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Essay / Research Paper Abstract
This 3-page paper discusses whether the theory that customer drives location (or site selection) is true. Bibliography lists 3 sources.
Page Count:
3 pages (~225 words per page)
File: AS43_MTcustloca.rtf
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Unformatted sample text from the term paper:
out that business models have changed during the past 20 years. The authors also point out that customers these days drive
location decisions (Cramer and Wegfahrt, 2006). Though once upon a time, manufacturing dictated location, these days, customers set expectations when it comes to delivery time, product cost and quality (Cramer
and Wegfahrt, 2006). Because of customers, the authors note, location strategy has changed, while suppliers modify their businesses to ensure quicker time to market (or time to manufacturer (Cramer and
Wegfahrt, 2006). Being near customers is an important aspect of many companies; the closer a supplier can be to the customer, its reasoned, the more effective it can be.
Nor are Cramer and Wegfahrt the only ones who have noticed this as a trend. Wal-Mart Stores Inc. is famous for insisting that
its suppliers have distribution centers nearby (or at least in the relative geographic region). Many Wal-Mart suppliers have regional warehouse or distribution centers that feed into the Wal-Mart supply chain.
Because Wal-Marts supply chain is so high-tech and tightly monitored, it makes sense that suppliers should be nearby enough to ensure that products are delivered quickly and with the least
amount of expense (Dobbs, 2007). Wal-Mart is also known to place its own distribution centers in geographic regions that are within
500 miles of their stores/warehouses. In this way, a trucker can make the round trip in one day. Its why, for example, the Bentonville, AR-based company put a huge warehouse/distribution
center in Cedar Creek, TX some years ago. Wal-Mart promotes fast inventory turnover of its items, so its logistics chain is very tightly calibrated and effective. In this way, the
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