The location of your DC in a given area is probably the most important single decision in determining it's success. While the world is getting smaller everyday and supply chains are getting more efficient and faster at delivering goods to market, it is still critical to locate your distribution centres to maximise geographical and operational advantage.

For a lot of reasons it is no longer necessary to locate the national or regional DC near the biggest local market and can be significantly more expensive. Freight cost disparity in New Zealand's case North verus South imbalance provides for potential savings with location of a DC in an appropriate position.

An example of this potential for operational advantage is the current situation that exists in New Zealand and the resulting forward/back load freight disparity can generate significant potential savings to any DC located in Wellington.

...identify cost savings achieved through the central location of the National DC at up to 30%...

Technology plays a crucial role in allowing stock to be held distant from the sales force and still have total control over ordering and fulfilment. Modern warehouse management and inventory systems enable a sales team to operate remotely using real time order applications, making location from their perspective irrelevant.

Working with a freight matrix it is possible to identify cost savings achieved through the central location of the National DC at up to 30%. Given that property costs, labour charges and other infrastructure costs can be lower in Wellington then the savings in overall supply chain operation can be significant.