Distribution system planning

Distribution system

Distribution system

•  Distribution system expansion to meet load growth requires careful planning.
•  The objective of distribution system planning is to provide reliable service to customers at the lowest possible cost. 
•  Short- and long-term planning is driven by two inputs: future needs and time to fulfill these needs.
•   Coming up with the best solution involves an iterative process that considers numerous parameters   

Typical Block Diagram of Distribution Planning Process Factors affecting load forecasting 

•  Load forecasting tools also involve statistical and econometric factors.
• For long range, the output of load forecasting is in the form of load density (MVA/square mile).
•  For short range, load forecasting requires greater detail (such as peak demand of each customer, etc …) Study System Performance  

?what is Distribution Management

Managing a distribution network includes forecasting, transportation, warehousing, and delivery within the larger universe of logistics and supply chain management . These require precise tracking, monitoring real-time data, and highly-skilled staffing to execute effectively.

Distribution management is an integral part of the logistics process.

Top Factors Influencing Distribution Management

• Customer Perspective

The ideal situation for any retailer or manufacturer is to have just enough inventory on hand to sell or to keep production lines running smoothly. These customers wish to hold as little stock as possible without running out.

Since most clients require several different items, each sold or used at a different pace, forecasting the product mix becomes an integral part of their equation. Additional variables, such as sales promotions at the retailer or seasonal inventory build by the manufacturer, can make forecasting difficult.

• Distributor Perspective

The perfect circumstance for distribution management is to have all fully loaded trucks operating on regularly scheduled routes 100% of the time with a 100% safety record and 0% change of severe weather events occurring.

Since customer sales ebb and flow in real life, achieving this ideal objective is difficult.

In some circumstances, temperature control and other special handling can further complicate the issue.

Also, an effective distribution and warehousing company strives to maintain the optimal inventory with their suppliers to keep inventory management costs at a reasonable level without excessive safety stock.

However, with the proper planning and execution, distribution management can effectively mitigate these seeming opposing challenges.

•  Communication

Running out of product or component parts is the customer’s worst nightmare. Efficient distribution management must ensure the proper flow of information, forecasting, and accurate, safe, and timely deliveries are provided.

In some scenarios, like with BR Williams , distributors are provided real-time sales information electronically to replenish inventories automatically without traditional ordering. This type of transparency allows each link in the distribution chain to anticipate the needs of the end client and to adjust their stock levels and arrange deliveries accordingly.

In these scenarios, the customer will also provide ongoing forecasts.

In other cases, open and continual communication with the customer will help the distributor to anticipate inventory replenishment, schedule equipment and staff for delivery.

•  Planning & Measuring: Creating a Culture

The first step in preparation is to develop a customer-focused mission and company culture that blends the importance of customer satisfaction with the realities of business profitability.

• Measure every element of the business from forecasting, procurement, inbound freight management, Training & Commitment

Training employees to execute the needs of a distribution company is more than explaining and showing “how” to perform a function. Underlying successful performance is a result of individuals understanding “why” a job needs to be done right and the potential ramifications of poor performance