We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Rapid e-commerce growth impacts global supply chain real estate
CSCMP EDGE 2020

Rapid e-commerce growth impacts global supply chain real estate

This year's rapid increase of e-commerce fulfillment highlights how the choice of real estate can be critical to a successful supply chain, CSCMP EDGE speakers say.

September 22, 2020
Supply Chain Quarterly Staff
No Comments

Accelerated e-commerce growth spurred by the onset of the global pandemic has brought logistic real estate into focus. Typically real estate spend amounts to roughly 5% of a company's supply chain cost, yet that small allocation in spending is having a deep impact on the success of supply chains.

"The choice of the real estate—while it may seem like a smaller dollar allocation—is an enabling capability for supply chains to compete and win for revenues," explained Chris Caton, senior vice president of global strategy and analytics at real estate investment firm Prologis during an education session at the CSCMP EDGE Live! Conference. In fact, Caton has noticed a trend with companies looking to establish a larger network of distribution facilities located near their end customers. 

Caton, along with his co-presenter Melinda McLaughlin, vice president of research at Prologis, discussed how the pandemic essentially caused five years of e-commerce growth to be collapsed into a five-week time frame. This rapid increase of e-commerce adoption by retailers changed the essential nature of logistics real estate and increased demand for larger spaces to handle more inventory and fulfillment operations. 

With an expected inventory growth of 5 to 15% post pandemic, companies will need to find spaces to house additional inventory. "Emerging from this crisis, companies will not only be facing challenges from e-commerce adoptions that were fast-forwarded by five years, they will also have to adapt to these inventory challenges," noted McLaughlin.

As companies adapt to a post-pandemic world, the speakers pointed to several emerging trends: the adoption of automation technology, increased information technology investment, and higher demand for real estate in dense, urban areas.

 

 

E-Commerce
  • Related Articles

    Peak e-commerce volumes soar past 2020 levels, DHL Supply Chain says

    Kuehne+Nagel brings on private equity partner to help Apex unit ride e-commerce boom

    Online marketplaces seize growing revenue share during pandemic e-commerce boom

Recent Articles by Supply Chain Quarterly Staff

Freightos completes plan to go public on NASDAQ exchange, raises $80 million

Retailers lose visibility as they outsource last-mile delivery, FarEye says

WiseTech buys New Hampshire drayage and trucking visibility software firm for $230 million

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Forecasts call for freight rate slumps in 2023

  • Projected U.S. recession in early 2023 will soften freight market

  • Inflation drops again as interest rate hikes hit home, NRF says

  • How to avoid the next crisis: A new approach to supply chain agility

  • Five levers to build a resilient supply chain

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

  • THE NEW WAY TO WAREHOUSE: 4 Innovations in Automation & Robotics to Boost Warehouse Productivity

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing