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Inward Investment Guides
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 and Joseph Tillman, Vice President, Transportation, KS Harvesters (June/July 10)
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"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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Have questions, comments or concerns about this article? Submit to Ask Area Development here and the author or an expert from our network of site selection and facility planning professionals will answer:
What factors must a small company consider regarding logistics and relocation that a large company does not? And vice versa?
For the most part, large and small companies will consider similar site selection factors... More
- Tim Feemster, Managing Principal, Foremost Quality Logistics
How is logistics changing to be more flexible for changing inventory levels and client distribution and transportation needs?
Some companies are using Vested Outsourcing as a way introduce lean principals across company boundaries and to target overall waste in the supply chain. More
- Tim Feemster, Managing Principal, Foremost Quality Logistics
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