When it comes to the effectiveness of choosing a supplier in Denmark for imports to Canada locations, determinants matter a lot. Bettering the dependability of facility sites can be done without incurring excessively high operational costs. No matter how skillfully production plans, transportation choices, inventory management, or information-sharing decisions are optimized to deal with fluctuating conditions, inefficient location nevertheless results in additional expenses during the facility’s lifetime (Eugenio-Martin, 2019). This research report analyzes the factors that influence the location decisions made by Danish importers when selecting suppliers for shipments to Canada.
The first supply location determinant from Denmark to Canada is the nature of the product that is being imported. The product’s characteristics affect the supplier’s location when importing products to Canada. For instance, the supplier should be next to the airport for perishable goods such as flowers to ensure a faster delivery to the company. Labour supply is another location determinant that should be considered when selecting the type of supplier to import products to Canada. There must be enough qualified workers before choosing the kind of product supplier. The labor suppliers should ensure that the staff has access to food, clothing, and shelter.
Infrastructure and taxes are other location determinants that must be considered when selecting the supplier. In situations with poor infrastructure, the imported products to Canada will not be efficient since there will be delays in the transportation of the products (Thuczak & Kauf, 2018). High taxation will also affect the cost of products that are being imported because the production cost will be high for the producers. Suppliers will tend to increase their costs to make some profit.
In conclusion, efficient location reduces expenses in selecting suppliers to import goods to Canada. The determinant supply location from Denmark to Canada includes infrastructure, taxes, and labor supply. An increase in taxation in Denmark increases the production cost, and suppliers will tend to increase their supply costs. Therefore, taxation should be a location-determinant factor. Factors such as skilled labor personnel will also lead to the efficient selection of suppliers in Denmark.
References
Eugenio-Martin, J. L., Cazorla-Artiles, J. M., & González-Martel, C. (2019). On the determinants of Airbnb location and its spatial distribution. Tourism Economics, 25(8), 1224-1244.
Tłuczak, A., & Kauf, S. (2018). The Cost is the Main Determinant of the Location of Logistics Centers. In CBU International Conference Proceedings (No. 6).