The use of an effective logistic network is now inevitable, especially in the current business environment that is characterized by competitive pressure, volatile markets, and a high level of digital interconnectivity, especially in the supply chain processes. The supply chain is always at the heart of the operation of any company regardless of the industry or the location. Any business now needs to have effective and efficient logistic networks that can help in determining the optimal flow of commodities while enhancing the quality of customer services. Also, according to Lee et al . (2013), a logistics network must be sensitive to the cost and the nature of products or services offered. A warehouse is one of the main components of supply chain management, and it determines the flow of goods between the company and customers in various locations. Thus, designing a logistics network consisting of one warehouse involves the consideration of many factors that determine its efficiency and effectiveness.
One of the most critical steps of designing a logistics network consisting of one warehouse is to identify the location of the facility. The location of the warehouse plays a critical role in the success of a business because it helps in determining the proximity to customers ( Lee et al ., 2013) . Time is a critical factor in the logistic process, especially in the modern era where customers are looking for convenient goods and services that meet their specific needs and preferences. Specifically, while designing a logistics network, the location decision of the warehouse will mainly be influenced by the dimension of customers as well as the cost objectives. The designing of the logistic network will mainly be aimed at minimizing the cost by choosing the appropriate location while improving the quality of customer services, particularly by delivering goods within the required timeframe. The logistic network should have the lowest possible distribution cost while delivering 95% of customer orders ( Lee et al ., 2013) . Thus, the most important phased in designing my logistic network that consists of one warehouse would be to choose the most convenient and suitable location.
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To choose the best location for the warehouse, I will require the input and expertise of logistics and distribution manager who plays a critical role in the supply chain management. The manager will mainly play the role of organizing the storage activities that will take place in the warehouse, including the distribution of goods ( Li, 2014) . Besides, the logistics and distribution manager will make that the designed logistic network ensures that the products are delivered at the right time in the required location. Logistics and distribution manager will also have the responsibility of using the appropriate information technology (IT) system is used to manage stock levels and the delivery process ( Li, 2014) . The success of a logistic network mainly relies on the knowledge, skills, and experience of a logistics and distribution manager.
To guarantee the effectiveness of logistics network, I will use the Supply Chain Operations Reference Model (SCOR), which is one of the most effective supply chain management tools that improve the communication and delivery products or services to customers while strengthening the relationship with other stakeholders like suppliers (Geo dhals-Gerber, 2016) . SCOR should be used to improve the operations of logistic networks because it helps in addressing or satisfying customer demands. Importantly, SCOR should be used in any supply chain management because, as it assists in integrating various operations of a business (Geo dhals-Gerber, 2016) . Therefore, I need the supply chain management tools like SCOR to enhance the efficiency and effectiveness of logistic processes and activities.
Besides, the optimal network is essential because it helps in minimizing inventory carrying and warehousing cost, including the cost of transport or delivery. At the same time, the optimal network is critical as it can be used to satisfy customer response time requirements. As a result, there are four main steps that I will take to design the optimal network. First, I will assess the current network to ensure that it meets all the requirements while it helps in achieving the goals and objectives of the business. The assessment will help in addressing the weaknesses while enhancing the strength to design optimal network ( Fang et al ., 2018) . The second step will be to establish network design alternatives. Some of the alternatives that will be considered include a network that ensures multi-commodity flows and fewer hierarchies. Thirdly, I will create a network optimizing model. Specifically, I will use the network representation model to solve network problems in areas such as distribution and storage of commodities. The step is the selection of network optimization tool to achieve optimal network. The optimal network is needed in any the supply chain process, and it improves the effectiveness of logistics management.
A lot of information and data is needed to ensure optimal operations of the logistics network. First, it is vital to have detailed information about customers who will use the warehouse. Importantly, it is necessary to have information about the possible distance of customers, including their preferred mode of delivery ( Gan et al ., 2018) . Secondly, it is essential to know about the demand for stock that is required within a given period. Information about stock demand is critical because it helps in determining fluctuation in the inventory levels. Information and data about the stock are also necessary to know precisely what is needed in the warehouse ( Gan et al ., 2018) . Also, information that is needed to make the determination is about the volume of receipts and delivery. The designed logistic network should incorporate all the necessary information and data required to ensure optimal operations.
The main strategy that will be used in the logistics network is to make it environmentally friendly. One of the leading and useful trends in warehousing designing is the use of green technologies that are aimed at protecting the environment (Harrington, 2007). Many customers are now concerned about the high rate of environmental degradation, which is impacting the lives of many people. Modern customers are attracted to ecologically-friendly products and facilities ( Lee et al ., 2012) . The second strategy is to make the system adaptable to future requirements and trends. For instance, the warehouse facility should have space for expansion. The logistic network should be sustainable, especially in terms of demand and technologies.
To conclude, the logistics network is one of the factors that determine the success of any business. A practical and efficient logistics system reduces the cost of operations while at the same time it improves the quality of customer service. Although the logistic network should be useful in meeting the set goals and objective, it should not be too expensive, particularly in terms of delivering commodities to customers. Thus, choosing a convenient location for the warehouse is critical. Also, it is essential for the logistic design to comply with the sustainability requirements or principle.
References
Fang, H., Jiang, D., Yang, T., Fang, L., Yang, J., Li, W., & Zhao, J. (2018). Network evolution model for supply chain with manufacturers as the core. PloS one , 13 (1).
Gan, M., Yang, S., Li, D., Wang, M., Chen, S., Xie, R., & Liu, J. (2018). A Novel Intensive Distribution Logistics Network Design and Profit Allocation Problem considering Sharing Economy. Complexity , 2018 .
Goedhals-Gerber, L. L. (2016). The composite supply chain efficiency model: A case study of the Sishen-Saldanha supply chain. Journal of Transport and Supply Chain Management , 10 (1), 1-13.
Harrington, L. (2007, May 1). Designing the Perfect Warehouse. Retrieved from https://www.inboundlogistics.com/cms/article/designing-the-perfect-warehouse/
Lee, H., Zhang, T., Boile, M., Theofanis, S., & Choo, S. (2013). Designing an integrated logistics network in a supply chain system. KSCE Journal of Civil Engineering , 17 (4), 806-814.
Lee, N., Choi, Y. J., Youn, C., & Lee, Y. (2012). Does green fashion retailing make consumers more eco-friendly? The influence of green fashion products and campaigns on green consciousness and behavior. Clothing and Textiles Research Journal , 30 (1), 67-82.
Li, X. (2014). Operations management of logistics and supply chain: Issues and directions. Discrete Dynamics in Nature and Society , 2014 .
