E-commerce has dominated the headlines as the driver of an industrial property boom and bounteous rent growth. But in no way is e-commerce the only force generating the good times. Traditional warehouse users and third-party logistics companies have also been active in the market, and now manufacturers could be poised to contribute a bigger share to that growth, too.
Reaping the benefits of a technology-based supply chain used to be a luxury reserved only for the biggest enterprises. But buoyed by IT advancements and increasingly complex market conditions, businesses large and small are now getting in on the game.
Global logistics spending is expected to reach $10.6 trillion in 2020, with transportation accounting for the majority at 70 percent. Emerging technologies such as cloud computing, big data, and crowdsourcing, coupled with an influx of tech-savvy start-ups, are unbundling the value chain and transforming delivery models. Those are among the conclusions in Frost & Sullivan’s recent analysis, “Urban Logistics Opportunities—Last-Mile Innovation.”
In a report regarding how to survive the retail apocalypse, CB Insights noted more grocers are investing in last mile logistics to provide the best grocery home delivery services. For some grocers such as Aldi and Target, that means acquiring personalized grocery delivery startups like Instacart and Shipt.