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Zooming in on the Perfect Site

By Bill Elenbark on Apr 10, 2008 in Publish

In Part 2 of the Logistics Management series on distribution network modeling, Gross and Associates senior engineer Maida Napolitano details specifics about the location selection process, from the development of candidate sites to the final selection of a building. Maida interviews several logistics and real estate professionals, including Gross & Associates senior VP Geoff Sisko, for insight into the building selection process once the network modeling process described in Part 1 has been completed. Also included in the article is a location criteria checklist that will help to ensure the best available site is selected.

“Keep in mind that you’re making a 10 or 15 year decision,” says Sisko. “Let’s say you move into a 100,000 square foot building with an annual lease of $14 per square foot. Your site selection decision just translated into a 14 million dollar decision over that 10 year period. That’s huge,” adds Sisko. “You have to make sure you’ve picked the right site.”

Click here to read the full article. You can read the first part of the article here. For more information on how Gross & Associates can help you select a distribution location and site, click here to obtain free PDFs via email.

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    #9   Close out the merchandise. In many trade lines there are companies that specialize in buying close-out merchandise. They may resell by mail order, through off price stores or as 'special purchases'in full price stores. Look in trade journals, The Wall Street Journal and local newspapers to find who handles your class of product. Sometimes your present customers may be interested in a one time deal to use as a promotion. Do not overlook your employees as close-out customers. With luck, you may even find another outlet for your regular merchandise. You can use close-outs to sell raw material as well as finished goods.
    #45   Use computer directed putaway. If the inbound material does not require elaborate checking in procedures and a computer can assign empty locations for each pallet, the material can be put away directly into storage eliminating the need for receiving staging space. If the receipt contains less than full unit storage quantities, the computer can locate a partially filled location of the same product and direct the putaway to fill the location.
    #4   Sell to present users. Use your sales or warranty history to find the people who have bought the product. Let them know that you have more available for immediate delivery. Consider telling them that you are discontinuing the product and closing out the remaining inventory. Offer a discount because they are loyal customers. Offer owners of older versions the chance to upgrade at low cost.