Question: Create your initial post on Discussion Board 8 in response to the following: Port - centric logistics involves situating a distribution center ( DC )
Create your initial post on Discussion Board in response to the following:
Portcentric logistics involves situating a distribution center DC at a port. In some instances, this means actually inside the port area. In other instances, portcentric logistics refers to a large logistics area growing around the port. Sometimes, the term portcentric is used to simply refer to transloading, eg from an inbound container to pallets, or from an inbound deep sea container to a domestic container, allowing for greater value from inland transport costs. This transloading can take place in a container freight station within the port or in facilities outside the port. In the vicinity of the Los AngelesLong Beach ports, for example, numerous facilities perform this function.
So there are two options: i locate the DC within the port area ie portcentric; or ii locate the DC away from the port. Every option has advantages and disadvantages. For instance, the local economy heavily influences whether a particular port is a good choice for a DC An exindustrial city with low employment will seek to attract businesses, whereas a more prosperous city that is already congested and not short on jobs may find that wealthy residents form a strong lobby against such developments, preferring waterfront living and entertainment opportunities to noisy and dirty freight handling.
GUIDING QUESTIONS
Which goods or market segments do you believe are best suited for port centric DCs
Can you think of any reasons why companies and logistics operations would choose to be portcentric even if cost considerations favor inland locations?
How do you think the future of portcentric versus inland dynamics will play out? What trends, and how might they influence this eg electric trucks and vans, selfdriving cars
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