E-Commerce: With Solutions for the Entire Supply Chain, Demand for Logistics Warehouses Grows in Brazil

Written by Roberta Souza

Published on 13/06/2022 at 21:26

Unidade da Log Commercial Properties/ Fonte: Site da Empresa LOG

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Warehouses Are Sought By E-Commerce Companies As They Provide Results For The Entire Supply Chain

After a significant increase over the past two pandemic years, e-commerce remains a trend in Brazil. According to data from Neotrust, from January to March 2022, e-commerce saw an increase of approximately 12.59%, following a 26.9% rise in 2021, boosting the demand for logistics warehouses with supply chain solutions (a system of organizations of people, activities, information, and resources involved in the activity of transporting goods or services from suppliers to customers).

This transformation in the purchasing practices of Brazilians directly affects another fundamental sphere for supplying the growing demand: logistics warehouses.

An analysis by SiiLA, a market research company, showed that 2021 had the lowest average vacancy rate in the last seven years, reaching 10.19%.

ARTICLE CONTINUES BELOW

Logistics Warehouses Are Seen As An Investment By Other Companies

According to the CEO of Log, a developer of greenfield logistics assets and high-standard warehouse leasing, Sergio Fischer, the search for higher quality logistics warehouses is not only made by companies that have recently begun their delivery operations with this new wave of e-commerce consumption, but also by companies that were already operating in the area and started considering logistics warehouses, referred to as “Class A,” as an investment for their own business since the warehouses utilize the supply chain.

“Many companies have moved from lower quality warehouses to our complexes, which offer supply chain-type services. Although the cost per square meter is higher, the efficiency gained often makes it necessary to occupy a smaller space to meet needs,” reports Sergio.

Advantages Of Class A Logistics Warehouses

The main difference between a Class A logistics warehouse and others is the infrastructure that Class A offers. In addition to warehouses with higher ceilings, level floors that can support more tons of cargo per square meter, greater distance between pillars, among others, logistic condominiums also provide a secure and armed gatehouse, sustainability arrangements that reduce energy costs, and ensure the functioning of the supply chain.

Other advantages of logistics warehouses and condominiums for e-commerce include the presence of cafeterias, comfortable dormitories, and changing rooms for workers as well as ongoing investments in digital modifications to optimize and facilitate work.

Log

Focusing on this type of market, Log, founded in 2008, stands out as the only company specializing in logistic condominiums, where the supply chain operates, listed on the Brazilian Stock Exchange.

The company presented 230,000 m² in 2021 and is expected to reach a record in 2022, totaling 414,000 m² of new logistics warehouses for e-commerce delivered throughout Brazil.

A Market Of The Future

According to Fischer, companies have been seeking logistics warehouses for e-commerce closer to strategic delivery locations and signing longer contracts, already aiming for long-term growth.

With the demand for faster delivery from customers, companies supplying logistics warehouses for e-commerce, which utilize the supply chain, conduct mapping considering regions with poorly situated companies to decide where to invest.

Despite going through periods of crisis, the e-commerce sector is experiencing a good moment, and even though physical shopping has started to expand again, the CEO of Log does not believe in a potential decline in the online shopping sector or the supply chain. “The share of online retail has more than doubled in two years. Consumption today is different. We have studies showing that e-commerce will more than double by 2025, approaching 25%,” he concludes.

E-Commerce: With Solutions for the Entire Supply Chain, Demand for Logistics Warehouses Grows in Brazil

Warehouses Are Sought By E-Commerce Companies As They Provide Results For The Entire Supply Chain

Logistics Warehouses Are Seen As An Investment By Other Companies

Advantages Of Class A Logistics Warehouses

Log

A Market Of The Future

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E-Commerce: With Solutions for the Entire Supply Chain, Demand for Logistics Warehouses Grows in Brazil

Warehouses Are Sought By E-Commerce Companies As They Provide Results For The Entire Supply Chain

Logistics Warehouses Are Seen As An Investment By Other Companies

Advantages Of Class A Logistics Warehouses

Log

A Market Of The Future

The oldest tree in the world, alive since before the birth of Jesus Christ, is cut down in a scientific study and the case changes environmental preservation rules.

Seen from space, an image taken by an astronaut shows an unlikely oasis in the Saudi Arabian desert, protected by a terrain that slows the advance of sand, surrounded by green circles, remnants of an extinct lake and nearly 10,000 years of preserved history.

While in Brazil a 10-story building takes 2 years to complete, in China a company stacks pre-fabricated modules and raises the entire building in just 28 hours and 45 minutes.

An entire island in the Pacific wants to surround itself with a colossal barrier against the ocean to try to escape increasingly violent waves and not be swallowed by the sea in the coming decades.

After ten days orbiting the Moon, science confirms that the astronauts of the Artemis II mission return with altered bodies.

In the Saudi Arabian desert, the world’s largest green hydrogen plant is 80% complete and will use 4 gigawatts of solar and wind energy to produce 600 tons of clean fuel per day when it opens in 2027.

A producer from Santa Catarina started with a poultry farm of just 7,500 birds in 1994 and three decades later manages 21 farms thanks to a simple strategy he learned early on.

With 250 meters and 55 floors, the Mohammed VI Tower becomes a new icon of Rabat, housing Waldorf Astoria and an observation deck, investing in solar energy, and already dividing UNESCO’s opinions on the historical landscape.

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