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Chicago Consulting Designs 10 Best LeanGreen Warehouse Networks

Chicago Consulting (www.chicago-consulting.com) announces it has developed the 10 Best Lean-Green Warehouse Networks for 2008 (http://www.chicago-consulting.com/10best.shtml). These networks set benchmarks for companies concerned about their carbon footprint and how more efficient distribution can reduce it.

Historically the firm has specified the 10 Best Warehouse Networks for each of the last 12 years based on fresh population statistics. It's widely reprinted and recognized throughout the US supply chain community. These networks are "green" because they embody the shortest distance between the network and customers eliminating truck miles driven, congestion and carbon emissions. They are "lean" because the outbound costs are least and they are "best" because shipments from them reach their customers in the least amount of time.

10 BEST LEAN-GREEN WAREHOUSE NETWORKS

Number of Warehouses / Avg. Distance to Customers (mi) / Avg. Transit Lead-time to Customers (days) / Best Warehouse Locations

ONE / 803 / 2.28 / Bloomington, IN    

    

TWO / 487 / 1.48 / Ashland, KY, Palmdale, CA

THREE / 377 / 1.29 / Allentown, PA Palmdale, CA, McKenzie, TN

FOUR / 315 / 1.20 / Lancaster, PA, Palmdale, CA, Chicago, IL, Meridian, MS

FIVE / 263 / 1.13 / Summit, NJ, Palmdale, CA, Chicago, IL, Dallas, TX, Macon, GA

SIX / 236 / 1.08 / Summit, NJ, Pasadena, CA, Chicago, IL, Dallas, TX, Macon, GA, Tacoma, WA

SEVEN / 216 / 1.07 / Summit, NJ, Pasadena, CA, Chicago, IL, Dallas, TX, Gainesville, GA, Tacoma, WA, Lakeland, FL

EIGHT / 200 / 1.05 / Summit, NJ, Pasadena, CA, Chicago, IL, Dallas, TX, Gainesville, GA, Tacoma, WA, Lakeland, FL, Denver, CO

NINE / 187 / 1.04 / Summit, NJ, Alhambra, CA, Chicago, IL, Dallas, TX, Gainesville, GA, Tacoma, WA, Lakeland, FL, Denver, CO, Oakland, CA

TEN / 172 / 1.04 / Summit, NJ, Alhambra, CA, Chicago, IL, Dallas, TX, Gainesville, GA, Tacoma, WA, Lakeland, FL, Denver, CO, Oakland, CA, Mansfield, OH

These networks are developed from the firm's proprietary optimizing software it uses to design supply chains for specific companies. In developing these 10 Best Lean-Green Warehouse Networks the US population was used as a surrogate for a generic company's customer pattern. "While many companies do not sell products directly to individuals," said Terry Harris, Managing Partner of Chicago Consulting, "the US population is a good representation of many companies' customer patterns." "When designing a individual company's network," he added, "it's always better to use their specific pattern."

"Of course, other issues such as highway infrastructure, real estate issues, labor climate and so on are relevant as well," said Harris, "but cost and service are the most important criteria when designing warehouse networks."

Harris explained that Bloomington, IN is the "best" place to locate one warehouse because it provides the shortest distance to the US population and, therefore, the lowest outbound miles and takes the least amount of time. "Some shipments from Bloomington would travel 100 miles, some 200 miles and still others over 1,000 miles," Harris indicated, "but the average form Bloomington is the least." Similarly if three warehouses were located in any places other than Allentown, PA; Palmdale, CA and McKenzie, TN, the average distance would be higher than the 377 miles indicated table above.

When asked about the contemporary relevance of these green networks Harris said that recent fuel prices have increased company's transportation expenses and that they are rethinking their warehouse networks. "Companies are expending extraordinary efforts to rain in costs," said Harris, "and re-engineering their warehouse locations is a place to start." He said some are adding locations, some decreasing them and still others are moving existing warehouses to new locations. "That these warehouse networks are green is an added plus to them being lean," claimed Harris.

ABOUT CHICAGO CONSULTING

Chicago Consulting designs supply chains for manufacturers, distributors and retailers. It orchestrates supply chain components such as procurement, warehouse networks, inventory deployment and warehouse operations. From offices in Chicago and Shanghai the firm has applied advanced technology to supply chains for over 20 years. Further information can be found at www.chicago-consulting.com.

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