Finding optimal logistical hubs for Swedish export

Sammanfattning: Title: Finding optimal logistical hubs for Swedish export - A study of selecting global locations Authors: Cecilia Eskilsson and Fredrik Hansson Tutors: Andreas Norrman, Professor, Department of Industrial Management and Logistics, Faculty of Engineering, Lund University, Oskar Henkow, Lecturer, Department of Business Law, School of Economics and Management, Lund University Henrik Danielsson, Head of Business Area Logistics, Swedish Trade Council, Stockholm Problem discussion: The Swedish Trade Council is looking for improvements of current methods for helping their customers selecting locations of logistical hubs. Within the logistics literature there are plenty of theories about facility localisation. These theories are however usually based on company specific factors and flows of goods. A study from a non-company specific point of view would hence not only contribute to the Swedish Trade Council but also within the theoretical literature in logistics. The questions that arise are what theories of facility localisation that can be used for deciding where to locate logistical hubs and what criteria will the selection of logistics hubs be based on? Furthermore, which countries are to prefer when logistical hubs shall be established by Swedish companies? Purpose: The purpose of this study is to identify the most important non-company specific criteria when selecting location of a logistical hub. Furthermore the purpose is to determine the most suitable countries for logistical hubs in Africa, Americas, Middle East, and South East Asia and East Asia for Swedish export. Method: This study is conducted through a system approach and abductive methodology. The method Analytical Hierarchy Process (AHP) is used to handle and structure the problem that involves multiple criteria. Conclusion: The top eight non-company specific criteria when selecting a location of a logistical hub are; • Availability and quality of Infrastructure • Border administration • Closeness to other major markets • Corruption • Frequency of on time shipments • Human rights • Logistical competence • Logistical cost The most suitable countries in Africa to locate a logistical hub in are Namibia, South Africa, and Tunisia and in Americas Canada, Chile, and USA. In Middle East Bahrain, Qatar, and UAE are the best options. In the final region, South East and East Asia, Hong Kong, Japan, Singapore, and Taiwan are the most suitable locations. If to select one location to function as a logistical hub for the entire region the following countries are recommended; South Africa in Africa, Canada in North America, United Arab Emirates in Middle East, and finally Singapore in South East and East Asia. Key words: Logistical hub, criteria, export, trade, facility location, Supply Chain, Analytical Hierarchy Process (AHP)