For larger retailers, the distribution center is a major focus in the logistics system. Thus, having the best possible distribution center is often a leading goal for such retailers.
As Joseph O’Reilly writes for Inbound Logistics:
“Every company prioritizes different factors when choosing the best location for a distribution center, or configuring the perfect logistics alignment between supplier, manufacturer, retailer, and consumer. It’s all about finding the right combination of geography, labor availability, financial incentives, and supply chain partner access. And in today’s demand-sensitive environment, identifying a strategy that embraces supply chain impulses while allowing room for change also plays a big role.”
“Companies have more options than ever when choosing a site. They can lease, buy, build-to-suit lease, and partner with third-party logistics (3PL) providers to manage dedicated operations or as part of multi-tenant arrangements. The variety of facilities businesses seek has evolved, too. Shifts in consumerism and commerce have transformed warehouses into hubs of opportunity, equipped with cloud technology, mobility applications, and automated materials handling equipment; and purposed for operations such as value-added manufacturing, packaging postponement, and cross-docking.”
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