Importance of factors driving firms’ decisions on spatial distribution structures
Publication - January 2020
The design of a spatial distribution structure is of strategic importance for companies, to meet required customer service levels and to keep logistics costs as low as possible. Spatial distribution structure decisions concern distribution channel layout – i.e. the spatial layout of the transport and storage system – as well as distribution centre location(s).
Examination of Factors
This paper examines the importance of 7 main factors and 33 sub-factors that determine these decisions. The Best-Worst Method (BWM) was used to identify the factor weights, with pairwise comparison data being collected through a survey.
Results
The results indicate that the main factor is logistics costs. Logistics experts and decision makers respectively identify customer demand and service level as the second most important factor. Important sub-factors are demand volatility, delivery time, and perishability.
Significance of the Study
This is the first study that quantifies the weights of the factors behind spatial distribution structure decisions. The factors and weights facilitate managerial decision-making with regard to spatial distribution structures for companies that ship a broad range of products with different characteristics.
Implications for Policy-Makers
Public policy-makers can use the results to support the development of land use plans that provide facilities and services for a mix of industries.
Authors
- Sander Onstein
- Mehrnaz Ektesab
- Jafar Rezaei
- Lóránt A. Tavasszy
- Dick van Damme
Mainport Logistics research group
This publication is part of the Mainport Logistics research group. Sustainable and efficient regional logistics is crucial for the international competitiveness of the Amsterdam Metropolitan Area. The Mainport Logistics research group is committed to practice-oriented research in this area, with and for businesses, governments and (other) knowledge institutions.