The Centralization Trap: Why Consolidating Your Inventory Into One Big Warehouse Is Costing You More Than You Think
For years, the mega-distribution center was the gold standard of American logistics efficiency—one massive facility, one consolidated operation, one set of overhead costs. But the math has quietly shifted, and many mid-sized US companies are now discovering that centralized inventory is bleeding money in ways that never appear on a single line item. This article examines the real cost of over-centralization and makes the case for a more intelligent approach to inventory placement.