DEQUITO, ABNER D. PROF. MA.

CRISTINA MORFI
BSBA-EXECUTIVE CLASS III-2 ADVERTISING

THINK CRITICAL

1. Why must large retailers have nearby distribution centers?     

2.  What factors should be considered when determining a new location for a distribution  
center?

3. How does the location of a retailer’s distribution center affect its sales? 

4.    How is customer service affected by the location of a distribution center?

5.      What are the benefits to a city in which a distribution center is located?

ANSWER:

1. Retailers must have nearby distribution center, all of your products in one central
location means to have an easy access whenever, whatever you need the product.

2. Longevity - Consider the longevity of your warehouse location -- will it be able

to accommodate the growth or shrinking of your business? Analyze the potential
growth of your company and determine if the warehouse location has room for
expansion if needed. If your product is seasonal, consider finding a location that
offers seasonal leases or working with companies, such as Flow space, that offer
flexible in storage options. Understand the potential of the warehouse space and
plan for longevity.

3. A business needs to decide on the best location taking into account factors such as
cost the amount of the premises cost.

4.   When it comes to how you get products out and where they come from. You can cut
costs by having shorter delivery routes and having more options by carefully choosing
where your distribution centers are located,

5. If you operate your distribution center in a place where labor is relatively cheap
and the cost of living is affordable, the location of your distribution center affects
many of your costs, among them the price of labor and the cost of living. You can
offer comparable compensation and save your company money. The city
distribution center also has better opportunities to create efficient delivery schedules.