Minimizing Market Access Costs
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|Industry’s preferred location minimizes market access costs. An index, based on the product of distance to market times the population, closely approximates market access costs.
Alberta is optimally located to minimize market access costs directly related to transportation or distribution.
CALGARY and EDMONTON combine their larger size with relative closeness to markets to provide optimum locations.
The superior locations of Calgary and Edmonton in relation to markets have allowed Alberta to become the distribution hub for Western Canada in retail, wholesale and manufacturing/processing sectors.
Based on the market access cost index methodology, the locational choice between Calgary and Edmonton is essentially equal. Individual requirements will determine a firm's choice of business location, but Alberta cities should be at the top of the list.
Tibbet & Britten Group, a world renowned supply logistics firm, has located all its western distribution centres in Alberta for clients such as Wal-Mart, Safeway and Shopper’s Drug Mart.
Additionally, individual national firms such as Home Hardware Stores, Finning Canada Ltd. and Overwaitea Food Group have distribution centres located in Alberta.
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