This section indicates some of the very practical aspects of final site location and design.
After a suitable series of site locations has been determined through the modelling process, there are various practical considerations that should be taken into account when deciding on a particular site.
Without initially having the benefit of detailed layout plans, some assessment should be made about the general size and configuration of the site, and its consequent ability to enable a sensible layout of the building and other ancillary structures and site roads. Finally, consid- eration should be given to the extent to which the site should also be able to accommodate future anticipated expansion.
An estimate will be needed of the number, type and size of vehicles using the proposed site, including some measure of future expansion, in order to check that suitable access can be pro- vided on to the site. This should clearly take account of the traffic characteristics for different operations, in terms of vehicle size and numbers coming on to the site, and also in terms of access for employees, whether on foot, by car or by public transport. In this context, the external roadway system and access need to be considered as well as the likely internal site roadways.
Any future plans for development of the road and rail network in the vicinity of the site that could possibly affect the ease of site access should be explored. Generally, goods will arrive and leave by road transport, so local links to the motorway network or other major roads are of significance.
Any site development will require planning permission, but checks should also be made about local development plans for the area, the adjacent land and the general environment. This is to ensure that there is nothing that would adversely affect the site operation in terms of future plans for expansion. This might relate to physical growth, the extension of working times or shifts, site access, the availability of suitable labour and the overall operating environment, especially as it might affect potential customers.
Certain site details relating to the features of a potential site should be considered. These can influence the position of any proposed buildings, and also influence such aspects as construc- tion costs, site security and site operation. In general the site should be suitable in terms of soil conditions (load-bearing), slope and drainage. Such factors may exert a significant influence on construction costs in terms of piling, excavation, backfilling and similar civil engineering factors. The necessary services should be available, or planned, and accessible – power, water, sewage and telephone links.
The adjacent properties to the proposed site can also influence such considerations as site security (eg if open space is adjacent) or the feasibility of working outside ‘normal’ day hours (eg if housing is adjacent).
Financial considerations are also important. The cost of site acquisition and rental or other ownership costs should be established, as should the probable levels of commitment for rates (local taxes), insurance and any other services or site-related charges. On the other side of the cost equation, there may be investment or other government grants that apply, which could influence the overall cost picture.
When occupying a site and either putting up new buildings or taking over existing buildings or facilities, there will be legislation and local regulations and planning requirements to be
considered and met. When considering the site, some typical constraints are a requirement for a minimum number of employee car parking spaces, an upper limit on the height of any building to be put up on the site and limits to the type of building to be constructed. From a transport perspective, any implications with respect to Vehicle Operator Licensing should be considered.
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The approach to logistics strategy planning outlined here must of course flex to suit particular industries and business situations. The important theme is the use of a formalized framework that takes into account business issues as well as more detailed logistics issues and combines the conceptual and quantitative evaluation techniques that are available. The basic metho- dology can be followed in any organization.
The various roles of DCs and warehouses have been discussed, and once again the influence of the different elements within logistics has been noted.
The basic cost relationships have been described. These relationships have been brought together to produce a total logistics cost. It has been shown that trade-off analysis can be used to help optimize the cost-effectiveness of distribution systems, even where this may mean that individual cost elements are increased.
A formal planned approach for developing a physical distribution strategy was described.
The major discussion points have been the need to determine appropriate product flows and the planning of DC and facilities location. A number of different aspects have been covered, and it has been emphasized that the problem is a complex one, involving a great deal of data manipulation and the need for quite sophisticated modelling techniques.
In the final section, a number of factors were put forward for consideration when a practical search for a site takes place. These factors are all influential in ensuring the effective operation of a DC.