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One of the main causes of change is the expansion in business. Earlier companies used to have their own warehouses and distribution center all in one location and it was from this location goods were dispatched. However, now companies have production all over the world and this has now given way to third-party logistics companies.
Warehousing and distribution in the USA done by third-party logistics companies concentrate on moving goods in the most cost efficient manner from the place of manufacture to the distribution center and finally to the end customer. Today warehouses are selected based on their locations and only those locations are selected where the cost of transportation and labor is cheap. This is primarily due to rising cost of gas. In addition, most warehouses are close to ports, which are entry points.
However, the location of the warehouses and distribution centers depend on the type of product and end customer. In addition, companies are also taking into account the available market around the location of the warehouse.
More and more companies in the US are now selecting warehouses and distribution centers based on sustainable building practices. Companies want buildings that are built according to standards set by environmental and energy agencies while still fulfilling their ultimate aim of being able to stack and store goods.
Due to rising land prices, it is envisaged that the US will soon adopt multi-story warehouses and distribution centers like those present in Japan as these use the buildings more efficiently without causing a need to build or lease another warehouse and distribution center in the vicinity.
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