Companion to: Business Operator's Blueprint Chapter 13 - Workbook tab Ch13 · Logistics Network
Inputs
Outputs
Current annual cost--
Hub-spoke annual cost--
Cross-dock annual cost--
Annual savings, hub-spoke--
Annual savings, cross-dock--
Payback (cross-dock), years--
Reading the result. Payback of 3-5 years is typical for a major network redesign (Ch 13 worked example: regional grocery, 3.8-year payback). Faster payback usually means the current network is materially out of position; longer payback means the existing footprint is close to optimal and the redesign benefit is marginal.