Logistics network design software optimizes the physical structure of a supply chain: how many distribution centers to operate, where to locate them, which customers each DC should serve, and how to route freight through the network at minimum cost. These are strategic decisions made every 3 to 7 years or triggered by major events (new facility openings, mergers, major customer wins). Network design software is a distinct category from operational WMS and TMS platforms — it answers "where should we be?" rather than "how do we operate?"
Key Takeaways
- Logistics network design software performs strategic optimization modeling: optimal facility locations, customer assignment by DC, transportation network structure, and cost modeling across network configuration scenarios.
- The leading network design platforms (AIMMS, Llamasoft/Coupa, LLamasoft acquired by Coupa, Optilogic, ILOG) are purpose-built for strategic modeling rather than operational execution.
- Network design projects are typically project-based consulting engagements (3 to 9 months) rather than ongoing software subscriptions — many operations use consulting firms with network design tools rather than licensing the tools directly.
- The data requirements for network design — facility costs, transportation rates by lane, customer demand by location, inventory carrying costs — are often the primary project effort, not the optimization modeling itself.
- Custom analytics applications are relevant to network design as the operational performance tracking layer after the network design is implemented: monitoring whether the new network is performing as modeled.
1. Coupa Supply Chain Design (Llamasoft)
What it does: Coupa acquired Llamasoft in 2019, integrating logistics network design into Coupa's broader supply chain platform. Llamasoft was the market-leading independent network design tool before the acquisition.
Strengths: Mature optimization engine with decades of logistics network design applications. Strong scenario modeling (compare 10 to 50 network configurations simultaneously). Extensive transportation cost modeling by mode and lane.
Best for: Enterprise logistics operations modeling large, complex distribution networks with multiple facilities and transportation modes.
Cost: Enterprise licensing; typically $100,000 to $500,000+ annually for standalone licensing; often accessed through consulting engagements.
2. Optilogic (Cosmic Frog)
What it does: Cloud-native logistics network design platform that runs optimization models in the cloud. Designed to reduce the setup and compute time that traditional network design tools require.
Strengths: Cloud-native architecture handles large optimization problems faster than desktop-based tools. Modern UI with scenario comparison visualization. Integrates with popular data formats.
Best for: Operations seeking faster network design modeling without the IT infrastructure of traditional enterprise tools.
Cost: SaaS model; pricing based on user count and usage.
3. AIMMS Supply Chain Network Design
What it does: Optimization modeling platform used for logistics network design, production planning, and supply chain optimization. Requires mathematical modeling skill to configure.
Strengths: Powerful optimization engine suitable for complex constraint-based network design. Flexible for custom constraint modeling beyond standard facility/transportation optimization.
Best for: Operations with internal analytics teams that can develop and maintain optimization models.
4. o9 Solutions
What it does: Integrated business planning platform with supply chain network design capability alongside demand planning and S&OP. Enterprise-focused.
Strengths: Combines network design with demand planning in a single platform. Strong for operations that want network design integrated with ongoing supply chain planning.
Best for: Enterprise operations seeking integrated supply chain planning and network design in a single platform.
5. Gravitate Solutions
What it does: Mid-market logistics network design and DC site selection platform, more accessible than enterprise tools.
Strengths: Lower cost and complexity than enterprise network design tools. Designed for mid-market operations that do not have internal modeling teams.
Best for: Mid-market distributors and 3PLs running network design projects without internal supply chain analytics teams.
Consulting vs. Software for Network Design
Most logistics network design projects are run by consulting firms (Deloitte Supply Chain, KPMG, Ryder Supply Chain Solutions, Chainalytics/Accenture) using proprietary or licensed network design tools. For operations that need a one-time network design analysis, a consulting engagement is often more cost-effective than licensing network design software directly, since the modeling tools require significant expertise to use effectively.
Consulting engagement: $100,000 to $500,000 for a comprehensive network design study with 3 to 5 scenario analyses. The consulting firm brings the modeling tool, the optimization expertise, and the implementation roadmap.
Direct software licensing: $100,000 to $500,000 per year plus internal modeling expertise. Justified for operations that run ongoing network design updates (large 3PLs, retailers with rapidly changing distribution networks).
Post-Network Design Analytics
After a logistics network design project recommends a new network configuration, custom analytics applications track whether the implemented network is performing as the design modeled:
- DC throughput vs. modeled capacity
- Transportation cost by lane vs. modeled cost
- Customer service level (on-time delivery) vs. designed service target
- Inventory turns vs. design assumption
These operational analytics applications are built over WMS and TMS data after the network change is implemented. They require the same WMS and TMS API integration as any logistics analytics application.
LOW/CODE Agency builds operational analytics applications for logistics operations tracking post-network-design performance. With 350+ production applications and enterprise logistics clients, our analytics practice delivers operational tracking at $40,000 to $80,000. Schedule a consultation with our Senior Partners to discuss your post-network-design analytics requirements.
Frequently Asked Questions
What is logistics network design software?
Software that optimizes the physical structure of a logistics network: optimal facility count and locations, customer-to-DC assignment, transportation mode selection, and network cost modeling across multiple configuration scenarios.
What are the best logistics network design tools?
Coupa Supply Chain Design (Llamasoft), Optilogic (Cosmic Frog), AIMMS, o9 Solutions, and Gravitate Solutions are the leading platforms. Enterprise operations typically use Coupa/Llamasoft or AIMMS; mid-market operations use Optilogic or Gravitate.
Should I license network design software or hire a consulting firm?
For one-time network design projects (every 3 to 7 years), a consulting engagement at $100,000 to $500,000 is typically more cost-effective than direct software licensing. For operations with ongoing network design needs (large 3PLs, rapidly expanding retailers), direct software licensing may justify the investment.
How long does a logistics network design project take?
A comprehensive network design study with 3 to 5 scenario analyses typically takes 3 to 9 months: 1 to 2 months for data collection, 2 to 4 months for modeling and scenario analysis, and 1 to 2 months for recommendation development and implementation planning.
What data is required for logistics network design?
Facility costs (lease rates, operating costs, labor rates by geography), transportation rates by lane and mode, customer demand by location, inventory carrying costs, and service level requirements by customer segment.
How does network design software differ from TMS?
Network design software answers strategic questions (where to locate facilities, how to structure the transportation network). TMS answers operational questions (which carrier to use for a specific shipment, how to route today's freight). They operate on different time horizons and are not substitutes.