WAREHOUSING FACILITIES IN URBAN SPACE: THE CHALLENGES OF “PROXIMITY LOGISTICS”

Abstract

Warehouses are returning to city centers in the US and Europe, reversing a decades-long trend. This radical change is due to the desire of many e-tailers to deliver as quickly as possible to consumers who have ordered products online, adopting the same-day delivery model. Various business cases, including Amazon’s, demonstrate that the battle over lead times is becoming a key element in e-tailers' strategies. To win this battle, it is essential to establish warehousing facilities as close as possible to consumers. Over the next few years, this shift will lead to profound changes in urban planning and city management. The same-day delivery model is being approached from an operational research perspective, particularly in terms of optimizing the location of micro-fulfillment centers. The research note also highlights the managerial challenges posed by consumers’ digital nomadism, alongside the importance of optimizing micro-fulfillment center locations through operational research.