Optimal Warehouse Locations Selection to Support Business Growth of Logistics Provider for E-Commerce Customers: Case Study of SB Company

Abstract

The objectives of this research are to 1) study the factors in choosing an appropriate warehouse location and 2) analyze the appropriate location of a new rental warehouse. The research team studied the factors in selecting warehouse locations. By studying the factors in selecting warehouse locations from related research and using a structured interview to collect data from 3 company executives who were important in decision-making, then using the method to assess the importance of the factors (Factor Rating Method) to analyze and decide on locations for new warehouses for rent in 3 areas in Bangkok, namely Chokchai 4 Warehouse, Huai Khwang Warehouse and Lat Phrao Warehouse, it was found that 1) There are 6 factors in choosing an appropriate warehouse location, arranged in order of importance, namely warehouse characteristics factor is weighted at 35 percent, transportation factor, is weighted at 25 percent, price factor is weighted at 15 percent, traffic factor is weighted at 15 percent, utility source is weighted at 5 percent, and economic growth opportunity factors is weighted at 5 percent. And 2) from the analysis of the factor rating method, the Chokchai 4 warehouse location has the highest weight score, equal to 63.17 points, which should be decided to choose a location in this area as the new warehouse location, followed by Lat Phrao Warehouse and Huai Khwang Warehouse were 60.48 and 46.00 points, respectively. The company has the opinion that the results of the said analysis will be put to actual use in the future.