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Logistics Facilities
The decision of a new logistics facility or distribution center involves putting various factors into consideration and considering numerous details. The best way to start this process is by examining the elements that combine in order to support the needs of the business. Manufacturing and raw materials have a major role to play when it comes to the selection of a logistics facility. One factor to be put into consideration is the nature and characteristics of the goods that have to be stored. An important factor when it comes to the nature of the goods is the volume of goods. The volume of goods that have to be stored is something that has to be thoroughly thought of. The logistics facility that is chosen has to be big enough or the right size which the goods will fit.
There is no need of going for a facility whereby once you start loading the goods for storage you are told that there is no more enough...
Such a scenario would require that one goes for an alternative storage facility which is very dangerous. It is not good for goods to be stored at different places especially if the places are far apart. Still at the volume of goods it can be said that bulk raw materials are quite expensive to transport in relation to their value. The manufacturing process normally takes up a considerable amount of resources, such as raw material, energy and labor (Trunick, 2011). For this reason many companies prefer locating manufacturing and fabrication operations near such resources. Therefore it would be only logical to go for a logistics facility that is located where the raw materials are found. The sourcing or production side of any supply chain has to start from anywhere where there is low-cost, labor, materials and production. The options are narrow when there is…
References
Trunick, P. (2011). Site selection decisions: a matter of Data. Retrieved July 3, 2014 from http://www.inboundlogistics.com/cms/article/site-selection-decisions-a-matter-of-data/
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