DC FOOTPRINT EXPANSION Although CBRE and other real estate firms publish regular reports on trends in industrial real estate, including warehouse space, data on warehouse types coupled with fulfillment operation data is hard to find. So we decided to include a question on facility types in our study. What we learned was that on average, respondents’ facility footprints are almost half bulk warehousing (facilities with more than 100,000 square feet of space), while a quarter consists of smaller warehouses, followed by cross-docking operations and refrigerated facilities. When asked to look forward five years, respondents identified bulk warehousing and cross-docking as the types of facilities they most expected to become more prevalent. One consumer-goods company respondent noted that it was expanding the footprint of existing facilities to support growth. We believe this to be a common and cost-effective means of increasing capacity. Meanwhile, a third-party logistics service provider (3PL) reported a planned expansion of bulk and cross-docking facilities to meet the anticipated needs of its clients. Not surprisingly, when asked about the reasons behind their planned facility expansions, respondents most frequently cited expected increases in throughput and storage capacity needs. Interestingly, an increase in order complexity was the next most common response, followed by a change in outbound load profile. These results point to the current evolution of order profiles driven by e-commerce growth and related factors such as the average retailer’s proliferation in SKUs (stock-keeping units). One mechanical parts distributor noted that its business is moving away from wholesale in favor of retail sales. This is a great example of disintermediation in the supply chain, as consumers increasingly opt to order online rather than visit a retail store. MARKET PRESSURES AND FULFILLMENT PROFILES Every order would be the perfect order in an ideal world. But in reality, practitioners must […]