Decision making for distribution centres location in CEP sector: a case study

Abstract

This study aims to suggest critical factors to support the decision making about the continuity/closing of a distribution Centre in the CEP (Courrier, Express and Parcel) sector according to location analysis. To reach this, a qualitative approach with a case study about a CEP Portuguese company is presented. Beyond personal interviews with the CEO of the company’s operations management a set of data were collected from company’s internal documents, publications, reports and studies of the CEP sector. The data analysis shows that the Distribution Centre (DC) in question presents a more positive performance than others when compared with the global DC network, so it should continue with its operations. These findings suggest also that CEO’s of CEP Sector need to pay attention to a set of critical factors in the decision making about the best choice to a DC location. The qualitative analysis engages the following factors suggested by the literature review: proximity to the customers, distribution costs, and implementation costs. The results support also the necessity to identify other critical factors of multiple levels to help in the decision of a DC location. There is a lack of researches that include a qualitative approach on choice of a DC location and in particular about CEP sector. This research can be seen as a further step to provide an alternative approach to the study and development of the enterprises decision making on DC location.

Keywords:

• location decision
• distribution centres
• case study
• CEP sector