From First Mile to Last Mile: Global Industrial & Logistics Trends

Someone once said the world was flat.

Although we know this not to be true, global trends are increasingly impacting the transportation, logistics, retail and capital markets.

This is serving to flatten out the global industrial and logistics warehouse real estate market, but we’re happy to report that significant differences remain, and will continue to ensure this does not become a homogeneous landscape.

Within each region we focus on key trade and consumption clusters to compare and contrast how different markets operate in terms of managing the distribution of goods, the challenges and opportunities they face, and the solutions being implemented to improve supply chain efficiencies from first mile to last mile.

In particular, we focus on the vast growth potential of e-retail driven logistics and warehousing, reviewing cutting-edge examples of modern warehousing and distribution space to understand how solutions have been created to manage what appear to be increasingly common problems.

Case studies of traditional and e-retail specific retailers have been prepared (some need to remain anonymous) to examine the set-up of first mile to last mile logistics, warehouse distribution and supply chain management.

This has provided us with an insight into how much distribution space is being used to support the various retail business operations, and how this network of space is being modified to achieve greater customer service, particularly with the advent of same day delivery.

The Driving Force of E-Retailing
This analysis of existing retailers provides us with a very useful proxy for future warehouse demand requirements, using current examples of annual revenue/distribution space (sq ft).

As populations change, consumption behavior becomes increasingly technology driven – supported by improving technological infrastructure – and logistics operations are optimized to meet customer requirements, there is vast potential for growth in modern logistics space.

This will comprise new space at the initial ‘First Mile’ level, supported by mega Distribution Centers (DCs), along the supply chain spectrum to the ‘Last Mile’.

It is at this level where a proliferation of E-Fulfillment DCs on the edge of urban areas, smaller urban facilities within urban community catchment areas and a variety of ‘click and collect’ options are coming to the fore. The majority of which have been established to support swift response times, especially with the advent of same day delivery.

This also points to some interesting trends we’re seeing in terms of the pricing of modern logistics facilities relative to retail space, and how we expect this to change, in a wider urban planning context.

Table of Contents

• Digital Trends: Provides an overview of innovative urban logistics solutions in response to e-retailing growth and consumer demand expectations position of each country in terms of the advancement of e-retailing and the adoption of new technologies, providing the platform for e-retailing to proliferate.
• Population & Consumption Trends: Examines the outline scope for growth and change, by country, in terms of the demand for retail products.
• Global Trade Flows: Looks at how individual clusters have become established destinations, facilitating the flow of goods to major markets, and how this is impacting the internal supply chain.
• Key Clusters & Physical Infrastructure: Reviews examples of new infrastructure in key clusters, which is either planned or ongoing, and likely to significantly enhance or alter logistics frameworks and warehouse real estate markets for many years to come, allowing them to grow and expand.
• First Mile: Looks at examples of cutting-edge DCs across the globe, and how they have been established to facilitate changes in retail, and e-retailing demand.
• Last Mile: Provides an overview of innovative urban logistics solutions in response to e-retailing growth and consumer demand expectations.
• Case Studies: Examines a range of retailers, reviewing their business and distribution models. There is an additional section of E-retailing growth in Sub-Saharan Africa.
• Market Implications, Opportunities and Positioning: Provides a summary of the market implications and opportunities in the logistics sector, created by an increase in demand growth from the retail sector.