What should you look for in a site?

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What should you look for in a site?

Whether your network optimization is building for growth or reconfiguring for efficiency, logistics planners agree on many of the issues you’ll need to consider to make the right move. Here’s what’s on most of their lists:

Taxes and fees In addition to standard property taxes and utility assessments, determine whether there is an inventory tax in the state under consideration. Is there a personal property tax on equipment? If so, highly automated systems can also be very expensive. Highway user fees and size-and-weight limits are direct factors for your private fleet and indirect costs if you are using commercial carriers.

Rail/intermodal access How many rail lines serve the area? What kind of mainline service is available? Are there intermodal ramps nearby? What does access look like?

Air parcel/air cargo capacity Inbound and outbound air service can be critically important to customer service or it may be part of your contingency planning. Is the proposed site within easy range of a parcel hub? Is heavyweight cargo service available in the immediate area or within a reasonable transit time?

Transportation infrastructure If you are using ocean service, what does the port infrastructure look like? How congested is the port? What do rail and truck access look like? How well is the area served by interstate highways? What is the condition of the roads? What is the history of highway infrastructure spending? Are there plans to expand highway or port infrastructure? How will expansion be funded?

Logistics services/skilled labor Does the area have needed logistics services? Do major motor carriers operate terminals in the area? Are other warehouses/distribution centers nearby? Is the labor pool of logistics talent plentiful or fully depleted? Are there universities and community colleges that can assist with training? What is the state’s position on funding training?

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November, 2003

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