Early days – designing & slotting Distribution Centers

Our founder begins his career at a leading international logistics consultancy specializing in warehouse slotting and the detailed design of facilities & material handling systems for case-pick & unit-pick operation.



We learned to link logistics design to costs and finance

We began incorporating activity-based-costing principles and discounted cash flow analysis into the logistics design process; we also began developing multi-stage decision models to clearly map the relationships between demand/supply, activities, resources, and costs.



Applying Supply Chain Design Software (SCDS) for Distribution

We start using supply chain design software on distribution network projects for retail & wholesale distribution clients.


Problems with SCDS discovered

Our detailed design expertise rapidly makes apparent the failings of SCDS when applied to distribution network design projects.


Clients also distrust SCDS

Savvier clients, particularly those in retail & wholesale, also identify shortcomings in SCDS analysis and so won’t commit to any strategy based on it alone.



Two-stage process solution engineered

We create a new two-stage distribution network design process using SCDS to first identify finalist options then applying accurate modeling algorithms to evaluate these finalists.


Happier clients, but fundamental shortfalls remain

Our two-stage approach allays many client concerns, but doubts linger about relying on SCDS to identify the option finalists.



Clients’ feedback - are you retaining the right option finalists?

Clients need to feel more confident that the correct option finalists are being retained, so they must be reassured that options are being modeled with proper accuracy.


Clients’ feedback - what about multiple forms of capacity?

With throughput volume levels rarely the cause of over-capacity in retail & wholesale distribution centers, we must ensure that the different capacity thresholds are identified and properly calculated, particularly where bottlenecks result from SKU proliferation.


Clients’ feedback - we need more than just evaluation of facility locations

Effective distribution network design must go beyond simply evaluating facility locations to consider any valid strategy that could enhance network / facility capacity. This would include potential changes within the four walls of a distribution center.


Clients’ feedback - strategic network design is a complex decision

Relying on SCDS alone to generate strategies makes distribution network design merely a cost minimization exercise, which fails to consider the many financial & non-financial criteria that should influence decision-making.


From our clients’ feedback, defining the ‘ideal’ solution became practically obvious….

To secure client buy-in, we needed the ability to generate, model, evaluate & compare as many fully modeled “relevant” options as necessary to remove any doubts – while still completing this process in a reasonable timeframe.



Recognizing the challenge

Solution development would require a dedicated team, the development of proprietary modeling tools & an entirely new mindset. Client projects would become the vehicle for building new competencies with lessons learned from prior projects fueling continuous improvement. We required a long-term commitment and mindset.


Authentis founded

We finally take the plunge and found Authentis