Developing a phased approach for strategic distribution center location selection in FMCG Industries
C. HU (TU Delft - Civil Engineering & Geosciences)
MW Ludema – Mentor (TU Delft - Transport and Logistics)
MB Duinkerken – Graduation committee member (TU Delft - Transport Engineering and Logistics)
J. Rezaei – Coach (TU Delft - Transport and Logistics)
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Abstract
Fast-Moving Consumer Goods (FMCG) companies face the critical challenge of selecting appropriate locations for their distribution centers to maintain operational efficiency and customer satisfaction. This thesis introduces a structured 5 step of phased method to address the distribution center site selection problem, considering various company-specific strategic objectives. The method incorporates determining factors identification, constraints selection, requirements outlining, alternatives generation and alternatives evaluation. A morphological chart is used in the alternative generation phase to create a range of potential locations alternatives. The Multi-Criteria Decision-Making (MCDM) method is applied for the systematic evaluation of the alternatives. The thesis suggests that expanding the set of determining factors, incorporating a broader range of stakeholder inputs and further enriching the alternatives through diversified means could enhance the method’s applicability and accuracy. This method offers FMCG companies a robust decision-making tool for strategic distribution center location selection, catering to individual business objectives and market dynamics.