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How changing supply chains impacts location choices

René Buck

Corporate Real Estate Journal, 2015, vol. 4, issue 3, 223-229

Abstract: Supply chain strategies determine the number, size, activities and location profile of distribution centres as 80 per cent of the value chain's life-cycle costs are locked in at the start with the footprint of distribution centres (and production plants). The direct relationship between supply chain strategy and location choices also means that location choices have a direct impact on the three drivers of shareholder value: growing revenues (due to geographic expansion), costs and capital deployment. The author presents a proven location decision tool (the cost-quality-risk model), in which all relevant cost factors, quality of the business environment factors and risk factors are included.

Keywords: supply chain; supply chain strategy; location decision tool; location choice; footprint; cost-quality-risk model (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2015
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