THE SUPPLY CHAIN BLOG
Omnichannel Implications for Distribution Networks
Distribution centers will require more automation, more capital equipment and mostly larger DCs. A large DC a few years ago might have been 500,000 sq. ft. and it is now 1 million or 2 million sq. ft., and they hold potentially an order of magnitude more items or SKUs.
Omnichannel Fulfillment and Location of Distribution Centers
Customers demand an omnichannel shopping experience that allows them to order from anywhere. Therefore, the supply chain has to be able to deliver according to the consumer’s wishes. For example, retailers now include shipping from stores as a distribution option. This increased responsiveness to customers is changing the way a distribution network is set up and managed. Developing an omnichannel supply chain strategy requires rethinking the number and location of distribution centers, as well as their layout and design features.
Digitization and Decentralization of Distribution
3-D printing and other additive manufacturing technologies, which digitize and reproduce tangible goods will impact how you decide where to locate a DC. Decentralization of production is a trend being fueled by an increase of customization options toward the end of the manufacturing cycle. The size of manufacturing plants will become smaller and move closer to where consumers live. This will have a significant change on distribution of goods because you won’t have as much long haul.
Growth in E-commerce Distribution Centers
Global online B2C retail sales are increasing. This trend is spurring the need to locate e-commerce DCs closer to customers. Local depots for urban delivery are now needed more than ever. To be successful with e-commerce you need new logistics models which can provide rapid order fulfillment and returns processing.
Distribution Center Locations Moving Towards Urban Areas
When it comes to picking the locations of your DCs, it is important to observe the trends in e-commerce and the need to deliver to customers in metro markets.
Where You Locate Your Distribution Centers Matter More Than You Think
Hakan Andersson discusses the topic—where you locate your distribution centers (DCs) matter more than you think. It is a topic that Hakan believes is about the fundamentals in supply chain management. The reason is that this is where you have the chance to really make things good and to change things from the bottom up.
Healthcare Supply Chain Trends
What are the top supply chain issues for the healthcare supply chain in 2013 and 2014? In 2013 UPS published a revealing survey focusing on technology. Other sources discuss a heightened focus on cost cutting and logistics efficiency, while undergoing a re-invention and new strategy development.
Pharmaceutical Supply Chain Security
Supply chain security in the pharma industry is a hot issue right now because the industry has seen tremendous global growth and change. More drugs are moving around the world than ever before. Also, more pharma companies are manufacturing overseas.