MAPIC 2012: Demand for smaller urban logistics hubs supporting same-day delivery of online shopping could lead to the redevelopment of swathes of business parks in the UK and Europe.
Ali Nassiri, vice-president of acquisitions and research for Prologis in Europe, said the US trend for “smaller distribution centres close to population centres” was likely to cross the Atlantic.
“In the US we see a move from big mega hubs to smaller units,” he said. “Amazon has been rethinking its distribution network to create more satellite service centres close to distribution centres because of transportation costs and customer demand for same-day delivery.
“New products need to come from developers, but older industrial estates close to city centres might be a good solution for last-mile distribution. I think there is a redevelopment play for older facilities.”
But Zen Yaworsky, programme director of the Supply Chain Academy, warned that the need for consumers to return unsuitable products would pose huge problems for retailers and their distribution centres.
“[Product] returns could be the killer for anybody in retail,” he said. ” It has a huge impact on the way the design works and the cost of the supply chain.”
damian.wild@estatesgazette.com
