Given the rising cost of industrial property and the fact that approximately 80% of the value and cost of a supply chain network is locked in at the design stage, Cushman & Wakefield identified three key real estate considerations to optimise supply chain across the region.
- Network configuration – this will be dependent upon several factors, not least the footprint required for fast and efficient material and product flows as well as required storage capacity. Pressure on lean supply chains drives the need to consolidate the number of facilities to build scale while an agile network will be designed across a greater number of facilities.
- Facility location – understanding lead times is a significant driver of location requirements and it is important to know how much inventory needs to be held in relation to the consumer compared to further back in the supply chain.
- Building specifications – the pace of innovation has meant that specifications for prime- grade logistics buildings continue to advance. Building specifications should follow the needs of the customer, business requirements and facility processes, flows, layouts and automation.
Mr. Foster said, “Corporations need to focus on building resilience and flexibility into the supply chain. From a real estate perspective, the implications for industrial property abound but it is important to remember that real estate demand is the product of supply chain optimisation. The key is to first design the optimal supply chain network, then execute on real estate requirements. Bringing these factors together in a coherent way provides the strongest approach to navigate short term and longer-term transformation.”
Click here to download The Role of Asia Pacific in Global Supply Chains report.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 50,000 employees in over 400 offices and approximately 60 countries. In 2021, the firm had revenue of $9.4 billion across core services of property, facilities and project management, leasing, capital markets, and valuation and other services.
