CONTENT:
Running head: MARKETING Changes in Distribution Center Location Name: University: Course: Tutor: Date: Changes in Distribution Center Location With the increasing costs that are associated with the transportation of goods to customers, distributors are now repositioning to a lower-cost inland supply bases. Shippers who own warehouses are now relocating nearer to their markets in order to achieve a competitive edge. With prime markets being the major target for distributors, the emerging trend in the industry is that second-tier markets are now becoming popular for their reliable infrastructure that facilitates access. This essay focuses on the changes in distribution center location to explain why these supply centers are relocating to second level interior cities (Sowinski, 2007). An assessment is carried out on the advantages and disadvantages these interior cities have relative to access to U.S. markets and to international supply chains. Why Distribution centers are relocating to second tier interior cities To minimize the costs of transporting goods and services, many distribution centers are relocating to second tier interior cities. This level of distribution is affordable mainly characterized by wholesalers who mainly deal with the purchase of goods from the distributors and then vend and dispense these products to stores. Choice factors such as ease of market access and comparative costs ar...
