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Supply chain real estate management becoming a strategic differentiator

The way companies manage their supply chain real estate portfolios has become a strategic differentiator, according to a new report published by DHL.

The New Landscape of Supply Chain Real Estate report says that 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.

It suggests that while a healthier global economy fuels the demand for supply chain real estate, four other forces are also at work and are having a transformational effect on companies’ distribution centre (DC) networks as a result. The report identifies the four factors as the e-commerce revolution; globalisation and right-shoring; mergers and acquisitions and technology innovation.

“The face of global supply chain networks is changing,” says Lisa Harrington, president of the lharrington group, 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 and business development at DHL Real Estate, said that real estate management is key. “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,” he said.

Image credit: DHL

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