Modern Materials Handling reports because e-commerce has been a major driver in demand in recent years, more operations are looking to smaller warehouses that are more conveniently located, so they are able to reach their customers quicker and operate on more of an on-demand basis. Not having as much space means there is not as much upkeep required, and being able to use these areas as a means of completing deliveries to densely populated areas is seen as a better investment.
The Wall Street Journal reports the trend for sacrificing space for proximity to dense populations that are driving the orders has been increasing for the past couple of years. The news provider reports that the smaller distribution centers tend to be the last stop for inventory coming out from the larger warehouses right before they’re delivered to customers’ homes. They’re seen as the sorting facilities before the deliveries are made.
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