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.
Location decisions
• 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