UK sees record take-up of warehouse space

Knight Frank’s preliminary data shows that take-up of UK warehouse space in Q3 2021 totalled 15.7 million sq ft, bringing the total amount of space leased this year to 46.9 million sq ft. This is 27% above the Q1-Q3 2020 total and puts the UK industrial & logistics sector on course for a record year, as the unprecedented levels of occupier demand looks set to ensure that the industry will beat the 51.6m sq ft of space taken in 2020.

In addition to ecommerce-driven demand for warehouse space, the recent supply chain crisis has demonstrated the need for greater supply chain resilience, and this is driving new sources of occupier demand. The shortage of HGV drivers, labour and materials, due to a combination of COVID-19, post-Brexit customs measures, and the Suez Canal blockage earlier this year have highlighted the need for simplified, shorter supply chains and shorter more direct routes to consumers.

Companies have accelerated efforts to secure warehouse space where they can hold high levels of inventory close to consumers, minimise delays and ensure uninterrupted service. Food manufacturing and indoor farming are examples of other occupiers taking space recently.

The strong underlying structural trends driving occupier demand has seen the sector attract £10.8bn in investment from UK and global institutions in the first three quarters. This is already higher that the £10.2bn that the sector recorded in 2020, with Knight Frank estimating total turnover for the year to reach £13bn. This will exceed the previous record annual turnover of £11bn which was reported in 2017.

Claire Williams, Industrial Research Lead at Knight Frank, commented: “Strong levels of take-up have been recorded over the past three quarters but the shortage of available space in the market is likely to dampen the level of uptake in the fourth quarter. Last mile logistics operators, parcel carriers, supermarkets and retailers have been competing for suitable space in a chronically undersupplied market over the past 18 months.

“Now with the driver and labour shortage and border delays causing severe disruption, aggravated concerns have caused companies to bring forward warehouse expansion plans across the logistics sector. Many are discovering that quality warehouse space that meets size, location and specification requirements is scarce, given high levels of take-up and construction plummeting due to increased costs and lead times for materials.”

 

 

 

UK sees record take-up of warehouse space

Knight Frank’s preliminary data shows that take-up of UK warehouse space in Q3 2021 totalled 15.7 million sq ft, bringing the total amount of space leased this year to 46.9 million sq ft. This is 27% above the Q1-Q3 2020 total and puts the UK industrial & logistics sector on course for a record year, as the unprecedented levels of occupier demand looks set to ensure that the industry will beat the 51.6m sq ft of space taken in 2020.

In addition to ecommerce-driven demand for warehouse space, the recent supply chain crisis has demonstrated the need for greater supply chain resilience, and this is driving new sources of occupier demand. The shortage of HGV drivers, labour and materials, due to a combination of COVID-19, post-Brexit customs measures, and the Suez Canal blockage earlier this year have highlighted the need for simplified, shorter supply chains and shorter more direct routes to consumers.

Companies have accelerated efforts to secure warehouse space where they can hold high levels of inventory close to consumers, minimise delays and ensure uninterrupted service. Food manufacturing and indoor farming are examples of other occupiers taking space recently.

The strong underlying structural trends driving occupier demand has seen the sector attract £10.8bn in investment from UK and global institutions in the first three quarters. This is already higher that the £10.2bn that the sector recorded in 2020, with Knight Frank estimating total turnover for the year to reach £13bn. This will exceed the previous record annual turnover of £11bn which was reported in 2017.

Claire Williams, Industrial Research Lead at Knight Frank, commented: “Strong levels of take-up have been recorded over the past three quarters but the shortage of available space in the market is likely to dampen the level of uptake in the fourth quarter. Last mile logistics operators, parcel carriers, supermarkets and retailers have been competing for suitable space in a chronically undersupplied market over the past 18 months.

“Now with the driver and labour shortage and border delays causing severe disruption, aggravated concerns have caused companies to bring forward warehouse expansion plans across the logistics sector. Many are discovering that quality warehouse space that meets size, location and specification requirements is scarce, given high levels of take-up and construction plummeting due to increased costs and lead times for materials.”

 

 

 

Lafarge France optimises transport for aggregates division

Lafarge has chosen to upgrade to the latest version of INFORM’s transport optimisation software for the building materials industry. The software will be used to optimise the dispatch of its truck fleet in the aggregates business.

The aggregates business of Lafarge France includes 160 locations and operates a fleet of 700 to 900 trucks. Compared to standard transport planning software, INFORM’s solution is powered by algorithms that analyse a virtually endless number of scheduling decisions in real-time and identify those that are ideal for minimising costs and maximising service level and on-time performance.

“We have been using INFORM’s transport optimisation software for over 25 years in our aggregates business,” said Kevin Perrault, Head of Supply Chain Projects at Lafarge France. “We pride ourselves in delivering the best-possible service to our customers and upgrading our operations to the latest version is a key element to help us achieve our goals and to remain competitive in the industry.”

The new version (v10) features an overhauled user interface (UI) and is powered by the latest aggregates optimiser. Inspired by feedback from customers and partners, INFORM designed the new UI to accelerate user adoption, while the updated algorithms further increase truck fleet productivity.

“The release also comes with a new interface technology which makes it easier to embed our system into a wider corporate supply chain environment and to connect it to other third-party systems,” explains Dr. Flachskampf, Head of Road Transport at INFORM’s Logistics Division. “We have also taken this opportunity to review all key optimisation parameters of our implementation at Lafarge France Aggregates, which will lead to further savings down the road.”

“As a long-time INFORM customer, we are looking forward to further strengthen and streamline our processes in accordance with logistics scheme which are in constant evolution,” commented Perrault.

INFORM’s software will run on a private AWS cloud. New map and truck availability functionalities as well as improved telematics communication round off the project. The upgrade is now under deployment and is slated to go-live in Q1 2022. It will build on INFORM’s growing footprint of v10 users in the building materials industry.

Lafarge France optimises transport for aggregates division

Lafarge has chosen to upgrade to the latest version of INFORM’s transport optimisation software for the building materials industry. The software will be used to optimise the dispatch of its truck fleet in the aggregates business.

The aggregates business of Lafarge France includes 160 locations and operates a fleet of 700 to 900 trucks. Compared to standard transport planning software, INFORM’s solution is powered by algorithms that analyse a virtually endless number of scheduling decisions in real-time and identify those that are ideal for minimising costs and maximising service level and on-time performance.

“We have been using INFORM’s transport optimisation software for over 25 years in our aggregates business,” said Kevin Perrault, Head of Supply Chain Projects at Lafarge France. “We pride ourselves in delivering the best-possible service to our customers and upgrading our operations to the latest version is a key element to help us achieve our goals and to remain competitive in the industry.”

The new version (v10) features an overhauled user interface (UI) and is powered by the latest aggregates optimiser. Inspired by feedback from customers and partners, INFORM designed the new UI to accelerate user adoption, while the updated algorithms further increase truck fleet productivity.

“The release also comes with a new interface technology which makes it easier to embed our system into a wider corporate supply chain environment and to connect it to other third-party systems,” explains Dr. Flachskampf, Head of Road Transport at INFORM’s Logistics Division. “We have also taken this opportunity to review all key optimisation parameters of our implementation at Lafarge France Aggregates, which will lead to further savings down the road.”

“As a long-time INFORM customer, we are looking forward to further strengthen and streamline our processes in accordance with logistics scheme which are in constant evolution,” commented Perrault.

INFORM’s software will run on a private AWS cloud. New map and truck availability functionalities as well as improved telematics communication round off the project. The upgrade is now under deployment and is slated to go-live in Q1 2022. It will build on INFORM’s growing footprint of v10 users in the building materials industry.

Planning software now offers realistic forklifts

Planning and engineering offices can now use realistic forklift trucks and warehouse equipment for their warehouse planning with CET Material Handling software from Configura.

“Using Configura’s software, CET Material Handling, planners are now able to give their 3D visualization of the warehouse and the intralogistics material flow an even more professional view. They can select from a great variety of different Linde truck models to create a realistic 3D warehouse layout design,” Intralogistics Consultant Andreas Mönk said for Linde Material Handling (MH).

With headquarters in Aschaffenburg, Germany and production plants around the globe, Linde MH develops high-performance solutions for intralogistics. The intralogistics specialist offers fully networked electric and combustion engine forklift trucks, warehouse equipment, fleet management software, automated solutions, driver assistance systems, financing offers as well as services around the forklift truck, and operator training.

“We are pleased to welcome Linde Material Handling to our growing global community of material handling companies that use CET Material Handling to plan warehouse solutions,” Configura’s Global Head of Material Handling Johan Gustafsson said. “CET Material Handling is a 3D system configurator that simplifies and accelerates the sales process of warehouse solutions and we’re confident it will enhance the customer experience.”

Configura’s software, CET Material Handling, brings salespeople, project managers and engineers together into one software to design, build, implement and sustain material handling solutions. The software automates common tasks, enhances collaboration across departments and reduces drawing time from months to days, and in some cases, hours.

Manufacturers make their products available in CET by creating an Extension. Extensions are an addition to CET that contains the specifications and data for a given product. Linde Material Handling’s Extension is available for any user for free with manufacturer’s approval through Configura’s Marketplace.

Configura’s software, including CET, is used by thousands of people worldwide including engineers, salespeople, designers, kitchen specialists, dealerships and manufacturers. Configura has revolutionised the way office furniture is sold in North America and is now gaining momentum in Europe’s commercial interiors industry as well as other industries including kitchen and bath and material handling. More than 100 manufacturers around the world – including NEDCON, Dematic, Marbodal, Nobia, Steelcase, Herman Miller, Haworth, Sunon and Kvik – use CET to sell their products.

 

ELA Awards finalists announced

The European Logistics Association (ELA) has announced the six finalists projects of the 2021 ELA Awards competition. They have been selected by an international jury of 18 comprising  high-level practitioners in logistics from sectors including retail, industry, consulting, service providers and the academic world.

Austrian Post (A): Emission-Free Delivery by Austrian Post and the Project “Green Graz” 2021. The integrated corporate and sustainability strategy, the project Green Graz, and the CO2 neutral delivery initiative.

dm-drogerie markt GmbH + Co. KG (D): Innovative retail logistics at dm | Integrative. Intelligent. Automated. Reduction in overall logistics expenditure of over €7m p.a., lighter workload for store employees of more than 50,000 hours p.a., reduction in the weight lifted in manual picking of more than 50,000 tonnes p.a., decrease in transport volume of roughly 1.8 million truck kilometres p.a., increasing capacity by implementing new technology in the DC world.

Superdry with Invar Systems and Hikrobot (UK): Warehouse Operations: Superdry with Hikrobot and Invar Systems. In the first application for Hikrobot in the UK, Superdry is leveraging the flexibility of intelligent mini-robot carriers to transform order picking. Using this technology has enabled the team to meet the required pace with demand during peak periods that traditionally would place a heavy burden on manual picking processes, especially when labour resources are tight – a challenge many businesses in retail face. Together both teams developed a method of delivering a warehouse solution to enable the business to succeed to meet ever changing demands. The solution is innovative and optimises the use of space whilst increasing throughput and reducing potential health and safety issues.

Mango (Punto Fa, S.L) (ES): The development of a global and more sustainable supply chain in the fashion industry. A new supply chain model in order to achieve better adaptation to the new reality, increasing efficiency throughout the supply chain, reducing the impact on the environment, whereas continuing to guarantee an optimal level of service for its customers.

Migros-Genossenschafts-Bund (CH): Logistic data marketplace – The beginning of the digital age of logistics for Migros. The overall goal is to break up information silos in different kind of supply chains. Each participant within a supply chain needs to have transparency about the flow of goods in some kind of way. Automation within a DC requires granular information about logistic objects, like pallets or boxes. Industry partners wants to know when to prepare for production. Consumers are interested in track and trace data. The marketplace for logistics data provides a solution for all this needs in a standardised way.

O’Logistique – Group Casino, (F): Changing the face of e-commerce logistics, when a leading French Food retailer meets the top British online grocery player. Disrupting the French grocery e-commerce market by developing the fastest-growing logistic company, based on the state-of-the-art technology developed by Groupe Casino’s partner, Ocado.

The award ceremony will take place online on 9th November 2021 and has following programme (tbc):

14:00 – 14:30: Keynote presentation

14:30 – 16:30: Presentation of the ELA Award finalists’ projects

16:45 – 17:00: ELA Awards Ceremony

17:00 – 18:00: round table + conclusion

The ELA Awards has become one of the most prestigious and important European logistics competitions and it is much sought after by companies throughout Europe. Its recognition of outstanding performance is highly valued by both previous winners and would-be winners alike.

ELA Awards finalists announced

The European Logistics Association (ELA) has announced the six finalists projects of the 2021 ELA Awards competition. They have been selected by an international jury of 18 comprising  high-level practitioners in logistics from sectors including retail, industry, consulting, service providers and the academic world.

Austrian Post (A): Emission-Free Delivery by Austrian Post and the Project “Green Graz” 2021. The integrated corporate and sustainability strategy, the project Green Graz, and the CO2 neutral delivery initiative.

dm-drogerie markt GmbH + Co. KG (D): Innovative retail logistics at dm | Integrative. Intelligent. Automated. Reduction in overall logistics expenditure of over €7m p.a., lighter workload for store employees of more than 50,000 hours p.a., reduction in the weight lifted in manual picking of more than 50,000 tonnes p.a., decrease in transport volume of roughly 1.8 million truck kilometres p.a., increasing capacity by implementing new technology in the DC world.

Superdry with Invar Systems and Hikrobot (UK): Warehouse Operations: Superdry with Hikrobot and Invar Systems. In the first application for Hikrobot in the UK, Superdry is leveraging the flexibility of intelligent mini-robot carriers to transform order picking. Using this technology has enabled the team to meet the required pace with demand during peak periods that traditionally would place a heavy burden on manual picking processes, especially when labour resources are tight – a challenge many businesses in retail face. Together both teams developed a method of delivering a warehouse solution to enable the business to succeed to meet ever changing demands. The solution is innovative and optimises the use of space whilst increasing throughput and reducing potential health and safety issues.

Mango (Punto Fa, S.L) (ES): The development of a global and more sustainable supply chain in the fashion industry. A new supply chain model in order to achieve better adaptation to the new reality, increasing efficiency throughout the supply chain, reducing the impact on the environment, whereas continuing to guarantee an optimal level of service for its customers.

Migros-Genossenschafts-Bund (CH): Logistic data marketplace – The beginning of the digital age of logistics for Migros. The overall goal is to break up information silos in different kind of supply chains. Each participant within a supply chain needs to have transparency about the flow of goods in some kind of way. Automation within a DC requires granular information about logistic objects, like pallets or boxes. Industry partners wants to know when to prepare for production. Consumers are interested in track and trace data. The marketplace for logistics data provides a solution for all this needs in a standardised way.

O’Logistique – Group Casino, (F): Changing the face of e-commerce logistics, when a leading French Food retailer meets the top British online grocery player. Disrupting the French grocery e-commerce market by developing the fastest-growing logistic company, based on the state-of-the-art technology developed by Groupe Casino’s partner, Ocado.

The award ceremony will take place online on 9th November 2021 and has following programme (tbc):

14:00 – 14:30: Keynote presentation

14:30 – 16:30: Presentation of the ELA Award finalists’ projects

16:45 – 17:00: ELA Awards Ceremony

17:00 – 18:00: round table + conclusion

The ELA Awards has become one of the most prestigious and important European logistics competitions and it is much sought after by companies throughout Europe. Its recognition of outstanding performance is highly valued by both previous winners and would-be winners alike.

Streamlined delivery process for flooring distributor

Descartes Systems Group, a global leader in uniting logistics-intensive businesses in commerce, has announced that Carpet & Flooring, a leading UK independent distributor of floor covering products, is using its mobile proof-of-delivery solution (ePoD) to improve delivery efficiencies, enhance the customer experience, and prevent any delivery issues.

Peter Russell, IT Director, Carpet & Flooring, comments: “Descartes’ ePoD solution has unlocked considerable benefits for both our business and our customers. We have seen the number of requests for paper-based PoD decline dramatically and have received increasingly positive feedback from our customers.

“When COVID-19 struck, we instantly saw benefits from the ePoD solution because it meant that we were immediately able to offer our customers a Covid-safe, paperless PoD – with photographs and a full record of the delivery. We witnessed an 80% reduction in customer requests for proof of delivery, so the solution has saved both our time and our customers’ time.

“Being able to integrate Descartes’ ePod into our existing system and mobile technology has meant that it has been quick and easy to implement and roll out. We look forward to continuing to work with Descartes and develop our great relationship.”

Carpet & Flooring is one of the largest distributors of floor covering products, stocking and distributing products from Europe’s leading flooring manufacturers. It relies on convenient and successful deliveries across its 10 UK branches in order to provide an effective and optimised customer experience. With a desire to streamline delivery processes from the traditional pen-and-paper method and provide customers with full visibility of order status and location, Carpet & Flooring deployed Descartes’ ePoD solution to transform its processes.

No longer having to rely on manually scanning, processing and archiving paperwork and delivery confirmations, Descartes’ ePoD solution has increased efficiencies, reduced costs and improved customer satisfaction. Customers have benefitted by receiving text notifications on the progress of their delivery, allowing them to plan their work and be on-hand to receive their delivery, resulting in an increase in successful first-time deliveries. In addition, administration in retrieving proof of delivery information and answering customer queries has been reduced by 80%.

Pol Sweeney, VP Sales and Business Manager UK for Descartes, adds: “We’re delighted to be working with Carpet & Flooring. Providing a solution that supports both the team and the customers is essential for business success, and it is great to hear that Carpet & Flooring’s customers have been pleased with the ePoD solution. With its customer-centric approach, Carpet & Flooring will no doubt continue to provide exceptional service for deliveries and we are proud to be working with them to achieve this now and in the future.”

 

Streamlined delivery process for flooring distributor

Descartes Systems Group, a global leader in uniting logistics-intensive businesses in commerce, has announced that Carpet & Flooring, a leading UK independent distributor of floor covering products, is using its mobile proof-of-delivery solution (ePoD) to improve delivery efficiencies, enhance the customer experience, and prevent any delivery issues.

Peter Russell, IT Director, Carpet & Flooring, comments: “Descartes’ ePoD solution has unlocked considerable benefits for both our business and our customers. We have seen the number of requests for paper-based PoD decline dramatically and have received increasingly positive feedback from our customers.

“When COVID-19 struck, we instantly saw benefits from the ePoD solution because it meant that we were immediately able to offer our customers a Covid-safe, paperless PoD – with photographs and a full record of the delivery. We witnessed an 80% reduction in customer requests for proof of delivery, so the solution has saved both our time and our customers’ time.

“Being able to integrate Descartes’ ePod into our existing system and mobile technology has meant that it has been quick and easy to implement and roll out. We look forward to continuing to work with Descartes and develop our great relationship.”

Carpet & Flooring is one of the largest distributors of floor covering products, stocking and distributing products from Europe’s leading flooring manufacturers. It relies on convenient and successful deliveries across its 10 UK branches in order to provide an effective and optimised customer experience. With a desire to streamline delivery processes from the traditional pen-and-paper method and provide customers with full visibility of order status and location, Carpet & Flooring deployed Descartes’ ePoD solution to transform its processes.

No longer having to rely on manually scanning, processing and archiving paperwork and delivery confirmations, Descartes’ ePoD solution has increased efficiencies, reduced costs and improved customer satisfaction. Customers have benefitted by receiving text notifications on the progress of their delivery, allowing them to plan their work and be on-hand to receive their delivery, resulting in an increase in successful first-time deliveries. In addition, administration in retrieving proof of delivery information and answering customer queries has been reduced by 80%.

Pol Sweeney, VP Sales and Business Manager UK for Descartes, adds: “We’re delighted to be working with Carpet & Flooring. Providing a solution that supports both the team and the customers is essential for business success, and it is great to hear that Carpet & Flooring’s customers have been pleased with the ePoD solution. With its customer-centric approach, Carpet & Flooring will no doubt continue to provide exceptional service for deliveries and we are proud to be working with them to achieve this now and in the future.”

 

Fritz inducted into Logistics Hall of Fame

US entrepreneur Lynn C. Fritz has been inducted into the international Logistics Hall of Fame. The TRATON Logistics Leader of the Year Award has been given to Prof. Dr. Michael Feindt

Born in San Francisco in 1942, Fritz is considered the founder of logistics for humanitarian organisations. In order to help those affected faster and better in a crisis, he founded the Fritz Institute named after him in 2001 with his own funds, had software developed for non-governmental organisations that could be used free of charge, and established contacts with the leaders of numerous aid organisations in order to implement new concepts and institutionalised learning.

“Lynn C. Fritz has provided proof of how logistical strategies work for fast and effective disaster relief- a topic that is more topical than ever due to climate change,” said Anita Würmser, Executive Chairperson of the Logistics Hall of Fame jury, explaining the decision of the expert jury, which includes 70 well-known personalities from business, science, politics and the media in 13 nations.

“With his induction into the Logistics Hall of Fame, the international jury recognises his efforts to consistently support effective frontline humanitarian operations with strong competencies and a systematic approach in the background. The main pillars are effective processes, professionally trained logistics staff and the use of IT. Numerous initiatives in the field of humanitarian logistics are based on the far-sighted pioneering work of Lynn C. Fritz.”

Experts in the field of logistics for humanitarian organisations highlight several of Fritz’s achievements. After selling his logistics company Fritz Companies Inc. to UPS, the Californian used his money to have the free, web-based logistics software HELIOS developed at the Fritz Institute. The tool is available as a free global standard for humanitarian organisations and enables up-to-the minute tracking of food, non-food items, in-kind and cash donations, as well as financial information about goods in the supply chain.

Experts from the Institute had spent around 3,000 hours interviewing Red Cross and Red Crescent staff to develop the software. The reason: Fritz had recognised that methods and tools from business cannot be transferred one-to-one to the supply chains of aid organisations.

The entrepreneur also pushed for initiatives to systematically train logistics personnel and evaluate humanitarian missions with the help of key figures. Fritz also founded the first association for humanitarian aid workers in the USA and established a consortium of companies that provide logistics experts and donate money when needed.

Lynn C. Fritz will be officially inducted into the Logistics Hall of Fame at a gala reception on November 25th, 2021 in the Erich Klausener Hall of the BMVI in Berlin.

Feindt is Leader of the Year

The TRATON Logistics Leader of the Year Award will also be presented at the reception. This year the award goes to Prof. Dr. Michael Feindt, founder of the software company Blue Yonder, for which he now works as a strategic consultant. The scientist is considered an expert in data-driven software development, learning effects through data analysis and the development of new algorithms and tools in Big Data environments. In 2002, he founded a company to transfer his inventions in the field of predictive analytics from science to business. His idea: predictions in pricing and replenishment can be improved if they are made with the help of artificial intelligence.

Retail experts recognised the potential of the NeuroBayes algorithm he developed to automate operational decisions in the processes of retail companies. In 2008, managers from the Otto Group and Feindt founded the software company Blue Yonder. JDA Software bought the company in 2018. In 2020, JDA Software changed its name to Blue Yonder. In 2021, Panasonic acquired the company completely. The manufacturer of trucks and buses TRATON SE has sponsored the TRATON Logistics Leader of the Year Award since 2020.

With the TRATON Logistics Leader of the Year Award, the organisation honours those who set the pace and create the future of logistics. Entrepreneurs and managers from the transport and logistics sector are honoured who have been particularly successful in promoting their companies or who have set a trend-setting impulse. The focus is on topicality and the benefit for the company as well as innovative strength, sustainability and entrepreneurial change. The award is presented by the Logistics Hall of Fame and donated by TRATON SE.

The decisive factor for acceptance as a member of the Logistics Hall of Fame, on the other hand, is that an achievement is not only beneficial to an individual company, but has significantly and permanently advanced logistics beyond the boundaries of one’s own organisation or has become an industry standard. So far, 37 logisticians have made it into the international Logistics Hall of Fame. The Logistics Hall of Fame can be accessed free of charge at any time at www.logisticshalloffame.net and offers information and pictures about the logistics milestones and their makers.

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