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Organizational factors and comprehensiveness A complicating factor in the site selection approach described in preceding chapters is the fact that companies approach the location selection process with varying levels of sophistication, comprehensiveness, and collaboration. Also, in some cases the location process may be run by either the real estate department or the logistics department, with little input from other aspects of the company. Thus, sometimes rent and occupancy might take more precedence in the location selection, while in other cases, transportation costs and logistics may dominate the evaluation of locations. Likewise, the presence of a specific third-party logistics (3PL) partner might dictate a location which otherwise does not meet objective Increasingly, the total operating costs strategic goals. Typically, logistics and supply chain departments of the supply chain force a review may report through operations to the chief operating officer, and of the decision-making process, real estate may report through finance to the chief financial officer. ensuring a more holistic approach in Each division may have individual performance measurement criteria large companies. that do not adequately reflect overall corporate goals. Integration of the two chains of command may not occur until higher corporate levels compel an optimum result. These situations reflect corporate culture that is not fully aligned in terms of overall vision or goals. Increasingly, the total operating costs of the supply chain force a review of the decision-making process, ensuring a more holistic approach in large companies. In these cases, competing goals and measures may be replaced with, for example, an initiative to minimize total land cost and preserve future options for change. Even so, many companies will still exhibit lack of coordination in their facility location process. Computer model use and sophistication Computer models such as ILOG and CAPS, which optimize logistics costs within performance criteria, interactively simulate transportation linkages across modes and can determine the sensitivity of operations 60 Freight Facility Location Selection: A Guide for Public Officials