Location decisions
• Facilities location finds the best geographic locations for the different elements in a supply chain.
• These are important decisions that affect the organisation’s performance for many years.
• If an organisation makes a mistake and opens facilities in a poor location, it cannot simply close down and move to a better place.
• The right location does not guarantee success, but the wrong location will certainly guarantee failure.
• There are other trends in location, such as a growing number of out-of-town malls, supermarkets and retail estates.
• The major trend towards shorter supply chains means that layers of intermediaries are disappearing, and logistics is concentrated in fewer facilities.
• Free trade and good transport within the European Union, for example, encourages companies to
replace national warehouses by a single European logistics centre as well as AEC.
Location decisions• Facilities location finds the best geographic locations for the different elements in a supply chain.• These are important decisions that affect the organisation’s performance for many years.• If an organisation makes a mistake and opens facilities in a poor location, it cannot simply close down and move to a better place.• The right location does not guarantee success, but the wrong location will certainly guarantee failure.• There are other trends in location, such as a growing number of out-of-town malls, supermarkets and retail estates.• The major trend towards shorter supply chains means that layers of intermediaries are disappearing, and logistics is concentrated in fewer facilities.• Free trade and good transport within the European Union, for example, encourages companies toreplace national warehouses by a single European logistics centre as well as AEC.
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