•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.
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