Location intelligence and footfall analytics can be valuable tools for wholesale distributors to maximize their revenue, optimize their processes and choose the best distribution routes for their pickup and last-mile delivery processes.
The correlation between foot traffic patterns, visitation, sales, and the success of wholesale food distribution companies has been studied and proven, so the development of this type of analysis has become a priority in the process of site selection, supply chain process optimization, and expansion modeling.
Location intelligence through techniques based on Big Data collects spatial data in order to improve the decisions made in logistics centers, allowing the use of location and its related data points, creating solutions and optimizing distribution routes.
This new technological tool finds its immediate application in space-dependent businesses, such as delivery and logistics companies. The data collected through infrastructure sensors, cameras and traffic mapping not only allows them to determine the best locations for their businesses, warehouses and centers, but also allows them to know why certain locations have a direct impact on the success or failure of a business.
Foot traffic and location analytics help wholesale distributors maximize profits, allowing them to reveal where operational inefficiencies are and then implement solutions in problem areas.
Through geospatial data analysis techniques, CentralAmericaData carried out an analysis of five Walmart distribution centers in Florida, United States, with the aim of identifying patterns in the supply chains of these five centers and their relationships with commercial establishments and other logistics complexes in the State.
Through this analysis, whose objective is to show how geospatial data science techniques can be applied to solve problems in the logistics sector, the existing relationships between Walmart distribution centers and their supply sites were identified and characterized, so that different large commercial chains can evaluate and at the same time improve processes in their respective supply chains.
By analyzing the large volumes of anonymous data generated by mobile devices, it is possible to establish whether a distribution center has a commercial relationship with other logistics complexes, and even with establishments that serve the end consumer.
Using the most advanced Big Data tools, it is possible to understand the behavior of the supply chains of companies in the retail sector, since by monitoring delivery parts and counting mutual visits between suppliers and vendors, it is possible to identify and establish which are the most important relationships between distribution centers and points of sale to the end consumer, such as stores.
Keeping online inventories as close as possible to their customers through the strategic location of emerging distribution centers, micro-distribution centers and dark stores is currently one of the most important challenges for companies.
Due to the change in consumer habits, the restrictions imposed by the pandemic and the popularization of online commerce, companies are busy optimizing their distribution channels for Internet sales.
The change in consumer habits resulting from the boom in e-commerce and the preference for avoiding visits to physical stores, has forced some large commercial surfaces to be transformed into storage and logistics areas.
The covid-19 outbreak caused the emergence of a new commercial reality, in which consumers are less willing to go to physical stores to make certain purchases and prefer to store online.
Locating customers and estimating their potential consumption, choosing strategic locations for distribution points and calculating product delivery times are some of the tasks that occupy companies in this context of changing consumption patterns.
Many of the changes in purchasing patterns resulting from the crisis generated by the Covid-19 virus in the region will not be temporary; several of them are here to stay.
Ransa group plans to invest $4 million in the construction of a cold chamber in Guatemala and is preparing to expand its warehouses in El Salvador.
The Central American subsidiary of the Peruvian operator Ransa is also assessing whether the conditions are right to develop a cold chain in Honduras.In the case of the investments planned for Guatemala, it has been reported that the plan is to invest $4 million in total"... 2,000 positions, where there will be specialized containers forrefrigerated and frozen products. In addition, they will build a distribution center for dry goods, thereby increasing their ability to benefit customers. "
The ESKE Group has announced te opening of a distribution hub in Panama City to redistribute its generic lines imported from India and Europe and those manufactured in Peru.
Group ESKE, an importer of generic drugs from India and Europe and others that it manufactures at its plant in Peru, intends to establish in Panama a distribution hub for the entire region.
Plans are underway in Chicago, USA to open a cargo center for perishable goods which includes flowers, one of the foremost products in the perishable goods category.
From an article by the Costa Rican Trade Promotion Office (PROCOMER):
Market development of floriculture in the U.S. has shifted mainly towards determining the capacity of distribution centers.
After an investment of $70 million, Walmart has opened a 52,000 square meter distribution center in Costa Rica.
"The building has an area of 52,000 m² and its surface area is equivalent to 67 football fields according to the company, and is located in the industrial complex in Coyol in Alajuela", reported Nacion.com.
According to Julio Quevedo, vice president of logistics at Walmart, Mexico and Central America, the CEDI was planned taking into account the expected growth in the chain in Costa Rica over the next five years, though he could not reveal the figures as the the company is quoted on the Stock Exchange.
Four Taiwanese industrial companies are investigating sites to set up plants in Central America, preferably in Guatemala, Honduras and El Salvador.
"Businesses are looking at free zones to establish their operations in Central America and distribute to other countries", said Carlos Liao, director of Central American Trade Office in Taipei, Taiwan. "Companies are interested in operations in the northern triangle countries: Guatemala, Honduras and El Salvador."
Suministros & Alimentos invested in the expansion of its central distribution facility located in Zone 2 of Mixco.
The new center has capacity to serve more than 1,700 customers and store approximately 318.000 cases of goods in their warehouses for frozen, refrigerated and dry goods.
Juan Carlos Ortega, operations manager of Suministros & Alimentos, told Elperiodico.com.gt, "the new center will serve clients like McDonald's, Taco Bell, Wendy's, TGI Friday's, Hooter's, Chili's, Applebee's, Quiznos, Cinnabon, Tony Roma's and Pollo Brujo, among others."