Network planning guide
Choose inventory placement from order and inbound data, not from a city label. Miami-first can fit Southeast, Caribbean, and Latin America-linked flows; Los-Angeles-first can fit West Coast and Pacific-linked flows. A split network is justified only when the measured service or transportation benefit is greater than the extra inventory, replenishment, and control cost.
Decision support
Use the same definitions and evidence across every option. A comparison is not reliable when one path uses best-case assumptions and another uses observed operating data.
| Signal | Miami-first indicator | Los-Angeles-first indicator | Split-network trigger |
|---|---|---|---|
| Customer demand | Order density is concentrated in Florida or the Southeast | Order density is concentrated in California or the West | Both regions have durable volume and service-level pressure |
| Inbound flow | Suppliers or imports naturally feed Southeast lanes | Suppliers or imports naturally feed Pacific lanes | Inbound can be allocated reliably without costly rebalancing |
| Parcel profile | Modeled zones and service commitments favor a Southeast origin | Modeled zones and service commitments favor a West Coast origin | Two origins materially improve the weighted network result |
| Inventory depth | Catalog can support one regional stock position | Catalog can support one regional stock position | Each location can hold a useful assortment and safety stock |
| Operational risk | One node meets continuity and recovery requirements | One node meets continuity and recovery requirements | Dual-node continuity value exceeds added coordination risk |
Execution
Move to the next step only when the evidence and owner for the current step are clear.
Use at least a representative order period by postal code, order value, units, package dimensions, promised service, and return origin. Separate stable demand from campaigns and one-time launches.
Document supplier origin, port or airport, drayage, appointment lead time, purchase-order cadence, customs ownership, and the variability between planned and actual arrival.
Calculate transportation, inventory, replenishment, receiving, and service outcomes for Miami-only and Los-Angeles-only placement using the same assumptions.
Allocate only products with enough regional velocity and inventory depth. Include transfer cost, stock imbalance, fragmented safety stock, and added planning labor.
Define the minimum improvement that justifies a second node, plus the inventory accuracy and replenishment thresholds required to keep it active.
Re-run the model when demand, suppliers, parcel rates, product dimensions, marketplace mix, or customer promises change materially.
Boundaries
Primary sources
East Coast and West Coast planning · Reviewed 2026-10-25
Start with your orders and the warehouse addresses being proposed. Miami and Los Angeles are useful examples, but they do not represent every East Coast or West Coast requirement. Separate Northeast demand from Southeast demand, and compare individual California locations. A region name alone cannot establish transit time, available capacity or the total cost of fulfillment.
| FHU-operated location | Published facility address | Planning question |
|---|---|---|
| Miami, Florida | 3450 NW 115th Ave, Miami, FL 33178, USA. Facility details | Compare a Southeast stock position with your actual customer ZIP codes and inbound lane. |
| Dover, Delaware | 631 Ridgely St, Dover, DE 19904, USA. Facility details | Evaluate this Delaware address for your demand. It is not a New Jersey facility. |
| Commerce / Los Angeles, California | 4930 Zambrano St, Commerce, CA 90040, USA. Facility details | Use the Commerce receiving address when evaluating the Los Angeles option. |
| South San Francisco, California | 1334 San Mateo Ave, South San Francisco, CA 94080, USA. Facility details | Model this address separately from Los Angeles; do not treat California as one stock location. |
| Houston, Texas | 3401 Navigation Blvd, Houston, TX 77003, USA. Facility details | Include a Texas option when your order data warrants it; a coast-only shortlist may omit a better geographic fit. |
This table lists FHU’s five operated U.S. locations. It is not a directory of every provider on either coast. FHU also operates in Hungary; that is a separate international inventory decision. Confirm product acceptance, capacity, receiving appointments and the work included at each proposed facility before shipping stock.
Compare one node, then a split network
Use one order sample and the same cost definitions for every option.
Prepare a representative order file with destination ZIP codes, units, parcel dimensions and the service customers selected. Keep regular demand separate from a promotion or one-time launch. Map Northeast, Southeast, Western and other demand instead of treating the entire East Coast as one destination.
Compare each proposed warehouse against that same file. Ask for the relevant carrier services, quoted transit assumptions and any product or receiving constraints. A warehouse near your supplier may simplify inbound work while increasing the distance to many customers; evaluate both legs before choosing a location.
Build comparable proposals for receiving, recurring storage, order handling, packaging, outbound carrier charges, returns and any additional work. Use FHU’s published pricing as a component reference, then request the scope that fits your catalog and order profile. Neither coast should be assumed cheaper from a general statement about wages or real estate.
Write down each facility’s local time zone, carrier handoff, order cutoff, business-day calendar and exception process. A time-zone difference does not itself guarantee a later cutoff or faster delivery. Compare the proposed operating terms and carrier service for the actual origin and destination.
A split network needs enough stock at each location to fulfill the intended orders. Model which SKU families belong at each node, how sales channels reserve inventory, and when replenishment moves between locations. Include transfer cost, extra safety stock, split shipments and the work needed to reconcile discrepancies.
Agree how an unavailable SKU, delayed inbound shipment, cancellation or return changes routing and available inventory. Keep merchant-fulfilled stock distinct from inventory transferred to Amazon FBA. Compare the extra control and inventory requirements with the modeled service or transportation benefit; two locations are not automatically the right answer.
A service-area page, partner listing or old address is not a receiving instruction. FHU’s operated addresses appear in the table above. Dover is in Delaware; it should not be presented as an FHU-operated New Jersey warehouse. Review the current locations directory when distinguishing operated facilities from partner coverage.
Before launch, confirm the assigned facility, product acceptance, inbound appointment, integration responsibilities and an initial reconciliation plan. Keep the customer promises in your store aligned with the service agreed for that location. Review the placement decision again when order geography, assortment, inbound supply or channel mix changes.
Reviewed 2026-10-25
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