Site Selection


Best Practices in Site Selection: Interview with Kevin McGowan and SCB


McGowan will engage the user in a site selection process if the user’s requirement is for a larger capital investment.  Usually done on a multi-state basis, this search requires a detailed analysis of costs including transportation, labor, demographics and incentives available on a multi-state basis.  McGowan works with the client to develop site selection criteria and brings in relevant partners to complete logistics modeling, facilities strategy, tax scenario planning, incentives and engineering.

Services Include:

  • Developing a site criteria and Request for Information RFI
  • Identifying potentially qualified locations
  • Review RFI responses
  • Comparing labor, population, and workforce
  • Mapping
  • Incentives
  • Feasibilitiy assessment
  • Operating Cost Analysis
  • Site due diligence (desktop and in person)
  • Negotation of real estate and incentives
  • Contract Finalization 

Optimal Warehouse Network Configuration
From Chicago Consulting, below is an evaluation of the 10 Best Warehouse Networks based on number of distribution of DCs with the lowest possible transit lead-times to customers represented by the US population. For example, Vincennes, IN provides the lowest possible lead-time for one warehouse. Any other place will increase transit lead-time to the US population. Similarly putting any three warehouses in any locations other than Boyertown PA; Jackson TN and Porterville CA will cause the transit lead time to be higher than 1.33 days.


NUMBER OF WAREHOUSES IN THE NETWORK AVERAGE DISTANCE TO CUSTOMERS (Miles) AVERAGE LEAD TIME TO CUSTOMERS (Days) BEST WAREHOUSE LOCATIONS
One 819 2.31 Vincennes IN (100)    
Two 506 1.53 Ashland KY (76) Porterville CA (24)  
Three 398 1.33 Boyertown PA (33) Jackson TN (44) Porterville CA (23)
Four 337 1.24 Lansdale PA (28) Meridian MS (27) Chicago IL (22)
      Porterville CA (23)    
Five 279 1.15 Brooklyn NY (22) Statesboro GA (19) Chicago IL (22)
      Grand Prairie TX (16) Porterville CA (21)  
Six 250 1.11 Brooklyn NY (22) Statesboro GA (19) Chicago IL (22)
      Grand Prairie TX (16) Bell Gardens CA (16) Bonney Lake WA (5)
Seven 227 1.1 Brooklyn NY (22) Athens GA (14) Palm Bay FL (7)
      Chicago IL (21) Grand Prairie TX (15) Bell Gardens CA (16)
      Bonney Lake WA (5)    
Eight 211 1.07 Brooklyn NY (22)  Grand Prairie TX (15) Bell Gardens CA (16)
      Chicago IL (20) Palestine TX (12) Aurora CO (5)
      Bell Gardens CA (15) Bonney Lake WA (5)  
Nine 198 1.04 Brooklyn NY (22) Aiken SC (14) Lakeland FL (6)
      Chicago IL (20) Palestine TX (12) Denver CO (5)
      Bell Gardens CA (15) Bonney Lake WA (5) San Juan PR (1)
Ten  184  1.04 Brooklyn NY (22) Aiken SC (14) Lakeland FL (6)
      Chicago IL (20) Palestine TX (12) Denver CO (5)
      Pasadena CA (10) Bonney Lake WA (5) Oakland CA (5)
      San Juan PR (1)    
FROM CHICAGO CONSULTING - SUPPLY CHAIN CONSULTANTS