Network planning in logistics

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Logistics network planning in a nutshell

Die NetzwerkplanuNetwork planning in logistics is a strategic tool that plays a decisive role in determining the costs, service levels and resilience of a supply chain. New markets, changing customer requirements and portfolio adjustments are constantly altering the demands placed on logistics networks, which is why companies need to plan and regularly review their logistics networks. Strategic network planning prevents inefficiencies arising from rising transport costs or overloaded capacities before the pressure becomes too great. As an experienced partner with proven engineering expertise, ebp-consulting supports you in designing a supply chain network that is future-proof and highly profitable. We translate complex challenges into ready-to-implement solutions that sustainably secure your competitive edge in logistic.

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Network planning in logistics explained simply

Network planning in logistics involves the systematic analysis, design and optimisation of all nodes and connections within a supply chain. It defines the holistic structure of a logistics network to strike an optimal balance between costs, service levels and resilience. The aim is to align capacities in such a way that changing customer requirements or production relocations can be handled efficiently. In doing so, locations, warehouse structures and transport routes are not considered in isolation, but as an interacting overall system. Strategic network planning thus ensures that the network, which has evolved over time, will continue to align precisely with the overarching corporate strategy in the future.

Strategic context of network planning in logistics

Network planning in logistics forms the invisible backbone of the entire value chain and determines how efficiently goods reach the customer. It functions less as a short-term problem-solver and more as a long-term, strategic tool for securing the company’s future. In this glossary entry, we examine the phases of network planning, from site planning to transport routes. We also precisely situate the core areas of logistics network planning within the methodological framework of ebp-consulting. Sound planning significantly reduces risks and transforms strategic considerations into measurable competitive advantages.

The ebp-consulting approach: Understanding, Designing, Executing in strategic network planning

For ebp-consulting, successful network planning follows a clear logic: Understanding, Designing and Executing. Firstly, a focused feasibility study creates the necessary transparency, makes complexity manageable and identifies potential. Building on this, conceptual planning develops viable strategies and translates these strategic insights into the correct target vision. Finally, the detailed planning brings the preferred option to the point where it is ready for implementation, integrates further planning tasks such as milk runs and minimises investment risks. This phased approach ensures that companies invest exactly the amount of planning effort that generates the greatest logistical added value. Find out more about ebp-consulting’s approach and roadmap in a no-obligation discussion!

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The ebp-consulting Roadmap for network planning

Feasibility Study

At ebp-consulting, we use the feasibility study as an ideal starting point to first establish fundamental transparency and make the complexity of the network manageable. The primary aim here is not to draw up a final concept, but to provide rapid, focused answers to strategic questions and to identify risks at an early stage. Rather than delving straight into detailed implementation issues, this approach provides management with robust insights to inform key decisions.
Concept Planning

Building on this, ebp-consulting uses the insights gained from the feasibility study to develop concrete alternative solutions and a sustainable vision during the concept planning phase. In this phase, the identified strategic options are further refined, evaluated and ultimately shaped into a viable network strategy. The focus of the work shifts consistently from the initial question of general feasibility towards the active design of the optimal solution.
Detailed planning

Following the development of the concept, ebp-consulting implements the target vision through detailed planning and translates the strategy step by step into a plan ready for implementation. Through precise elaboration, this final planning step creates the essential prerequisites for the reliable and efficient implementation of the supply chain network. The detailed plans thus form a robust foundation for well-informed investment decisions, forthcoming tenders and the final physical implementation.

The core components of network planning in logistics

In order to plan logistics networks, complex structures must be broken down into manageable core components. The methodological analysis focuses primarily on the nodes and the connecting transport flows within the supply chain. The warehouse structure, the transport routes and the fundamental definition of the network are the key control factors here. Each of these elements has a significant influence on aggregate logistics costs and the final level of service provided to the customer. Only by taking an integrated view of these core areas of logistics network planning can sustainably resilient and cost-efficient structures be established.

Site Planning and Warehouse Structure

Site planning and the definition of the warehouse structure form the physical foundation of any supply chain. When optimising these nodes, we use methods such as centre-of-gravity analysis to identify ideal geographical focal points, taking into account delivery header data. A well-thought-out warehouse structure ensures that stock is located close to the customer, guaranteeing short delivery times and a high level of resilience. Furthermore, when developing the target scenario, the capacity limits of existing sites must be taken into account and adapted to future growth forecasts. A thorough vulnerability analysis of the existing structure enables inefficient sites to be identified and areas for action to be derived for future planning.

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Transport routes and route optimisation

The efficient design of transport routes is crucial for controlling rising logistics and transport costs in the long term. Through a detailed analysis of transport and warehousing costs down to shipment level, potential for consolidation and inefficiencies in the routes can be uncovered. In detailed planning, we integrate advanced planning tasks such as milk runs or last-mile delivery to adapt transport flows to changing market requirements. In doing so, we also assess additional aspects such as product range allocation and CO₂ targets to bring sustainable preferred options to the implementation stage. In this way, a transport network that has evolved over time is transformed into a strategically optimised solution that guarantees high service levels at minimal cost.

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Definition and Alignment of Logistics Networks

The fundamental definition of logistics networks determines how the company responds to new markets, additional sales channels or mergers and acquisitions. We define the network design based on a clear supply chain structural analysis that considers both the network level and consolidated routes. In doing so, the client’s qualitative data and growth forecasts are incorporated into advanced network studies, down to the segment or item level. The aim is to weigh up different strategies against one another during concept planning and to establish a cross-functional consensus on the future target vision. This strategic direction safeguards investments and paves the way for structured implementation without any unpleasant surprises.

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Finding the right time for network planning

Many companies only address their supply chain network when the pressure to act is already high: costs are rising, delivery times are deteriorating or existing sites are reaching their limits. Yet the actual causes usually arise much earlier. New markets, changing customer requirements, additional sales channels, portfolio changes or production relocations gradually alter the demands placed on the network.

In our experience, typical triggers for a network review include:

Growth or internationalisation
Changes to the product portfolio
New customer or service requirements
Rising logistics and transport costs
Resilience and sustainability targets
Mergers and acquisitions

Each change in its own right may seem manageable – but taken together, they can result in the supply chain network, which has evolved over time, no longer aligning with the company’s strategy. This is precisely why network planning should not be seen as a reaction to problems, but as a strategic tool for securing the future. The crucial question is therefore not: “Do we have a problem?” but rather: “Does our network still meet the requirements of tomorrow?”

Areas of application for strategic network planning

Typical areas where a review of the network is required include business growth, internationalisation or significant changes to the product portfolio. Even when production relocations are on the cards or new resilience and sustainability targets are being pursued, a redesign is inevitable. In practice, these triggers often only become apparent when delivery times are no longer on schedule or customer requirements remain unmet. Ultimately, planning helps to turn reactive problem-solving into strategic competitive advantages and to equip the network to meet tomorrow’s requirements.

Use ebp-consulting for your network planning

As experienced pragmatists, we combine the highest methodological excellence with robust, operational implementation skills in network planning to make your logistics networks future-proof. Benefit from our in-depth expertise and, in a no-obligation initial consultation, work with our consultants to uncover hidden potential for optimisation. Contact ebp-consulting to lay the foundations for robust concepts.

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Questions and answers on Network Planning in logistics

When is the right time to have logistics networks reviewed?

Ideally, a network should be proactively reviewed long before the pressure caused by overloaded capacity or rising costs becomes too great. From our consulting experience, we know that gradual changes, such as portfolio adjustments, can erode the network over the long term without being immediately noticeable. The right time has come when management asks itself whether the structure still aligns with the company’s future strategy. Preventive analyses thus ensure the organisation’s ability to act before inefficiencies seriously jeopardise its success.

Why is a feasibility study often the first step in the core areas of logistics network planning?

A feasibility study provides robust insights with minimal analytical effort and makes the complexity of the network manageable. It focuses on the essentials, quickly creates transparency regarding weak points, and identifies risks and potential at an early stage. This step does not answer every detail, but fundamentally clarifies which strategic areas for action and solution options make sense in the first place. This provides management with a sound basis for decision-making without having to invest in resource-intensive detailed planning at an early stage.

How do conceptual planning and detailed planning differ in network planning?

Conceptual planning utilises the strategic insights from the feasibility study to weigh up different strategies against one another and to design the optimal target scenario. It clarifies what the best possible solution should look like and establishes a consolidated, technical consensus. The subsequent detailed planning further develops this preferred option to the point where it is ready for implementation and prepares for its structured execution, including the business case. Whilst the concept therefore sets the direction, detailed planning provides the concrete, risk-minimised roadmap for physical implementation.

What role do changing market requirements play in strategic network planning?

New markets, changing customer requirements or the development of additional sales channels are drastically shifting the demands on delivery times and availability. In our consulting practice, we often see that networks that have evolved over time can no longer meet these new requirements cost-effectively. Precise network planning translates these market requirements into detailed growth forecasts and integrates them into centre-of-gravity analyses. Ultimately, this ensures that the supply chain network acts as a competitive advantage and enables the highest service levels with optimal cost structures.

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