Published on February 19, 2014
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Planning Distribution Centers Planning for the location of distribution centers is a daunting task. Planners have to consider many factors such as; • • • • • • Operations Cost Potential Site Selection Site Acquisition Cost / Fit-Out Costs Security Availability of utilities And many more. Business Mapper can help with one aspect of it, the potential site selection. PTI
Figure A - Customer Profile Analysis and Buffering • • By profiling customers, you get to understand where they are, how they are clustered, and you get to visualize the entire business landscape. Visual information is simply easier to digest. The example below is from a large distribution company in the Philippines, with a total of 1,574 direct customers. * Buffer Size = 10 Kilometer Radius from Center * Red Circle Buffers Proposed Sites * Blue Circle Buffers Existing Distribution Hubs PTI
Figure B - Customer Analysis Results & Results Table • • • • • The analysis resulted in the table below (Figure C.). In the current setup, the Distribution Centers (DC's) only cover 41% of the customers within a 10 Kilometer distance. The proposed sites increases the coverage to 87% of the existing customers of the this business. The changes will bring coverage to additional 567 customers within a 10 Kilometer distance. The fuel and time savings benefit are substantial. PTI
Unit 906, 9/F Pearlbank Centre, 146 Valero Street, Salcedo Village Makati City 1227, Philippines Tel: +632.893.5951 +632.893.5983 www.paperlesstrail.net http://businessmapper.biz/ PTI
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