LPC was retained by Denny to:
• To identify a range of options for distributing finished products in Northern Ireland.
• To identify the costs and key attributes of each option.
To evaluate each option in terms of:
- Cost minimisation
- Product date maximisation
- Business simplification
- The ability to meet future business needs
- Flexibility and reliability
Based on the above, to recommend a preferred distribution strategy for further more detailed development.
LPC undertook the modelling using Dips which is a purpose-developed computer model which is very widely used for Facilities Location modelling and Transport Planning. It uses actual road networks, and can “self-optimise” location solutions as well as being used for the development and evaluation of optional scenarios. When being used for Location Modelling Dips can work either with individual collection and delivery points or with “clusters” of collection and delivery points.The Model can incorporate a variety of parameters
The scenarios modelled were:
- The current network or “As Is” scenario as a benchmark.
- Golden Cow site to hold all non Portadown stock with pre-picked loads being delivered to Portadown for cross docking and onward delivery
- New optimally located cross docking location to receive pre-picked stock from all factories and forward it for onward delivery. This location would be the base for the secondary distribution fleet
- Using the Ballymount NDC to hold RoI stock and deliver it as required for cross docking at Portadown
- New optimally located Mini NDC to hold Portadown, Golden Cow, Platter, Grove and Freshways stock. Other RoI stock to be delivered into and pre-picked in the Ballymount NDC for merging at the Mini NDC
- New optimally located Mini NDC to hold Portadown, Golden Cow, Platter, Grove, Freshways and Shillelagh stock. Shillelagh stock delivered direct into mini DC. Other RoI stock to be delivered into and pre-picked in the Ballymount NDC for merging at the Mini NDC
- Equipping of the Golden Cow site to become the NDC, hold all stock and carry out all deliveries
Golden Cow to deliver all CD volumes. Denny Portadown to ship its CD stock across pre-picked. All southern RoI product (except Platter, Grove and Freshways) to be delivered pre-picked from Ballymount NDC
The most suitable DC location from a transport point of view is on the Golden Cow site in Northern Ireland. This counterintuitive result is due to the different cost structures used by Denny for different elements of the distribution network.