How to choose the best warehouse location
The very best operations, looking to achieve the most efficient warehousing, have a scientific approach to choosing the best warehouse location that will maximise output efficiency and lower the overall cost of storage and distribution and hence increase profitability.
Identifying optimal locations for warehouses and other fixed facilities within the supply chain is a major decision as warehouse location drives transportation costs and where new supply routes are being introduced or an existing supply chain is being engineered then full and comprehensive warehouse location analysis needs to be undertaken.
There are various models of warehousing networks, from the single largescale distribution centre close to a large transport hub to a network of smaller warehouses in less central locations but close to consumer populations. The flexibility of multi-chain warehouses within a country or across many countries can bring advantages over expanding one already huge distribution centre.
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The importance of choosing the right warehouse
Choosing the right warehouse location can make all the difference in how effective, efficient and profitable a company can be.
The optimal location for warehousing in a supply chain network has become a strategic decision for top management. Once implemented the decision is irreversible and any wrong decisions can lead to high losses for a company.
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