Is the physical location of your distribution facility really that important?

Posted on July 10 2019

Of course it is!  But there are many other factors to take into consideration when re-locating your warehouse facility or upsizing your distribution centre. From location and build, to storage requirements and local labour force availability, it’s important to evaluate the different influencing factors. Having said that there are many established businesses that believe the starting point for any move should be finding the right location!

The importance of facility location is gaining much attention in today’s competitive age

The physical location of your distribution facility must be a prime consideration when you are making a shortlist of potential candidates.  Why? Location is a crucial element in the supply chain and it will have a significant impact on the efficiency of numerous logistics activities, particularly when it comes to delivery.  It can also have a bearing on your ability to recruit the right type of people and your operational excellence generally.
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The right location can also help you save money by reducing costs

Calculating landed transportation costs to facility from manufacturing, and expected transportation costs from facility to end customer, is helpful when considering a specific site as this will help you to appreciate the potential for cost saving. If you use a carrier/s, you should also think through how the location works in this respect and how it might affect/reduce costs for both parties. 

Your warehouse location should be close by to major Motorway networks and train stations, airports etc as this will help you to maintain efficiencies when it comes to your supply chain, and to run a profitable and efficient delivery operation.

Priorities when moving – location is key

A recent survey confirmed that companies have a number of priorities when considering a move. They are (1) location, (2) labour and workforce issues, (3) the desire to reach new markets (or existing markets better), (4) to upgrade facilities and/or equipment and (5) to lower costs, to increase cash flow.

Could Logic at Kingsway be your perfect location?

By giving due consideration to location from different angles, you will end up with a site that is a perfect fit for your business – and your customers!

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