Despite the fact that only 8-10 percent growth is expected this year, the number of orders could still exceed 70 million. In addition to reliable payment platforms and good customer service, fast delivery is one of the most important factors for customers. To increase the efficiency of logistics processes, warehouses are needed that facilitate easy access to major hubs – say the experts at Panattoni, Europe's largest industrial real estate developer.
What will speed up delivery?
Fast delivery is essential to maintain customer satisfaction and loyalty in the modern market. Leading e-commerce companies are mostly trying to speed up the process through automation. Technology enables orders to be managed and delivered quickly and efficiently, but it does not solve all problems – such as long distances or the inconvenient location of warehouses which resulting environmental impact.
Often speeding up automated processes is possible only (especially in parts of the country with high order volumes) by exploiting the potential of last mile warehouses. „Last mile warehouses are strategically located near city centres and access roads. By setting up or renting such facilities in urban or suburban areas, companies can reduce the distance their products travel, resulting in faster delivery times" – says László Kemenes, Managing Director of Panattoni Hungary.
By reducing the distance travelled by products, transportation costs are also reduced. The savings are mostly used by the service providers to offer more competitive prices to customers, thereby increasing the number of customers.
With "last mile" warehouses, companies can also reduce their negative impact on the environment. Products have to travel less, reducing their carbon footprint. In addition, more and more last mile warehouses are being built that contribute to sustainability not only through their strategic positioning but also through their design. For example, Panattoni's City Dock development in Törökbálint, Hungary, which will be completed in 2023, will have energy and water saving systems and a BREEAM Excellent certification. So tenants could contribute to greener future not only by optimising their own processes, but also by choosing their landlord carefully.
"Overall, last mile warehouses are a great solution for companies looking to improve transport efficiency and inventory management processes, as well as reduce costs and environmental impact. They are proving to be an increasingly popular choice for businesses that want to meet needs of their customers and remain competitive in today's fast-paced market" – added Mariann Tóth, Leasing Director of Panattoni Hungary.