A Guide to Efficient Food Distribution Center Sizing and Configuration (Content Provided by Food Logistics)
This analysis results in facilities that are sized and configured to best maximize the distributor’s opportunity to receive, store and ship a case for the lowest cost.October 12, 2020 Mark Moore
When considering the cost and benefit of building a new distribution facility, the primary focus for many companies is the cost of construction. While this is certainly a major factor, it is not the greatest factor. A look at the pro forma of most, if not all distribution centers, reveals that the two largest cost components of the operation are freight and labor. Freight cost is purely a site selection issue and facility design cannot affect that. However, it can significantly affect warehouse labor costs with intelligent analysis and design.
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