Smart Distribution Centers - Essay Example

Driving forces behind smart distribution centers First there is considerable advancement in the application of information communication technology in the logistic industry. With ICT integration into warehousing means that the control of movement and storage of materials is centrally controlled. The processes involved in warehousing include shipping, picking, receiving, and issuing away materials. This makes it possible to have real time information on materials put-away.

The technological tools used to monitor warehouse management include Auto ID data capture like mobile computers, barcode scanners, Radio Frequency Identification and wireless LANs (Blecker, 2012). Secondly, smart distributions centers are encouraged by increased customer demand for faster shipment. For large companies with customers located in different geographical locations, smart warehousing offers the best combination of breed technology with such facilities (Caceres, 2013). This way, customers are provided with a single point of contact for value-addition on customer supply.

Additionally, the performance of the supply chain is improved given that there is minimized risk and capital investment, insight and precision in planning, and redeployment of resources and activities to the businesses core activities. Additionally, the need to reduce carbon footprint is driving force behind the need for smart distributions. The reduction of pollution involves the use of smart rounds such that the distribution trucks only stop at prescheduled locations. This means reducing the number of stops for each round.

This way, the delivery time is shrunk for fast-ground delivery services.Why distribution centers are located in large cities The presence of access to major highway, proximity to customers and strong local community workforce are also factors responsible for the development of a smart distribution center. When the center is near the target customers, it means that the cost of food supply is reduced given that only little movement is required to have the materials at the doorsteps of the consumer.

For instance, the location of Target Trucking at port Everglades makes it possible for the distribution of goods to central and southern America and the Caribbean among others (Caceres, 2013). With large cities surrounding distribution centers, the implication is that there is high market, which translates to faster flow of goods hence little capital investment and risks. This is possible through securing better customers who are willing to prove there is demand for the product or service being distributed to them (Lavinsky, 2013).

Additionally, a company has to ensure that their customers offer to them response on what they like or don’t like. Additionally, the presence of proper transport network means that materials in and out of the warehouse are distributed on time.Trends of distribution centers The trend towards smart distribution centers is one that is under high momentum. This is so mainly because organizations are under competition and each wants to match or exceed the industry standards especially in trucker turn time.

Consequently, operating under such standards means that the company maximizes the efficiencies of the distribution center through optimal equipment and usage of technology. This also implies that the inventories are accurate and timely hence improving client access to commodities.