
The balance of your network can be affected by range changes.

5). Customer Growth/Contraction
Alignment will be affected if you lose or gain a large customer.

6). Regulation Changes
Your network balance may be thrown out of kilter by new legislation.

7). Increasing Costs/Shrinking Margins
Unexpected rises in operating costs could be due to a misaligned network.

8). Too Much Inventory
Too little cash and too much inventory is a sure sign of network imbalance.

9). Falling Customer Service Levels
Falling customer satisfaction and dipping DIFOT service levels indicates that your network is losing momentum.

10). Inflexible Network
An inflexible network will cost you some business, especially if you can’t meet the demands of ecommerce.

Those are my 10 reasons. Do you have others to add to this list?


The present situation of the lockdown which is going towards the direction of a mild recession, companies are downsizing by force. With the shutdown of businesses, those who feel hopeless would claim bankruptcy while those that can still recover would downsize just to be able to stand up again.