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Distribution centers relocating to second tier cities: Why?

Describe the reasons many distribution centers are relocating to second tier interior cities.

Assess the advantages and disadvantages these interior cities have relative to access to U.S. markets and to international supply chains.

Sowinski, Lara L. (2007, Aug) Site Selection Focuses on Second-Tier Markets. World Trade. Troy: August 2007, Vol. 20, Issue 8, pg. 40.

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Logistics offers a competitive advantage, if done well. It can reduce transportation costs and make sure the right items are at the right spot in time to be enjoyed by the customer. It prevents out of stock conditions and minimizes overstocking. In the past, the strategy was to have warehouses near the ports and near the large populations, meaning typically the "big three: cities such as New York, Chicago, and Los Angeles. However, this tactic is changing to embrace smaller "second-tier"? cities.

The ...

Solution Summary

Your tutorial is 423 words and gives the advantages and disadvantages discussed in the article mentioned in the posting.