Distribution on demand: industrial hubs redefine shipping efficiencies.

• Author: Francom, Sarah Ryther

Today's consumers have high expectations. They want--and expect--to receive their desired doodad as fast as possible, and industry is responding. Companies like Amazon, Target and Wal-Mart have raised the distribution bar, providing their customers with products faster than ever. But moving a product from manufacturer to consumer isn't a cakewalk--numerous intricacies affect the flow of goods across America and the world. From efficient ports to modern warehousing to effective distribution hubs, a product's passage from manufacturer to consumer is a masterfully planned journey.

PORT OF ENTRY

Approximately $400 billion of goods are shipped to Southern California's Long Beach and Los Angeles port complex--the largest port complex in the country. The two ports work like a well-oiled machine, receiving and processing goods and then pumping them to distribution hubs throughout the United States. The Port of Los Angeles manages more than $200 billion worth of goods annually, while the Port of Long Beach handles approximately $180 billion worth of goods annually.

"We play an important role in distribution," says Art Wong, assistant director of communications at the Port of Long Beach. "Especially over the last decade or two, more and more cargo comes through the port, and so much work in the warehouse and distribution industry is directly connected to what we do."

Most of the goods entering Long Beach and Los Angeles ports are shipped from East Asia, taking about two weeks to travel across the Pacific Ocean before docking in Southern California. "Most of the goods, 60 percent, come from China, but we also get goods from Japan, South Korea, Taiwan," explains Wong. "Just about everything--clothing, toys, shoes, furniture, car parts--comes here. It's the whole shopping mall."

Once goods arrive in the port, technology has made it possible to process and move containers to their next destination within days. "Almost 30 percent of the things that land in Long Beach go directly on a train and leave the region," says Wong. "The other 70 percent is trucked out of the ports and goes to a warehouse. Of that, maybe 30 percent stays in Southern California, but the rest is reloaded and put onto domestic containers and moves across the country. Ultimately, two-thirds [of goods entering the Long Beach port] end up on a train or truck and go outside of this region."

Wong says the Southern California warehousing system is essential to the port's efficiency. Several...