Having vertical distribution facilities closer to urban customers helps slash delivery times
Sometimes an article is of interest because it directly relates to what we are doing with ORG. Sometimes we’re interested because of the community we’re a part of. And sometimes, like today, it gives an insight into what customers are going to be expecting, allowing us to help our clients make adjustments and prepare for competition.
I want it now
Since spring of this year, we’ve heard murmurs of Amazon doing same day deliveries; even doing a delivery within an hour of the order being completed by a customer. Could Amazon really deliver on their delivery promise? It seems they will.
Today the WSJ printed that Amazon closed on leasing the United States first three-story warehouse. The building is in Seattle and Amazon will be sharing some of the space with Home Depot, who is also making aggressive investment in speedy delivery times to customers. This Seattle warehouse has “freight elevators capable of carrying forklifts and a ramp that enables trucks to drive right up to loading docks on the second floor”.
An idea whose time has come?
Prologis, one of the world’s largest owners of warehouse space, developed and owns the Seattle building. They also already have development plans in San Francisco, New York, and Los Angeles. Though some investment analysts are being conservative in their assessment as to whether or not a multistory warehouse is a lasting idea — it is already popular in densely-populated Asian and European cities.
I think the writing is on the wall. Even if you are a small to medium size company, the market is going to be expecting fast delivery times. In fact, we already live in a time with heightened expectations from customers. I recommend giving strong attention to your speed-to-market delivery times — along with the systems of support.
Que Chambers Brothers…