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May 23, 2022

Increasing your distribution center velocity

For both B2B and B2C suppliers, the speed with which products can be pushed through distribution centers has become a significant source of competitive advantage. Increasing distribution center velocity requires paying close attention to the multiple factors that can improve throughput and efficiency. Start by analyzing your current situation and establishing how you will measure your success, then consider possible solutions.

If possible move distribution closer to your customers, perhaps by establishing smaller ‘last mile’ centers in preference to reliance on larger regional centers. Capturing effective real-time customer data on delivery experience and expectations can guide you on where this is needed most. Also pay attention to overhead space utilization, if space is a premium, can you simply go up higher? Partnering with a local logistics partner may be a cost effective solution to transportation and ‘last mile’ space.