Tuesday 20th Oct 2020 - Logistics & Supply Chain

The landscape for supply chain property is changing, says DHL

There is a “new landscape for supply chain real estate” influenced by companies “re-thinking their go-to-market strategies”, according to a new report published by DHL.

The research finds that alongside a healthier global economy, the e-commerce revolution, globalisation and right-shoring, mergers and acquisitions, and technology innovation are influencing these changes in the real-estate market.

The report found that because managing network real estate is becoming more and more complex, the interviewees taking part in the research were increasingly turning to outside experts like 3PLs, real estate brokers and network design consultants.

“The face of global supply chain networks is changing,” said Lisa Harrington, president of the Harrington Group LLC, author of the DHL 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.”

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.”

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