What Distribution Centers Can Learn From Office Buildings

Chicago, IL—With the rapid growth of e-commerce, logistic facilities are the star players in the game of fulfillment. For example, in a typical distribution center a 500,000-square-foot facility might employ 100–150 workers to replenish retail stores. In a similarly-sized building, three-to-ten times as many people may be employed but they are focused on fulfilling individual customers’ online orders. Movement from palletized shipments to more frequent, smaller, individual orders is far more labor-intensive and those employers need to attract and retain good, skilled people.

In short, not only do retailers need to employ a skilled work force, they also need to ensure their distribution centers are attractive, productive, comfortable and safe. But while these attributes and their supporting amenities are typically found in office environments, a recent JLL white paper explores whether the same perks and amenities should be offered in distribution centers—especially when the quality and availability of labor is one of the biggest influencers on supply chain decision-making today.

“Corporate occupiers have always understood and valued well-designed office buildings and floor space. Floor-to-ceiling windows, good ventilation/ air conditioning and white noise, as well as beautiful, modern common areas, have been in vogue for years. Why? It has been critical to recruiting and retaining employees,” says Rich Thompson, International Director, Supply Chain & Logistics Solutions with JLL.

He continues: “So why not have the same features for industrial real estate? Why not employ similar ideas when it comes to distribution centers? Our report offers insights on the traditional influencers of distribution site selection and the changes going on relative to a more human centric industrial building design.”

Although transportation costs have always been an important focus for occupiers, it is labor that has risen in importance. After all, there’s not much value in having a distribution center if you cannot find the right workers to staff it. As a result, it’s just a mater of time before distribution centers and warehouse designs evolve to reflect a higher degree of customer service requirements related to e-commerce growth.

Some of these changes include automation and advanced robotics, high-quality common areas, multiple break rooms and cafeterias along with subsidized food service, special employee events such as work anniversaries, birthday celebrations, employee-of-the month, etc., exercise amenities, warehousing elements (e.g., restrooms, break rooms, battery charging stations) within proximity to employee workflow areas, abundant parking, access to public transportation, convenient parking, flex scheduling, improved connectivity, and improved lighting and ventilation.

“Not all people need or want all things when it comes to amenities,” Thompson says. “However, most people do want and expect certain basics. They do not have to be elaborate rock climbing walls or child care facilities, but to improve employee satisfaction and productivity—whether in an office or a warehouse—the International WELL Building Institute suggests there are seven categories or features of a “well facility”: air, water, light, nourishment, fitness, comfort and mind,” says Thompson.

Human centric designs are already prevalent in office buildings. As industrial facilities increase their efficiency and physical presence, similar architectural and amenity-focused designs will soon start popping up as retailers compete to attract and retain top talent.