We’ll help you to determine the ideal location and set-up for your warehouse and distribution centre (DC) facilities that minimise logistics and shipping costs while capitalising on the ability to service new and existing markets, making your logistics network fit for the future.
We use your data with our specialist software to identify the optimal location for warehousing and DC facilities. We consider the relevant factors that influence a business case for change. The weighting and the importance of these are always unique to your business, but generally include:
The centre of gravity location method is a logistics strategy we use at Hatmill to determine the optimal geographic location for a facility, such as a warehouse or distribution centre. We calculate the central point based on factors such as customer locations, shipment volumes, and transportation costs. Crucially, we do this considering road networks, not ‘as the crow flies’ distances. This inspires increased confidence in your site selection process. We then work to minimise your overall transportation costs and improve efficiency within your supply chain operations, ensuring goods are distributed in a timely and cost-effective manner to meet customer demand.
We adopt a tried-and-tested approach to warehouse location analysis that’s based on identifying your ideal centre(s) of gravity. We use this to find the optimal location(s) for your warehouse and DC facilities. Here’s how we do it:
We begin by gathering comprehensive data on your suppliers’ locations, customers’ locations, shipment volumes, and transportation costs. This data forms the basis for the centre of gravity calculation and informs strategic decisions.
We then use software to calculate the centre of gravity based on weighted coordinates of customer demand or shipment destinations, combined with the road network and typical driving speeds.. This calculation determines the optimal geographic location(s) for your warehouse and/or distribution centre.
Potential sites are then evaluated based on their proximity to major markets, transportation networks, labour availability, and cost considerations. Each criterion plays a crucial role in determining the suitability of a location for efficient operations. Ultimately, it is the availability of suitable sites that dictates the exact location once the centre of gravity analysis has been completed.
We conduct a cost-benefit analysis to compare potential sites and identify the most cost-effective option. We consider factors such as lease or purchase costs, operational expenses, and potential savings in transportation and logistics costs.
We then assess potential risks associated with each site, including regulatory compliance, natural hazards, and supply chain disruptions. From there, a mitigation strategy is developed to minimise risks and ensure continuity of operations.
We’ll then work with you to make an informed decision based on our analysis and recommendations. We’ll build a detailed implementation plan that outlines timelines, responsibilities, and milestones for establishing or relocating the warehouse or distribution centre.
– Paul Roughley, Group Operations Director, CMS
We’ll help you find the right location for your new site and also help you design and deliver your plans. We’ll research and locate the best real estate, create a clear business case, engage and consult with stakeholders across your business, lead procurement activity, and manage tenders for all elements of the new warehouse facility from building contractors to automation. We’ll also project manage the build, fit-out and other details such as stock transfer and IT systems.
Many factors influence the ideal warehouse location, these include: supplier proximity, transportation accessibility, downstream delivery points, labour availability, supply of power and planning permission restrictions. The perfect mix will reduce delivery times and sustain operations for the least amount of money.
Warehouse location is crucial because it directly impacts operational efficiency, customer service levels, and overall supply chain costs. Strategic placement reduces transportation distances and costs, helping to optimise logistics operations. Proximity to major markets shortens delivery times, enhancing customer satisfaction.
Additionally, the location affects labour availability, regulatory compliance, and resilience against disruptions. Selecting the right site should align with your business goals, improve responsiveness to market demands, and ensure streamlined operations that support growth and profitability in competitive markets.
We helped a market leading kitchenware supplier merge two businesses and eight sites into one distribution centre and head office, helping to streamline their operations and make savings along the way.
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