The main research question of this thesis was: What is the optimal location for Kalmar’s European Distribution Center when quantitative and qualitative factors are considered? The aim was to investigate whether or not the current location is optimal and if not, what would be a better location. In order to do that, relevant factors behind the location decision also needed to be determined. This thesis is a combination of case study and action oriented study. It combines both, qualitative and quantitative methods. In the first phase, theoretical background was created for the subsequent empirical phase. It was done by using scientific literature as source material. The aim was to cover the most important themes of warehousing and location decisions in respect of the case company’s situation. The empirical part started with the description of Kalmar’s current supply chain. Then, challenges with the current distribution center location were determined through interviews and observations. Quantitative data of shipments and their destinations was used in center of gravity calculations. The actual location of the center of gravity created a base for searching for a candidate service provider and determining the relevant factors. The factors taken into account were cultural and logistical. After that, the service providers’ competences were evaluated. Prices were taken into account as well. The results were then combined with the AHP method. The result of the center of gravity analysis was a point in the western part of Germany. After closer scrutiny, there occurred to be three possible new service providers within a reasonable distance from the center of gravity. However, the current EDC location was also considered a possible option, and thus there were four candidates. Two of them were in Germany, one in the Netherlands and one (the current) in France. Culturally and logistically the current location was considered the worst and the locations in Germany the best. The service provider in Germany, Mönchengladbach, was seen as the best option also by its competences. Consequently, the most essential result of this thesis is that the optimal location for Kalmar’s EDC would be in Mönchengladbach. However, changing the location there is not the recommended action of this thesis. Relocating has numerous possible complications and thus its implications and costs should be scrutinized more closely before any decision to change the location.