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Faster, easier, better. How e-commerce is transforming logistics

Shorter, more sustainable supply chains—including in e-commerce and q-commerce (quick commerce)—hold significant potential for business growth in Poland and throughout the Central and Eastern European region. They will influence…

Izabela Trancygier January 21, 2022 3-minute read

Shorter, more sustainable supply chains—including those in e-commerce and q-commerce (quick commerce)—hold significant potential for business growth in Poland and throughout the Central and Eastern European region. They will influence the number and type of warehouse and industrial investments carried out here in the coming years.

Since 2019, warehouse developers have observed increased—though somewhat different—interest from their clients. The supply chain models they have known until now are undergoing revolutionary changes.

One reason is that the appetite of e-consumers in the CEE region is growing: not only are we ordering more and more frequently, but we also expect lightning-fast delivery. Order fulfillment time is becoming a key factor in purchasing decisions, so retailers and suppliers are doing everything they can to keep up with this demand.

15-minute trading 

The number of couriers delivering goods via express delivery (B2C, B2B, C2C, C2B) is growing, especially in large cities and within the “quick commerce” model—a model designed for impatient customers. Among the rapidly growing players in this segment in Poland are both startups and well-established international logistics and retail giants.

Instant delivery is forcing a shift away from existing distribution and warehousing models. It requires, for example, a network of small warehouses in cities, though not necessarily in obvious locations.

We are seeing a shift in this direction. We are also observing that online shoppers are slowly beginning to pay attention to the environmental and social impact of a given courier delivery service, rather than just the production and consumption of the items they order. This, in turn, is driving an increase in sustainable deliveries—those that use, among other things, more eco-friendly vehicles in their fleets and strive to optimize the route goods take or the resources involved in fulfilling a shipment. Such services are expected from couriers and suppliers not only by private customers, but also, increasingly, by companies that take sustainable development seriously and by investors who value ESG standards.

Controlled chain  

Poland and the CEE region are becoming attractive investment destinations, in part due to the need to shorten supply chains and relocate production processes from distant locations. This is our opportunity to become Europe’s industrial and logistics hub. Improving road and transshipment infrastructure, along with the growing quality and quantity of warehouse and industrial space—including the most technologically advanced and sustainable facilities—combined with labor and operating costs that remain lower than in the West, all work in favor of Poland and the countries of the region.

The drive to develop new, shorter supply chain models that are more resilient to global disruptions is a direct result of the challenges caused by the pandemic and lockdowns. But it is also one of the objectives of the European Green Deal, the EU’s socio-economic strategy for the coming decades. Among other things, it aims to reduce the distance between production, processing, cultivation, or breeding sites and end consumers in order to increase the share of local trade and industrial relations.

Shifting production—even partially—from another continent to within the same region or a neighboring country is intended to reduce not only the operational risks associated with long and complex supply chains, but also those related to negative ESG impacts and costs. According to McKinsey, the supply chain of an average consumer goods manufacturer alone accounts for up to 90 percent of its total environmental and social footprint.

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Izabela Trancygier

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,…

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