Anonymous sources have informed news site Bloomberg that Amazon is planning to launch its own US delivery service, ‘Seller Flex’, which has been designed to ease overcrowding in its warehouses and make more items eligible for two-hour delivery.
Research for the US pilot project reportedly began in India two years ago, with Amazon now in discussions with US sellers ahead of a national rollout in 2018.
The sources said that through the service, Amazon will manage parcel delivery from warehouses of third-party sellers to the customer’s delivery address, a role until now performed by delivery partners such as FedEx and UPS. Bloomberg’s Spencer Soper noted that the relationship between Amazon and its delivery partners may well continue, though the e-commerce company would gain more control over how a package is sent.
He added that this would give Amazon more flexibility and control over the final mile to customers’ doors – opening up opportunities for volume discounts – and help it streamline its warehouse inventory operations, by having external sellers store their goods in their own facilities.
“Amazon’s final-mile efforts reflect a logical extension of its model as it builds network density,” Benjamin Hartford, a Robert W. Baird analyst, told Bloomberg.
Australia’s warehousing and logistics industries will be worth $187 billion by 2021, according to a new study from market research firm Ken Research.
The company noted that it has observed an evolution in the logistics industry in recent years, in terms of integration and digitalisation of the supply chain, which has led to better productivity and efficiency creating sustainable modes of transporting goods from one place to another.
Ken Research attributed the Australian logistics market’s impressive growth rate in 2016 to the expanding manufacturing and retail sector, the growing number of foreign companies and the increasing value of exports and imports.
The demand for cold chain logistics has grown with the rising demand for Australia agricultural products from other countries leading to increasing agricultural exports, the company noted. It added that government investment in infrastructure development of road, rail, air and water transport facilities will drive the Australia logistics and warehousing industry in coming years, through investment including $70 billion allocated for transport infrastructure from 2014 to 2021, and $75 billion for funding road and rail infrastructure from 2018 to 2027.
The partnership of the Australian Government with New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, Northern Territory and the Australian Capital Territory in 2014 is expected to assist the various land transport infrastructure projects.
Ken Research said that the freight forwarding industry will continue to account for the larger share of the revenue pie, supported by the growth of third-party logistics (3PL) service providers, as global players enter the Australian market.
Large companies are expected to focus on value-added services, with the power having shifted to the consumer, with internet driving growth, the transformation of supply chain, business-to-consumer (B2C) outgrowing business-to-business (B2B), new technology and home delivery.
“The value added services segment has seen faster growth in the international market than domestic primarily due to growing cross border e-commerce,” the company said. “With the development of artificial intelligence and growth of e-commerce sector, the demand for warehousing is expected to develop with auto and ancillary and chemical and pharmaceutical sectors [emerging as the] largest demand drivers of warehousing space.”
Australia’s industrial and logistics occupiers are generally optimistic about the future and expect their businesses to be better off financially in the next 12 months, an inaugural survey carried out by commercial real estate services and investment firm CBRE found.
The Australian Industrial and Logistics Occupier Survey was undertaken to gain a better understanding of decision-making drivers, occupier strategies and how changes in technology and automation are impacting real-estate requirements.
Kate Bailey, Senior Research Manager, CBRE, said the results reflected an engaged and optimistic industrial and logistics market, with 66 per cent of respondents expecting their business to be better off financially and 25 per cent expecting things to stay the same over the next 12 months.
The retailing, warehousing and distribution sector were the most positive, with 86 per cent of respondents expecting their business to be better off.
“Surveys of this kind have rarely been undertaken in the Australian industrial and logistics market, meaning there has been limited benchmarking of what drives occupiers’ decision making,” said Bailey.
Manufacturers were found to be the most likely to want a smaller occupancy, with 21 per cent preferring a smaller footprint. This was possibly reflective of the shift towards high-tech manufacturing, which was less floorspace intensive, Bailey said.
CBRE Senior Managing Director, Industrial & Logistics, Matt Haddon, said the survey also highlighted key trends and attitudes in relation to sustainability, e-commerce, new development practices such as multi-storey warehousing, and the drivers behind occupiers’ site selection criteria.
“It is likely that the drive to incorporate sustainable design elements in industrial and logistics assets will continue to be led by the owner-occupier sector, with this group most likely to amortise initial expenses such as solar panels and wind turbines and see the flow on benefits from sustainable demand first hand,” said Haddon.
When it came to e-commerce, one of the more surprising findings was that the impact was yet to be fully realised in the sector, with 42 per cent of respondents indicating that they had seen no change from the growth of e-commerce in the past five years.
In relation to multi-storey warehousing, the survey found that while there was a high level of awareness from respondents (90 per cent) only 25 per cent of respondents would consider this style of asset.
The level of appeal was higher amongst retail/warehousing and wholesaling occupiers (50 per cent appeal, 50 per cent consideration) and lower amongst manufacturers (20 per cent appeal, 17 per cent consideration) – possibly due to the high cost of specialised machinery and equipment.
Turning to site selection, the survey found that access to road networks, key transport infrastructure and skilled employees had the highest level of perceived importance when selecting an industrial or logistics property.
GAC Australia has opened a new consolidation warehouse in Perth, marking its first foray into the logistics business, in parallel to its shipping services available at all Australian ports since 2007.
The opening of the new warehouse comes in response to growing demand for storage space and distribution services from a major client with operations in Western Australia. The facility is located in the new Swan Brewery Estate at Canning Vale, about 20km away from Perth International Airport and Fremantle Port, with easy access to transportation links through the major road network.
The 800m² facility features a 5m x 5m warehouse door and an 8.5m truss height, allowing trailing equipment to reverse into the facility for loading and unloading. Arriving goods are consolidated and packed into pallets before being distributed to domestic and international locations.
“Australia has significant quantities of discovered gas resources,” said Scott Henderson, GAC Australia’s Managing Director. “In Western Australia alone, resource projects and infrastructure in the pipeline amount to billions of dollars. It is home to many local and international companies servicing the oil and gas, as well as mining equipment, technology and services (METS) sectors, presenting plenty of opportunities for project logistics and warehousing services providers.
“Having established a strong foothold in the country’s shipping sector, we are now ready to expand our portfolio to provide logistics services, and Western Australia is an ideal launch pad for our logistics operations. The ability to provide integrated shipping and logistics services will allow us to serve our customers better.”
Manhattan Associates’ Warehouse Management Solution (WMS) has won the Logistical Innovation award at the 2017 Australian Business Awards.
“This recognition reflects both our 27 years of focus and investment in supply-chain and omni-channel commerce innovation and how our solutions are enabling Australian organisations to respond to their customers’ rapidly changing needs,” said Raghav Sibal, Managing Director – Australia and New Zealand, Manhattan Associates.
“The expectations of today’s consumers are soaring and they want their goods delivered faster and more conveniently. With our WMS and complementary solutions, such as Distributed Order Management, retailers, manufacturing brands, wholesalers and distributors are equipping themselves with flexible fulfilment capabilities. By enabling them to work their whole network harder – leveraging inventory in transit, within stores, at suppliers, as well as in distribution centres – they can fulfil orders quicker and more profitably.”
Manhattan Associations supports Country Road Group, Casella Family Brands, eStore Logistics and Jeanswest, among others.
“Today, companies are facing a highly competitive and continuously changing business landscape,” said Tara Johnston, Program Director, Australian Business Awards. “In this context, the performance of companies depends more than ever on their flexibility, adaptability and responsiveness.
“New technological possibilities have the potential to transform the way companies operate within their respective industries with long-term gains in efficiency, productivity and customer loyalty. Each year, the ABA100 Winners are recognised for their commitment to business and product innovation and for their achievements in transforming business practices and end user experiences.”
The Australian Business Award for Logistical Innovation recognises products and services that provide innovative solutions for new and existing market needs in the fields of logistics and supply chain management.
Positioned at the heart of MEGATRANS2018, Transport Certification Australia’s Telematics Hub has proved a popular component for next year’s show with just two exhibition spaces left.
The multi-modal transport and logistics event will take place at the Melbourne Convention and Exhibition Centre from 10 to 12 May 2018. Spread across a 30,000m2 footprint, the show will distinguish between four distinct functional areas, including; Logistics and Materials Handling, Warehouse & Storage, Infrastructure; Road Transport and Air, Sea & Rail.
The TCA’s Telematics Hub is a core section of the event’s Technology Showcase, which will straddle the entire exhibition floor to reinforce the importance of technological trends such as Internet of Things, Industry 4.0, Intelligent Infrastructure and Intelligent Multimodal Transport Solutions.
With a focus on increasing productivity through intelligent multimodal transport solutions, the TCA Telematics Hub will showcase world-leading technology from telematics specialists such as Teletrac Navman and Tramanco, and demonstrate how Australia leads the way.
Bathroom hardware giant GWA Group (Caroma’s owner) is repositioning to an Australian designed, engineered, and outsourced manufacturing model.
GWA Group is to reposition the company to create more efficient manufacturing practices for its customers and business. GWA Group will be completely redesigning its distribution network inclusive of a purpose-built distribution centre, all the while reducing operational costs and environmental footprint. The new facility is also enlarging the group’s R&D resources.
GWA group general manager of supply chain Sean Mitchell said: “The transformation of our warehouse management system will future-proof our business. The outcome will provide us with flexibility to grow with improved supply and operational efficiencies.”
The new 31,029 m2 facility in Prestons, NSW will reduce GWA Group’s overall network footprint by consolidating NSW operations to one purpose-built site with state-of-the-art warehousing and R&D facilities.
TM Insight led the property procurement process, and together with GWA Group, is designing the warehouse and managing the construction and implementation of the facility. The Charter Hall-managed Prime Industrial Fund (CPIF) is developing the asset for ownership within its $2 billion industrial and logistics portfolio.
“This new facility will be truly bespoke to ensure optimal warehouse and operational flow for GWA Group’s diverse product range. This new building, which will be owned, managed and developed by Charter Hall, will be moving away from the traditional property led industrial building model into a purpose-built facility to meet the business objectives of GWA Group,” said TM Insight director Milan Andjelkovic.
The brief encompassed numerous environmentally sustainable design elements to reduce GWA Group’s environmental footprint and simultaneously increase operational and costs efficiencies.
The facility is anticipated to be operational in 2018. The overall project is estimated to cost $45 million.
Perth-based fund manager Mair Property Funds has entered into agreements to acquire two commercial properties in Melbourne for $20.3 million in two off-market deals.
The properties, located in Ravenhall and Altona North in Melbourne’s west, will form part of Mair’s Diversified Property Trust.
The Ravenhall property, in the Orbis Business Park, is a modern industrial facility constructed in 2010 and located 22km west of Melbourne CBD with a land area of 13,930m2. The 6,888m2 building is occupied with a 15-year lease until 2031.
The Altona North property is an industrial warehouse built in 2008 and located 13km south west of Melbourne CBD with a land area of 18,410m2. The 10,056m2 building is occupied with a recently agreed eight-year lease that expires in 2025.
Peter Melling, Acquisitions Manager, Mair Property Funds said the two assets were identified for their favourable locations and strong lease agreements.
“Altona is becoming an increasingly important logistics hub due to its proximity to the Melbourne Port and access to the Princess Freeway and Western Ring Road,” said Melling.
“Similarly, Ravenhall is a rapidly growing suburb part of the West Growth Corridor Plan, where the population is expected to increase from 210,000 in 2016 to 377,000 people.”
Upon completion of the acquisition, the properties will be included in MPF’s Diversified Property Trust, which already holds four commercial assets in three states, including a retail premise in Maraoochydore, Queensland; a medical facility in Ellenbrook, Western Australia; an industrial premise in Henderson, Western Australia; and a retail industrial premise in Lynbrook, Victoria.
Australian industrial property developer LOGOS has established a partnership with the Indian arm of Singapore-based asset manager Assetz Property Group. Together they aim to raise US$400 million ($508 million) to build and manage modern, specialised logistics and industrial parks around India over the next four to five years.
Ben Salmon, Co-founder and CEO of Assetz Property Group, said that LOGOS will benefit from Assetz’s local development expertise through the partnership, while LOGOS will bring institutional management and development expertise, the Economic Times of India reported.
Trent Iliffe, Joint Managing Director, LOGOS added, “We are seeing extensive demand from our existing and new customers for institutional-grade logistics facilities in the region.”
The partnership will see approximately 20 million square feet of warehouse and logistics space developed in cities including Gujarat, Hyderabad, Mumbai and Bangalore.
“Assetz has a long history of partnering to enhance the growth of our business,” said Salmon. “I am confident that this association with LOGOS will deliver a market-leading warehousing and logistics business in India. This is the coming together of two companies with complementary values. We look forward to lending our local development expertise to LOGOS India.
Logistics and supply chain company Linfox has appointed Terry Quinnell President – Retail.
A retail supply chain professional with 40 years’ experience in the logistics industry, Quinnell began his career as a Linfox driver in 1978, where he was quickly appointed Linfox Supervisor for Coca-Cola in Victoria.
In 1993, Quinnell left Linfox to join DTM Business Logistics, where he held several senior leadership positions including State Manager and CEO.
He returned to Linfox as General Manager in 2004, managed some of Linfox’s largest customers as Vice President – Retail, and spent nine years as General Manager – Woolworths. Quinnell recently led the development and implementation of Linfox’s new subcontractor management system, FOXLink.
As President – Retail, Quinnell will be responsible for managing warehousing and distribution for leading retailers in Australia.
“Terry is an accomplished leader with a proven track record in people management and customer relationships,” said CEO Linfox Australia and New Zealand, Annette Carey.