Designing a Strategic Distribution Network

In today’s omnichannel marketplace, the distribution network is king. Having distribution centers in the right locations can help you to improve service levels, better manage inventory and reduce transportation time and cost.

Finding the Right Warehouse Location

When designing a distribution network, give careful consideration to identifying the best warehouse locations and required capabilities to meet your business objectives. It can be helpful to consider proximity to customers, sourcing, manufacturing, ports, major Interstates, etc.

It is also important to determine the ideal number of distribution centers for your business. This will be different for every company, as it depends on a variety of factors including order volume, product characteristics, and acceptable transit times.

Once you know how many nodes you need, it’s time to evaluate facility locations. Chicago Consulting’s 10 Best Warehouse Networks report identifies strategic locations across the country for warehouse space based on the lowest possible transit lead-times to customers.

Many companies find that a third-party expert can be a valuable ally in the distribution network configuration process. Experience and understanding of best practices allows them to offer strategic counsel. They may have an existing network of facilities that could allow you to get up and running in a new location quite quickly and/or invest in a DC in the right location to meet your needs.

To learn more about maximizing your network, download our whitepaper:  “Optimizing Distribution Networks for Competitive Advantage.”

Ready to build the optimal DC network for your business? Saddle Creek has 41 locations nationwide, including locations recommended by Chicago Consulting like Los Angeles; Chicago; Fort Worth; Lakeland, Fla.; Macon, Ga.; and Seattle.

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