Market-Positioned Warehouse

A market-positioned warehouse is a type of logistics facility that is strategically located to serve a particular market or region. This type of warehouse is typically positioned to replenish customer inventory assortments and afford maximum inbound transport consolidation economies from inventory origin points with relatively short-haul local delivery.

In many cases, market-positioned warehouses are also able to take advantage of existing transportation infrastructure and networks to further minimize transport costs.

Pros of having a market-positioned warehouse include:

  • Reduced transportation costs.
  • Improved customer service levels.
  • Increased inventory turnover.

Cons of having a market-positioned warehouse include:

  • Dependence on local market conditions.
  • Limited expansion potential.

When deciding whether or not to utilize a market-positioned warehouse, businesses must weigh the pros and cons carefully to determine if this type of facility is the right fit for their needs.

Related Links

Market Positioned Warehouse Definition – Operations & Supply Chain Dictionary
market-positioned warehouse – Demand Solutions
Logistics Glossary of Supply Chain Definitions – Derby Supply Chain Solutions