California Warehouse Location Network Study

Business Challenge

Puratos Corporation, a supplier of ingredients for the bakery, confectionery, ice-cream and catering industries, had recently acquired additional companies which included their warehouse facilities. Puratos realized that they needed to identify the best possible warehouse number and locations to serve their new business model. WCL Consulting was retained to conduct a Warehouse Location Network Optimization Analysis.

How WCL Consulting Helped

WCL Consulting conducted a Warehouse Location Network Cost analysis which included the following information:

  1. Location of suppliers
  2. Location of warehouses
  3. Fixed costs, leases, variable labor costs at each warehouse
  4. Capacities of warehouses
  5. Transportation costs
  6. All relevant service constraints

In addition to conducting a Warehouse Location Network Cost analysis an assessment was completed of the following components:

  • Degree of intramodal (within a specific mode) and intermodal (between different modes) transportation competition
  • Identify outbound transportation services availability/capability
  • Location to and mileage to key markets
  • Inbound and outbound transportation costs comparison
  • Balance or imbalance of freight
  • Dependability / consistency of transportation services
  • Shipment time-in-transit
  • Ability to provide door-to-door service
  • Flexibility by service providers
  • Transportation infrastructure
  • Residential development plans near D.C.
  • Labor quality and quantity (High Level)