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Choco company is a well-established brand in the kingdom with 09 outlets spread across the kingdom, and it is expanding its horizons day by day. They are planning to open a new warehouse generally a distribution center to ensure consistent supply to these 09 outlets you as an executive suggest a technique they can adopt to decide where do they setup a new warehouse and what should be the layout of their warehouse?

User JamHandy
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Final answer:

Choco company should consider a strategic warehouse location in a low-rent area with good transport links and employ a computerized, automated layout to capitalize on economies of scale, drawing inspiration from successful companies like Amazon and Coca-Cola.

Step-by-step explanation:

To decide where to set up a new warehouse, Choco company can adopt a strategy similar to that of Amazon or Coca-Cola, which involves finding low-rent locations with sufficient transportation infrastructure. Analysing factors like proximity to outlets, transportation costs, and the potential to scale up operations in the future is crucial. The layout of the warehouse must be efficient, making use of economies of scale and advanced technology such as computerized inventory systems and automation with robots for improved cost savings and efficiency.

Incorporating Amazon's approach of a highly computerized warehouse in low-rent areas can help Choco company distribute products to the outlets more efficiently, while adopting a strategy like Coca-Cola's market orientation can optimize production and transportation by using widely available local resources. Additionally, integrating the latest technology into the supply chain, ensuring labor rights, and forming contingency plans for national emergencies will fortify the supply chain as the company grows.

User Samuel Peter
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