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Newton.Vaureal Consulting - Logistics and Supply Chain Management - Paris
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Logistics Master Plan

Master plan: a modelled representation of flow processing

In terms of results it includes:

  • Routes to Market (RtM).
  • Physical networks through which product groups will circulate.
  • A diagram of future flow circulating through this network.
  • Definition of logistics infrastructures in terms of number, location, functionality and size.
  • Transport plan.
  • Location of stock and their dimensions.

Information System (IS) feasibility.

Logistics Master Plan objectives

The quality of a Logistics Master Plan is evaluated via the response in terms of service that it brings, the level of cost that it engenders, the immobilization it generates and the carbon footprint it creates.

Logistics Master Plan: Business model transformation lever

Experience has shown that, among well-informed executives, the Logistics Master Plan is frequently used as a means of initiating and driving change in other functions if its results appear to be well suited to the operational management of physical flow.

It engenders strategic decisions that affect not only logistics but frequently the entire organization. This is because a Logistics Master Plan often impacts on commercial roles (role of sales outlets etc.), industrial activities (clear identification of industrial operations), marketing (definition of future product ranges etc.) and purchasing (renegotiation of service-providers commitments etc.).

Why trigger a Logistics Master Plan?

  •  Diversification of distribution channels (omnichannel).
  • Costs and level of cash tied up in stock.
  • Competitive service advantage.
  • Freeing up (“depolluting”) logistic sales outlets to concentrate on their primary task.
  • Purchasing policy.

7 lessons for successful management of a Logistics Master Plan

  • The difficult exercise of outsourced-services specifications.
  • Gathering data to illustrate the current situation: the indicator.
  • Acknowledgement of the need to completely cover possible scenarios.
  • Modelling exercise or simplified-assumptions validity.
  • Evaluation of scenarios according to fixed-strategy criteria.
  • Decision-making facilitated by a clear return on risk.
  • Deployment plan that articulates set milestones for the project.