Planning Distribution Centers (Ref: BM-107)

Tags: Planning distribution centers, distribution center, site location, GIS

Planning for the location of distribution centers is a daunting task, and planners have to consider many factors. These includet he folowing;

  • Operational Cost.
  • Potential Site Selection.
  • Site Aquisition Costs / Fit-Out Costs
  • Security.
  • Availability of utilities.
  • And many more.

Business Mapper can specifically help with one aspect of it, the potential site selection.

Figure A - Customer Profile Analysis and Buffering

By profiling customers, you get to understand where they are, how they are clustered, and you also 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 Cirle Buffers - Existing Distribution Hubs.

Figure B - Customer Analysis Results

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 an additional 567 customers within a 10 Kilometer distance.

The fuel and time saving benefits are substantial.

Figure C - Results Table

Note: If this article leads to you making an inquiry to us, please use reference RE: BM-107 when you email us with your inquiry.