SMALLER, FASTER, SMARTER

SMALLER:

• Specialization

  • Greater technological capabilities in a warehouse or distribution center opens greater potential for SKU slotting and storage design.

  • The ability to take fulfillment data in real time provides a warehouse the opportunity to maximize storage capabilities according to customer demand in a smaller facility.  Instead of trending larger, facilities are re-configuring pallet storage and other warehouse operations to fit specific inventory management needs.

  • Increasing operation efficiency leads to more production per square foot, so companies can get more out of smaller facilities than ever before.

• Flexibility

  • Consumer demand is changing very frequently so it is more vital than ever to maintain a flexible distribution design.

  • Smaller facilities provide greater maneuverability to adjust to market trends and to maximize product availability at peak demand times.

  • This allows a fulfillment center to adjust SKU configurations according to previous market demand and to increase the “elasticity” of the supply chain.

  • Storage flexibility makes controlling costs more manageable while customizing inventory management down to the last SKU position.

FASTER:

• Closer To End User

  • Companies interested in the last mile of supply chain management are in hot pursuit of the coveted locations in and around large markets.

  • Setting up facilities closer to the end user allows for quicker delivery times and capabilities that are more convenient for customers.

  • Faster distribution helps a company stand out and localized distribution speeds up the last mile supply chain to reach customers consistently on time and within a more convenient delivery window.

• Customer Preferences – How do you shop?  What convenience appeals to your buying preferences?

  • Customer acquisition is more important than ever and now distributors have the information to appeal to a specific shopping preferences.

  • Whether a shopper prefers buying online or purchasing in store, fulfillment centers are still searching for the perfect position to ship anywhere, anytime.

  • Understanding how customers shop will help distributors design optimal storage and delivery configurations specific to their market.

SMARTER:

• Inventory Management

  • Warehouse technology is the new frontier and the more automated systems implemented across a supply chain, the greater capacity for output.

  • Warehouse management systems streamline inventory and enable facilities to pinpoint key fluctuations in market demand.

  • These analytics help distribution centers deliver specific product mixes throughout the year.

  • Smaller fulfillment centers will appeal more to distributors with specific product mixes and demographics.

  • Specialized distributors will focus  on delivery capabilities rather than product mixes to ensure that product availability fluctuates to consumer demand.