The Material Handling Blog

Just as the internet has been an enabler for e-commerce, today’s modern goods-to-person (GTP) automation technologies have been an enabler for e-commerce order fulfillment, especially when those orders are delivered on the promise of next-day or same-day delivery.

Whether you are looking to build your first Distribution Center (D.C.) or your fifth, the location of the D.C. is critical for the success of your operations. There are many factors that can affect the decision of where the facility should be, including: real estate cost, transportation cost, labor cost, access to quality labor, taxes, transportation routes, service level guarantees and many others.

The Journal of Commerce reported that big-box distribution facilities of 500,000 to more than 1 million square feet are leading construction activity. These large-scale, modern warehouses give top retailers and distributors the economies of scale of operating under one roof, whether serving as national distribution centers or regional distribution facilities.

For the very first time in American consumer shopping history, Cyber Monday generated more revenue than Black Friday. In total, US e-commerce exceeded $400B in 2015, up 25% YOY (year over year). Soon the US Commerce Department will announce that fourth quarter sales accounted for nearly 40% of online sales for the year.

I want to challenge anyone involved in the leasing, acquisition, or development of industrial real estate to incorporate your company's material handling solution into your building design and/or specifications. Looking first at the processes inside a building and then establishing building parameters will lead to increased efficiencies and more cost-effective solutions.