Impact of e-commerce on logistics real estate
During his introduction, Mari explained how the various links in the e-commerce chain have different needs in terms of logistics storage space: last mile / pick-up points (minimal m2), sorting centers (U-shaped) and returns solutions. These functions also create different logistics demands which means that e-commerce is broadening the spectrum. This in turn is creating more variation in the types of buildings required.
E-commerce has been continually achieving strong, double-digit growth year on year. The key reason for the changing demands on logistics real estate is related to the changing logistics operations performed inside the buildings. E-commerce is resulting in the following developments in the logistics operation: single-piece picking (rather than bulk), end-to-end transparency in the chain (inventory), the consolidation and packing of products (from various suppliers), more VAS/VAL and returns that are delivered back to the warehouse.
The logistics real estate market is changing as a result of different demands being placed on building interiors:
– many more racking systems & mezzanines
– sprinkler systems and fire safety measures must be adapted accordingly
– a much larger workforce, resulting in the need for more parking spaces and other facilities
– mechanization is having an impact on the design and use of the building.
Key factors continue to be the importance of flexibility and the ability to react quickly to changes and developments.
The ideal choice of location for logistics real estate is also changing: closer to the sales market (customer clusters) and close to carriers’ sorting centers, yet large premises are required close to the labor market.
If you have questions or if you would like to offer your feedback to this article, you can contact Mari van Kuijk.
50 years of experience
Consulting firm with over 50 years of experience.
Availability of a European logistics database with benchmark figures on transportation and warehouse costs.
Full scope expertise on network design, as well as warehouse design (conceptual layout, logistics - and storage equipment) and logistics building design (engineering and investment calculations).
Ability to support implementation of new logistics concepts (70% of Groenewout revenue is with existing customers in follow-up/implementation projects.
Extensive operational knowledge, hands-on, pragmatic and bottom-up approach.