Abstract
Owing to a very favorable investment climate predicted for the years to come, Central and Eastern European (CEE) facility locations are increasingly getting into the consideration set of decision makers. Especially technology companies in the mobile device, PC and notebook, and consumer electronics industries, constantly facing extremely high margin pressure and short product lifecycles, strive for cost‐ and revenue‐related advantages by locating parts of their supply chain in this region. The optimal regional distribution center location in CEE is a strategic location problem of particular interest to these mainly Asian‐based electronics manufacturers and their regional logistics service providers.
To systematically deal with the problem at hand, a multi‐criteria decision making model is developed in collaboration with DHL Supply Chain, incorporating quantitative and qualitative perspectives. Secondary data on selected location factors is collected for a predetermined set of CEE countries, i.e. Czech Republic, Hungary, Poland, and Slovakia, from multiple statistical sources. In parallel, an expert study is conducted among supply chain professionals who are asked to evaluate the location factors of relative importance from a sectoral perspective. Finally, both country statistics and expert weights are aggregated into total country scores to be interpreted in terms of strengths and weaknesses of each country, most influential location factors, national competitive advantage, and best‐fit solutions for different supply chain objectives.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Literature
Anderson, D.R.; Sweeney, D.J.; Williams, T.A.; Freeman, J.; Shoesmith, E. (2010): Statistics for Business and Economics. 2nd edition, Andover.
APICS Supply Chain Council (2016): SCOR Framework, http://www.apics.org/sites/apics‐supply‐chain‐council/frameworks/scor (retrieved 11.05.2016).
Arauzo‐Carod, J.M.; Liviano‐Solis, D.; Manjón‐Antolín, M. (2009): Empirical Studies in Industrial Location: An Assessment of their Methods and Results, in: Journal of Regional Science, 50 (3), pp. 685–711. DOI: 10.1111/j.1467-9787.2009.00625.x
Awasthi, A.; Chauhan, S.S.; Goyal, S.K. (2011): A Multi‐Criteria Decision Making Approach for Location Planning for Urban Distribution Centers under Uncertainty, in: Mathematical and Computer Modelling, 53 (1–2), pp. 98–109. DOI: 10.1016/j.mcm.2010.07.023
Ballou, R.H. (2001). Unresolved Issues in Supply Chain Network Design, in: Information System Frontiers, 3 (4), pp. 417–426. DOI: 10.1023/A: 1012872704057
Basile, R.; Castellani, D.; Zanfei, A. (2008): Location Choices of Multinational Firms in Europe: The Role of EU Cohesion Policy, in: Journal of International Economics 74 (2), pp. 328–340. DOI: 10.1016/j.jinteco.2007.08.006
Bellak, C.; Leibrecht, M.; Damijan, J. P. (2009): Infrastructure Endowment and Corporate Income Taxes as Determinants of Foreign Direct Investment in Central and Eastern European Countries, in: The World Economy, 32 (2), pp. 267–290. DOI: 10.1111/j.1467-9701.2008.01144.x
Bookbinder, J.H.; Tan, C.S. (2003): Comparison of Asian and European Logistics Systems, in: International Journal of Physical Distribution & Logistics Management 33 (1), pp. 36–58. DOI: 10.1108/09600030310460990
Defever, F. (2006): Functional Fragmentation and the Location of Multinational Firms in the Enlarged Europe, in: Regional Science & Urban Economics, 36 (5), pp. 658–677. DOI: 10.1016/j.regsciurbeco.2006.06.007
Dunning, J.H. (1980): Toward an Eclectic Theory of International Production: Some Empirical Tests, in: Journal of International Business Studies, 11 (1), pp. 9–31.
Ellram, L.M.; Tate, W.L.; Petersen, K.J. (2013): Offshoring and Reshoring: An Update on the Manufacturing Location Decision, in: Journal of Supply Chain Management, 49 (2), pp. 14–22. DOI: 10.1111/jscm.12019
Farahani, R. Z.; SteadieSeifi, M.; Asgari, N. (2010): Multi Criteria Facility Location Problems: A Survey, in: Applied Mathematical Modelling, 34 (7), pp. 1689–1709. DOI: 10.1016/j.apm.2009.10.005
Fortune (2014): Fortune Global 500, http://fortune.com/global500 (retrieved 07.05.2016).
Golicic, S.L.; Davis, D.F.; McCarthy, T.M. (2005): A Balanced Approach to Research in Supply Chain Management, in: Kotzab, H.; Seuring, S.; Müller, M.; Reiner, G. (Eds.): Research Methodologies in Supply Chain Management, pp. 15–30. Heidelberg.
Hale, T.S.; Moberg, C.R. (2003): Location Science Research: A Review, in: Annals of Operations Research, 123 (1–4), pp. 21–35. DOI: 10.1023/A:1026110926707
Hilmola, O.P.; Lorentz, H. (2011): Warehousing in Northern Europe: Longitudinal Survey Findings, in: Industrial Management & Data Systems, 111 (3), pp. 320–340. DOI: 10.1108/02635571111118242
Kinra, A.; Kotzab, H. (2008): Understanding and Measuring Macro‐Institutional Complexity of Logistics Systems Environment, in: Journal of Business Logistics, 29 (1), pp. 327–XII. DOI: 10.1002/j.2158-1592.2008.tb00082.x
Lee, C.; Wilhelm, W. (2010): On Integrating Theories of International Economics in the Strategic Planning of Global Supply Chains and Facility Location, in: International Journal of Production Economics, 124 (1), pp. 225–240. DOI: 10.1016/j.ijpe.2009.11.021
Manrai, L.A.; Manrai, A.K.; Lascu, D.N. (2001): A Country‐Cluster Analysis of the Distribution and Promotion Infrastructure In Central and Eastern Europe, in: International Business Review, 10 (5), pp. 517–549. DOI: 10.1016/S0969-5931(01)00031-2
MarketLine (2015): Consumer Electronics Industry Profile: Europe, http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=2672c451‐0777‐448f‐94ac‐65be7723c727%40sessionmgr105&vid=4&hid=125 (retrieved 30.03.2016).
McKinsey (2013): A New Dawn: Reigniting Growth in Central & Eastern Europe, http://www.mckinsey.com/global‐themes/europe/a‐new‐dawn‐reigniting-growth‐in‐central‐and‐eastern‐europe (retrieved 06.03.2016).
Meixell, M.J.; Gargeya, V.B. (2005): Global Supply Chain Design: A Literature Review and Critique, in: Transportation Research: Part E, 41 (6), pp. 531–550. DOI: 10.1016/j.tre.2005.06.003
Meuser, M.; Nagel, U. (2009): Das Experteninterview – konzeptionelle Grundlagen und methodische Anlage [Expert Interview – Conceptual Basics and Methodology], in: Pickel, S.; Pickel, G.; Lauth, H.; Jahn, D. (Eds.): Methoden der vergleichenden Politik‐ und Sozialwissenschaft. Neue Entwicklungen und Anwendungen [Methodology of Comparative Political and Social Science. New Developments and Applications], pp. 465‐479. Wiesbaden.
Oum, T.H.; Park, J.H. (2004): Multinational Firms’ Location Preference for Regional Distribution Centers: Focus on the Northeast Asian Region, in: Transportation Research Part E, 40 (2), pp. 101–121. DOI: 10.1016/S1366-5545(03)00036-X
Porter, M.E. (1990): The Competitive Advantage of Nations, in: Harvard Business Review, pp. 73–91, http://dl1.cuni.cz/pluginfile.php/50387/mod_resource/content/0/Porter‐competitive‐advantage.pdf (retrieved 08.03.2016).
Pusterla, F.; Resmini, L. (2007): Where Do Foreign Firms Locate in Transition Countries? An Empirical Investigation, in: Annals of Regional Science, 41 (4), pp. 835–856. DOI: 10.1007/s00168-007-0144-4
Rasciute, S.; Pentecost, E.J. (2010): A Nested Logit Approach To Modelling the Location of Foreign Direct Investment in the Central and Eastern European Countries, in: Economic Modelling, 27 (1), pp. 32–39. DOI: 10.1016/j.econmod.2009.07.009
Ricardo, D. (1817): On the Principles of Political Economy and Taxation. London.
Rogers, M.; Bruen, M.; Maystre, L.Y. (2000): Electre and Decision Support. Methods and Applications in Engineering and Infrastructure Investment. New York.
Samsung Electronics (2014): Annual Report, http://www.samsung.com/common/aboutsamsung/download/companyreports/2014_E.pdf (retrieved 11.03.2016).
Shang, J.; Yildirim, T.P.; Tadikamalla, P.; Mittal, V.; Brown, L.H. (2009): Distribution Network Redesign for Marketing Competitiveness, in: Journal of Marketing, 73 (2), pp. 146–163. DOI: 10.1509/jmkg.73.2.146
Smith, A. (1776): An Inquiry into the Nature and Causes of the Wealth of Nations. London.
Tax Foundation (2015): International Tax Competitiveness Index 2015, http://taxfoundation.org/sites/default/files/docs/TF_ITCI_2015.pdf (retrieved 12.03.2016)
Van Blommestein, M. (2014): Amazon Arrives in Poland, Czech Republic – but not Everyone’s Happy, in: ZD Net, http://www.zdnet.com/article/amazon‐arrives-in‐poland‐czech‐republic‐but‐not‐everyones‐happy (retrieved 07.05.2016).
Wolf, J. (2008): The Nature of Supply Chain Management Research. Wiesbaden.
World Economic Forum (2015): The Global Competitiveness Report 2015–2016. http://www3.weforum.org/docs/gcr/2015‐2016/Global_Competitiveness_Report_2015‐2016.pdf (retrieved 12.05.2016).
Zak, J.; Weglinski, S. (2014): The Selection of the Logistics Center Location Based on MCDM/A Methodology, in: Transportation Research Procedia, 3, pp. 555–564. DOI: 10.1016/j.trpro.2014.10.034
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2017 Springer Fachmedien Wiesbaden GmbH
About this chapter
Cite this chapter
Weißhuhn, S., Lemmen, S., Fröhlich, E. (2017). Optimal Regional Distribution Center Location of Technology Companies in Eastern Europe: A Quantitative and Qualitative Perspective. In: Bode, C., Bogaschewsky, R., Eßig, M., Lasch, R., Stölzle, W. (eds) Supply Management Research. Advanced Studies in Supply Management. Springer Gabler, Wiesbaden. https://doi.org/10.1007/978-3-658-18632-6_7
Download citation
DOI: https://doi.org/10.1007/978-3-658-18632-6_7
Published:
Publisher Name: Springer Gabler, Wiesbaden
Print ISBN: 978-3-658-18631-9
Online ISBN: 978-3-658-18632-6
eBook Packages: Business and Economics (German Language)