Procurement opportunities - Alternative to Port Centric Warehouses

The current US economy is experiencing modest growth as trade increases, the year to date total export-import (EXIM) was up by 12% compared to same period last year at the port of Long Beach. The growth in imports along the west coast ports has required manufacturers to have warehousing facility which are port centric. But with increasing cost of land, traffic congestion and expanding customer base, the question of these distribution centers long term returns and the total cost to serve needs to be analyzed The White paper discusses the alternative to a port centric warehouse in the West Coast and how to efficiently structure operations to create opportunities for cost reduction both internal and external.

It provides insights on how companies leverage on facilities and their strategic locations to ensure right fit alternate locations are chosen either in terms of cost or potential benefits Business Case The booming growth of the West Coast as a major hub for transit of US bound goods of Asia origin had led to development of logistics clusters around the gateway ports. But with shrinking profit margins companies are realizing having distribution centers near ports to reduce transportation coast has an unfavorable effect on overall cost of distribution center operations. This cost includes high rental rates, transportation charges and labor wages. It is also noted that a single DC located near the port is not feasible to supply the ever expanding West Coast regions.