Logistics and determining location
There was a number of factors the organization to consider when making the decision to choose the location of additional manufacturing facilities or setting up of a new distribution center in the country or the different country. For example, the below would be adhered to while undertaking the research proposal that had taken into accounts. In the following factors such as the number of retailer location in the United State, demand and supply of the goods in Eastern United States. Equally important, the raw materials for production of goods similarly, are without a doubt a major factor of location of manufacturing and distribution of products. Therefore, the organization should consider them before arriving at the best alternative decision making. (Hatten & Hatten, 2012).
First, the raw materials for manufacturing of high cube products they require large space and may cost more the company hence the location of the new plant was best constructed near to this storage facilities. In this case the warehouse and manufacturing company should be near the East Coast plummeting the cost of transportation (Khosrowpour, Information Resources Management Association, & Information Resources Management Association International Conference, 1999).
Having this problem taken care of. Then the company is likely to make the decision of distribution location based on the retailer stores across the country. That was because we may have more retailer stores in one place, but the application for the product in the market is not good enough for the company to set up the distribution location near them. For example in the case of 50 retailer stores found outside United State, more in Europe is not ideal for a company to have the distribution location there (Hatten & Hatten, 2012). That was because the demand for the product will flow from the evident from the population that has a margin growth.
Although, one of the best location of the distribution of the company products in this case can be in retailers in India, Mexico, and China. The primary reason is the high rate of population growth rate thus the company is likely to have substantial market share in these countries. Therefore, the company can have this choice as another alternative line of distribution if it can operate without the retailer and their store facilities. Equally important, in the Western United States is another potential market for the company should target. This due to from the analyzed data to the management it indicates that in a timely manner the rate is expected to double in the near future. Additionally the fact that there is some 200 distributed retailer in the whole of united State. It would be the added advantages for the company to operate near them hence it may reduce the warehouse expender for the enterprise. Therefore, the company can locate the new distribution there for it expand its markets (Khosrowpour, Information Resources Management Association, & Information Resources Management Association International Conference, 1999).
In conclusion, the first factors to be highly considered is the expected market target since it is possible to have the both new distribution location and retailer store, but there is no market. Then another alternative decision may be considered is the availability of retailer store since they can reduce the company warehouse distribution expenses since they are shifted to the retailer owners. Finally, if the business can operate without the retailer then it can be considered as another alternative.
Hatten, T. S., & Hatten, Timothy S. (2012). Small business management: Entrepreneurship and beyond. Mason, OH: South-Western Cengage Learning. Top of Form
Khosrowpour, M., Information Resources Management Association, & Information Resources Management Association International Conference. (1999). Managing information technology resources in organizations in the next millennium: 1999 Information Resources Management Association International Conference, Hershey, PA, USA, May 16-19, 1999. Hershey, Penn: Idea Group Pub.