The importance of a good location for a logistics centre
In today’s world, logistics plays a crucial role in the success of any company seeking to remain competitive in the market. Efficient supply chain management is essential to satisfy customer demand and optimise operating costs. Within this chain, one of the main factors that determines the general performance of a logistics centre is its location. In this article, we will discuss in more detail the importance of the location for a logistics center.
The choice of a strategic location for a logistics centre can mean the difference between success and failure for a company, as it directly influences both the profitability and value of logistics activities.
Main factors that influence the profitability of a logistics centre
Accessibility is one of the main factors that influences the profitability of a logistics centre. A suitable location must provide easy access to the main transport routes such as roads, railways and ports. A good connection to these routes will enable goods to be moved efficiently, which will reduce delivery times and transport costs. A strategic location can also help to minimise delays or disruptions to the logistics service, which may be crucial to keep customers happy and preserve a company’s reputation.
Another important aspect to consider is proximity to markets and customers. Locating a logistics centre close to potential customers will cut delivery times, which will improve customer experience and increase brand loyalty. Being near to target markets may also help companies identify business opportunities and adapt their selection of products and services more effectively.
Another key factor in locating a logistics centre is the available workforce. Having a qualified and available workforce in the area may cut recruitment and training costs, and also improve operating efficiency. A strategic location may also help attract talent, which translates to greater employee commitment and productivity.
Location has a significant influence on the value of logistics assets. An example of this is the case study on the Iberum Central Platform, which is where our Illescas Green Logistics Park project is located. The Platform has experienced substantial growth and is now a major logistics hub that acts as a strategic distribution nerve centre at regional, national and continental level.
A well-located logistics centre tends to increase in value due to its potential to generate greater long-term income and profits. Investors and commercial partners recognise the value of strategically located centres, which they deem to be less risky and offer greater operational stability.
It is important to note that certain risks and challenges must also be considered when deciding where to locate a logistics centre. For example, certain locations may be exposed to extreme weather conditions or natural events that could affect operations. Land availability and prices are also factors to take into account, as they can have a direct impact on investments.
In conclusion, the choice of a good location for a logistics centre is a crucial consideration that may determine a company’s success and profitability. Access to the main transport routes, proximity to markets and customers, availability of a qualified workforce and potential risks are key factors to take into account when making this decision. A strategic location can also increase the value of logistics assets and attract investors and commercial partners. Ultimately, investing time and resources on finding the ideal location will translate to a more efficient and competitive supply chain.