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Inbound-Outbound Logistics Cost Determines Location Decisions

The majority of respondents to Area Development's 24th Annual Corporate Survey said inbound-outbound shipping costs were important to selecting a site. Consider these factors before your next move.

  • Tim Feemster, Managing Principal, Foremost Quality Logistics
  • Joseph Tillman, Vice President, Transportation, KS Harvesters
June/July 10
(page 3 of 3)
"Logistics Cost, Labor, and Love"
Your distribution network must be flexible enough to improvise, adapt, and overcome changes in this brave new world of constant flux. Understanding that site selection decisions are based on cost service trade-offs and how those trade-offs affect your overall network flow and total cost, will help you make smarter decisions.

There is no holy grail in site selection. However, careful consideration of the total network cost, energy availability, incentives, and infrastructure needs, along with overall network design, will enhance your search for the right site for your next distribution facility.

"Location, location, location" used to determine the quality of a commercial real estate site. Today the three L's - "logistics cost, labor, and love" - are key factors. Logistics cost and labor are major elements in the total cost of your network. The love comes from local and state communities that must embrace your company's investment in the community. Without a genuine desire for your investment, the local market may make operating your facility difficult, or more expensive if there are no incentives.

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