Optimizing Site Selection & Economic Incentives for Leading E-Commerce Retailer

The Challenge

  • One of the largest e-commerce retailers needed a partner to assist with strategically managing the growth of rapidly expanding distribution network within the United States. 
  • Due to the massive job creation planned, they needed to understand the labor scalability and the availability of economic incentives to offset their massive capital expenditure at new locations. 
  • They needed a partner who could integrate with their real estate, tax and logistics departments in order to strategically managing their growth without impacting their critical roll out schedule.

The Solution

  • Developed a “last 100 mile” logistical strategy to reduce their dependence of real estate as the primary location factor. 
  • A labor market evaluation template was established to allow for a consistent assessment of labor conditions and its impact on their critical seasonal workforce needs.
  • Established a flexible methodology for evaluating and negotiating economic incentives to not interfere with the speed-to-market delivery of new distribution centers.

The Result

  • Prepared an annual “go-to-market” labor strategy for future capacity needs to enable them to better plan for the upcoming needs each year.
  • Negotiated large economic incentive packages in Arizona, Kentucky, Pennsylvania, Texas and West Virginia.
  • Continue to provide on-going support to optimize their location decisions.