Logistics and supply chain involve many complex activities, requiring optimal strategic decisions to operate efficiently and effectively. Logistics managers are under a lot of stress as the industry is constantly evolving. Management must adapt and improve all activities carried out. Facility location is a crucial element in the supply chain and has a large impact on the efficiency of many logistics activities. Plant location involves numerous aspects, such as the location of manufacturing facilities, assembly locations, and distribution centers. Facility location plays an important role in the success of logistics networks. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay The importance of facility location is gaining a lot of attention nowadays as businesses are quickly realizing the importance and benefits of a successful facility location as well as the disadvantages associated with choosing the location of an unsuccessful structure. The main objective of logistics is to reduce costs, improve efficiency and customer service. Successful facility location decisions can lead to dramatic cost reductions and improved customer service levels. An unsuccessful facility location decision can lead to inefficient operations and additional costs, drastically impacting the proficiency and effectiveness of the overall operation. Logistics managers are critically evaluating the performance of current facility locations. Changing technological conditions and increasing competition in the business environment have forced organizations to invest and focus on their logistics systems. Strategic decisions regarding the location of facilities such as factories, distribution centers and retailers have a strong impact on the profitability of supply chains. The first step in creating any supply chain is the geographic positioning of production facilities, supply points and storage points. The location of facilities implies a commitment of resources towards a long-term plan. The possible route through which the product reaches the end customer is determined after determining the size, number and location of the facilities. These decisions are of great importance for a company as they represent the basic strategy for accessing customer markets and will have a considerable impact on revenues, costs and service level. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay Well-planned location decisions enable efficient flow of materials through the distribution system and lead to reduced costs and improved customer service.