Thanks to the magic of the global shipping economy, sushi rolled in Matsumoto on Monday can be plated in Tacoma by Tuesday. Coffee beans picked in Tanzania are routinely roasted in Seattle, destined to become espresso served in Rome. Across China, small, family-owned retailers from Shenzhen to Guangzhou can now offer free, direct, three-day shipping to customers across the United States.
The impact of physical distance has diminished so much in recent years, it’s now easier than ever to dismiss the impact location has on business. And while these innovations have certainly made the world seem a lot smaller than ever before, they’ve also made navigating location-based decisions even more complex than in years past.
Now more than ever, efficiency, profitability, and consistent five-star customer satisfaction hinge on how well you leverage the advantages of your business’s location—as well as what you do to address your locations drawbacks.
Location Can Make or Break Your Supply Chain
For one, while it may be tempting to believe that fast, reliable global shipping has leveled the playing field, the reality is that the physical place where you do business still has a huge impact on supply chain efficiency. Your proximity to major ports, highways, and airfreight hubs, for example, can dramatically reduce or increase your shipping times and associated costs.
Location also greatly impacts how you go about sourcing. Being closer to suppliers can streamline your production process, ensuring you receive materials faster and at a lower cost. Source from too far away, and you may end up dealing with delays, increased expenses, and supply chain disruptions.
Then, of course, there are your customers, for whom the fast lane is pretty much the only lane in town. If your competitor has even just a one-day advantage on fulfillment, some customers will choose them even if you have a better price.
Thankfully, with the right approach, you can do a lot to streamline your processes, mitigate delays, and convert location-based setbacks into competitive advantages.
How to Turn Location-Based Pains into Logistical Gains
Your location should work for you, not against you. If it feels like geography is holding you back, here are some practical steps to turn those challenges into opportunities for growth:
Identify Strengths and Weaknesses
- How close are you to a major shipping hub? If one is nearby, are you using a carrier based there or one farther away that seems cheaper but might cause delays?
- Compare shipping rates and fulfillment times for all available carriers in your area. Factor in not just price but whether slightly faster shipping could improve customer satisfaction and reduce returns.
Get a Sense of the Big Picture
Don’t assume closer is always better—sometimes a supplier farther away can offer better overall value. Take a look at your supplier network and compare based on these four key criteria:
- Cost of materials — is this offset by fast or slow delivery windows?
- Quality of materials — can you get better materials from outside your area?
- Shipping costs — consider the value of lost business with cheap, slow options.
- Delivery windows — can you warehouse inventory to offset delays?
Decide on Action Items
- If you’re near a major port or shipping hub, evaluate whether switching to a carrier based there to shave off delivery times and lower shipping costs is the right move.
- Decide which carrier scores the highest across all key factors—cost, quality, shipping, and speed. If no single supplier checks all the boxes, make strategic concessions. For example, you might opt for a supplier with higher material costs but lower shipping fees and faster delivery.
Moving Forward/Looking Ahead
- Keep tracking your shipping data and identify any recurring delays—are they happening with certain carriers or at specific stages of the process?
- Stay on top of logistics innovations, like automation or new regional delivery networks, that could help you improve efficiency without moving locations.
- Regularly review your supplier and carrier relationships to ensure you’re still receiving the best value in terms of costs, quality, and delivery performance.
Let your location work for you. Whether it’s smarter sourcing, better partnering, or more streamlined delivery, the key is to play to your location’s strengths. On today’s global shipping superhighway, a well-optimized location strategy can be your fast-pass to success.