Changing Customer Expectations Drive Growth of Distribution Centers

shutterstock_145359859Distribution centers are growing massively in size due to the explosion of SKUs and increasing demands to supply goods to customers as soon as possible. There are many reasons for this change.

New online portals into supply chain visibility allow consumers to see inventory availability, order status, as well as product evaluation prior to the final purchase, says Brian Keiger, chief sales officer, intralogistics at MHI member Grenzebach Corp. As such, there is a “mad rush” within distribution centers to try to get all the orders out accurately and within the right timeframe.

“This move is causing the warehouse to change drastically,” he says. Warehouses increasingly need to deliver products in ways that are “scalable, flexible, cost justifiable and automated sensibly.”

Ross Halket, executive director, ASD sales at MHI member Schaefer Systems International Inc., questions whether consumers really want same-day delivery, or whether it’s just large eCommerce

By Katie Kuehner-Hebert

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