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Q&A
Differences between last mile facilities and traditional warehouses
1:13:51
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126 sec
Council Member Avilés inquires about the differences between last mile facilities and traditional warehouses. Dawn Miller from DEP explains that last mile facilities focus on the final step of bringing goods directly to consumers, while traditional warehouses store goods for retailers or wholesalers. The rise of e-commerce has led to more last mile facilities located close to customer bases.
- Last mile facilities are more focused on direct-to-consumer deliveries
- E-commerce growth has driven the proliferation of last mile facilities
- Both types of warehouses generate polluting truck traffic
Alexa Avilés
1:13:51
Thank you.
1:13:52
Thank you, chair.
1:13:54
So unlike the chair, I'm gonna probably ask you questions that are embedded in your testimony that is very thorough.
1:14:01
But for the record, just to pull them out because not everybody has access to that very thorough testimony.
1:14:09
So can you explain how the last mile facilities differ from traditional warehouses?
Rohit Aggarwala
1:14:16
Actually, Dawn, would you I'll ask Dawn Miller to take that.
Jim Gennaro
1:14:20
Dawn, if you could please state your name for the record before you commence your statement.
Dawn Miller
1:14:24
Yes.
1:14:24
I'm Dawn Miller.
1:14:26
Yeah.
1:14:26
And I'd say the the biggest difference is that the last mile facilities are really focused on that final step of bringing the goods from that last mile distribution facility to the consumer.
1:14:44
Whereas a traditional warehouse might be storing goods for bringing them to a retailer or a wholesaler, so it's not just directly to consumer.
1:14:58
You know, there are differences in you know, I think one of the things that we've seen with the rise in ecommerce is more of those last mile facilities because for them, it is so valuable to be located very close to their customer base.
1:15:11
So that's why we've seen them proliferating as ecommerce has proliferated, you know.
1:15:18
But, you know, as as the commissioner mentioned in his testimony, all of them are generating polluting truck traffic.
1:15:25
So, you know, if or generating polluting truck traffic.
1:15:27
So the way we see it, you know, going to a little bigger universe would enable us to, you know, basically have the biggest impact from this policy without even approaching small operators.
1:15:43
Because when we look at that whole warehouse universe, you know, we could get at 40% of the warehouse space by regulating just 6% of the warehouses in the city.
1:15:54
So by really targeting that group, we could make a very big impact.