Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Making smart real estate decisions to optimise your supply chain across Asia Pacific

3/1/2022

ports (image)

80% of the value and cost of a supply chain network is locked in at the design stage, making supply chain network design critical5

While there are many complex facets to supply chain management, geographical and locational decisions underpin many of them. In turn, this directly flows into real estate considerations and ultimately the demand for property. Interestingly, while real estate costs are small compared to other costs through the supply chain, estimated at around 5%-10% of total supply costs, the ongoing costs for erroneous location decisions are much more considerable not least for the flow-through cost on transportation, inventory holdings and labour availability. 

Given the increasing cost of industrial property, to rent or buy, and the ongoing costs associated with erroneous supply chain design, the fundamental issues in network design are what types of facilities are required and where should they be located? To answer these questions, three key issues need to be considered: 

  • Network configuration – is dependent upon several factors, not least the footprint required for fast and efficient material and product flows as well as required storage capacities. Pressure on lean supply chains drives the need to consolidate the number of facilities to build scale. In contrast, an agile network will be designed across a greater number of facilities.

  • Facility location – will have the biggest impact on local real estate demand. Understanding lead times is a significant driver of location requirements. It is essential to understand how much inventory needs to be held in relation to the consumer compared to the production facility. The growth of eCommerce, especially B2C, has had a dramatic impact on this as well as growing requirements for reverse logistics.

  • Building specifications – the pace of innovation has meant that specifications for prime-grade logistics buildings continue to advance. Minimum ceiling specifications are getting higher to allow for automation which in itself allows for greater storage density, thereby reducing warehouse footprints. Building specifications should follow the needs of the customer, business requirements and facility processes, flows, layouts and automation not the other way around.

Download our paper – “The role of Asia Pacific in global supply chains”.

5 Gartner

Snapshots

Airport
Article • Economy

Will Asia’s rising middle class buy less globally?

With the growing importance in intraregional trade in Asia – Asia for Asia – corporations are having to reconfigure and build-out their logistics and industrial networks in the region.
3/1/2022
Facilities Management
Article • Supply Chain

COVID supply chain disruptions here to stay?

While many businesses are currently experiencing acute volatility in their supply chains due to COVID-related pressures, the situation is expected to ease through 2022 as consumption shifts from good to services and bottlenecks are unblocked.
3/1/2022
Retail ecommerce
Article • Supply Chain

New global supply chains create demand for different real estate facilities

Designing and configuring supply chains to meet changing consumer demands has had a direct impact on demand for logistics and industrial real estate in Asia Pacific.
3/1/2022
Wall walkway
Article • Economy

Which countries are the rising Asian stars in global supply chains?

South East Asia and India stand to gain. Over the next decade, the Asia Pacific region is forecast to experience robust economic and demographic growth.
3/1/2022

Ready to talk?

We look forward to connecting with you.

クッシュマン・アンド・ウェイクフィールドでは、トラフィックの分析および本ウェブサイト上でベストの体験をお客様に提供するためクッキーを使用します。このダイアログを閉じ、お客様の同意を確認されるか、詳細については次のページを訪れてください:
クッキー通知

その他のオプション
同意する
これらのクッキーにより、当社のウェブサイトが期待通りに動作することが保証されます。例えば、ウェブサイトのトラフィック負荷を当社のサーバー間で分散し、使用量が特に多いときにウェブサイトがクラッシュしないようにします。
これらのクッキーは、お客様が行った選択(ユーザー名、言語、居住地域など)をウェブサイトに記憶させ、より充実した機能を提供するためのものです。これらのクッキーは、広告に使用される可能性のあるお客様の情報を収集したり、お客様がインターネット上でどこにいたかを記憶したりすることはありません。
これらのクッキーは、当社がマーケティングパートナーと協力して、お客様が当社のウェブサイトに訪問する前にどの広告やリンクをクリックしたかを理解したり、当社の広告をお客様にとってより適切なものにするために使用されます。
すべてに同意する
すべてを拒否する
設定の保存