Communication and information Advances in computer technology and the Internet have made it possible for suppliers, customers, distribution centers, and shippers to communicate almost instantaneously, thus enhancing the ability to coordinate these different supply chain processes. If everyone along the supply chain has access to the same information at the same time, it enables them all to coordinate closely and thus reduce uncertainty, which in turn allows them to reduce inventory levels. Although proximity to customers is a factor for some facility types, it is less so for manufacturing plants.
Warehouses are an intermediate point in the supply chain where products are held for distribution.
Location decisions are usually made more frequently for service operations than manufacturing facilities. If a community does not have a good infrastructure, it must make improvements if it hopes to attract new business facilities.