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A.T.C. Onstein
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Towards a typology of distribution centre facilities
Journal article
(2021)
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A.T.C. Onstein, I. Bharadwaj, Lorant Tavasszy, Dick A. van Damme, Abdel el Makhloufi
Distribution centres are becoming more and more relevant for spatial planning, due to their rapidly increasing size and number. There is little literature, however, that provides a generalized analysis of the size and functional attributes of distribution centres, and none that discusses the relationships between these attributes. Our aim is to fill this gap by providing new evidence and analysis to understand this relationship. We make use of an extensive database of 2888 DCs in the Netherlands to develop a new typology of DCs based on the geographical location of DCs, their functional attributes and client sector characteristics. The analysis shows that the context in which medium sized DCs are operating is more heterogeneous than in the case of very large and small size DCs. This study is a first attempt to analyse this relationship between facility size and functions based on a rich and extensive dataset of large population of DCs. The results can serve as input for further quantitative statistical analysis and international comparison.
...
Distribution centres are becoming more and more relevant for spatial planning, due to their rapidly increasing size and number. There is little literature, however, that provides a generalized analysis of the size and functional attributes of distribution centres, and none that discusses the relationships between these attributes. Our aim is to fill this gap by providing new evidence and analysis to understand this relationship. We make use of an extensive database of 2888 DCs in the Netherlands to develop a new typology of DCs based on the geographical location of DCs, their functional attributes and client sector characteristics. The analysis shows that the context in which medium sized DCs are operating is more heterogeneous than in the case of very large and small size DCs. This study is a first attempt to analyse this relationship between facility size and functions based on a rich and extensive dataset of large population of DCs. The results can serve as input for further quantitative statistical analysis and international comparison.
This thesis studies the factors that influence physical distribution structure design. Distribution Structure Design (DSD) concerns the spatial layout of the distribution channel as well as the location(s) of logistics facilities. Despite the frequent treatment of DSD in supply chain handbooks, an empirically validated conceptual framework of factors is still lacking. This thesis studies DSD inmultiple industry sectors (Fashion, Consumer Electronics, Online Retail) and proposes a conceptual framework.
...
This thesis studies the factors that influence physical distribution structure design. Distribution Structure Design (DSD) concerns the spatial layout of the distribution channel as well as the location(s) of logistics facilities. Despite the frequent treatment of DSD in supply chain handbooks, an empirically validated conceptual framework of factors is still lacking. This thesis studies DSD inmultiple industry sectors (Fashion, Consumer Electronics, Online Retail) and proposes a conceptual framework.
Journal article
(2020)
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Alexander T.C. Onstein, Lóránt A. Tavasszy, Jafar Rezaei, Dick A. van Damme, Adeline Heitz
This paper studies the factors that drive distribution structure design (DSD), which includes the spatial layout of distribution channels and location choice of logistics facilities. We build on a generic framework from existing literature, which we validate and elaborate using interviews among industry practitioners. Empirical evidence was collected from 18 logistics experts and 33 decision-makers affiliated to shippers and logistics service providers from the fashion, consumer electronics and online retail sectors. It turns out that interviewees share similar rankings of main factors across industries, and even confirm factor weights from earlier research established using multi-criteria decision analysis, which would indicate that the framework is sector-neutral at the highest level. The importance attached to subfactors varies between sectors according to our expectations. We were able to identify 20 possible new influencing subfactors. The results may support managers in their decision-making process, and regional policy-makers with regard to spatial planning and regional marketing. The framework is a basis for researchers to help improve further quantitative DSD support models.
...
This paper studies the factors that drive distribution structure design (DSD), which includes the spatial layout of distribution channels and location choice of logistics facilities. We build on a generic framework from existing literature, which we validate and elaborate using interviews among industry practitioners. Empirical evidence was collected from 18 logistics experts and 33 decision-makers affiliated to shippers and logistics service providers from the fashion, consumer electronics and online retail sectors. It turns out that interviewees share similar rankings of main factors across industries, and even confirm factor weights from earlier research established using multi-criteria decision analysis, which would indicate that the framework is sector-neutral at the highest level. The importance attached to subfactors varies between sectors according to our expectations. We were able to identify 20 possible new influencing subfactors. The results may support managers in their decision-making process, and regional policy-makers with regard to spatial planning and regional marketing. The framework is a basis for researchers to help improve further quantitative DSD support models.
Journal article
(2019)
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Sander Onstein, Mehrnaz Ektesaby, Jafar Rezaei, Lóránt A. Tavasszy, Dick A. van Damme
The design of a spatial distribution structure is of strategic importance for companies, to meet required customer service levels and to keep logistics costs as low as possible. Spatial distribution structure decisions concern distribution channel layout–i.e. the spatial layout of the transport and storage system–as well as distribution centre location(s). This paper examines the importance of seven main factors and 33 sub-factors that determine these decisions. The Best-Worst Method (BWM) was used to identify the factor weights, with pairwise comparison data being collected through a survey. The results indicate that the main factor is logistics costs. Logistics experts and decision makers respectively identify customer demand and service level as second most important factor. Important sub-factors are demand volatility, delivery time and perishability. This is the first study that quantifies the weights of the factors behind spatial distribution structure decisions. The factors and weights facilitate managerial decision-making with regard to spatial distribution structures for companies that ship a broad range of products with different characteristics. Public policy-makers can use the results to support the development of land use plans that provide facilities and services for a mix of industries.
...
The design of a spatial distribution structure is of strategic importance for companies, to meet required customer service levels and to keep logistics costs as low as possible. Spatial distribution structure decisions concern distribution channel layout–i.e. the spatial layout of the transport and storage system–as well as distribution centre location(s). This paper examines the importance of seven main factors and 33 sub-factors that determine these decisions. The Best-Worst Method (BWM) was used to identify the factor weights, with pairwise comparison data being collected through a survey. The results indicate that the main factor is logistics costs. Logistics experts and decision makers respectively identify customer demand and service level as second most important factor. Important sub-factors are demand volatility, delivery time and perishability. This is the first study that quantifies the weights of the factors behind spatial distribution structure decisions. The factors and weights facilitate managerial decision-making with regard to spatial distribution structures for companies that ship a broad range of products with different characteristics. Public policy-makers can use the results to support the development of land use plans that provide facilities and services for a mix of industries.
Logistieke kosten, service levels en beschikbaarheid van personeel zijn al jaren belangrijke uitgangspunten op basis waarvan bedrijven hun fysieke distributienetwerken inrichten. Toch zijn er zes minder bekende factoren waar bedrijven rekening mee houden bij het ontwerp van hun distributienetwerken.
...
Logistieke kosten, service levels en beschikbaarheid van personeel zijn al jaren belangrijke uitgangspunten op basis waarvan bedrijven hun fysieke distributienetwerken inrichten. Toch zijn er zes minder bekende factoren waar bedrijven rekening mee houden bij het ontwerp van hun distributienetwerken.
Distribution structures, as studied in this paper, involve the spatial layout of the freight transport and storage system used to move goods between production and consumption locations. Decisions on this layout are important to companies as they allow them to balance customer service levels and logistics costs. Until now there has been very little descriptive research into the factors that drive decisions about these structures. Moreover, the literature on the topic is scattered across various research streams. In this paper we review and consolidate this literature, with the aim to arrive at a comprehensive list of factors. Three relevant research streams were identified: Supply Chain Management (SCM), Transportation and Geography. The SCM and Transportation literature mostly focus on distribution structure including distribution centre (DC) location selection from a viewpoint of service level and logistics costs factors. The Geography literature focuses on spatial DC location decisions and resulting patterns mostly explained by location factors such as labour and land availability. Our review indicates that the main factors that drive decision-making are “demand level”, “service level”, “product characteristics”, “logistics costs”, “labour and land”, “accessibility” and “contextual factors”. The main trade-off influencing distribution structure selection is “service level” versus “logistics costs”. Together, the research streams provide a rich picture of the factors that drive distribution structure including DC location selection. We conclude with a framework that shows the relative position of these factors. Future work can focus on completing the framework by detailing out the sub factors and empirically testing the direction and strength of relationships. Cooperation between the three research streams will be useful to further extend and operationalize the framework.
...
Distribution structures, as studied in this paper, involve the spatial layout of the freight transport and storage system used to move goods between production and consumption locations. Decisions on this layout are important to companies as they allow them to balance customer service levels and logistics costs. Until now there has been very little descriptive research into the factors that drive decisions about these structures. Moreover, the literature on the topic is scattered across various research streams. In this paper we review and consolidate this literature, with the aim to arrive at a comprehensive list of factors. Three relevant research streams were identified: Supply Chain Management (SCM), Transportation and Geography. The SCM and Transportation literature mostly focus on distribution structure including distribution centre (DC) location selection from a viewpoint of service level and logistics costs factors. The Geography literature focuses on spatial DC location decisions and resulting patterns mostly explained by location factors such as labour and land availability. Our review indicates that the main factors that drive decision-making are “demand level”, “service level”, “product characteristics”, “logistics costs”, “labour and land”, “accessibility” and “contextual factors”. The main trade-off influencing distribution structure selection is “service level” versus “logistics costs”. Together, the research streams provide a rich picture of the factors that drive distribution structure including DC location selection. We conclude with a framework that shows the relative position of these factors. Future work can focus on completing the framework by detailing out the sub factors and empirically testing the direction and strength of relationships. Cooperation between the three research streams will be useful to further extend and operationalize the framework.
Journal article
(2018)
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Sander Onstein, Mehrnaz Ektesaby, Jafar Rezaei, Dick van Damme, Lorant Tavasszy
Consumenten stellen steeds hogere eisen aan de levering van producten. Alleen op tijd leveren is niet meer voldoende. Er wordt steeds meer flexibiliteit verwacht, onder meer in bezorglocatie en aflevermoment. Vandaag besteld is vandaag of morgen in huis. Veel bedrijven worstelen met de vraag hoe zij het distributienetwerk aan moeten passen om aan de klantwens te voldoen. In dit artikel bespreken we de factoren die van belang zijn bij de inrichting van een distributienetwerk. Hiermee bieden we bedrijven een checklist voor besluitvorming. Er bestaan veel modellen die voor bedrijven het wiskundig optimale distributienetwerk kunnen berekenen, maar er is nog weinig inzicht in de volledige lijst van factoren en het belang ervan. Wij hebben de wetenschappelijke literatuur geraadpleegd om tot een zo compleet mogelijke lijst te komen en hebben via een enquête onder experts en beslissers een inschatting gemaakt van het relatieve belang van deze factoren. Hieruit blijkt dat logistieke kosten, serviceniveau en de klantvraag de belangrijkste (hoofd)factoren zijn. Logistiek experts vinden de klantvraag de tweede belangrijkste factor. Beslissers daarentegen zijn van mening dat serviceniveau na logistieke kosten de belangrijkste factor is. De resultaten van het onderzoek kunnen gebruikt worden als input voor het ontwerpen van locaties, voorzieningen en diensten, ten behoeve van fysieke distributieactiviteiten. Uit het onderzoek komen verschillende aanbevelingen voor overheden naar voren ten aanzien van het vestigingsbeleid voor distributiecentra. Denk aan het (her)bestemmen van bedrijventerreinen nabij steden voor de vestiging van overslagpunten, aan het stimuleren van de bereikbaarheid per truck van deze overslagpunten, aan het aanmoedigen van omscholing om het tekort aan logistiek personeel te verminderen en aan het opstellen van welstandseisen om het aanzicht van DC’s aantrekkelijker te maken.
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Consumenten stellen steeds hogere eisen aan de levering van producten. Alleen op tijd leveren is niet meer voldoende. Er wordt steeds meer flexibiliteit verwacht, onder meer in bezorglocatie en aflevermoment. Vandaag besteld is vandaag of morgen in huis. Veel bedrijven worstelen met de vraag hoe zij het distributienetwerk aan moeten passen om aan de klantwens te voldoen. In dit artikel bespreken we de factoren die van belang zijn bij de inrichting van een distributienetwerk. Hiermee bieden we bedrijven een checklist voor besluitvorming. Er bestaan veel modellen die voor bedrijven het wiskundig optimale distributienetwerk kunnen berekenen, maar er is nog weinig inzicht in de volledige lijst van factoren en het belang ervan. Wij hebben de wetenschappelijke literatuur geraadpleegd om tot een zo compleet mogelijke lijst te komen en hebben via een enquête onder experts en beslissers een inschatting gemaakt van het relatieve belang van deze factoren. Hieruit blijkt dat logistieke kosten, serviceniveau en de klantvraag de belangrijkste (hoofd)factoren zijn. Logistiek experts vinden de klantvraag de tweede belangrijkste factor. Beslissers daarentegen zijn van mening dat serviceniveau na logistieke kosten de belangrijkste factor is. De resultaten van het onderzoek kunnen gebruikt worden als input voor het ontwerpen van locaties, voorzieningen en diensten, ten behoeve van fysieke distributieactiviteiten. Uit het onderzoek komen verschillende aanbevelingen voor overheden naar voren ten aanzien van het vestigingsbeleid voor distributiecentra. Denk aan het (her)bestemmen van bedrijventerreinen nabij steden voor de vestiging van overslagpunten, aan het stimuleren van de bereikbaarheid per truck van deze overslagpunten, aan het aanmoedigen van omscholing om het tekort aan logistiek personeel te verminderen en aan het opstellen van welstandseisen om het aanzicht van DC’s aantrekkelijker te maken.
Factoren achter grondvorm en DC-locatiekeuze
Interviewresultaten uit 3 sectoren
Voor het transport van goederen naar de klant maken bedrijven gebruik van een ruimtelijk distributienetwerk. Een ruimtelijk distributienetwerk bestaat uit twee onderdelen: de grondvorm (het ontwerp van het transport- en opslagsysteem tussen productie en de markt) en de locatie van distributiecentra. De inrichting van een distributienetwerk wordt beïnvloed door een combinatie van factoren. Inzicht in deze factoren kan verladers en logistiek dienstverleners helpen bij het inrichten van het distributienetwerk. Daarnaast is inzicht van belang voor overheden en ontwikkelingsmaatschappijen om een regio in te richten voor logistieke activiteiten. In eerder onderzoek hebben we de belangrijkste factoren geïnventariseerd uit de literatuur en hebben we het relatieve belang ervan bepaald middels een enquête. Hier bespreken we de resultaten van aanvullend kwalitatief onderzoek via 53 interviews in de sectoren mode, elektronica en online retail. Uit de interviews komen acht nieuwe factoren naar voren. Dit zijn kennisclusters, ontslagkosten, kennisbehoud, OV-bereikbaarheid, politieke en economische stabiliteit, afstand DC tot het hoofdkantoor, netwerk van de logistiek dienstverlener en historische banden met de regio. Naast het feit dat het belang van factoren per bedrijf verschilt zien wij ook het persoonlijke perspectief van de beslisser terug in aspecten zoals nabijheid van scholen en een korte woon-werk reistijd. Het kwantitatieve belang van deze - soms als “irrationeel” aangeduide - factoren is nog niet vastgesteld, maar persoonlijke factoren lijken naast de bedrijfsrationaliteit wel degelijk een rol te spelen.
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Voor het transport van goederen naar de klant maken bedrijven gebruik van een ruimtelijk distributienetwerk. Een ruimtelijk distributienetwerk bestaat uit twee onderdelen: de grondvorm (het ontwerp van het transport- en opslagsysteem tussen productie en de markt) en de locatie van distributiecentra. De inrichting van een distributienetwerk wordt beïnvloed door een combinatie van factoren. Inzicht in deze factoren kan verladers en logistiek dienstverleners helpen bij het inrichten van het distributienetwerk. Daarnaast is inzicht van belang voor overheden en ontwikkelingsmaatschappijen om een regio in te richten voor logistieke activiteiten. In eerder onderzoek hebben we de belangrijkste factoren geïnventariseerd uit de literatuur en hebben we het relatieve belang ervan bepaald middels een enquête. Hier bespreken we de resultaten van aanvullend kwalitatief onderzoek via 53 interviews in de sectoren mode, elektronica en online retail. Uit de interviews komen acht nieuwe factoren naar voren. Dit zijn kennisclusters, ontslagkosten, kennisbehoud, OV-bereikbaarheid, politieke en economische stabiliteit, afstand DC tot het hoofdkantoor, netwerk van de logistiek dienstverlener en historische banden met de regio. Naast het feit dat het belang van factoren per bedrijf verschilt zien wij ook het persoonlijke perspectief van de beslisser terug in aspecten zoals nabijheid van scholen en een korte woon-werk reistijd. Het kwantitatieve belang van deze - soms als “irrationeel” aangeduide - factoren is nog niet vastgesteld, maar persoonlijke factoren lijken naast de bedrijfsrationaliteit wel degelijk een rol te spelen.
Conference paper
(2017)
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Sander Onstein, Mehrnaz Ektesaby, Jafar Rezaei, Lorant Tavasszy, Dick van Damme
Conference paper
(2017)
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Sander Onstein, Jafar Rezaei, Lorant Tavasszy, Mehrnaz Ektesaby, Dick A. van Damme
The logistics industry is an important sector for the Dutch economy. Distribution centres (DCs) are important to perform logistics activities. In 2015 the demand for logistics real estate has been particularly high compared to previous years. To facilitate the logistics sector and to develop sustainable spatial policies – that for example reduce congestion-it is important that spatial planners have insights in logistics location patterns. This paper analyses some trends in the spatial patterns of DC settlements within the Netherlands, based on real estate data. We find that the shares of logistics real estate of the provinces Limburg and Noord-Brabant marginally increased in the period 2004 – 2014, while the shares of all four Randstad provinces marginally decreased. This indicates that, although absolute growth has been high in the periphery (especially along the line Rotterdam – Noord-Brabant – Venlo), on a national level no significant sprawl of logistics real estate from the Randstad towards peripheral regions can be observed. On the regional level, polarization in the periphery is visible within regions that have been forming new logistics clusters. Another phenomenon which is relevant for spatial planners is the growing demand for very large DCs, in particular for e-commerce logistics activities. This implies that municipalities increasingly will have to supply large logistics land plots. Extra attention of spatial policy makers is also needed for re-use or transformation of existing distribution centres – of which the floor space is often considered too small-to prevent further increase of unsalable DCs. This study has not investigated possible explanations for the spatial patterns of logistics real estate within the Netherlands. We hope to follow up the present study with an explanatory analysis.
...
The logistics industry is an important sector for the Dutch economy. Distribution centres (DCs) are important to perform logistics activities. In 2015 the demand for logistics real estate has been particularly high compared to previous years. To facilitate the logistics sector and to develop sustainable spatial policies – that for example reduce congestion-it is important that spatial planners have insights in logistics location patterns. This paper analyses some trends in the spatial patterns of DC settlements within the Netherlands, based on real estate data. We find that the shares of logistics real estate of the provinces Limburg and Noord-Brabant marginally increased in the period 2004 – 2014, while the shares of all four Randstad provinces marginally decreased. This indicates that, although absolute growth has been high in the periphery (especially along the line Rotterdam – Noord-Brabant – Venlo), on a national level no significant sprawl of logistics real estate from the Randstad towards peripheral regions can be observed. On the regional level, polarization in the periphery is visible within regions that have been forming new logistics clusters. Another phenomenon which is relevant for spatial planners is the growing demand for very large DCs, in particular for e-commerce logistics activities. This implies that municipalities increasingly will have to supply large logistics land plots. Extra attention of spatial policy makers is also needed for re-use or transformation of existing distribution centres – of which the floor space is often considered too small-to prevent further increase of unsalable DCs. This study has not investigated possible explanations for the spatial patterns of logistics real estate within the Netherlands. We hope to follow up the present study with an explanatory analysis.