LOCATION ANALYSIS – Distribution Center or Manufacturing Site.
There are several factors to consider when selecting the best location for a distribution center. Some key considerations include:
- Proximity to customers: A distribution center should be located as close as possible to the customers it will serve, in order to minimize transportation costs and improve delivery times.
- Transportation infrastructure: The location should have good transportation connections, including access to major highways, airports, and ports.
- Labor availability: The location should have a sufficient supply of skilled labor to staff the distribution center.
- Cost of living: The cost of living in the area should be reasonable in order to attract and retain employees.
- Environmental regulations: The location should be compliant with local and national environmental regulations.
- Tax incentives: The location should offer tax incentives or other benefits that can help to lower operating costs.
- Property availability: The location should have suitable property available for the distribution center, including sufficient space and the right zoning.
It is important to carefully assess all of these factors in order to select the best location for a distribution center. It may also be helpful to work with a real estate or logistics specialist to identify the most suitable location based on your specific needs and requirements.
Below are various attributes you want to look at when doing a location analysis for a distribution center or manufacturing site. This is just the start so there can be many more depending on what industry you might be in.
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Transportation and logistics cost; closeness to markets
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Wages
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Taxes
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Utilities such as sewers, water, gas and electricity
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Access to vendors and materials
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Access to customers
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Labor supply
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Climate
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City Ordinances
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Attitudes within the community
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Incentives from the community
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Land available
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Proximity to freeway/railroad/ocean/airport
When searching for a location for a distribution center what questions should I ask? Facebook discussion.
Distribution Center and Warehouse Training
- Army of logistics robots sort out 200,000 packages a day
- BMW Car Factory Robots – Fast Manufacturing
- Can delivery drones and robots make it in “the last mile”?
- Shipping Warehouse Automation Robots
- Supply Chain Technology Trends.
- Watch an army of artificial intelligence logistics robots sort hundreds of parcels per hour
- Youtube: Modernizing & Improving Best Buy’s Supply Chain – The Rise of Urban Distribution Centers – Seminar.
- Youtube: Warehouse Location Decisions.
Logistics Quotes
- “You will not find it difficult to prove battles, campaigns, and even wars have been won or lost primarily because of logistics.” ~Dwight D. Eisenhower
- “Why not make the work easier and more interesting so that people do not have to sweat? The Toyota style is not to create results by working hard. It is a system that says there is no limit to people’s creativity. People don’t go to Toyota to ‘work’ they go there to ‘think’” ~Taiichi Ohno, father of the Toyota Production System.
- “The line between disorder and order lies in logistics.” ~Sun Tzu, The Art of War.
- “Major changes are coming to logistics. In the near future you will order a product and 30 minutes later a drone will drop it off right outside your door.” ~SupplyChainToday.com.
- “The key with autonomous is the whole ecosystem. One of the keys to having truly fully autonomous is vehicles talking to each other.” ~Mary Barra, CEO of General Motors.
“Self-driving vehicles, automatically choosing the most efficient route… Artificial intelligence will dramatically improve logisitcs.” ~Dave Waters
