The location of logistics distribution facilities has a great impact on logistics costs and deliver time. Its features include:the interaction between the location of delivery facilities and the delivery route planning, the multi-level location, the balance of shipment quantity, etc. Through the analysis of the characteristics of logistics distribution facilities location, a BIRCH-based logistics distribution facility location algorithm, a combination of BIRCH clustering algorithm and Dijkstra-based gravity center method, is designed to provide a better location and save long-term operating costs.