Warehouse Site Selection Process


0
•Traditionally, sales were key drivers in influencing warehouse site selection.
•Companies satisfied the needs of their sales force by building warehouses with the hope to increase market presence and hence revenue.
•Many companies still believe that in order to succeed in certain markets, they must have a warehouse presence.
•While this may be the case in for  some industries such as food where the warehouses must deliver the products to customers in a timely manner; there are alternatives to building warehouses.
•Before making a site selection companies must closely examine the current distribution network and the impact of adding , subtracting or consolidating facilities for the entire organization.
•Many factors come into play when analyzing the impact a new warehouse will have on the company’s distribution network. These are:
-Quantitative variables
(a)Cost drivers, tangible and relatively easy to define.
(b)Demand potential and trends, consumption pattern, transportation requirements and costs, labou costs, facility costs and utility cost.
-Qualitative variables
(a)More difficult to understand and to measure.
(b)Customer service levels and top management preferences.
•Once all the data is collected, the actual analysis is done depending on the number of alternative location strategies.
•The company should be able to select the best site according to cost, operating factors, and expected customer service levels.
•The idea is to ensure the greatest return on investment.

Like it? Share with your friends!

0
BMS Team

We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected].

177 Comments


Warning: Undefined array key "html5" in /home/bmsnewco/public_html/wp-content/plugins/facebook-comments-plugin/class-frontend.php on line 140

Facebook comments:

This Website Is For Sale. Email us an offer we cannot refuse on [email protected] :)

X
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube and Vimeo Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format