Back to Press Releases

NEW LOGISTICS STRATEGY REDUCES NEED FOR COSTLY DISTRIBUTION HUBS

Companies can now virtually eliminate the need for traditional distribution hubs by using an advanced new logistics strategy. Dynamic In-Transit Merge© (DITM©), launched today by Walsh Western International (WWI), aims to cut costs in the delivery cycle and improve efficiency by dramatically increasing the speed at which inventory travels through the supply chain.

DITM© has already provided huge cost savings to companies with complex supply chains, such as 3PLs and global OEMs. WWI saved one of its major customers over 26 per cent of total distribution costs and 7 per cent per unit shipped, when it switched to using DITM© for its pan-European outbound delivery network.

DITM© increases the speed of the merge process by ensuring that most suppliers are shipping or building to order rather than to forecast. As soon as they are produced, components can be picked from different distribution hubs and then shipped directly to a cross-dock closest to the customer for consolidation into complete orders for shipping. The DITM© strategy ensures that static inventory is replaced by inventory in motion with components often spending less than 24 hours in a cross-dock rather than 20 days in a warehouse. This improves efficiency and reduces or eliminates the need for costly warehouse space.

Phil Cocking, managing director for WWI UK, said: "Many companies merge orders at production or alternatively run a centralised warehouse in which products sit until they are needed for an order. Logistics providers need to focus on further increasing inventory velocity by using regional distribution hubs and delivery cross-docks as merge points. The demand for quicker delivery at a reduced cost is ever increasing and companies must be prepared to meet their customers' needs."

DITM's© sophisticated software adjusts the component flows from the various suppliers by analysing shipping routes and order merge points to select the best cost and time ratios. Each individual order is then picked, packed and delivered to the customer at their convenience. Transportation and brokerage costs are improved by reducing the number of times a component is handled and by optimising delivery routes.

As the inventory is constantly moving from supplier points to the customer, DITM© provides real time tracking of all components in-transit by continual reporting. This gives WWI the ability to make instantaneous changes to delivery schedules and provides a virtual warehouse that replaces the need for most physical warehousing. A web interface tracks each component of the order in real-time allowing WWI and the customer to follow their order over the internet.

WWI offers a comprehensive range of software 3PL and 4PL services. It provides consultants to assist with all aspects of installation, configuration, interfacing, and training for the software for all organisations requiring the DITM© Strategy.

ABOUT WWI
Walsh Western International (WWI) is one of Europe's fastest growing supply chain solution service providers in Europe. WWI provides fulfilment, reverse logistics, transportation and dynamic in-transit merge solutions to a broad range of customers with particular focus on the high tech and healthcare sectors.

The company is headquartered in Dublin Ireland and has operations throughout Europe. For further information on the company please visit www.walshwestern.com.

For further information, contact:

Laura Seago / Ali Lubbock, Berkeley PR
Tel: +44 (0)118 988 2992
Fax: +44 (0)118 988 6911
e-mail: laura.seago@berkeleypr.co.uk
           ali.lubbock@berkeleypr.co.uk

WWW: http://www.berkeleypr.co.uk