What's changing? What will the Fourth Industrial Revolution mean for supply chains and physical distribution networks?

1. What’s Changing?
What will the Fourth Industrial
Revolution mean for supply
chains and physical distribution
networks?

2. John Munnelly
John Lewis
Jon Sleeman
JLL
Frank Weber
JLL
Eva Veldkamp
Metro
Peter Buse
Arvato
Sander
Breugelmans
Prologis

3. The New Industrial (R)evolution
From supply chains to customer
centric demand chains

4. Megatrends driving change in global supply chains
Shift in global economic power
Demographic change
Urbanisation
Accelerating
technological change
Sustainability
The strategic positioning of
supply chain assets
Changes in consumption
and demand
City logistics
Supply chain visibility, agility,
asset utilisation, buildings
More sustainable logistics
GLOBAL
DISRUPTORS
ISSUES
CHAIN
SUPPLY
Suppliers Manufacturers Warehouses Retail stores End customers

5. E-commerce and the digitisation of retail
Technological developments will disrupt supply chains
Big data
The Internet of Things
‘Uberisation’ and the sharing economy
3D printing
Automation and robotics
Augmented reality
Autonomous vehicles
Drones
Upstream supply chain
Downstream supply chain
CHAIN
SUPPLY
Suppliers Manufacturers Warehouses Retail stores End customers

6. E-commerce retail is generating demand for different types of warehouses
© Goodman
Mega e-fulfilment
centres
Parcel delivery centres and
urban logistics depots
Parcel hubs/ Sortation
centres
Online grocery fulfilment
centres
© Graftongate © Goodman © Segro
© Tesco

7. Warehouses are becoming more automated
© Swisslog

8. Technology will drive changes in future building requirements
Better asset utilisation
due to sharing
Within the life of a distribution building - imagine a
scenario where driverless goods vehicles deliver into
and from warehouses full of robots
Broadband and power
connectivity will become
critical
More buildings used for
rapid throughput
Taller buildings
- more automated storage and retrieval
systems
- more mezzanine floors
What will these changes mean for labour and the direct employment benefit associated with warehouse developments?
Less demand for warehouses
to function as storage facilities
- better supply chain ‘visibility’

9. Technology is transforming
production-led supply
chains into consumer-centric
demand chains and driving change
in buildings requirements
1
Conclusions - corporates, developers and investors beware!
2 3
Corporates need to better
integrate their property and supply
chain decision-making to optimise
their distribution property networks
Developers and investors must think
about how they can future proof
their buildings:
• Think autonomous vehicles and
warehouses full of robots
• What then constitutes good
design and a good location?

10. The new Industrial
(R)evolution
JLL.com/eu
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11. John Munnelly
John Lewis
Jon Sleeman
JLL
Frank Weber
JLL
Eva Veldkamp
Metro
Peter Buse
Arvato
Sander
Breugelmans
Prologis