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Supply Chain Modelling - for Logistic Service Providers

Supplier: Lexian

We offer strategic network design and optimisation software and consulting services to leading organisations in all the major markets of the world.


The flexibility of the CAST modelling software and its ease of use permits its application across all industry sectors and geographies, where there is supply chain complexity that may include multi-tier manufacturing, warehousing and transportation options.

Global and regional Logistics Service Providers use CAST to support their prospective business development and solution design activities, as well as to drive savings out of their existing clients supply chains in Europe, North & South America, Asia and Africa.

Seven out of eight of the largest contract logistics companies in Europe and five out of ten in the US have access to the CAST software. These include: DHL Exel, Ceva, Caterpillar Logistics, Bax Global and Ryder.

Logistics Providers use CAST to indicate where a warehouse (or multiple warehouses) should be best located for their prospective customer’s demand profile and to quantify what service level each warehouse configuration would provide.

Not only does CAST help Logistics Providers to design the optimum network configuration but it also permits the costing and sizing of the appropriate distribution fleet required to deliver that demand. Subsequently, CAST enables the rapid, development of a quantitative strategic analysis that can be integrated into a business proposal for their prospective clients.

Logistics providers also use CAST to consider more tactical analysis, such as competing a dedicated fleet against common carrier rates, or competing transportation modes such as truck versus rail.

Logistics Providers are following their retailing and manufacturing customers into new developing and global markets and are increasingly being tasked with providing an integrated global logistics platform to support expansion and meet the service expectations in those markets.

CAST permits them to evaluate, design and implement the most appropriate supply chain strategy for that market and service requirement.

CAST creates Savings - Example 1

Barloworld Optimus recently supported a Logistics Service Provider in France who was competing for the distribution business of a major white goods (fridges, freezers, ovens) and brown goods (CD Players, TVs, Cameras) manufacturer. CAST was firstly used to map and visualise the historical demand across France.

CAST then found the optimal single DC and 2 DC locations based on minimized kgs per mile delivered across the road network and calculated the cumulative transport service level for each network configuration.

This was conducted for both full line DC (stocking White & Brown goods) and single line DC (White goods only or Brown goods only) options. These 6 DC & stocking configuration options were compared against the current 2 DC configuration utilized by the client and potential kg per mile savings of between 6.5% and 44% were identified.

CAST Wins Contracts – Example 2

CEVA Logistics is a leading global logistics company which designs, implements and operates complex supply chain solutions on a national, regional or global scale for medium to large enterprises. With 38,000 dedicated professionals they manage over 7 million square meters of warehouse space and operate an extensive global network with facilities in 26 countries worldwide.

The evaluation of different supply chain strategies formed a key part of the Barloworld Optimus proposal for CEVA’s (formerly TNT Logistics (Australia) Pty Ltd) Business Development operations in Australia. CAST provided the strategic supply chain analysis required for CEVA’s proposal to Telstra, Australia’s largest telecommunications company.

Historically, Telstra had operated their own warehouses in 7 cities and CEVA used CAST to evaluate several ways of rationalising and centralising the stock holding to deliver significant cost savings. The result of the proposal was a major new CEVA contract for Telstra's warehousing and distribution operations – thanks to the strategic network model created by CAST and the resulting proposal delivered by CEVA.