THE IMPORTANCE OF SMART LOGISTICS
The pandemic will accelerate a series of changes that have begun to emerge in the supply chain ιn Greece. In fact, it will create new models, both in the supply chain, stock procurement and related services. The pandemic will also accelerate the digital transformation of the industry. The digital based operations and paperless transactions have come to stay.
At the same time, the industrial manufacturing and logistics sectors understand that they need to develop new operating models that respond to crises, such as the one experienced, with more domestic production and on-sourcing of essential goods to meet domestic demand and orders. Most likely, the pandemic will also mark the "end of an era" for linear supply chains, in which all processes and systems are concentrated within each company's facilities, because the linear system lacks many alternatives and efficiency options. For supply chains to withstand crises, they will need sooner or later flexible, interconnected ecosystems, involving different companies that produce on behalf of brand owners and co-creators of products. Today's competitors can also become partners. Businesses in the industry are discussing the adaptation of strategies to "demand sensing" and to demand trends from the end consumer, instead of relying only to wholesale demand.
E-COMMERCE IS CHANGING LOGISTICS
A significant share of consumers, who turned to e-commerce in the previous lockdown period, is expected not to return proportionally to physical retail stores. “Home consumption” becomes a new reality that leads to further growth of e-commerce. As a result, more "last mile" logistics will be needed and to run efficiently. Greece's urban centres will need smarter and environmentally friendly distribution centers with "green" couriers.
The pandemic crisis has also highlighted the need for more product stockpiling and thus for technologically advanced and flexible central warehouses, so that supply chains can increase their efficiency as a result of massive e-commerce adoption and demand peaks. This is expected to lead to the reopening of old and vacated industrial and warehouse buildings as well as big box retail assets with parking space and suitable infrastructure to charge electric light good vehicles fleets. Supply chains will need to play a connecting role with those companies that create and store products, the e-commerce platforms that connect the products with the end consumers and the IT service providers that manage the chain's operations.
In summary, e-commerce will adjust logistics industry and its real estate dynamics.
CURRENT STRENGTHS
- Greece's geographical location within the Eastern Mediterranean corridor
- The privatizations and upgrades of ports and airports
- The planned and on-going road network upgrades and railway network expansion
- The presence of COSCO in the port of Piraeus and its development into an international transit container hub
- The durability of the hypermarkets and essential household goods markets
- Strengthening of the e-commerce market
FUTURE OPPORTUNITIES
- Public and private investment in new transit infrastructure and expansion of railway lines to connect with key ports and transit centers
- urban (last mile) distribution centers to meet the demand for faster delivery of goods due to the continued growth of e-commerce
- Investment in modern warehouses and last mile logistics that will utilize a corporate fleet of electric mini van trucks
- More onshoring in local supply chains and further domestic production of essential goods to meet the demand of the domestic market in the first place
- Development of high-tech multi-storey structures with efficient storage systems and implementation of new automated technologies for smarter storage
You can access a copy of our related snapshot presentation in English here and in Greek here.