Potential Analysis

What are the most potentially profitable areas in your logistic structure? How can you exploit these areas at the best? When is the first return-on-invest to be expected? Using the standardized approach of a potential analysis, Logivations determines the value of prospective cost savings or efficiency improvements with the focus on the logistics of your supply chain on the whole.

When does a potential analysis pay off?
Enterprises are supposed to modify their supply chain or logistics constantly. It's a matter of improving, optimizing the service level and cost reduction. On the other hand, there are capacity and financial restrictions. Responsible managers are faced with mid- and long term decisions in order to get maximum improvements in their operational activities. This requires an optimal deployment due to the capacities of the expert staff. As a result, we must determine the top priorities in order to take the final and most reasonable decision. Every investment should be well-considered and justified by figures.

Approach

Based on long lasting experience of our consultants Logivations provides brand new solutions for your logistics. Concepts for optimization approaches and realization capabilities are evaluated with the focus on the real quantitative assessment of your logistic system based on the end-to-end process value analysis. The first step of every potential analysis is the evaluation of your logistic processes and immediate validation based on the actual data, e.g. order or transaction lists respectively.Next,using the received information, optimising scenarios are modelled, simulated and evaluated. At this point the scope and priorities are coordinated due to your preference and internal restrictions.

Integral part of a potential analysis by Logivations in addition to an audit of your logistic processes is a phase of data acquisition.Taking the available data (the format chosen by you) the simulation based on the actual statistical data can be produced and validated. Here begins the process of optimization: A real detailed quantitative analysis of your processes usually yields new perception and cognition of the factors like sensitivities, dynamics and interrelations.The final step would be to compare all optimization scenarios and to make some practical suggestions.
A potential analysis typically takes between 4 - 8 weeks. The allowance is based on the individual agreement or may depend upon the final savings under the certain circumstances.

Results

By the results of a potential analysis from Logivations you obtain:

• Transparent results for your own validation
• Process analysis / weak point analysis
• Evaluation of approaches for saving potentials
• Calculation of returns-on-investments and risks
• Concept outline of the transformation and necessary management changes