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Why are distribution centers getting bigger and bigger?

November 01, 2009 3902 Views

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.

If you have questions or if you would like to offer your feedback to this article, you can contact Rob Wijnen.

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