Cities have had an important role in the distribution of goods as primarily logistical and production centers. The history of logistics is closely tied to advances in transportation and the movement of populations.
Cities as Trade Centers- Written History
Cities develop on trade routes to facilitate commerce. Colonizing nations establish cities to ship resources back home.
- Middle ages: Silk Road connects Chinese capital at Chang'an to the West. The area around the capital grows dramatically.
- 1600's: Government-directed megacorporations, such as the East Trading Company, establish outposts in colonies throughout Africa, Asia, and the Americas, facilitating international trade and shipping.
Cities as Manufacturing Centers- 19th Century
Industrial revolution creates technological advances in transportation and draws the population into cities.
- 1880: Refrigerated rail car is developed, allows for long distance travel of perishable goods.
- 1893: Sears, Roebuck and Company is established. The company's mail-order catalog gives US residents access to hundreds of goods, delivered right to their door.
Suburbanization- Late 20th Century
Distribution centers follow population and production out to the suburbs. The automobile shapes the landscape, facilitating personal long distance travel.
- 1956: National Interstate and Defense Highways Act is enacted. The federal funds encourage the development of autocentric suburbs through the construction of massive highways through the nations major metropolitan areas.
- 1956 : First mall opens in Edina, Minnesota. The mall was designed by Victor Gruen to replicate urban retail centers outside of traditional downtowns.
Rise of the City Center- Early 20th Century
Cities see rapid growth as young professionals flock back to urban areas. The rise of online shopping increases demand for "last mile" logistics".
- 2005: Amazon begins Prime. The company's online catalog gives consumers access to thousands of goods, delivered right to their door.
- Current: Countries around the world are experiencing increasing urbanization. Retailers seek to establish themselves in these growing markets while facing rising commercial rents and increasing consumer demand quick, convenient delivery.