Supply chain efficiency top trend to watch in 2014

Gurjit Degun
11 February 2014

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12 February 2014 | Gurjit Degun

Supply chain efficiency is one of the six key trends to watch this year, according to property company CBRE.

The Big Six: Reasons to Focus on Industrial and Logistics in 2014 report said property owners, retailers, and third-party logistics providers are still implementing “rigorous cost-management” programmes in search of supply chain efficiency.

CBRE predicted more outsourcing to specialist logistics companies because of “improvements in connectivity” between Western Europe and central and Eastern Europe, and the growth of industrial production and manufacturing.

“The quest for efficiencies places a premium on highly-accessible facilities and high through-put urban sites,” the CBRE report said.

It added that for some very specific supply chain organisations (where e-commerce distribution is vital and core for the retail offer) “we may see internalisation with capital investment made by the occupier”.

Richard Holberton, head of EMEA industrial and logistics research at CBRE, said: “It is recognised by many occupiers and 3PLs that, in a relatively slow recovery, securing internal efficiencies will be a crucial way to build revenues and profitability.”

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