The increasing complexity of goods flows presents new challenges to both industry and logistics service providers. Greater performance requirements, tight delivery schedules, global production networks, a widespread customer base and high fuel and capital costs make the optimisation of distribution logistics essential. This does not only involve avoiding excessively high stocks, relocating goods and transporting empty containers – the complete distribution strategy must be reviewed regularly in order to optimise logistics costs on a sustained basis.
In this connection, the right selection and number of warehouse locations, their geographical location and their size must not be an arbitrary decision. On the basis of existing production locations, current orders, delivery points and customer requirements, the number, location and size of the logistics centres in a distribution network can be determined scientifically using business intelligence methods. The only remaining decision is whether to focus on optimising costs or optimising service, or to strike a happy medium.