Evaluation and assessment of relocation from a city to the outskirts: Case study DHL Gävle Sweden

Abstract

The ‘City Logistics’ activities are contributing to traffic congestion and accumulating to environmental challenges, such situation has prompted the creation of urban consolidation centre (UCC), as a multimodal logistics park facility in the outskirts.

The relocation of business from city to the outskirts requires the evaluation and assessment of the key factors in order to make the better decisions.

However, no relocation decisions evaluation model has been found, neither its application on the case company to find the effects of relocation on the logistics firms.

This study is aimed at developing a general business relocation model that can be used by logistics firms to evaluate the effects of their relocation. The model is a decision making tool.

Application of the model before the relocation, help’s in decision making. Therefore, this research study focuses on developing a general model involving selected important factors that can be considered by logistics firms to evaluate the effects of relocation.

The results for this research were analysed using the qualitative method, predominantly literature review, factors were applied on the case company.

The DHL’s relocation scenario from Gävle city centre (Näringen) to the proposed Tolvfors Logistics Park (outskirts), relocation led to transport cost and drive-time reductions, along with efficiency improvements. The evaluation model has been developed, have likewise presented the drivers of relocation, and factors that logistics firms can consider for relocation’s possible outcome.

Keywords: Business relocation model, city logistics, urban consolidation centre, case study, DHL Gävle, Tolvfors, Sweden.