Developing Efficient Supply Chains
By investing in technologies that digitize the supply chain, organizations have greater control and insight over their respective supply chains and can identify and analyze processes for effective change management.
Developing Efficient Supply Chains
The onset of the global pandemic caused major strains on supply chains, with the exponential increase in demand from e-commerce leading to shortages in many stocks. These disruptions have highlighted the fragility of existing supply chain models and the need to strategize with effective change management.
Historically, logistical supply chain models focused more on improving small scale internal processes and managerial tasks. In today's data and technology-driven world, supply chains that leverage expertise from both facets, the supply chain engineering and real estate market fundamentals, stand to improve efficiencies, reduce costs, and generate new and valuable insights about customers.
In the move towards creating efficient warehouse environments, one of the driving trends has been the digitization of supply chains. By investing in technologies that digitize the supply chain, organizations have greater control and insight over their respective supply chains and can identify and analyze processes for effective change management.
An example of this is applying the Internet of Things, or IoT devices that enable real-time data collection to analyze stock levels and help track movement to and from warehouse facilities. An additional example of technology used in warehouses is the automation and deployment of robots to complete tasks with greater speed and efficiency. Robots such as Automated Guided Vehicles or AGVs help speed up order fulfilment and inventory management processes. Overall, these technologies reduce delays, lower costs, and ultimately contribute towards greater efficiency.
Another key focus has been on implementing sustainable practices, ensuring these logistical assets maintain their efficiency and prolong their lives. Many corporates are increasingly seeking to reduce their carbon footprint across both vehicles and buildings. Such examples helping to achieve this include integrating solar rooftops on top of warehouses, installing motion-activated lighting systems, and implementing alternative cooling solutions such as district cooling.
These strategies go towards reducing energy costs and maintaining customer satisfaction by introducing environmentally friendly practices. From an owner's perspective, these practices also play a crucial role as warehouses that incorporate sustainable facilities are more attractive to investors and occupiers.
Looking ahead, we can expect increased demand for warehouse space from e-commerce which will continue to push the performance of the logistics sector in 2021. As a result, key regional players in the logistics space would potentially adopt new supply chain strategies that improve efficiencies of existing warehouses that help meet demand and prepare for future expansion.
