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
