An approach to the location of a warehouse distribution centre in the international environment: a Slovenian perspective

Abstract

The article identifies the optimal location of the warehouse distribution centre for Slovenian companies in the international environment. The process of location selection takes into account a series of interconnected factors, including flows of goods between countries; the level of development of the transport system and transport infrastructure; the number of transport companies; labour costs and labour productivity; and the tax benefits existing in each country. Scientific literature mentions various methods for choosing a warehouse location, which differ in complexity and in the use of different qualitative and quantitative factors. However, the methods discussed have a disadvantage in that they use the current input variables when defining the optimal location. Choosing the optimal warehouse location is an important long-term logistics process, which should consider the fact that the environment in which companies operate is constantly changing. Using the proposed approach, future trends in the international environment are presented, which enables a better choice of warehouse location in the long run. Through this approach, companies can save on logistic costs, while also providing better quality logistics services. The analysis represents a starting point for deciding the location of a warehouse, but does not constitute a complete set of guidelines for companies to follow, as the choice of a particular location is dependent upon the complexity of the international environment in which a company operates.