This research is motivated by the high cost of distribution which is the main problem in the logistics system at PT. XYZ as a manufacturing company with an extensive distribution network. This research aims to analyze the current distribution process, determine the optimal warehouse location, and measure the potential distribution cost efficiency that the company can obtain. The theoretical foundations used include logistics management, distribution systems, distribution costs, warehouse location determination, distribution optimization, and the Center of Gravity (CoG) method. The research method used is a descriptive quantitative method with data collection techniques through observation, interviews, documentation, and literature studies. The data analyzed includes customer coordinate points, distribution volume, distribution distance, and distribution costs. Data processing is carried out using the Center of Gravity (CoG) method with the help of Microsoft Excel to determine the most optimal warehouse location point. The results of the study show that the recommended warehouse location is in the Salatiga area, Central Java. The location was able to reduce the total distribution cost from IDR 4,272,425,000 to IDR 3,798,400,000, resulting in savings of IDR 474,025,000, able to reduce distribution costs by 11.09%. Thus, the Center of Gravity (CoG) method is proven to provide a more strategic alternative to warehouse locations and can increase the efficiency of the company's distribution costs.
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