Changes in Distribution Center Location Assignment: Welcome to the second case study for this course. For this case study find and read the article below in the ProQuest data base, Describe the reasons many distribution centers are relocating to second tier interior cities. Assignment Expectations: Assess the advantages and disadvantages these interior cities have relative to access to U.S. markets and to international supply chains. Use the same format as your module one paper, again with at least 3 different sources of information. The paper should be 3 to 4 pages. Sowinski, Lara L. (2007, Aug) Site Selection Focuses on Second-Tier Markets. World Trade. Troy: August 2007, Vol. 20, Issue 8, pg. 40. Click here for ProQuest article. Abstract: As import activity surges ahead with rising transportation costs close behind, shippers big and small are reevaluating their warehousing and distribution strategies to maintain a competitive edge. While the prime markets such as Los Angeles, Chicago, and New York continue to pack them in, a host of second-tier markets are becoming more attractive thanks to new intermodal hubs and less-congested roadways, which offer reliable access to major populations centers. According to global real estate developer ProLogis, eastern Pennsylvania has become one of the top four East Coast distribution centers. In the Midwest, Louisville, KY, which boasts a major hub for UPS as well as a new 64,000 square foot service center for DHL, is another city that is attracting attention from shippers who want affordable, first-class distribution facilities with exceptional infrastructure and proximity to key markets. Another state that has seen a turnaround in its economy, thanks to increased logistics and distribution activity, is Ohio.
Running head: MARKETING Changes in Distribution Center Location Name: University: Course: Tutor: Date: Changes in Distribution Center Location With the increasing costs that are associated with the transportation of goods to customers, distributors are now repositioning to a lower-cost inland supply bases. Shippers who own warehouses are now relocating nearer to their markets in order to achieve a competitive edge. With prime markets being the major target for distributors, the emerging trend in the industry is that second-tier markets are now becoming popular for their reliable infrastructure that facilitates access. This essay focuses on the changes in distribution center location to explain why these supply centers are relocating to second level interior cities (Sowinski, 2007). An assessment is carried out on the advantages and disadvantages these interior cities have relative to access to U.S. markets and to international supply chains. Why Distribution centers are relocating to second tier interior cities To minimize the costs of transporting goods and services, many distribution centers are relocating to second tier interior cities. This level of distribution is affordable mainly characterized by wholesalers who mainly deal with the purchase of goods from the distributors and then vend and dispense these products to stores. Choice factors such as ease of market access and comparative costs ar...