Prologis Explains Why Today’s Supply Chains Require More Logistics Space
Philippa Maister | September 27, 2023 | Globest
In today’s world, 57% more logistics real estate is required to support $1 billion in retail sales than a decade ago, a new analysis by Prologis has found.
Ten years ago, 500,000 SF would have been sufficient to do the job. Today, 800,000 SF is needed. “Today, these supply chains amount to 1.2 billion SF and support $1.4 trillion in retail sales (on 2022 dollars basis),” Prologis reported. This has happened despite automation and data analytics advancements, to create what it calls “the supply chain productivity paradox.”
“This paradox has happened because larger, decentralized logistics real estate networks unlock revenues and save on costs in ways that were previously not possible or well understood.”
