Transportation Analysis Homework
Q.2
Amazon is rapidly expanding in Europe. As of November 2013, Amazon had distribution centers in the
top five markets (Germany, UK, France, Italy, Spain) as shown below. Ignore Italy for this question.
Country
Population (Millions)
Total E Commerce Revenue in
2012
(Bil. Euro)
E commerce growth in
2012
Number of Amazon Distn Centers
Number of Amazon Distn Centers Built after
2008
Amazon Distn Centers Total Square Meters
Germany
81
45
+27%
9
6
850,000
UK
62
90
+14%
8
6
470,000
France
65
46
+22%
4
4
270,000
Spain
47
11
+20%
1
1
30,000
Sources: European Multichannel and Online Trade Association, MWPVL International Supply Chain Consulting, Wikipedia
Amazon is evaluating alternative locations for new distribution centers in Spain. You are the planning
director for Amazon Europe.
(A). Identify at least ten key factors that will be driving your recommendation for these new distribution centers in Spain (the factor, how you will collect the data required, the probability of accuracy of the data, and the priority for this factor. Priorities are of Type 1 – absolutely key in the decision making; Type 2 – very important; Type 3 – nice to know but not a key driver. As an example a couple of factors are listed below (do not reuse them – you will not get points for repetition!)
Factor
Data Collection
Prob of accuracy
Priority
Other Notes
Demand
History for 2011
and 2012
50% (historical demand forecast accuracy)
2
(Ideally demand but for overall e commerce
E commerce is growing rapidly – no real history and growth forecasts
demand, population is a good substitute)
are uncertain
Distance between potential DCs and demand locations
Spanish road map
files
99% -†highly accurate, unlikely to have major new highway construction
1
Use top 50 population centers as surrogate for demand locations
(B) Briefly (short sentences or bullet points) list the key steps of the process you will go through in order
to make this decision on the number and location of the Spanish Distribution Centers for Amazon.
FOR THIS ENTIRE QUESTION YOU MUST COLLECT ALL THE DATA YOU USE FROM PUBLISHED SOURCES AND REFERENCE THE SOURCES IN YOUR ANSWER. YOU MAY NOT CONTACT ANY INDIVIDUAL (IN ANY COMPANY, ORGANIZATION OR CAPACITY) TO REQUEST DATA.

