Warehouse Location Decisions Made Easy + Webinar Link

Published by Darron Toy on


So where should you locate your
distribution center this is a really common problem and let me share some
tips that will help you work that out So if you’re working in a big supply
chain operation maybe national or internationally trying to work out where
you should have distribution centres is a very common problem and let me show
you some tips on that Hi my name’s Rob O’Byrne from supply
chain secrets and if it’s your first time to this channel this is where we
can share lots of tips about supply chain management whether you’re new to
the game or you’re kind of mid-career so I’ve been helping people with that
exact challenge for about thirty years where should we locate our distribution
centers how many should we have and what I want to do today is to share with you
some of the core principles okay now you might be wondering where I am
we’re out on earth Sunday morning on the Hawkesbury River just north of Sydney
we’re about 40 kilometres north of the city and why am I here well believe it
or not there are a couple of distribution centers about ten
kilometres back towards Sydney why would people put distribution centers out in
an area like this well it’s probably cheap land costs maybe cheaper labor
costs but there’s a lot more costs to be considered when you think about these
locations and I’ll share some of that down below with some charts and so on
which will really help you so where So should we put our distribution centres I don’t think it should be here now in terms of the national for the footprint
of distribution centers here we are just north of Sydney if we go across this
bridge heading north we’re about 900 kilometers we’ll be in Brisbane if we head south about 900 kilometres we’ll be in Melbourne and there’s a few
reasonable sized towns in between think about your own distribution network for
a moment and where all the major population centers are because there’s a
key principle at work here and that is your distribution centres need to be
closer to the demand so if you’ve got products that are used by the general
population most population most high density population centers are going to
draw your distribution centers towards them and maybe i’ll what worked this out on a map in the office and show you that too in
a subsequent video but we’re talking about general principles get closer to
where the demand is but not here let me show you where all the distribution
centres are in Sydney okay so we’ve come from the Hawkesbury River about 40
kilometres south and now we’re in Sydney we’re about 20 kilometres west of the
central business district and this is where all the warehouses are as you
drive around this area it is just warehouse central all of the major
businesses in Sydney seem to have their warehouses here now why is that do you
think the area up near the Hawkesbury you know land is cheaper labor is
probably cheaper why does everybody have their warehouses here it all comes down
again to proximity to your market if you have a look at this location we’re at the junction of two major motorways the m7 on the m4 we can be
straight into Sydney during deliveries very easily on the m7 we can go around
the north of Sydney or around the south of Sydney so the access points are
really good for resupply into the warehouses and also from here out to our
customers so when you’re looking at warehouse location it’s tempting
sometimes to think about just the cost of the land and the warehouse and maybe
the local labor cost but you have to weigh it all up because remember when
we’re up at the Hawkesbury I was saying some of the biggest cost is actually the
delivery transport out to your customers and that’s why although these companies
are here because they’re closer to their customer base now I think what I need to
do is to tell you a little bit about what if you have multiple warehouses in
a country where should you put those we’ll cover that in another video but if
you found this useful do remember to subscribe we’ll keep you up to date with
all of the videos and do please like it if you in fact like it and comment below
I’d be intrigued to know where you’re from when you’re watching this what’s
your city and maybe you can tell me what the equivalent area in your
is like this so just a little bit of a snapshot about where you should locate
your warehouses in Sydney it’s here in the western suburbs not up in the
Hawkesbury and remember it’s the proximity of to your customers that is
the most important thing generally in 99% of cases talk to you soon


10 Comments

AASHISH MOHAN · February 7, 2019 at 9:16 am

Hi Robert,

This is Ashish Mohan from Noida, India.

Video is very helpfull.

Regards,
Ashish Mohan

1santacara · February 13, 2019 at 8:45 pm

Spain, and thinking of making a new distribution center

Gerry Musungai · February 27, 2019 at 2:33 am

Gerry in the USA; just gathering some info on logistics and distribution.

Max Henry · March 1, 2019 at 6:45 am

Cool! I really love this post 🙂

mayur ahire · March 1, 2019 at 11:25 am

This is Mayur here from India

Aklesh kumar · March 5, 2019 at 6:27 pm

great idea sir (i am from Nepal)

GP · March 8, 2019 at 9:28 am

I'm working in a project and would like to know more.

Global Supply Chain Council (GSCC) · March 11, 2019 at 7:41 am

Great! I really like this post!!

Anthony Njoroge · July 12, 2019 at 8:47 pm

good information

Teach Thai Language · July 16, 2019 at 11:05 am

Hi Im Parn from Thailand.
Im going to study in Logistic and Supply Chain Management at NIDA. Yeppp yr introduction seems good. I also going to be yr follower.

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