1. Start with clear business requirements
A feasibility study stands or falls with a solid understanding of your strategy, growth expectations, and service levels. Map out in advance:
- How much growth do you expect in the next 3–5 years?
- What service levels are the minimum requirement?
- Which markets or regions do you want to serve?
- Which route to market will be applied (B2B, retail, e-commerce, or omnichannel)?
The chosen route to market strongly determines the setup of your operation: a B2B DC looks very different from an e-commerce fulfillment center.
At this stage, involve the full management team of operations, sales, and finance.
2. Ensure reliable data and cost visibility
A feasibility study is only as good as its input data. Collect and validate your key information before you start running scenarios. Consider:
- Master data: product dimensions, weights, packaging, SKU profiles
- Order data: volumes, order profiles, seasonal patterns, peaks
- Cost information: detailed costs for inbound, storage, outbound, and value-added services (VAS)
With this foundation, you gain a realistic view of your current operation and can build solid, fact-based scenarios.
3. Compare multiple scenarios
Only once your data and cost structures are accurate can you make meaningful scenario comparisons. For example:
- One large central DC vs. multiple regional hubs
- Manual operation vs. (partially) automated
- In-house management vs. outsourcing
Based on your business requirements, define the criteria to include in your analysis:
- Lead times
- Service levels
- Costs
- Sustainability
- Impact on complexity
By comparing scenarios side by side, you can identify which setup offers the best balance between cost, flexibility, and risk.
Clear requirements upfront also make it much easier to take a well-founded decision.
4. Choose the right location
The location of your DC is often just as important as its design. In addition to a center of gravity analysis for your outbound flows, other factors play a role. Consider the local labor market, availability of subsidies, and supplier proximity—all of which have a major impact on the success of your supply chain.
A feasibility study is the perfect moment to analyze this location question thoroughly. Learn more about our approach to network analysis.
5. Decide: manage it yourself or outsource – and find the right partner
A key part of your feasibility study is the question: do you want to manage logistics in-house, or is outsourcing the smarter choice?
- In-house can be attractive if you want full control and volumes are predictable.
- Outsourcing offers flexibility and access to expertise, but requires a careful selection process.
If you choose outsourcing, finding the right partner is crucial. A structured tender & outsourcing process helps you compare providers objectively and find the best fit. Learn more about our approach to tender & outsourcing.
Conclusion
A logistics feasibility study or business case gives you control over investments and increases the chance of long-term success. With the right approach—from clear requirements and reliable data to scenario analysis, location choice, and outsourcing decisions—you can make choices that pay off for years to come.
👉 Curious how we support companies in this process? Get in touch with us and discover how 4Supplychain can help you take the next step in your logistics project.