Learn how leading organizations assess and rank distribution center sites.
Key Takeaways
- Considerations about how a new facility will support business objectives now and in the future are overlooked when cost is the sole focus, 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.
What you need to know from the Gartner® report #
The location and role of distribution and warehousing sites impact operating costs, service levels and business risks. Gartner® describes how supply chain leaders assess and rank DC locations based on operating environment, organizational objectives, transportation and storage costs.
Key Findings:
Considerations about how a new facility will support business objectives now and in the future are overlooked when cost is the sole focus, 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.
Flexible warehousing infrastructure drives action #
Flexible infrastructure compliments fixed infrastructure. It allows companies to dynamically add warehouses when, where, and for as long as necessary. It transforms networks to move—supporting innovative strategies and continuous improvement.
All without investing in long-term commitments to a location—and with a single, risk-free integration.
Learn more: Flexible warehousing infrastructure accelerates sales
Gartner, Key Factors to Evaluate in Distribution Center Site Selection 27 July 2023, By Vicky Forman Et Al.
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