The impact of warehouse location on logistics performance = The impact of warehouse location on logistics performance

The growing complexity of global supply chains and the need to respond quickly to market fluctuations have made warehouse localization a strategic driver of corporate competitiveness. The decision on where to locate warehouses including their number, size, and function within the network directly influences logistics performance, transportation and storage costs, service levels, and overall environmental impact. This thesis investigates how warehouse localization decisions affect logistics performance, with the objective of identifying how companies can configure their distribution networks to balance efficiency, responsiveness, and sustainability. The study combines a thorough literature review with a practical analysis based on the case of PepsiCo, a multinational company operating within a highly competitive and globalized logistics framework. The research first examines the theoretical foundations of location strategy, focusing on the key factors guiding warehouse placement such as proximity to markets, production centers, and infrastructure accessibility and on quantitative models that support location optimization. Then, it explores how these factors translate into operational performance indicators, including lead time, cost-to-serve, and service quality. The case study component aims to contextualize these principles by analyzing real-world data and processes from PepsiCo’s European supply network. It highlights how warehouse positioning influences daily logistics operations, from order fulfillment to distribution efficiency, and how data-driven decision-making can enhance network design. Ultimately, the thesis seeks to provide a framework for evaluating and improving logistics performance through optimal warehouse localization. It also opens perspectives for future research and managerial applications, such as the integration of sustainability criteria, carbon footprint reduction, and the use of advanced simulation tools to support strategic logistics planning. The findings contribute to a broader understanding of how companies can reconfigure their logistics networks to achieve a balance between economic efficiency, service excellence, and environmental responsibility aligning logistics performance improvement with the principles of sustainable supply chain management.