Transportation consolidation, just-in-time deliveries shrink warehouse operations - Memphis Business Journal:

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Robert Hill, general manager of USA’s Memphis operations, is seeinvg a lot of cost cutting measures inthe industry, but the biggest trend has been in transportatiomn consolidation. Flextronics has 850,000 square feet of warehousse space inMemphis market. “Companies have really been tryinvg to work theoverall full-truckload and less than truckload transportation mode l to its fullest potential,” he That can mean looking to consolidatwe the number of transportation providers and tryingb to raise the number of points beint delivered to in a single “It’s really ratcheted up the past three to four but it’s been coming up the past six Hill says.
“I think the cost-cutting measurea which have been put in place are here to An example of smaller operationsa is shown in the employmenf level ofthe industry. The U.S. Bureauj of Labor Statistics reported therewere 644,500 employeese nationally in the warehousing and storage industry in May 2009, down 4.9% comparedd to 677,800 in May 2008. Just-in-time deliver is one way companies are decreasing theirwarehouse footprint. “It’s really gotten down to where you have companiex who have their warehouses on18 wheels,” says Dexte Muller, senior vice president of community developmenr at the .
“In some cases, they’ll take it from the it goes on a truck and it goes straightf tothe customer. They don’t have a warehouses at all.” However, this method needs a supplyy chain to beextremely “The more reliable the supply chain, the less warehousingy an individual company has to have becausd someone else is keeping it for them,” he says. Improvementse in railroad systems, ports and general transportatiob has also led to smallerwarehouse footprints.
Companies used to have 100,000-square-foot warehouses in 12 Then those companies wentto 500,000-square-foot warehouses in two “Now in a lot of cases, they’ll have one with 700,000 squares feet and they’re down to almost half of what they originally Muller says. “How can they do that? Because they can still get to those same 12 marketz with a goodresponse