“Extreme locations” help you quickly identify the outliers in your network by grouping locations based on:
Cannibalization index (%): how much a location’s potential demand overlaps with nearby locations
Utilization rate: how much volume the location handles relative to its capacity
The possible combinations of cannibalization and utilization are:
Locations in this group exhibit heavy overlap and high usage.
They indicate healthy competition or the need for additional capacity. It’s best to compare the available capacity at these locations with the total unique (exclusive) potential to understand what to do next.
Locations in this group exhibit heavy overlap and low usage.
There may be redundant locations, making them good candidates for consolidation or removal from the network.
Locations in this group are isolated and exhibit low usage.
These are underperforming locations, either due to poor placement or low demand in the area. They are potential candidates for relocation or removal from the network.
Each group contains the top 3 locations, sorted by the Capacity strain index. Locations in groups “High cannibalization & Low utilization” and “Low cannibalization + Low utilization” are sorted in ascending order, while the ones in “High cannibalization + High utilization” are sorted in descending order.
