Changes in Distribution Center Location

Case Assignment

Changes in Distribution Center Location

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Read the article referenced below and answer the following question:

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 1 paper, citing at least three different sources of information.

The paper should be 3-4 pages.

Sowinski, Lara L. (2007, Aug) Site Selection Focuses on Second-Tier Markets. World Trade. Troy: August 2007, Vol. 20, Issue 8, pg. 40.

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.

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