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Cws Joc Presentation (092810)A

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Presentation on distribution center location trends. Journal of Commerce East Coast Maritime Conference

Presentation on distribution center location trends. Journal of Commerce East Coast Maritime Conference


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  • 1. Getting From Here to There The Changing Distribution Center JOC – EAST COAST MARITIME CONFERENCE September 28, 2010
  • 2. CHANGING DYNAMICS • Changing role of facilities • Goods in motion • Shifts in global sourcing • Labor vs. transport costs, Risk management • Fuel costs & environmental factors • Fuel escalation + GHGs = more, closer DCs • Organizational factors • Departmental vs. enterprise goals 2 © 2010, CWS Consulting Group LLC
  • 3. IMPLICATIONS FOR LOCATION STRATEGIES
  • 4. LOCATION PROCESS The Location Process allows for progressive testing and narrowing of alternatives based on business drivers Field Validation Final Negotiations Planning and Network Location and Strategy Modeling Screening Location Selection Cost Modeling Defined Strategy Universe of Short-List of and Evaluation Criteria Location Candidates Location Candidates Preferred and Alternate Location(s) 4 © 2010, CWS Consulting Group LLC
  • 5. KEY LOCATION CRITERIA Ability to Access Key Markets or Customers Interaction with Transportation Network Labor and Workforce Total Cost Environment Availability and Cost of Suitable Facilities Utilities Permitting and Regulation Tax Environment Public Sector Assistance and Incentives Climate and Natural Hazards 5 © 2010, CWS Consulting Group LLC
  • 6. DRIVERS FOR NETWORK OPTIMIZATION DECISIONS National Supply Chain - Future • Increased focus on moving goods in an effective, efficient, and environmentally friendly manner to consumer clusters • Corresponding need to move some production closer to areas of consumption • Increased diversification in modes of long-distance goods movement (road, rail, water) • Increased need to coordinate between supply chain strategy and real estate (or land use and transportation ) • Increased need for intermodal transferability • Inventory demands different based on real estate decisions • All of the above working in an inflexible real estate environment © 2010, CWS Consulting Group LLC
  • 7. MEGAPOLITANS National Supply Chain - Future Megapolitan America, New Metropolis Lecture Series, Metropolitan Institute at Virginia Tech, September 2006 © 2010, CWS Consulting Group LLC
  • 8. THINGS TO THINK ABOUT
  • 9. BEST PRACTICES First Steps Overall • More (and Smaller?) • Multimodal Connectivity • Emphasis on both Total Landed Cost and Flexibility • Coordinate Transportation, Land Use, and Economic Development Efforts • Be Creative © 2010, CWS Consulting Group LLC
  • 10. Chris Steele Phone: (617) 314-6527 Email: chris.steele@cwsgrp.com THANK YOU VERY MUCH