Center of Gravity analyses

Improving efficiency through network optimisation

A smartly designed production and logistics network is the key to radically reducing transport costs whilst raising delivery performance to a level that gives you a competitive edge.

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The importance of network optimization in supply chain management

How can companies significantly increase their efficiency in supply chain management and reduce costs at the same time? The answer lies in targeted network optimization, which not only optimizes logistics processes but also creates strategic competitive advantages. As supply chain management consultants, we analyze networks, design networks and optimize them as required. Well thought-out network planning enables companies to make their supply chains more efficient, reduce costs and increase customer satisfaction. But why is this so important?

An optimized network minimizes transportation and storage costs by ensuring that goods travel from source to destination in the most efficient way. At the same time, well thought-out warehouse planning improves delivery times as goods can be stored closer to the customer. Especially in times of e-commerce and the increasing demand for next-day and same-day delivery, this is a decisive competitive advantage.

By analyzing and adapting the network structure, bottlenecks can be identified and eliminated, resulting in faster movement of goods and better responsiveness to customer needs. The implementation of efficient transport routes, the optimization of warehouse locations and the strategic placement of distribution centers are just some of the measures that can be realized through a well thought-out network design.

Future-proof design and a concrete implementation roadmap

“By combining best practices from a wide range of sectors, such as retail, the automotive industry and mechanical engineering, we provide our customers with a future-proof network design. From this, we draw up a clear roadmap that sets out exactly which measures need to be implemented and what benefits they will bring.”

Alexander Illig
Supply chain expert at ebp-consulting

Challenges in network optimization

In a logistics context, companies often find themselves faced with an established but inefficient network structure that no longer meets current market requirements. A lack of data transparency and technological barriers make it difficult to make informed decisions about site closures or new openings. Furthermore, unforeseeable fluctuations in demand and increasing regulatory requirements are creating enormous complexity in the management of global value chains. Here at ebp-consulting, we tackle these challenges with in-depth analytical expertise and tried-and-tested strategies that eliminate existing bottlenecks and transform your network to make it future-proof.

Network optimisations are tailored to specific challenges

“Network optimisation rarely takes place on a regular basis; rather, it is usually triggered by acute pain points such as a lack of warehouse capacity, insufficient delivery capacity or structures that have grown organically over time without any prior planning.”

Alexander Illig
Supply chain expert at ebp-consulting

Technological hurdles and data quality

A lack of expertise and inadequate databases often prevent the accurate simulation of network scenarios. ebp-consulting uses state-of-the-art tools and big data analytics to create a sound basis for decision-making.

Internal resistance and change management

Structural changes often trigger concerns amongst staff regarding altered work processes or relocations. Through a consultative approach based on partnership, ebp-consulting facilitates these processes and ensures acceptance within the organisation.

Volatile market conditions

Rapidly changing customer needs and global disruptions demand a high degree of adaptability from the logistics network. ebp-consulting develops flexible network designs that guarantee rapid scalability and responsiveness.

Advantages of strategic network optimization

  1. Cost savings: By reducing transportation, storage and inventory costs.
  2. Better use of resources: optimized storage capacities and shorter delivery times.
  3. Sustainability: minimization of the carbon footprint through more efficient route planning
  4. Flexibility: rapid adaptation to changing market requirements
  5. Service level: Increased service level and satisfied customers.
  6. Transparency: creating transparency regarding warehouse capacities and capacity utilization
Logistics consulting in Stuttgart, Munich and Dortmund

Our focus areas in network optimization are:

These strategic and operational highlights form the core of any successful network transformation and are an essential part of any process restructuring. Our approach combines mathematical precision with years of consultancy experience to generate sustainable value.

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Center of Gravity analyse / Network analysis

We identify the ideal geographical centre of your logistics operations to significantly reduce transport distances and CO₂ emissions. Use this analysis as an objective corrective measure for structures that have evolved over time, and integrate real-time traffic data for maximum accuracy.

Design of Distribution Networks and Distribution Centres

The strategic placement of distribution centres ensures you have the decisive time advantage for next-day or same-day delivery requirements. We optimise the number and location of your hubs to minimise last-mile costs whilst simultaneously increasing service levels.

Production network design & value-added allocation

We analyse which value-added activities are best located at which sites to leverage global synergies. Potential production relocations to other sites and suppliers are also examined. Take into account factors such as labour costs, skills and local market access to develop a holistic location strategy.

Storage & Inventory Strategies

Through the intelligent allocation of product ranges to sites, we reduce your capital tied up whilst maximising delivery capability. We recommend implementing multi-echelon optimisations to manage stock levels synchronously across all network levels.

Network Simulation & Scenario Assessment

Using digital twins, we validate changes virtually before any physical investments are made, which significantly reduces project risk. Use our simulation tools to conduct a thorough assessment of ‘what-if’ scenarios for various market developments.

Sustainability & CO₂ Footprint Optimisation

Efficient route planning and site selection are the most effective levers for decarbonising your supply chain. We integrate green logistics targets directly into the network design to proactively meet regulatory requirements (CSRD/ESG) and reduce costs.

 

Network planning is not just about geographical aspects. Factors such as demand forecasts, seasonal fluctuations and transport infrastructure also play an important role. Companies need to analyze which locations make strategic sense in order to find a balance between minimum operating costs and maximum service quality.
Another important point is scalability. Markets and customer needs are constantly changing. A flexible network design enables companies to react to changes, whether by opening new warehouses, closing existing locations or integrating new technologies.

Procedure for network optimization with ebp-consulting

Our process model is designed to ensure the best possible outcomes and guides you step by step from the initial analysis through to successful implementation. We combine a deep understanding of processes with state-of-the-art simulation methods to develop bespoke solutions for your business.

Data-driven network optimisation

“We don’t view networks in abstract terms; instead, we use our customers’ actual delivery data to model different scenarios. Through such sensitivity analyses, we immediately highlight what happens if, for example, a site fails or transport costs rise.”

Alexander Illig
Supply chain expert at ebp-consulting

Defining the objectives of network optimisation

Every project begins with a clear and precise definition of the strategic and operational objectives for your future logistics network. Working closely with you, we establish the economic, qualitative and sustainability-related parameters that will serve as a solid foundation for all subsequent phases. In this way, we ensure from the outset that the subsequent optimisation is perfectly aligned with your overarching corporate strategy.

Analysis of the current situation and data preparation

In this phase, we focus on the comprehensive collection, cleansing and structuring of the entire existing data set. On this basis, we create a detailed map of your current logistics network, which serves as an accurate benchmark for all optimisation approaches. Thanks to this high level of detail, we are able to bring even hidden inefficiencies and cost drivers within complex data sets into clear view.

Demand planning and scenario modelling

Building on the findings of the current state analysis, we identify existing weaknesses and pinpoint concrete opportunities for sustainable optimisation approaches. In doing so, we take future developments into account by flexibly modelling various growth scenarios, market adjustments and changes to your product range. This ensures that the new network design meets not only today’s but also your market’s future requirements.

Concept planning with tool-supported evaluation

During concept planning, we develop bespoke, optimised network scenarios that strike the optimal balance between strategic flexibility and specific risk profiles. The comparative evaluation and simulation of these scenarios is carried out using the established expert tool LogHub. As a vendor-neutral partner, we thus offer you a data-driven decision-making framework on an equal footing – without any expensive, long-term software lock-ins.

Roadmap for implementation and project support

In the final step, we translate the selected concept into a concrete roadmap and support the professional tendering process for warehouse logistics and transport services. Unlike traditional strategy consultancies, we do not leave you to manage the implementation on your own, but actively support the project with proven change management. We remain reliably by your side until the theoretically calculated savings have been successfully transformed into real, measurable contributions to results.

Further consulting focus areas in supply chain management:

Areas of focus and sub-areas of network optimisation

In operational practice, various specialist areas interlink to form an efficient overall system. These sub-areas are essential for embedding the strategic objectives of network planning in detail.

Transport Management & Route Optimisation

Detailed planning of transport routes ensures that the theoretical benefits of the network design are actually realised in day-to-day operations. We recommend the use of modern control centre systems and provide support in selecting suitable 4PL partners for long-term management.

Warehouse Planning & Intralogistics Integration

A network is only as strong as its nodes; therefore, every decision regarding a location must be matched by efficient warehouse planning. We provide guidance on automation (selection of suitable warehouse technology) and ensure that warehouse layouts and material flows are perfectly aligned with the new network role.

After-sales logistics & spare parts networks

In the mechanical engineering sector in particular, spare parts logistics require specific structures with extremely high availability requirements. We design dedicated service networks that strike a balance between centralised warehousing for ‘slow-moving’ items and a decentralised presence for critical components.

Achieve excellence in network optimisation with ebp-consulting

As a manufacturer-independent management consultancy, we reliably ensure the success of your network design, from the initial data-driven analysis right through to physical implementation on the factory floor. Our flexible collaboration models are tailored precisely to your internal resources, guaranteeing bespoke support and maximum operational relief for your team. You can rely on a methodologically sound approach that reliably transforms theoretical potential into real, measurable contributions to results through state-of-the-art simulations and pragmatic change management.

 

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Questions and Answers on network optimisation

How quickly does a network optimisation project typically pay for itself?

Experience shows that network optimisation projects reach their break-even point within 12 to 18 months, as the savings achieved in transport and storage costs are often in the double-digit percentage range. We calculate the expected ROI for you in advance to ensure that the project delivers clear economic added value. We address concerns regarding the project duration with a phased approach that enables quick wins even in the short term. However, it always depends on which measures are implemented and when.

How does ebp-consulting deal with poor data quality within a company?

In practice, missing or inaccurate data is the rule rather than the exception, which is why we use specialised methods for data extraction and validation. We use statistical methods and benchmarks to fill data gaps in a well-founded manner and to create a valid basis for simulation. In this way, we ensure that your strategic decisions are not based on assumptions, but on a robust factual basis.

Is network optimisation also worthwhile for medium-sized companies with only a few sites?

Absolutely, because in smaller organisations in particular, inefficient processes or incorrectly sized warehouses often have a proportionally greater impact on profit margins. An impartial outside perspective helps to challenge entrenched structures and prepare the network for future phases of growth. We scale our methods so that the effort involved is always in a healthy proportion to the identified savings potential.