Benefits of consolidating distribution centers

27-Oct-2016 18:15

These types of locations and containers have specific industry-accepted names.

Specialized pieces of equipment (material handling equipment, or MHE) are used to handle the various types of containers.

Some companies have moved back office functions, and sometimes even sales and executive offices, out of costly urban locations and consolidated them with warehouse and distribution centers in suburban or rural areas, significantly reducing their costs wile expanding their space.

Economies of scale may also apply if departments can share supplies, equipment, and support personnel.

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For most retailers, the Christmas shopping season is the busiest of the year.These same economies of scale apply to staff as well - receptionists and other support staff can often serve a consolidated office with little or no loss of efficiency.