Companies are re-thinking their go-to-market strategies and, as a result, making different choices about how they locate, design and operate their distribution networks.
This has created a new landscape for supply chain real estate, according to a report published by DHL. Global and regional supply chains are changing, as they adapt to the new realities of commerce and competition.
The findings are part of The New Landscape of Supply Chain Real Estate report, which has been authored by Lisa Harrington, President of the lharrington group LLC, 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.
“The face of global supply chain networks is changing,” said Harrington, author of the report.
“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.”
Matthew Whittaker, DHL‘s Business Development Director, Corporate Real Estate, EMEA, commented: “Today, the global supply chain is in a constant state of flux.
“Ecommerce, consumer behaviour and expectations, ever changing geographies of both manufacturing and points of consumption are all causing operators to evaluate their network strategies.
“Maintaining a distribution network that enables strategic growth, while also meeting overall financial objectives requires robust real estate strategy and implementation. On the investment side, it requires the landlord to understand the true value of the business behind the rent.”