Warehouse Location Analysis
If you’re planning a warehouse move, use our services to find the optimal new warehouse location
Identifying optimal locations for warehouses and other fixed facilities within the supply chain is a major decision for any business. Warehouse location drives transportation costs, and where new supply routes are being introduced, or an existing supply chain is being re-engineered, then full and comprehensive warehouse location analysis needs to be undertaken.
Location analysis requires applied mathematics and is often referred to as ‘Centre of Gravity Modelling’, although it’s also known as p-media and the grid method. In principle, the aim of the centre of gravity model is to identify the geographical location where distance and/or transport costs are minimised.
We can identify the optimal warehouse location to minimise transport costs
As transport costs usually have a linear relationship with distance, and also have a greater degree of variability than warehouse costs across the UK, then identifying the right location for your warehouse can significantly reduce operating costs.
Using our own in-house developed tools, we are able to support you in undertaking centre of gravity modelling, and warehouse sizing and demand allocation, based on a range of possible drivers including transport costs, distance and service lead times.
Warehouse location analysis we can undertake for you:
Location of a Single Warehouse
The location of warehouses and distribution centres within a logistics network is a major decision and requires detailed analysis of service and cost implications. The investment and implementation costs of new facilities are high, and it is a long-term decision that needs to be supported by a robust business plan and thorough scenario modelling.
Our warehouse consultants, using a combination of proprietary tools and 3rd party mapping software, are able to perform location analysis either using discrete modelling (where location or site preferences exist) or continuous modelling (where no location or site preference exists).
The location analysis modelling can also be performed on varying time horizons using different levels of aggregation in the data. So, for example, a business may have a relatively detailed 1- year forecast, but an aggregate 3-year plan. In this instance the consultants can model both time horizons separately, assessing how the optimal location may be impacted between year 1 and the realisation of the 3-year plan.
Latest Warehouse Insights
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Speak with a consultant today
Don’t consider relocating a warehouse until a full and comprehensive location analysis has been performed. We are experts at performing this type of analysis.
Call 0121 517 0008 or use the contact form.