Corus Consulting optimized supply chains in Magnet

2019: Project completion on modeling of development of supply chains

On August 7, 2019 the CORUS Consulting company reported that it completed the project on modeling of development of supply chains of retail chain stores Magnet. Project deliverables will allow analysts of the retailer to make the weighed decisions on opening of distribution centers in the long term 5-7 years.

According to the company, within strategy for continual improvement of business processes in logistics Magnet started the project on modeling of development of supply chains. The team of consultants of CORUS Consulting Group developed optimization model based on the LLamasoft Supply Chain Guru software product.

The project is implemented in several stages. On the first of them the relevant calibration model of logistic processes on actual data is created. Using this model it was succeeded to confirm that IT solution considers logic of supply chains and correctly reproduces P&L the companies for the corresponding period.

At the second stage of the project the command of Corus Consulting executed calculation of strategy of logistics. Four scenarios of development of a supply chain of Magnet which allowed the management of retail chain stores to answer the following questions were developed:

• what optimal quantity of warehouses will be required for satisfaction of the sales demand on the horizon of 5-7 years and where they should be located;
• what zones what area should be in each of new warehouses and also as zones in already existing warehouses should be transformed;
• as the optimal configuration and structure of a supply chain should look and change year by year;
• what cost of each of unique scenarios of development of the company and what of scenarios is optimal in terms of logistic costs.

At last, within the project tactical scenarios of development of logistic network which allowed to define structure of transit flows taking into account turnover of different groups of the dry range were calculated, to classify supply chains by commodity groups and storage conditions.

To set result, in the company the competence center on strategic and tactical planning of supply chains was created. These changes allow Magnet to model independently different scenarios of development of supply chains and to select from them optimal.

One of key points of our business development strategy – creation of a powerful and branching logistic network for regional expansion. Therefore the received project deliverables of steel for us a reference point when implementing the development strategy of logistic network of our company. Use of LLamasoft will allow to manage supply chains and to timely make management decisions which can provide competitive advantage and increase efficiency of a logistic complex of Magnet at all levels and stages, from suppliers to shops. Sergey Berdnik, the head of service of development of logistics of cargo transportation of control of Magnet transport told

The Magnet command has deep experience in functional areas of supply chain management. Use in operation of the instrument of optimization of supply chains will allow to make the weighed decisions at change of the entering data, and to do it in most short time. Valeria Tursunova, the manager of projects of department of CPM of CORUS Consulting Group told