Network design: how gravity studies lead to smarter logistics

As supply chains grow more complex and customer expectations evolve, one key question remains: where should your warehouse or distribution center be located? The answer can significantly impact your costs, lead times and carbon footprint. That’s where network design comes in and at the heart of it lies a surprisingly powerful tool: the gravity study.

At CAROZ THE Control Tower : we use smart tools and advanced engineering to simplify supply chains. As a 4PL Control Tower we combine data-driven insights with the best people with expertise to design, optimize and manage supply chain networks. That truly works for our customers.

In this blog, we explore how gravity studies help businesses make smarter network decisions and how CAROZ uses them to build agile, efficient, and sustainable supply chains.

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What is a gravity study?

A Gravity study also known as a center-of-gravity (COG) analysis is a method used to determine the most strategic location for a logistics facility (warehouses, distribution centers, or hubs), based on the distribution of supply and demand points. The fundamental question is clear: if your customers are spread across Europe, where’s the best central point to serve them efficiently?

This method considers the “weight” (volume or frequency) of shipments and their locations. By calculating the geographical ‘center of mass’ of those flows, the gravity model provides a first, fact-based answer to where the central point is. 

It’s a practical, data-driven method to align your logistics footprint with your actual shipping activity.

What is network design and why is it important?

Network design is the broader, strategic process of designing the structure of a supply chain: how many distribution centers you need, where to place them, what role each should play, and how flows should be routed between suppliers, warehouses and customers.

An effective network design:
• Reduces overall logistics spend
• Increases delivery reliability and speed
• Enables flexible growth
• Cuts emissions by shortening routes
• Builds resilience against supply chain disruptions

While full network optimization involves complex algorithms and scenario planning, gravity studies are often the ideal starting point. They deliver quick insights with limited data, making them especially valuable during the early exploration phase.

Strategic network design ensures your logistics infrastructure evolves with your business. 

From gravity to smarter decisions

Gravity studies help to make smarter network decisions by:

• Providing visual clarity: seeing where your weighted customer footprint lies gives immediate insight(s)
• Acting as a screening tool: helping shortlist regions before moving to more detailed modelling
• Supporting mergers, expansions or restructurings: where physical footprint must be reevaluated

For example, when entering a new market or consolidating two warehouses into one, a gravity analysis can guide your search area often saving weeks of assumptions and meetings. 

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What’s the difference between a gravity study and full network optimization?

From gravity to full optimization

While gravity studies offer fast, directional insight, full network optimization provides detailed, data-intensive simulations.

In practice many companies start with a gravity study to identify a strategic zone and then use advanced optimization tools to test different network scenarios within that zone. This two-step approach strikes the perfect balance between fast results, low costs, and detailed analysis.

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Recent developments and refinements

While the core idea of gravity studies remains simple, modern tools have taken it to the next level:
• Real-world distance modelling using Geographic Information Systems, (GIS) tools: combine geographic data (maps, coordinates, locations) with analytics.
• Support for multi-hub and regional service networks
• Inclusion of external factors like labor, tax, and emissions
• Scenario planning involving risk and capacity constraints

THE CAROZ WAY  

At CAROZ, we use gravity studies as a powerful yet accessible tool for our customers from multinationals to scale-ups exploring their logistics footprint.

A gravity study identifies the optimal “center of gravity” for your supply chain based on customer locations, volumes, and flows. It provides a fact-based starting point for decisions on where to locate distribution centers, how to balance service levels with cost, and what the impact of expansion or consolidation might be.

At CAROZ, we often enrich these studies by combining them with additional tools, integrating factors such as transport lane costs, CO₂ emissions, and specific customer constraints. This makes the outcomes more accurate, actionable, and aligned with today’s business priorities.

While a gravity study is not a one size fits all solution, it delivers valuable insights quickly and helps you see your network from a fresh perspective. Whether you are planning to expand, consolidate, or simply benchmark your current footprint, calculating your logistics gravity point often reveals opportunities you hadn’t yet considered.