Key Factors to Evaluate in Distribution Center Site Selection
According to Gartner, “The location and role of distribution and warehousing sites impact operating costs, service levels and business risks. Supply chain leaders must use a structured process to assess and rank locations based on operating environment, organizational objectives, and transport and storage costs.”
- When cost is the sole focus, considerations about how a new facility will support business objectives now and in the future are overlooked, resulting in suboptimal location choice.
- Selecting a location based on land or rent prices alone leads to a decision made on short-term capital expenditure requirements and not long-term cost optimization.
- Overlooking the impact of the local operating environment on network resilience and the ability to execute can lead to inefficient facilities.
Built Custom Applications with AIMMS Optimization Tooling
AIMMS Optimization Tooling is an advanced toolkit for rapid optimization modeling and app development. It enables data science, operations research, and analytics professionals to develop optimization applications for end-users, to drive optimal business decisions and outcomes.
Need Robust and Flexible Supply Chain Analytics? Build your own apps
Supply Chain Network Design with SC Navigator
SC Navigator is a supply chain planning application ideal for organizations that have reached the limits of Excel and are looking for powerful software to run various scenarios, know the impact of each in terms of costs and service levels, and make informed decisions.
Comparing Leading Supply Chain Network Design Software Vendors
Don't miss your copy!
Gartner, Key Factors to Evaluate in Distribution Center Site Selection. By Vicky Forman, Ronak Gohel, 1 November 2024.
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.