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The 10 Best Territories are the proximity-based territories of the 10 Best Warehouse Networks. These networks are “closest” to the US population; they are quickest-to-market, representing the market as the US population.
Based on annual population statistics, Chicago Consulting has specified the 10 Best Warehouse Networks for the past 15 years. While not all business’ customer patterns follow the US population, many organizations benchmark their networks against the 10 Best.
When designing warehouse networks several added considerations should be made. These include costs – transportation (both inbound and outbound), warehousing, inventory and site specific costs – customer patterns, competitive positioning, penetration and sales strategy.
Finally, actual territories should be dynamic rather than fixed. They should depend on individual order characteristics, the situation (inventory availability, for example), and options such as shipping from plants.