Supply Chain Council of European Union | Scceu.org
Supply Chain Risk

Snacks and stuff by the millions of square feet

The coronavirus is a disruption spawning and accelerating trends that will keep on giving as long as people keep on spending online, and online spending is expected to increase by $125 billion to $150 billion in 2020 due to the effects of COVID-19.

E-commerce retailers, whether or not full-time, “created a competitive edge for post-pandemic sales growth. … Lean manufacturing theory generally perceives inventory as waste (and uses) a just-in-time model for optimized efficiency,” “Emerging Trends” says.

However, the report says, “as logistics customers increasingly recognize that their supply chain is the lifeblood of their revenue streams in a time of potential serious disruption,” just-in-case supply chain strategies are the wave of the future, possibly requiring some 400 million square feet of new space the next couple of years, according to Prologis Research.

And that will hold a lot of almonds, mixed nuts, snack sausages, and Chick O Stick Nuggets — just in case.

Reach Real Estate Editor Richard Mize by email at [email protected]

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