A Modeled Analysis Using Industry Benchmarks Distributors based on the East Coast face a familiar challenge: serving West Coast customers with long transit times, high freight costs, and increased risk of delay or damage. While many try to solve these issues by changing carriers, negotiating rates, or upgrading service levels, the real solution is far …
A Modeled Analysis Using Industry Benchmarks
Distributors based on the East Coast face a familiar challenge: serving West Coast customers with long transit times, high freight costs, and increased risk of delay or damage. While many try to solve these issues by changing carriers, negotiating rates, or upgrading service levels, the real solution is far simpler:
Put inventory closer to the customers who order it.
By using cost data, LTL benchmarks, and fulfillment modeling across home goods, furniture, decor, building materials, and bulky consumer products, we conducted an analysis to understand the impact of having a warehousing hub closer to your market
The results were significant could be transformative to your business
The Challenge: Cross Country Freight Is Expensive, Slow, and Risk Prone
Shipping a pallet from the East Coast to California typically requires:
- 4–5 days transit time (vs. 1–2 days regionally)
- Multiple terminal transfers, increasing risk
- High long-haul rates
- Greater exposure to accessorials, carrier capacity issues, and weather delays
Industry studies consistently show that long haul LTL:
- Has lower on time performance due to the number of handoffs
- Experiences higher damage rates
- Costs 3–5× more than a comparable regional move
For distributors shipping over 30 pallets per month to the West Coast, this becomes one of the largest line items in their logistics budget.
A Modeled Scenario: What Happens When 30+ Pallets/Month Are Forward Stored on the West Coast
To evaluate the impact of shifting inventory closer to West Coast demand, we used industry average costs, transit times, and damage/claim rates.
Shipping From East Coast Only (Current State)
Average pallet cost: $550+
Transit time: 4+ days
Handling events: 4–6+ terminal transfers
Damage risk: Significantly higher
Retail + Amazon replenishment: Frequently delayed
Shipping From a West Coast Warehouse (Optimized State)
Average pallet cost: $150+
Transit time: 1+ days
Handling events: Minimal (1–2)
Damage risk: Substantially lower
Retail + Amazon replenishment: Highly reliable
Findings: The Financial and Operational Impact
1. Freight Costs Drop by over 70% Per Pallet
When freight moves regionally instead of nationally, the cost reduction is dramatic.
Example:
- East Coast to West Coast: $550+ per pallet
- Staying on the West Coast: $180 per pallet
Savings: $420+ per pallet
With 30–40 pallets per month, this results in over $140,000 in annual savings purely from repositioning inventory.
No carrier changes. No complicated software. No big supply chain readjustment. Just a smarter location strategy.
2. Transit Times Improve From over 5 Days to 1-3 Days
West Coast customers, especially retail buyers and Amazon FCs, benefit by:
- Having faster replenishment
- Less risk of running out of stock
- Better sell through and promotional alignment
Put simply, regional fulfillment helps match the service level expectations that customers have.
3. Damage Rates Decline Due to Fewer Touchpoints
Long-haul LTL frequently experience damage to the freight because of the number of terminals freight passes through.
In regional distribution, freight often stays on the same truck, experiences fewer handoffs, and overall avoids long distance stressors
This results in significantly fewer claims, lower write offs, and more satisfied customers.
4. Amazon + Retail Replenishment Becomes More Reliable
Both Amazon and major retailers have strict check in windows, penalties for late shipments, high expectations for in stock performance
A West Coast warehouse provides:
- Faster inbound
- Better compliance
- Higher vendor scorecards
- Fewer chargebacks
This alone can justify the warehouse shift for many mid-market distributors.
5. The Biggest Insight: The Problem Was Distance, Not the Carrier
Many distributors believe they need either better rates, faster carriers, or more premium service levels
But the data shows something else entirely: The most impactful supply chain improvement is often geographic, not operational. When inventory is closer to the customer, almost every metric improves naturally.
Conclusion
Industry-backed insights show that East Coast distributors serving the West Coast can achieve:
- Over 70% lower freight costs
- 1–2 day transit times
- Reduced damage and delays
- More reliable retail + Amazon replenishment
- $150K+ annual savings at 30+ pallets/month
For many distributors, the fastest way to improve performance isn’t switching carriers but instead just repositioning the inventory.
If you’re rethinking your national distribution strategy or evaluating a West Coast warehousing partner, our team is here to help.
