What’s Changing?

What will the Fourth Industrial Revolution mean for supply chains and physical distribution networks?

John Munnelly

John Lewis

Jon Sleeman

JLL Frank Weber

JLL

Eva Veldkamp

Metro

Peter Buse

Arvato

Sander

Breugelmans

Prologis

The New Industrial (R)evolution

From supply chains to customer centric demand chains

Megatrends driving change in global supply chains

Shift in global economic power

Demographic change

Urbanisation

Accelerating technological change

Sustainability

The strategic positioning of supply chain assets

Changes in consumption and demand

City logistics

Supply chain visibility, agility, asset utilisation, buildings

More sustainable logistics

GL

OB

AL

D

ISR

UP

TO

RS

IS

SU

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CHAIN

SUPPLY

Suppliers Manufacturers Warehouses Retail stores End customers

E-commerce and the digitisation of retail

Technological developments will disrupt supply chains

Big data

The Internet of Things

‘Uberisation’ and the sharing economy

3D printing

Automation and robotics

Augmented reality

Autonomous vehicles

Drones

Upstream supply chain

Downstream supply chain CHAIN

SUPPLY

Suppliers Manufacturers Warehouses Retail stores End customers

E-commerce retail is generating demand for different types of warehouses

© Goodman

Mega e-fulfilment centres

Parcel delivery centres and urban logistics depots

Parcel hubs/ Sortation centres

Online grocery fulfilment centres

© Graftongate © Goodman © Segro © Tesco

Warehouses are becoming more automated

© Swisslog

Technology will drive changes in future building requirements

Better asset utilisation due to sharing

Within the life of a distribution building - imagine a scenario where driverless goods vehicles deliver into and from warehouses full of robots

Broadband and power connectivity will become critical

More buildings used for rapid throughput

Taller buildings - more automated storage and retrieval systems

- more mezzanine floors

What will these changes mean for labour and the direct employment benefit associated with warehouse developments?

Less demand for warehouses to function as storage facilities - better supply chain ‘visibility’

Technology is transforming

production-led supply

chains into consumer-centric

demand chains and driving change

in buildings requirements

1

Conclusions - corporates, developers and investors beware!

2 3

Corporates need to better

integrate their property and supply

chain decision-making to optimise

their distribution property networks

Developers and investors must think

about how they can future proof

their buildings:

• Think autonomous vehicles and

warehouses full of robots

• What then constitutes good

design and a good location?

The new Industrial (R)evolution

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John Munnelly

John Lewis

Jon Sleeman

JLL Frank Weber

JLL

Eva Veldkamp

Metro

Peter Buse

Arvato

Sander

Breugelmans

Prologis