“You say you want a revolution?”

Report
New supply chain technologies and changing consumer expectations are reshaping logistics, and extra spending on real estate could represent good value for money, Prologis claims in its latest research.
Since the 1970s the process of globalisation has been driving the evolution of supply chains and even today is continuing to spur change. During the 70s and 80s manufacturing became international and this led retailers to compete on price, but by the 1990s consumers had started to take low prices for granted and so competition switched to providing the widest possible range of goods. Today, not only is globalisation still shaping supply chains, but e-commerce is pushing retailers to provide better and in particular faster service, . E-commerce is now around 20 years old, but it is only recently that it has truly started to have a significant effect on changes in the market. The internet is now providing consumers with new methods of shopping and, as a result, it is changing expectations, with customers demanding not only shorter delivery times but greater convenience. Online shopping is putting ever greater pressure on the distribution system and now accounts for 20 pct of new leasing
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