Logistics

There are many factors to consider during site selection, but due to reasons such as rising oil prices and the growing complexity of global supply chains, the importance of considering logistics has never been greater.

When considering logistics during site selection, the location of raw materials, the eventual destination of your products, and the overall distance of that process must be carefully considered so that standards can be set.  Once that is established, you can search for the most suitable site from those that meet your other site selection criteria. Since the United States is so vast, it is not easy to short list candidate sites, but it has recently become much easier by the use of technology such as logistic simulators.

Logistics Simulator
 Use simulator to locate candidate areas                   Select site with best conditions

It is also necessary to discuss what kind of transportation systems will be used. In the United States, transportation by highway and/or railway are the most common. Air transportation can also be considered depending on the amount and frequency of transportation. However, it is very likely that the combination of highway and railway transportation will be the most cost effective solution. As stated below, by combining both transportation systems, more efficient and cost effective logistic solutions can be realized. 

1) Long distance transportation with multiple product destinations in different regions.
    Example: Transporting products both to California and Virginia. 

2) Mass products or high quantities of products are transported with high frequency
    Example: Transporting large amount of chemicals, large parts, completed cars, etc.

・ See Highway System TIPS for details on highways.

・ See Railway System TIPS for details on railways.

       Considering Logistics During Site Selection

1) Differences in distance, required methods of transportation, and all associated costs should be determined and carefully examined during site selection.

2) For facilities such as food plants, proper site selection should include considering not only the location of sales, but also the location of the ingredients, whole sale traders, and the products’ final destination.

3) For railway transportation, reloading can be done at Bulk Transfer Terminals, so railways are not necessarily required at the site.   

In order to gain the most significant logistical information, it is necessary to negotiate with trucking companies, railway companies, industrial parks, and many other companies. Snavi offers various support services for this complicated work, so please contact us with any questions. 

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