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Factors determining distribution structure decisions in logistics: a literature review and research agenda

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  • Alexander T. C. Onstein
  • Lóránt A. Tavasszy
  • Dick A. van Damme

Abstract

Distribution structures, as studied in this paper, involve the spatial layout of the freight transport and storage system used to move goods between production and consumption locations. Decisions on this layout are important to companies as they allow them to balance customer service levels and logistics costs. Until now there has been very little descriptive research into the factors that drive decisions about these structures. Moreover, the literature on the topic is scattered across various research streams. In this paper we review and consolidate this literature, with the aim to arrive at a comprehensive list of factors. Three relevant research streams were identified: Supply Chain Management (SCM), Transportation and Geography. The SCM and Transportation literature mostly focus on distribution structure including distribution centre (DC) location selection from a viewpoint of service level and logistics costs factors. The Geography literature focuses on spatial DC location decisions and resulting patterns mostly explained by location factors such as labour and land availability. Our review indicates that the main factors that drive decision-making are “demand level”, “service level”, “product characteristics”, “logistics costs”, “labour and land”, “accessibility” and “contextual factors”. The main trade-off influencing distribution structure selection is “service level” versus “logistics costs”. Together, the research streams provide a rich picture of the factors that drive distribution structure including DC location selection. We conclude with a framework that shows the relative position of these factors. Future work can focus on completing the framework by detailing out the sub factors and empirically testing the direction and strength of relationships. Cooperation between the three research streams will be useful to further extend and operationalize the framework.

Suggested Citation

  • Alexander T. C. Onstein & Lóránt A. Tavasszy & Dick A. van Damme, 2019. "Factors determining distribution structure decisions in logistics: a literature review and research agenda," Transport Reviews, Taylor & Francis Journals, vol. 39(2), pages 243-260, March.
    • Handle: RePEc:taf:transr:v:39:y:2019:i:2:p:243-260
    DOI: 10.1080/01441647.2018.1459929
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    Citations

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    Cited by:

    1. Wang, Kailai & Chen, Zhenhua & Cheng, Long & Zhu, Pengyu & Shi, Jian & Bian, Zheyong, 2023. "Integrating spatial statistics and machine learning to identify relationships between e-commerce and distribution facilities in Texas, US," Transportation Research Part A: Policy and Practice, Elsevier, vol. 173(C).
    2. Alexander T C Onstein & Lóránt A Tavasszy & Jafar Rezaei & Dick A van Damme & Adeline Heitz, 2020. "A sectoral perspective on distribution structure design," Post-Print hal-03884986, HAL.
    3. Adam Sadowski & Karolina Lewandowska-Gwarda & Renata Pisarek-Bartoszewska & Per Engelseth, 2021. "A longitudinal study of e-commerce diversity in Europe," Electronic Commerce Research, Springer, vol. 21(1), pages 169-194, March.
    4. Oliveira, Renata Lúcia Magalhães de & Dablanc, Laetitia & Schorung, Matthieu, 2022. "Changes in warehouse spatial patterns and rental prices: Are they related? Exploring the case of US metropolitan areas," Journal of Transport Geography, Elsevier, vol. 104(C).
    5. Fried, Travis & Goodchild, Anne, 2023. "E-commerce and logistics sprawl: A spatial exploration of last-mile logistics platforms," Journal of Transport Geography, Elsevier, vol. 112(C).
    6. Nefs, Merten & van Haaren, Jeroen & van Oort, Frank, 2023. "The limited regional employment benefits of XXL-logistics centres in the Netherlands," Journal of Transport Geography, Elsevier, vol. 109(C).
    7. Lorencowicz, Edmund & Uziak, Jacek, 2023. "Transport Effectiveness of Grocery Shops Deliveries," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2023(1).
    8. Ludmiła Filina-Dawidowicz & Anna Wiktorowska-Jasik, 2022. "Contemporary problems and challenges of sustainable distribution of perishable cargoes: Case study of Polish cold port stores," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 4434-4450, March.
    9. Sears, Sean & Moataz, Mohamed & Ferguson, Mark & Razavi, Saiedeh & Páez, Antonio, 2022. "Perceived barriers to the movement of goods in Canada: A grounded theory investigation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 162(C), pages 27-45.

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