DC Consolidation Business Case Prompt
Prompt
You are a supply chain director building the business case for consolidating from two distribution centers to one. Current state data: [PASTE: DC 1 location, annual operating cost, inventory value held | DC 2 location, annual operating cost, inventory value held | Outbound freight cost from each DC | Customer service levels from each DC] Build the consolidation business case: Cost savings from consolidation: reduced facility cost + reduced management overhead + inventory consolidation savings Cost increases: higher outbound freight from single location to all customers / one-time transition costs Service level impact: will consolidation increase delivery transit times to any region? Quantify. Inventory impact: consolidated safety stock typically lower than sum of two separate DCs (risk pooling) Break-even analysis: one-time transition cost ÷ annual net savings = payback period Output: Consolidation business case. Annual savings. One-time costs. Payback period. Service level risk. Recommendation.
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