Distribution Center
The Challenge
- One of the largest e-commerce retailers needed a partner to assist with strategically managing the growth of a rapidly expanding distribution network within the United States.
- Due to the massive job creation planned, they needed to understand the labor scalability and the availability of economic incentives to offset their massive capital expenditure at new locations.
- They needed a partner who could integrate with their real estate, tax, and logistics departments in order to strategically manage their growth without impacting their critical rollout schedule.
The Solution
- Developed a “last 100 mile” logistical strategy to reduce their dependence of real estate as the primary location factor.
- A labor market evaluation template was established to allow for a consistent assessment of labor conditions and its impact on their critical seasonal workforce needs.
- Established a flexible methodology for evaluating and negotiating economic incentives to not interfere with the speed-to-market delivery of new distribution centers
The Result
- Prepared an annual “go-to-market” labor strategy for future capacity needs to enable them to better plan for the upcoming needs each year.
- Negotiated large economic incentive packages in Arizona, Kentucky, Pennsylvania, Texas and West Virginia.
- Continue to provide on-going support to optimize their location decisions.