Faster, easier, better. How e-commerce is changing logistics
Shorter and more sustainable supply chains, such as those required for e-commerce and q-commerce (quick delivery), are set to have a profound impact on the growth of our sector in Poland and across…
Izabela TrancygierJanuary 21, 20223-minute read
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Shorter and more sustainable supply chains, such as those required for e-commerce and q-commerce (quick delivery), are poised to have a profound impact on the growth of our sector in Poland and throughout the entire Central and Eastern European region. This will directly influence the volume and type of warehouse and industrial investment undertaken here over the next few years.
Since 2019, warehouse developers have been responding to increased and varied interest from their customers, but the traditional supply chain models they were previously familiar with have been undergoing revolutionary changes.
One reason for this is that demand from e-consumers in the CEE region has been growing almost exponentially: not only are we ordering more and more frequently, but we also expect immediate delivery. Fulfillment times are increasingly becoming a key factor in purchasing decisions, so vendors and suppliers are having to do everything they can to meet this demand.
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More and more couriers are now offering express delivery services (B2C, B2B, C2C, C2B), particularly in large cities, and—for the more “impatient”—often adopting the quick commerce business model. Among the players in this segment in Poland that have been experiencing rapid growth are both startups and international logistics and retail giants with a strong market presence.
Immediate delivery requires changes to existing distribution and storage models. For example, a network of small warehouses is needed in cities, though not necessarily in the most obvious locations.
We have seen things moving in that direction. We have also observed that online shoppers are gradually becoming more aware of the environmental and social impact of specific courier delivery services, rather than just the production and consumption of the goods they order. This, in turn, has led to an increase in what is known as sustainable supply—such as services that use greener vehicles in their fleets and strive to optimize the routes taken by goods or the resources involved in their delivery. This type of service from couriers and suppliers is now expected not only by individual customers, but increasingly by companies that take sustainable development seriously, as well as by investors who prioritize ESG standards.
Controlling the supply chain
Poland and the CEE region are also becoming a highly attractive investment destination due to the need to shorten supply chains and relocate production processes from remote locations. Thus, an opportunity has arisen for us to become Europe’s industrial and logistics hub. The improving road and transshipment infrastructure, as well as the enhanced quality and quantity of warehouse and industrial space—including the most technologically advanced and sustainable facilities—and the fact that labor and business costs remain lower than in the West, are all major advantages for Poland and the countries of the region.
The push to develop new, shorter, and more globally resilient supply chain models has been accelerated by the challenges posed by the pandemic and the lockdowns. But it is also one of the pillars of the Green Deal, i.e., the EU’s socio-economic strategy for the coming decades. This policy involves, among other measures, reducing the distance between the locations where production, processing, cultivation, or breeding takes place and the end-users of the goods and commodities, in order to support local economies and improve industrial relations.
Moving production closer—even if only partially—from another continent to the same region or a neighboring country where the goods are consumed will reduce not only the operational risks associated with long and complex supply chains, but also the environmental impact and ESG costs. According to McKinsey, the supply chain of an average consumer goods manufacturer alone accounts for up to 90% of its total environmental and social footprint.
About the author
Author's Bio
Izabela Trancygier
Regional Manager, Central-South Region
Izabela Trancygier serves as Head of the Central-South Region at 7R and is responsible for the company’s business development in the Central-South region. She oversees the leasing and development divisions,…