January 2000 | Commentary | Viewpoint

Real Estate Companies Deliver Distribution Solutions

No tags available

In today's economy, companies are experiencing an increased amount of pressure to deliver their products to market more rapidly and cost-efficiently. Customers have little tolerance for lengthy delays in the fulfillment cycle, and they reject the exorbitant costs often required to deliver the products to market more efficiently. To avoid these pitfalls, companies have begun to seek out distribution providers offering a comprehensive package of value-added services that help to design, build, and manage turn-key distribution networks.

Traditional property owners and real estate companies have not focused on offering quality value-added services. In fact, the inability of providers to deliver necessary consultative services has prevented numerous companies from developing an effective supply chain network. Because of this historical singular focus, tenants needing additional consulting or logistics services have been forced to consult with two, three, and sometimes four different vendors to develop a comprehensive supply chain network.

Supply Chain Fragmentation

The result is that services critical to companies with complex distribution needs are fragmented in today's marketplace. But, with speed to market a crucial component of any company's value proposition, a company looking to develop or expand a logistics network cannot afford to deal with multiple providers to reach its distribution goals. This supply chain fragmentation, or lack of one-stop providers, makes the goal of establishing an advanced and profitable distribution network difficult to attain.

The logistics industry can no longer neglect the service demands of its clients. Because the ability to deliver products efficiently has become so critical in today's economy, distribution companies are seeking providers that offer a one-stop shopping system for all their logistics needs.

Companies looking to create or expand a supply chain network must partner with a logistics expert that can streamline the logistics process by providing everything from distribution network optimization software to state-of-the-art distribution buildings. Leading-edge distribution service providers must be capable of servicing their customers with facilities management, expertise, and the capacity to enable global expansion, as well as fee development, material handling equipment, and process consulting.

In addition, business location services, build-to-suit capabilities, facility engineering, and transportation management have all become necessary elements in developing and maintaining a versatile and cost-efficient distribution network.

A broad range of value-added services offered from a single-source provider can help companies make timely and efficient decisions in planning new distribution facilities or expanding an existing network. For example, ProLogis offers customers a solution to determine the best structure for distribution networks and facility locations through the use of the network optimization technology of its affiliate, INSIGHT.

Because INSIGHT's tools and consulting expertise can be part of a conveniently bundled package of services offered by ProLogis, the customer does not have to search for an independent vendor to contract for each service.

The Need For Speed

As the logistics industry continues to evolve, distribution providers must learn to change the way they do business. With the economy growing at a rapid pace, and speed to market becoming more difficult to achieve than ever before, service providers will face fierce pressure to provide their customers with the most cost-efficient distribution solutions.

To do this, providers will be forced to challenge and modify their own business models to provide customers with an array of comprehensive and advanced value-added services. Without these services, developing a strategic distribution network that allows companies to ship product on time and at low cost becomes nearly impossible. The ability to attract new customers and stay competitive in the market will remain an ever-present challenge.

Digital Editions

June 2014 Cover

Full Digital Issue

June 2014

(140 pages • 20.21 MB PDF)

2014 Logistics Planner Cover

Digital Edition

2014 Logistics Planner

(162 pages • 23.2 MB PDF)

G75: Inbound Logistics' 75 Green Supply Chain Partners Cover

Digital Edition

G75: Inbound Logistics' 75 Green Supply Chain Partners

(17 pages • 1.57 MB PDF)

Latin American Logistics: The View to the South Cover

Digital Edition

Latin American Logistics: The View to the South

(6 pages • 0.8 MB PDF)

Chemical Logistics: Delivering Solutions for a Complex Industry Cover

Digital Edition

Chemical Logistics: Delivering Solutions for a Complex Industry

(21 pages • 3.9 MB PDF)