E-commerce growth driving logistics and warehousing trends

A new report from commercial real estate services firm Colliers International Group has claimed that there is a “critical need” for more extensive global logistics and warehousing networks to support the growth of e-commerce demand. The report, entitled From First Mile to Last Mile, was issued yesterday (20 October).

Commenting on the main findings, Dwight Hotchkiss, National Director of Industrial for Colliers, said: “Our analysis finds that e-commerce and evolving delivery methods are the primary factors driving the shape of the logistics sector both today and in the future as e-retailing is slated to increase significantly in cities and towns across the globe.

“This will result in the creation of new and innovative space at the initial ‘First Mile’ level, including mega distribution centres, and the ‘Last Mile’, where there is already a proliferation of e-fulfilment distribution centres on the edge of urban areas.”

The report’s key points include the claim that “first mile” facilities are becoming bigger, in order to accommodate more equipment such as  automated picking and sortation systems, whereas “last mile” centres are becoming smaller and more localised, so they can be nearer to the consumer.

According to Colliers: “As the essential element in improving urban logistics is to limit deliveries to the shortest route, e-commerce retailers have started to include smaller urban warehouses to shorten delivery routes and provide quick delivery services to online customers. These smaller urban facilities within urban community catchment areas, as well as a variety of ‘click and collect’ options for immediate pick up or same delivery options are coming to the forefront.”