Freight News, Logistics

The changing world of logistics property

[ June 7, 2017   //   ]

Factors such as e-commerce, globalization and mergers and acquisitions have created a new landscape for supply chain real estate, according to a report published on 7 June by DHL.

The New Landscape of Supply Chain Real Estate by Lisa Harrington, resident of the lharrington group, in collaboration with DHL states that while a healthier global economy fuels the demand for supply chain real estate, it is not the only driver. Other forces are at work, and they are having a transformational effect on companies’ distribution centre networks.

The job of managing network real estate is a lot more complex and firms increasingly turn to outside experts for help such as network design consultants, real estate brokers and 3PLs.

Lisa Harrington says: “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.”

She argues that the way companies manage their supply chain real estate portfolios has morphed from a tactical or 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 & Business Development, DHL Real Estate, commented: “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.”