Developing a phased approach for strategic distribution center location selection in FMCG Industries

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.