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%.

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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

Mother and daughter build a 70 m² house with more than 8,000 discarded glass bottles and impress with their creativity; known as the Casa de Sal, the property is located on Itamaracá Island, in Pernambuco.

Workers were opening a new road connection near the Marginal Tietê when they found, in the underground of the construction site, remnants of locomotives, wagons, and boilers from the 19th century linked to the forgotten history of Lapa.

Instead of burning or burying old tires, an American city is transforming about 2,000 of them into the street itself, paving its first sections with a quieter and more durable rubber asphalt.

China transforms desert-devastated area into the world’s largest artificial forest, planting trees for 60 years, blocking sand that reached Beijing, and creating a “green lung” of 92,000 hectares in a region once considered lost.

Greek island offers free housing for volunteers, but there’s a condition: you need to take care of rescued cats.

Engineers want to carve through Africa with a giant canal to bring water from the world’s second-largest river to a dying lake on the edge of the Sahara Desert that has already lost 90% of its water.

China has deployed snake-shaped robots to slide along power lines, where they have already inspected over 130 kilometers of cables using cameras and sensors to detect damaged wires, worn-out parts, and overheating.

Villagers dig a road by hand on a 1,200-meter cliff in China after decades of extreme isolation, creating one of the most dangerous and impressive tunnels in the world.

Malaysia created a tunnel that becomes a road on a normal day and a giant flood drain when rain threatens Kuala Lumpur.

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