Logistics optimisation

Strategically guiding customer service excellence and improving working capital

Manufacturers can only connect with end consumers if transport, warehousing and distribution centres operate seamlessly. Well-designed logistics operations not only reduce costs but also enhance service levels, flexibility and resilience. At PwC, our team specialises in helping organisations optimise their transport, inventory and warehousing strategies to align with their customer service goals. We conduct thorough benchmarking against key competitors and industries, allowing us to develop tailored solutions that operationalise the distribution network for maximum efficiency.

In response to new and upcoming ESG regulations, our experts are equipped to prepare your logistics function to meet client requirements while enhancing service flexibility and reducing exposure risks. By integrating sustainability principles into logistics operations, we help organisations future-proof their supply chains while driving value and competitive advantage.

Here’s how we can help

PwC’s Logistics Optimisation service is designed to enhance efficiency and maximise value across your supply chain infrastructure. Following a multidisciplinary approach we blend strategic insights with cutting-edge technology and industry-specific expertise to deliver tailored solutions.

Our team works collaboratively with clients to analyse existing network structures, identify inefficiencies and develop optimised logistics strategies. Drawing on our extensive network of specialists, including experts in operations, technology and regulatory compliance, we provide holistic solutions that drive tangible results.

From streamlining distribution channels to optimising transportation routes, we employ a data-driven approach to enhance agility, reduce costs and improve overall performance. By partnering with our Supply Chain & Operations team, clients gain access to a comprehensive suite of services aimed at transforming their logistics networks into strategic assets capable of meeting evolving market demands and geopolitical change.

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Our capabilities

Logistics Network Design

Enhance the efficiency and effectiveness of your logistics operations with our network design studies. We analyse your current supply chain infrastructure and strategise optimum configurations to minimise costs, reduce lead times and maximise overall performance.

Our team recognises that artificial intelligence (AI) revolutionises logistics network design by leveraging data analytics to optimise configurations and enhance decisionmaking. Our AI-driven solutions enable predictive maintenance, route optimisation and demand forecasting, ultimately enhancing efficiency and competitiveness for our clients.

Resilience in logistics network design is ensured through robust risk management frameworks and advanced technologies. By conducting thorough risk assessments and using real-time monitoring, organisations can swiftly respond to disruptions, maintaining continuity of operations, safeguarding against potential threats and developing business continuity plans and redundancy scenarios.

Our consulting services prioritise the integration of environmentally sustainable practices into logistics network design. We work closely with clients to identify opportunities for reducing emissions, enhancing energy efficiency and adopting green technologies. From optimising transportation modes to implementing waste reduction strategies in warehouses, our approach aligns your logistics network with the principles of corporate environmental responsibility.

To effectively manage logistics network changes from affiliate acquisitions or divestments, we undertake a comprehensive redesign, optimising distribution centers and routes. We partner with 3PLs or 4PLs to fill capability gaps. Additionally, we assist you in engaging managed services companies to ensure support and expertise during transitions. This integrated approach minimises disruptions and maximises operational efficiency, empowering organisations to adapt swiftly and maintain seamless logistics operations.

Warehouse Management

Streamline and optimise your warehousing processes with our services. We employ advanced systems and methodologies to ensure that your warehouse operates at peak efficiency. Our tailored solutions help you minimise storage costs, reduce errors and enhance overall productivity.

Our team observes the way key trends like the Internet of Things (IoT) are shaping warehouse automation for increased efficiency. Technologies such as robotics and AI enable autonomous material handling, picking and sorting, optimising workflows and creating benefits from both a cost and safety perspective. Cloud and edge computing empower warehouses to use data for predictive analytics, driving efficiency gains and improving overall performance. Other more immediate optimisation opportunities can be tapped through the use of warehouse management systems (WMSs).

Real-time analytics are revolutionising warehouse management by providing instant insights into inventory levels, order fulfilment and operational performance. Leveraging technologies like control towers, organisations can monitor and coordinate warehouse activities in real time, enabling proactive decisionmaking and agile responses to changing conditions. By analysing data on the fly, companies optimise resource allocation and proactively address bottlenecks or disruptions, ensuring smoother operations and improved customer satisfaction.

Our team implements effective strategies to enhance sustainability in warehouse operations. From optimising energy usage to promoting waste reduction initiatives, we help clients adopt eco-friendly practices. Leveraging renewable energy sources and green building practices, we reduce carbon footprint and promote environmental responsibility within warehouse operations.

Transport Management

Develop a transportation strategy that ensures excellent service while optimising cost-efficiency. We provide end-to-end solutions that optimise routes, reduce transit times and minimise transportation costs. Our data-driven approach leverages real-time information, enhancing visibility and control over your transportation network.

Proactive risk management is crucial for enhancing transportation efficiency and resilience. We conduct tailored risk assessments, identifying vulnerabilities and implementing mitigation strategies like diversified transportation modes and optimised routing. Using advanced technologies and data analytics, we offer real-time tracking solutions to mitigate risks effectively. Our approach ensures operational continuity, cost reduction and improved customer satisfaction through robust risk management practices in transportation.

IoT technology enhances real-time tracking in transport management, strengthening risk & resilience. Our approach emphasises real-time tracking for forward and reverse logistics, reducing risk exposure and preventing product disappearance in transit. Leveraging Blockchain technology ensures data integrity and transparency throughout the supply chain, enhancing security and trust.

Innovative strategies to minimise environmental impact and promote sustainability in transport management include AI route management. Our team uses AI algorithms to dynamically reroute shipments based on real-time traffic updates, optimising fuel efficiency and reducing emissions. By employing intelligent route planning and vehicle optimisation techniques, we minimise the environmental footprint while ensuring timely and efficient delivery.

Reverse Logistics

Efficiently manage product returns, recycling and refurbishing processes to extract maximum value from the reverse supply chain. We design comprehensive solutions to minimise the environmental impact of returns, reduce costs associated with reverse logistics and enhance customer satisfaction.

Our team implements a reverse logistics solution to encourage circularity by prioritising efficient product returns and recycling processes. Through advanced tracking and monitoring technologies, we streamline the reverse logistics process, enabling the recovery and repurposing of materials. We use AI-powered algorithms to optimise the routing and processing of returned products, reducing waste and maximising resource recovery, thus promoting sustainability and circularity in the supply chain. We also support the development of a re-use and recycling program for the collected devices.

Service management strategies are tailored to meet evolving customer expectations while ensuring operational efficiency through a comprehensive understanding of customer needs. Our team uses customer feedback and market insights to continuously refine service offerings and delivery processes. By implementing agile and flexible service management frameworks, we adapt quickly to changing customer demands while maintaining high levels of operational efficiency and service quality.

Our approach to feeding lessons learned from reverse logistics back into product and packaging design emphasises the use of AI technologies. By analysing data from returned products and customer feedback, AI algorithms identify patterns and trends, informing product and packaging design improvements. This iterative process enhances product quality, reduces returns and minimises environmental impact by optimising packaging materials and design for recyclability and sustainability.

Success stories

We offer clients across industries a suite of supply network and distribution services. With our deep industry knowledge we can help you bring the right product to the right place within the right timelines. We have a practical track record in bringing value to clients with use cases such as the following:

Client challenge: medical equipment industry

Our client in the medical equipment industry faced increasing operating costs, driven by post-COVID supply chain challenges and shortages, fast outpacing its growth across global revenue. They had made significant internal investments in its logistics capability, but these installations could no longer meet cost targets or client service level requirements. They also desperately needed to reduce the risk stemming from a concentration of operations with a single point of failure. Together we sought to optimise the client’s warehousing and distribution network and investigated potential strategic outsourcing opportunities.

PwC’s approach and solution

The first step was to identify target operating model requirements to get buy-in throughout the organisation. We then identified potential outcome scenarios, selecting on the basis of best fit given a target return on investment. With network expansion in mind, we located areas for potential additional site set-ups. Then we developed detailed descriptions of critical processes and made a request for proposal with strategic potential third-party logistics (3PL) partners. We selected the future outsourcing partners for a new warehousing and transportation set-up across EMEA, and subsequently built a detailed integration and cutover roadmap for a seamless implementation.

Logistics network design

Transport Management

Client challenge: M&A medical equipment company

Our client was looking to acquire a medical equipment company to merge and integrate with its own operational capabilities. The target company had been operating with global manufacturing, distribution, service and call centre networks, as well as a network of customers and patients around the world, overlapping with some of the buyer’s footprint. However, only a portion of the target company’s network were conveying to the new entity, and only a percentage of the organisation as well. Given the product regulations, we had to essentially create a new structure that considered the requirements of both entities.

PwC’s approach and solution

As part of our analysis of the situation, we collected available data from the target company, including information on the location, size and set-up of sites. We also examined the timeline for the handover of operations, as well as any transition services agreement, to the buyer. We built new distribution, service & repair and call centre networks combining some of the services on one site when possible.

To bring the set-up to life we identified potential third-party logistics (3PL) partners to bridge gaps in the services provided as necessary. We also outsourced some organisational capabilities to third-party providers until the new entity was able to restructure, hire new operatives and function on its own. Finally, we built a transformation roadmap to guide the team towards the successfully completion of the set-up after the closing of the deal.

Logistics network design

Reverse logistics

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Our experts

Wolfram Koester

Partner, Supply Chain & Operations, PwC Switzerland

+41 58 792 10 72

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Christoph Wellinger

Senior Executive Advisor, Supply Chain & Operations, PwC Switzerland

+41 58 792 12 99

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