A survey conducted by logistics consultancy LHarrington Group has revealed several key factors that are influencing how delivery organizations locate, design and operate their distribution networks, thereby creating a new landscape for supply chain real estate.
Prepared in collaboration with DHL, the report states that while a healthier global economy fuels the demand for supply chain real estate, it is not the only driver. Four other forces are at work, and they are having a transformational effect on companies’ distribution center networks. They include the e-commerce revolution; globalization and right-shoring; mergers and acquisitions; and technology innovation.
Within this changing landscape, the job of managing a real estate network has become a lot more complex. For this reason, delivery and logistics firms are increasingly turning to outside experts for help. These experts come in several forms, including network design consultants, real estate brokers and 3PLs.
Lisa Harrington, president of the LHarrington Group, said, “The face of global supply chain networks is changing. Gone are the days of operating a static real estate portfolio and tweaking it every five to seven years. Business is too dynamic and the stakes are too high.
“The fact is the way companies manage their supply chain real estate portfolios has morphed from a tactical/operational concern to a strategic differentiator. Supply chains that operate more nimbly and at lower cost don’t just save money. They drive growth.”
Kent Waggoner, vice president of strategy and business development, DHL Real Estate, said, “Operating a distribution network that delivers strategic growth, while also meeting overall financial objectives, requires robust real estate management capabilities that range from site selection and property development to lease management and facilities operation.”
To download the report, click here.
June 9, 2017