Individual-Location-Case-study.docx

1 Individual Exercise: Location Mini Case Study Supply Chain Management August 26, 2021 Contents Problem and Causes……………………………………………………………………………..3-4 Causes……………………………………………………………………………………………..4

2 Analysis/Alternatives……………………………………………………………………………5-7 Solution………………………………………………………………………………………….7-8 Recommendation/Conclusion……………………………………………………………………..8 Reading Source/References……………………………………………………………………….9 Problem

3 A Shanghai-based company has developed a new hand-held unit/cellphone to be imported to North America. The company seeks to establish a single distribution center (DC) in the Prairies to efficiently reach customers in Alberta, Saskatchewan, and Manitoba. The company’s interest in being near TransCanada #1 and exploring inland ports presents a challenge in deciding the optimal location for the DC. Causes The root cause of the distribution center location decision challenge could potentially be the lack of comprehensive location analysis strategy. This might manifest as insufficient evaluation of various factors influencing the choice of location for the DC. Without a systemic approach to analyzing the different aspects that impact the decision, the company might struggle to determine the most optimal location that aligns with its goals and requirements. Addressing this root cause would involve implementing a structured and data-driven location analysis process. Here are some potential causes to the problem that I identified regarding the DC location decision: 1. Geographical Coverage: the need to serve multiple provinces requires careful selection of a location that gives equal and efficient range. 2. Logistics maximization: To lessen transportation costs and ensure timely delivery, the company must strategically position the DC. 3. Inland Port Benefits: Choosing an inland port, the advantages it offers in terms of customs clearance, transportation efficiency, and intermodal connectivity should be evaluated.

4 4. Market Expansion: The company’s decision to expand its market presence in North America has triggered the need for an efficient distribution center in the Prairies. 5. Customer Satisfaction: The company’s commitment to providing excellent customer service requires a well-placed distribution center to meet customer demands promptly. 6. Transportation Efficiency: The company aims to ensure timely and cost-effective transportation of its products to customers, which requires careful consideration of the distribution center’s proximity to transportation corridors like TransCanada #1. 7. Infrastructure Utilization: The company’s decision needs to factor in the existing transportation infrastructure in each potential location to maximize its use for efficient distribution. 8. Operational Costs: Balancing the need for an optimal location with associated operating cost, including real estate prices, labor expenses, and potential taxes, is a key challenge. Identifying these underlying causes can help the company address the root issues ad make an informed decision that aligns with its goals and objectives. Analysis Three potential locations are being considered: Calgary, Regina, and Winnipeg. Additionally, the company needs to decide whether to locate within an inland port, such as CentrePort in Winnipeg or the Global Transportation Hub in Regina. To further arrive at a decision, I have made comparisons with the three alternatives or options for the company’s DC. Calgary, Alberta: Pros:

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