The Secret to Distribution Logistics: Location, Location, Location
Finding the right location to support your retail is imperative to your future
There are so many factors to managing your supply chain, all of which can have a profound effect on your long-term success. For example, does your distribution logistics offer enough flexibility? Can you maintain costs with profits? And will it help you grow?
Of these concerns, there is one factor that can help remove all doubt…it is location. Consider this, when you chose your retail, office, or manufacturing location, you did so for a reason. The neighborhood may have made sense, or maybe you identified something special about the actual property. Either way, you saw something special and pounced on the location.
Now, the location of your distribution center should be no different! Its location should be nearby to support your retail storefronts, while having all the physical capabilities you will need. And like your retail locations, your distribution location can make or break you. Poor location planning can put a strain on profitability and ability to maintain inventory levels.
If distribution logistics is a something your business plans to approach, or you are looking to outsource, here are a few things to consider.
Near transportation and delivery points: The cost of transportation is higher today than ever, fuel prices continue to increase as do maintenance costs and labor. That is why, it has never been more imperative to be located near transportation and delivery points.
Trucks that can easily exit and enter the freeway to the distribution center, as well as leave for a nearby final destination are much more efficient. And if you expect heavier shipments, rail is often a much needed commodity. In this case, location could not be more important. Your distribution center would need the capacity to handle the heavy lifting and volume that comes with rail. And since rail delivery is not always predictable, proximity will come into play.
The location fits: The distribution center will need to be staffed. The area you choose will need a viable workforce, who has the capacity to carry out all of the functions needed for your success. Keep in-mind that a workforce is continually retiring and quitting. This is something you cannot control, but an issue you will need to deal with.
And your location will need to be a fit with the surrounding area. For most neighborhoods, trucks coming and leaving at all hours of the night would be a problem. You need a traffic friendly street, where noise won’t be an issue and neighbors won’t complain.
Now that you’ve learned a little about distribution logistics, you can see just how important choosing the right location is. By finding a location that is convenient, cost effective, and capable, you will surely find growth with greater efficiencies and performance. Have any questions?
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