Speedy, cost-effective delivery

EDITOR'S NOTE

IT SEEMS THAT almost every month, Area Development reports on one or more distribution centers being established by this or that company in locations across the nation. (This month, in fact, is no exception: See our "Industry Update" column on page 20.)

Continuation of

this rapid growth in distribution centers was confirmed by a recent Deloitte & Touche survey, as discussed in our cover story, "Getting the Goods on Distribution Sites." More than 40 percent of the respondents to this survey said they had plans to expand or establish new distribution centers within the next three years.

Some of this growth will come as a result of new product-handling technology that has made older distribution facilities obsolete. According to the experts at Deloitte & Touche, some companies may be centralizing their facilities (replacing numerous smaller and inefficient distribution centers with larger, technologically enhanced ones), while other firms may be decentralizing their distribution centers (establishing several modern regional facilities).

Of course, much of the past growth in distribution centers has been in response to the boom in e-commerce. Now that the economy has slowed, e-tailers may change their plans for new space. In fact, according to Frank DiMaria, president and CEO of APL Direct Logistics, a "reality check-up for e-commerce fulfillment" may be in order. (See page 26.) DiMaria suggests that although e-commerce and traditional distribution have distinct needs, a "warehouse-withina-warehouse" facility may satisfy the requirements of both. It would enable online and offline sales channels to share inventory and infrastructure.

E-commerce has intensified the need for speedier delivery of products, and that speed depends on their means of transport. One particular method of transporting goods that was innovative in the 1950s - intermodal transport - is still making headlines today. And improvements are continuously under way on the nation's interstate highway system and at its airports, seaports, and rail facilities. (See article that begins on page 49.)

Whether a company's products are shipped in containers, truckloads, or small packages - and whatever type of distribution center they originate from - speedy and cost-effective delivery of the goods to their final destination is still the bottom line.

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