CSCMP's Supply Chain Quarterly
April 03, 2020
Industry Press Room
Read the latest industry news from MRFR, Smart Home Market Size, Share & Industry Analysis, By Product (Home Monitoring/Security, Smart Lighting, Entertainment, Smart Appliances, and Others (Thermostat, etc.)), and Regional Forecast, 2019-20, Vertical Farming Market to Rise at 24.8% CAGR till 2026; Increasing Number of Product Launches Will Aid Growth, says Fortune Business Insights™, Connected Agriculture Market to Rise 19.1% CAGR till 2026; Increasing Number of Agro-tech Company Mergers to Aid Growth, Market Research Future, and more »

More industry news »
Submit your company's news

Most Read Articles

News from our sister publication
DC Velocity
Forward Thinking

Developers building multi-story DCs for urban home delivery

Amazon effect drives demand for new breed of warehouse, Innovo and Prologis say at CSCMP Edge.

The imperative to provide speedy home delivery for e-commerce orders is driving demand for multi-story distribution centers in dense urban areas, despite the sky-high rents, panelists said Tuesday at the CSCMP Edge annual conference in Anaheim, California.

The high cost of real estate in cities compared to distant, rural areas had discouraged this trend until recent years, when the "Amazon effect" began to drive retailers to find ways to move their product closer to consumers, panelist Andrew Chung, CEO of Innovo Property Group, said in a session titled "Over-Simplified: Multi-Story and Urban Infill Distribution Centers—There's no Template."

In response, real estate developers are building projects that would have been inconceivable in past years, featuring truck ramps reaching second-story DCs and high-speed freight elevators to bring inventory even higher. Innovo is now developing two million square feet of such DCs in the New York City metro area, while fellow developer Prologis recently completed one in Seattle.

Warehouse designers must get creative to make these projects work, since there is no template for the best way to build a profitable, multi-story DC, the panelists said. In fact, Prologis refers to its nascent Seattle building as "an R&D project," panelist Kim Snyder, president of Prologis, said.

In addition to finding ways to help 53-foot trucks reach the second floor of an urban building, additional challenges include: packing enough inventory density into the space, providing rare parking spaces for warehouse laborers, and setting strict limits on delivery territory for each facility, the panelists said.

Join the Discussion

After you comment, click Post. If you're not already logged in, you will be asked to log in or register.

Want more articles like this? Sign up for a free subscription to Supply Chain Executive Insight, a monthly e-newsletter that provides insights and commentary on supply chain trends and developments. Click here to subscribe.

We Want to Hear From You! We invite you to share your thoughts and opinions about this article by sending an e-mail to ?Subject=Letter to the Editor: Quarter 2019: Developers building multi-story DCs for urban home delivery"> . We will publish selected readers' comments in future issues of CSCMP's Supply Chain Quarterly. Correspondence may be edited for clarity or for length.

Want more articles like this? Subscribe to CSCMP's Supply Chain Quarterly.