Finding the most optimal European distribution center locations

Assignment

What is the optimal location for a new distribution center in Europe?

Project summary

BCI conducted a fact-based and unbiased location comparison as well as a final site search for the company’s new distribution center in Europe.

Our approach

First of all, BCI conducted a distribution network analysis with the aim of validating whether a centralized distribution center was the right strategy for this company in Europe and, if yes, in which region in Europe this central warehouse would need to be located.

The outcome was that a centralized distribution structure would be the optimal solution for the future. From this new central distribution center cross-border distribution will be done to hospitals across the European markets.

In a next step BCI was asked to carry out a detailed location selection process in which first a region-level analysis was done based on critical location factors. This longlist analysis included locations in The Netherlands, Belgium, Germany, the United Kingdom, Denmark and France. Based on this step the search area was narrowed down to an area covering the southern part of The Netherlands and the adjacent regions in Belgium and Germany.

Then BCI conducted a detailed site selection analysis within the search area. A large number of relevant greenfield and brownfield sites were identified and compared. The comparison included both locational aspects (e.g. proximity to integrator hubs, availability of the right labor pool, accessibility) and site quality aspects such as building size, fit with the building requirements and time to implement.

Result

The company selected a brownfield site in the Venlo area in The Netherlands which was readily available and matching both the location and the site quality criteria.