From CNBC · Diana Olick · · 1m 40s
Prologis CEO: warehouses must move closer to customers
As delivery speeds become the competitive edge, warehouse operators are ditching centralized hubs for networks spread across cities.
In brief
As delivery speeds become the competitive edge, warehouse operators are ditching centralized hubs for networks spread across cities. Prologis CEO Dan Letter says ninety-one percent of company leaders urgently need decentralized fulfillment networks closer to consumers, reshaping warehouse strategy. Originally reported…
Ninety-one percent need decentralized networks
A Prologis survey with Harris Poll found ninety-one percent of company leaders said retailers and logistics providers urgently need more decentralized fulfillment networks to meet delivery expectations.
“"urgently" need more decentralized fulfillment networks to meet delivery expectations”
Companies abandoning global footprints
Fewer companies plan to keep their existing global footprint. The share fell fourteen percentage points from a year ago to just thirty-six percent, the survey found.
Speed now beats price for advantage
Companies seek faster delivery as consumer expectations escalate. Same-day delivery share doubled since two thousand nineteen. Speed tops price when securing competitive advantage, survey data shows.
Prologis focuses on consumption centers
Dan Letter, CEO of Prologis, says the company narrowed focus to dynamic consumption and population centers, targeting specific sub-markets to be closer to customers.
“"we're very specific what sub markets in those cities that we want to focus on? Because it is all about being closer to those rooftops"”
Prologis sold two hundred million feet
Despite owning one point three billion feet, Prologis sold over two hundred million feet over fifteen years because customers said it was not their long-term vision.
Energy resilience drives location decisions
Power reliability ranks number one in logistics location decisions. Just over a quarter of executives expect industrial landlords to lead or fund on-site energy resilience infrastructure including solar and charging.
Prologis generates one point four gigawatts
Prologis doubled down on energy five years ago and turned it into a business. The company generates over one point four gigawatts from solar and storage, and helps customers electrify fleets.
“"We have over 1.4 gigawatts of power that we generate from our solar and our storage business"”
The main idea
Prologis CEO Dan Letter says ninety-one percent of company leaders urgently need decentralized fulfillment networks closer to consumers, reshaping warehouse strategy.
