Site Selection and Accessibility

Site selection determines delivery times, shipping costs, and the efficiency of goods receipt. A seemingly cheap location can end up costing more in the long run than a logistically optimal site due to long travel distances, poor carrier connectivity, or a lack of available staff.

Why Accessibility Is the Decisive Factor

Accessibility encompasses more than proximity to the highway. In the fulfillment context, it means the overall ability to load and unload goods quickly and cost-effectively, and to deliver them to end customers. This includes connectivity to carrier depots, proximity to customer clusters, accessibility for truck deliveries, and commute times for warehouse staff.

The Four Dimensions of Accessibility

Customer accessibility: How many orders can be delivered within 24 or 48 hours using standard shipping?
Supplier accessibility: How quickly does goods arrive at the warehouse from wholesalers, manufacturers, or import ports?
Carrier accessibility: How close are sorting centers, pickup points, and express hubs?
Workforce accessibility: Are there sufficient skilled workers for picking and shipping in the region?

Accessibility in fulfillment: Four connections from the in-house warehouse location to customer clusters, suppliers/ports, carrier depots, and the labor market. Strong connectivity (e.g., avg. 1.2 days Delivery Times, 3 carrier pickups/day) reduces total costs; weak connectivity increases transit times and fixed costs per parcel.

Those who only consider customer proximity often overlook that a location with optimal last-mile connectivity is worthless if suppliers cause daily traffic jams on the access road or carriers only pick up in the late afternoon. Accessibility is a system comprising all four dimensions.

Location Types Compared

Germany typically offers four location categories for e-commerce fulfillment. Each has specific advantages and disadvantages regarding accessibility and costs.

Location Type

Customer Accessibility

Carrier Accessibility

Rent Level

Typical Use Case

Metropolitan center (e.g., Ruhr area, Frankfurt, Munich)

Very high

High

Next-day for broad customer base, high daily volume

Logistics triangle (e.g., Kassel, Gießen, Koblenz)

High

Very high

Medium

Central shipping across Germany, good price-performance ratio

Peripheral industrial area

Medium

Medium to high

Low to medium

Cost optimization when 2–3 days delivery time is acceptable

Rural / peripheral location

Low

Low to medium

Very low

Niche products, regional focus, very low volume

Important: The German logistics triangle (roughly between Dortmund, Kassel, and Gießen) reaches around 80 percent of the German population within 24 hours by truck – a proven pattern for centrally located shipping warehouses.

Customer Proximity vs. Supplier Proximity

The classic location question is: closer to the customer or closer to the supplier? The answer depends on the business model.

When Customer Proximity Dominates

For pure B2C e-commerce with high order volume and promises such as same-day and next-day, the Final Delivery Leg takes priority. Every hour saved in transport between warehouse and customer reduces shipping costs and increases next-business-day delivery rates. Retailers with predominantly urban customer bases benefit from locations in or near major cities.

When Supplier Proximity Dominates

If you import container goods via Hamburg, Bremerhaven, or Rotterdam, connectivity to ports and customs locations matters. A warehouse in southern Germany saves little on customer delivery but costs significantly more in transport and time with every container transfer. For import-driven models with infrequent but high-volume goods receipt, supplier proximity may be the better choice.

The Middle Ground: Central Location

Most growing online retailers choose a compromise: centrally located in Germany, with good highway connectivity and multiple carrier depots within a 30-kilometer radius. This keeps both delivery times and goods receipt costs within an acceptable range.

Prioritize customer proximity

Fast delivery, low last-mile costs, higher conversion – ideal for urban B2C with next-day shipping promises.

Prioritize supplier proximity

Shorter supply chains, less transshipment, faster goods receipt – sensible for imports and container goods.

Central location (middle ground)

Recommended for most B2C retailers: balance of delivery time, goods receipt, and nationwide shipping costs.

Check Carrier Connectivity

Without reliable carrier connectivity, every location advantage is lost. Before signing a lease, you should specifically inquire about and document the local logistics infrastructure.

Carrier Accessibility Checklist

Distance to nearest DHL/DPD/GLS/Hermes sorting center noted
Daily pickup times and cut-off times of all relevant carriers clarified
Express pickups (same-day) at the location verified as possible
Truck access (low-loader, semi-trailer) available
Number of loading docks and waiting times at the location sufficient
Return shipments to carrier possible without detours
Peak season capacities (Black Friday, Christmas) coordinated with carriers

Tip: Actively ask carrier representatives about the recommended zone for your shipment volume. Many logistics providers know the optimal locations in their network planning and provide guidance on tariff zones and pickup windows.

Check Transport Connectivity

During site visits, systematically check:

Highway access: Maximum 10–15 minutes to the nearest A or B road without driving through town centers
Peak traffic hours: Test driving time to carrier depot during morning rush hour
Public transport: Relevant for shift workers without their own vehicle
Parking: Sufficient space for employees and visiting trucks
Construction and long-term roadworks: Research regional traffic planning for the next 2–3 years

Infrastructure Feature

Minimum Requirement

Ideal for Scaling

Distance to highway

under 15 minutes

under 5 minutes, direct exit

Carrier depot within 30 km radius

at least 1 carrier

3+ carriers with daily pickup

Truck access

7.5-ton truck possible

Semi-trailer, turning space

Loading area

1 loading dock

2+ loading docks, separate entry/exit

Power connection

63 A

125 A+, PV-ready for energy costs

Make Delivery Times Measurable

Location decisions should be based on data, not gut feeling. Create a simple delivery time simulation for each location candidate.

How to Simulate Delivery Times

Export the postal codes of the last 1,000 orders (anonymized)
Determine the distance to the carrier depot and driving time for each location candidate
Add warehouse processing time (e.g., 4 hours until cut-off) and carrier transit time
Calculate the share of orders with next-day and two-day delivery per location
Compare the results with your customer expectations

Next-day coverage (example): Three location candidates North (62%), Central (78%), South (54%) – target for premium shipping promise: at least 70% next-day coverage of orders.

A location in northern Germany can be suboptimal for a customer base in Bavaria – and vice versa. Those selling nationwide need either a central location or a multi-location concept with multiple shipping points.

Balancing Costs and Accessibility

Low rent is attractive, but high shipping costs and longer delivery times reduce margins and jeopardize customer retention. The total cost analysis must include location rent, shipping costs per parcel, personnel costs, and opportunity costs from delayed deliveries.

Typical Cost Drivers by Location

High accessibility, high rent: Metropolitan areas – but lower shipping costs and better delivery times
Low rent, poor accessibility: Peripheral locations – higher line-haul costs, longer transit times
Central location, moderate rent: Logistics triangle – often the best ratio for nationwide B2C shipping

A break-even analysis helps find the point at which higher rent costs are offset by saved shipping costs and higher conversion. Calculate at least 12 months of order history and consider growth scenarios.

Relocating after 12–18 months typically costs 50,000 to 200,000 euros (moving, downtime, new connectivity). The initial site selection should therefore have at least a 3-year perspective.

Practical Example: Three Locations Compared

A fashion retailer with 500 orders per day compared Cologne-Ehrenfeld, Kassel (logistics triangle), and East Westphalia. The simulation yielded:

Location

Next-Day Rate

Avg. Shipping Cost/Parcel

Rent/m²/Month

Cologne-Ehrenfeld

71%

4.20 EUR

8.50 EUR

Kassel

76%

3.85 EUR

5.20 EUR

East Westphalia

58%

4.65 EUR

3.80 EUR

Kassel won despite relocation costs: 0.35 euros saved in shipping costs per parcel resulted in over 60,000 euros in annual savings.

Decision Process in 6 Steps

1

Data analysis (postal code export)

2

Define location candidates

3

Carrier and transport check

4

Delivery time simulation

5

Total cost calculation

6

Site visit and contract negotiation

Step-by-Step Guide

Create data foundation: Document order postal codes, supplier locations, current shipping volume, and seasonal peaks
Select 3–5 candidates: Different accessibility profiles (central, customer-near, cost-effective)
Check carrier and transport: Checklist on-site or via inquiry with landlords and carriers
Run simulation: Calculate next-day rate and shipping costs per candidate
Compare total costs: Rent, utilities, shipping, personnel, investments over 36 months
Visit and negotiate: Inspect building, loading docks, expansion potential; lease agreement with exit clauses

Checklist: Complete site selection

Postal code analysis completed
At least 3 locations compared
Carrier pickup times confirmed in writing
Delivery time simulation documented
Total costs calculated over 36 months
Truck access verified
Labor market analyzed
Returns logistics considered
Peak capacity coordinated with carrier
Moving and setup costs planned

Site Selection as a Competitive Lever

Faster delivery at lower costs strengthens ratings and supports premium shipping options. Those who plan accessibility strategically create the foundation for competitive advantage through logistics. Avoid typical mistakes: pure rent price comparisons, using a garage as a permanent solution without carrier pickup, missing seasonal planning, and verbal carrier commitments without written confirmation.

Frequently Asked Questions About Site Selection

Is my hometown sufficient? Only with a matching customer base and carrier connectivity – specifically check next-day rate and pickup times.

When to open a second warehouse? From approximately 1,000 parcels/day or when 40% or more of your customers are in a different region.

Relocate later? Possible, but expensive – plan thoroughly from the start and take at least a 3-year perspective.

Frequently Asked Questions about Site Selection and Accessibility

Question

Answer

What does accessibility mean when choosing a warehouse location for fulfillment?

In the fulfillment context, accessibility is more than highway proximity. It means how quickly and cost-effectively you can load and unload goods and deliver them to end customers. That includes connectivity to carrier depots, proximity to customer clusters, truck access for inbound deliveries, and commute times for warehouse staff. Treating accessibility as a system of four dimensions—customer, supplier, carrier, and workforce—avoids optimizing only last-mile distance while ignoring bottlenecks elsewhere.

Why is the German logistics triangle often recommended for nationwide B2C shipping?

The logistics triangle roughly between Dortmund, Kassel, and Gießen combines high customer reach with very strong carrier accessibility at a medium rent level. It can reach around 80 percent of the German population within 24 hours by truck, which makes it a proven pattern for centrally located shipping warehouses. Compared with metropolitan centers, rent is usually more moderate, while still supporting central shipping across Germany with a good price-performance ratio.

Should I locate the warehouse closer to customers or closer to suppliers?

It depends on the business model. Pure B2C retailers with high volume and same-day or next-day promises should prioritize the last mile, because every hour saved between warehouse and customer lowers shipping costs and raises next-business-day rates. Import-driven models that receive infrequent but high-volume container goods via ports such as Hamburg, Bremerhaven, or Rotterdam often benefit more from supplier and customs proximity. Most growing online retailers choose a middle ground: a central German site with good highway access and multiple carrier depots within about 30 kilometers.

What should I verify about carrier connectivity before signing a lease?

Document the distance to the nearest sorting centers for carriers such as DHL, DPD, GLS, and Hermes, and clarify daily pickup and cut-off times for every relevant carrier. Confirm whether same-day express pickups are possible, whether truck access for low-loaders and semi-trailers works, and whether loading docks and waiting times are sufficient. Also check return handovers without detours and peak-season capacity for periods such as Black Friday and Christmas. Ask carrier representatives for written confirmation of pickup windows and recommended tariff zones rather than relying on verbal commitments.

How can I make delivery times measurable for location candidates?

Export anonymized postal codes from the last 1,000 orders and, for each candidate site, estimate distance and driving time to the carrier depot. Add warehouse processing time until cut-off—for example four hours—and carrier transit time, then calculate the share of orders that would achieve next-day and two-day delivery. Compare those shares with your customer expectations; a useful benchmark for a premium shipping promise is at least 70 percent next-day coverage. Nationwide sellers with uneven regional demand may need a central location or a multi-location concept rather than a single peripheral site.

Why can a cheaper rural or peripheral site end up costing more overall?

Low rent is attractive, but poor accessibility often raises line-haul costs, lengthens transit times, and weakens customer retention. Total cost analysis must include rent, shipping cost per parcel, personnel costs, and opportunity costs from delayed deliveries. In the fashion-retailer example with 500 orders per day, East Westphalia had the lowest rent per square meter but the weakest next-day rate and highest average shipping cost, while Kassel offered better next-day coverage and lower parcel shipping costs that outweighed its higher rent through annual savings.

When should I open a second warehouse, and how long a planning horizon should site selection have?

A second warehouse becomes relevant from roughly 1,000 parcels per day or when 40 percent or more of customers are concentrated in a different region from your current site. Relocating after only 12 to 18 months typically costs 50,000 to 200,000 euros including moving, downtime, and new carrier connectivity, so the initial choice should take at least a three-year perspective. Follow a structured process: postal-code analysis, three to five candidates, carrier and transport checks, delivery-time simulation, total costs over 36 months, then site visits with lease exit clauses.