“Shippers often have to rely on a patchwork of providers,” says Andy Dyer, president of transportation management at logistics solutions provider AFS Logistics.“There’s inconsistency in operating quality and process, which can be a challenge for a national brand.” BUILDING A NETWORK THAT DOESN’T COST AN ARM AND A LEG To keep up with heightened delivery expectations, some companies are building their own networks of distribution centers or cross-docks. This allows shippers to reduce the number of deadhead miles driven. Cost is an important factor for shippers considering adding warehouse capacity to their network. Organizations need to weigh the expense of renting or operating an additional facility against driving longer routes. “There’s a balance between the cost of a truck driver and the price of fuel versus the cost of an
Autonomous mobile robots (AMRs) optimize warehouse throughput by automating fulfillment picking to reduce a picker’s physical labor while also driving faster turnaround times.
sense to pay higher rent or even own a warehouse, as opposed to having a long- haul last mile?” One option to mitigate the expense of building out a network is to focus on sub-regions, Kline suggests. Instead
actual real estate location and the warehouse workers,” says Tyler Higgins, retail practice lead and managing director at management and technology consulting rm AArete. “It ends up being almost a math equation—does it make
166 Inbound Logistics • January 2023
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