Localization of a Distribution Center for Locally Produced Fruit and Vegetables : A case study of Svenska Odlarlaget and Samodlarna

Abstract: Business Administration, Business Process & Supply Chain Management, Degree Project, 15 higher education credits, 4FE006, Spring 2013 Authors: Arta Selimi and Therese Svensson Tutor: Petra Andersson Examiner: Helena Forslund Title: Localization of a Distribution Center for Locally Produced Fruit and Vegetables - A case study of Svenska Odlarlaget and Samodlarna Background: There is an increasing trend to purchase locally produced fruit and vegetables in Sweden. This is something consumer are willing to pay more for. The case companies Svenska Odlarlaget and Samodlarna wants to sell more locally produced produce to their largest customers Coop and ICA and have therefore decided to add a new distribution center. Purpose: To recommend a location for a new distribution center for Svenska Odlarlaget and Samodlarna, in order for more producers to meet Coop‟s and ICA‟s requirements for locally produced fruits and vegetables. Methodology: The empirical data used to draw conclusions was collected through a mixed research method (both qualitative and quantitative) was carried out through interviews. This thesis is written from a positivistic perspective with a deductive approach. The scientific credibility of this thesis was secured by for example using many sources both for theory and empirical data collection and following standardized steps of the Center of Gravity method. Conclusions: The concept of locally produced was described together with Coop‟s and ICA‟s requirements to sell fruits and vegetables as locally produced. From the requirements it was shown that 73 out of 92 SOL and Samodlarna producers met the requirements with the present distribution structure. Finally a decision on where to locate the new distribution center was made with the use of the Center of Gravity method. The location for the new distribution center is in Norrköping and with this distribution center 89 out 92 SOL and Samodlarna producers met the requirements from Coop and ICA on locally produced.