There needs to be a proper estimation on what are the major costs that is associated with the logistic framework that would be required in the network set up comprising of single warehouse (Waters, 2010).The next step for the design of optimal network would be consideration of various facilities such as vendors, manufacturing center, customer service and the distribution center. These facilities need to be given importance as there is continuous flow of finished products and raw materials amongst these facilities (Ross, 2004). The most essential step for this optimal network design would be involving the higher management in the process. In the planning phase of the network design all the departments of marketing, operations, sales, and manufacturing needs to be involved so that the single warehouse is able to meet all the requirements of the different departments.The design of the optimal network of the logistic system that comprises of a single warehouse requires proper information and data that is to be analyzed as it forms one of the critical areas of the business operations. The logistic network design does not only encompass the manufacturing process and delivery of the goods to the customers or the end users, but it comprises of various sub parts that needs to be considered so that the network planning proves to be effective (Gudehus & Kotzab, 2012).In order to execute the steps that are designed for the planning of the optimal network the most important information is about the costs that is related to the company’s operations. All of the departments of the company that is manufacturing, sales, customer service, distribution, etc., need to be aligned and give the valuable information that would be required in the planning process. The incorporation of all the information that is given by these departments would be able to portray as to what are the important activities that needs to be handled effectively while designing the optimal network (Ghiani, Laporte & Musmanno, 2004).The major information required would be the different operations that are undertaken by the company so as to meet the desired level of customer service.The concept of using a single warehouse in the logistics network reflects the overall cost reduction and complexity that is often noticed when there are more of regional warehouses as it makes the operations of the company distributed. The first strategy that is employed in such
Radhakrishnan, P. (2001). Logistics and Supply Chain Management. New Delhi: Allied Publishers.
Waters, D. (2010). Global Logistics: New Directions in Supply Chain Management. Hong Kong: Kogan Page Publishers.
Ross, D.F. (2004). Distribution Planning and Control: Planning and Control: Managing in the Era of Supply Chain Management. USA: Springer.
Gudehus, T., & Kotzab, H. (2012). Comprehensive Logistics. New York: Springer
Ghiani, G., Laporte, G., & Musmanno, R. (2004). Introduction to Logistics Systems Planning and Control. Great Britain: John Wiley and Sons
Schönsleben, P. (2003). Integral Logistics Management: Planning and Control of Comprehensive Supply Chains. USA: CRC Press
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