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LOCATION SERVICES

"THE PROCESS"

GLOBAL REACH

PRESS ROOM

CASE STUDIES

WHY WDGC

PRINCIPALS

 

 
PROJECTS
 

 
 
STUDY  

                           PROJECT CASE  


TARGET

WDGC has been advising Target on location of distribution centers for the past dozen years. We have forged a dynamic partnership with Target to optimally site new warehousing. Responsibilities embody:

bullet Target logistics identifies preferred geographies (could be a single metro or a defined radius such as 250 miles from a least cost freight point
bullet Target real estate vets properties and generates a shortlist (usually 4-8)
bullet WDGC evaluates all properties (could involve multiple metros or several submarkets in a single metro) on labor market dynamics
bullet WDGC also charged with double checking other variables such as electric power, highway access, and tax practices/rates

Labor market evaluations are undertaken in two stages. In Stage One commute zones (20-30 minute drive time) around all candidate properties are delimited. WDGC then populates a statistical ranking model with pertinent labor market data. The model was specifically crafted for Target. It takes into account a myriad of pertinent factors such as demographics, workforce, wages, unionization rates, etc. Properties are ranked/scored. The highest rated are then brought forward to a second phase field based assessment.

In Phase Two, WDGC undertakes due diligence assessment in each targeted commute zone. This is composed of physical site tours, examination of highway linkage/traffic patterns, review of mass transit linkage, interviews with distribution employers (captive and 3PL), interviews with manufacturers, discussions with staffing agencies and economic development groups, and GIS commute zone map analyses.

WDGC above referred to model encompasses all 33 Target distribution centers. For each new project, shortlisted properties are entered into the model to see how they stack up. Ideally a finally chosen property will score above average. Among the factors WDGC assesses in Phase Two (and become ranked in the model) are:

bullet Labor cost (market competitive) – Start, max, progression
bullet Incentive compensation - competitive demand (for requisite skills)
bullet HR practices (e.g., workweek length)
bullet Offshift and overtime staffing
bullet Workforce availability – overall supply, qualified applicant flow, maximum headcount size, ramp-up period
bullet Recruiting sources/methods
bullet Turnover and absenteeism
bullet Unionization – unionized companies, union election activity, Right-to-Work, union risk/avoidance
bullet Free pre-employment training
bullet Site orientation to labor pools
bullet Workers’ compensation
bullet Unemployment insurance
bullet Labor legislation
bullet Taxation
bullet Utilities
bullet Potential incentives

WDGC has performed over 30 labor market studies for Target. These have been spread throughout the U.S. including:
bullet Inland Empire (CA)
bullet Pueblo (CO)
bullet Chesapeake (VA)
bullet Lake Mary (FL)
bullet Savannah (GA)
bullet Amsterdam (NY)
bullet DeKalb County (IL)
bullet Phoenix (AZ)

 

     
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