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