403 – The Labor Market & Its Impact on DC Site Selection


September 19, 2017 11:00 am - 11:50 am

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Fulfillment Strategies

Today’s US businesses are facing significant labor shortages due to declining birth rates, tighter immigration laws, aging workforce and falling labor force participation rates. Additionally, contraction of brick-and-mortar retailers is shifting volume to eCommerce channels with resultant increasing demand for labor in distribution centers. We will delve into the current state of the labor market followed by illustration of analytical solutions by walking through a site-selection labor analysis using benchmarks developed from eCommerce clients’ operations. The analysis focuses on density of lower wage workers, commuting patterns, underemployment, part-time labor density and labor union metrics to illustrate the process and value of this approach using technology used by AutoZone, Aldi, Macy’s, Home Depot, Wolverine Footwear, among others. Following the labor analysis example, we will discuss the importance of modern facility design trends, building requirements and amenities that mitigate the risk of the fluid labor markets, prepare for the increasing role of automation in the DC and support omni-channel distribution and ever-evolving distribution trends.

LEARNING OBJECTIVES

  • Overview of the state of the US labor market
  • Step-by-step site-selection labor analysis
  • Overview of modern facility design trends, automation in the DC and preparing for future changes as distribution methods continue to evolve
John Warden
Gregory Healy
Ward Richmond