New research from global real estate services firm Cushman & Wakefield, reveals the last link of the eCommerce supply chain can account for 50% or more of total supply chain spend.
Cushwake’s Last Link logistics report shows the last link of e-commerce supply chain accounts for 50.3% of total supply chain spend.
Reducing the drive time between the urban depot and delivery point, or ‘STEM distance’ to 10 minutes or less can save serious money. Cushman said an average-size urban depot that controls its STEM distance generates a saving of nearly £1 million per year. Autonomous vehicle technology could also cut costs sharply.
“Our findings from using the TLLC model prove why the logistics premium for urban land is worth it due to the enormous savings possible through total transportation costs," Lisa Graham, from Cushman & Wakefield’s Logistics Research & Insight team, said.
"Unsurprisingly, the rents for urban land reflect the maturity of the eCommerce market in any given location. We expect rents for urban depots to increase significantly across major European cities as logistics hubs develop further. Strong rental growth potential for last link depots now puts logistics in the same revenue ballpark as traditional urban land uses.”