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Distribution Center: 3 new trends

Businessman holding virtual interface panel of global logistics network distribution and transportation, Smart logistics, Innovation future of transport on large warehouse center background

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As a result of the exponential growth of ecommerce and digital transformation, distribution centers are increasingly becoming the core area of the logistics chain.

The main types of distribution centers, and three recent trends addressing the need to optimize the tasks, are described below.

Importance of distribution centers

Distribution centers (DISCE) are logistics spaces where goods are stored, safeguarded, prepared and dispatched for wholesale or retail trade.

Each product follows a logistics chain and requires different storage conditions. Herein lies the importance of distribution centers, they are in charge of providing everything necessary for the merchandise to arrive quickly and in perfect condition to its final destination.

Some distribution centers have one or more industrial spaces to prepare orders and cold rooms if the logistic chains require temperature conservation.

Types of distribution centers

Integrated merchandise centers (IMC)

These are usually located near cities to provide distribution services to the various players in the supply chain.

Logistics platform

Only transportation, storage and distribution processes are managed. No manufacturing or product modification activities are conducted.

Logistics hub

A distribution center of this type has a large land area used as an operating space for land-based means. The basic and auxiliary infrastructure to move merchandise on a large scale resides in this area.

Logistics Activity Zone (LAZ)

Located in port areas, it connects maritime, land and air means of transportation based on intermodal logistics management.

1. Logistics centers 4.0

They have the same components as conventional distribution centers, but different characteristics. They have logistics control offices, warehouses, loading and unloading modules, packing stations and dispatch areas.

The difference lies in state-of-the-art technologies which optimize operations, increase efficiency and reduce costs via process digitization. They also monitor information flows in real-time, compile data analytics and have smart machinery control.

Other benefits include a reduction in human errors, an increase in productivity levels and a reduction in hiring and insurance expenses.

Including distribution centers, examplesinclude over 170 Amazon centers1 equipped with systems that monitor millions of items in real-time and robotic machinery that organizes the internal movement of merchandise. Like experiencing the future of logistics today.

2. Professionalization of operators

By 2030, it is estimated that 14% of the world’s GDP2  will come from activities involving robotics and artificial intelligence. With this in mind, one of the most significant logistics aspirations is to reassign activities with technical specialization to staff while assigning manual tasks to robots and automated machinery.

To accomplish this, companies in this sector need to invest in employee development and high-tech equipment.

3. Automation solutions

In distribution centers, some examples of automation include lighting systems (Pick to Light, Put to Light and Put Wall), such as roll containers, pickingcarts, volume editing and weighing carts; solutions based on conveyors, equipment for horizontal and vertical movement of boxes and autonomous mobile robots; and even digital technology for package classification.

The advantage of this investment is an improvement in productivity and systems that minimize operators’ transfer times to inner areas of the plant while easing the fulfillment of heavy tasks.

Finding buildings or industrial warehouses is critical for any company, so it is essential to contact an expert firm with real estate options in various locations with a size-varied inventory.

About us

Advance Real Estate

Advance is a leading company in the acquisition, leasing and operation of industrial and logistics assets, with presence in 12 cities within Mexico and a portfolio of 11.5 million sf of industrial space.
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