Factors driving firm's spatial decisions on distribution channel layout

A.T.C. Onstein, M. Ektesaby, J. Rezaei, L.A. Tavasszy, D.A. van Damme

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Spatial decisions on distribution channel layout involve the layout of the transport and storage system between production and consumption as well as the selection of distribution centre locations. Both are strategic company decisions to meet logistics challenges, i.e. delivering the right product at the right location on time. In this paper we study the main factors and sub factors that drive spatial decisions on distribution channel layout. The current literature has a strong focus on normative approach and lacks descriptive research into these factors. In the second part of the study, we investigated the importance of the factors. Best-Worst Method (BWM) has been used to calculate the factor weights. BWM provides consistent results and requires fewer comparisons than ‘matrix based’ methods. An online survey was used to collect the data. According to total sample of respondents, the most important factors are ‘Logistics costs’, ‘Service level’ and ‘Demand level’. Logistics costs being the most important factor is in line with Supply Chain Management literature. Logistics experts consider ‘Customer demand’ as the second most important factor, whereas decision makers consider ‘Service level’ the second most important factor. A limitation of the research is that the majority of respondents are from Europe and the USA. For future research we suggest to test how respondents from non-Western countries value the importance of several factors.
Original languageEnglish
Publication statusPublished - Nov 2017
EventVervoerslogistieke werkdagen 2017 - Vaals, Netherlands, Vaals, Netherlands
Duration: 16 Nov 201717 Nov 2017


ConferenceVervoerslogistieke werkdagen 2017
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