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Consulting,
Engineering & Optimization in
Logistics Networks
Why are distribution centers getting bigger and bigger?

Author
Rob Wijnen

Published
November, 2009

Summary
The last 10 years has witnessed a trend in which distribution centers are getting bigger and bigger, especially Distribution Centers (DC's) of logistics service providers. But also to some extent private DC’s. It is questionable if this is always the best solution. There are without a doubt scale advantages associated with a DC of 10.000 m² compared to a DC of 5.000 m², but are there also scale advantages of a mega-DC of 50.000 m² compared to a DC of 25.000 m²? This article shows, bigger is not always better.

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