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The Changing Face of Distribution

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On January 22nd, 2019

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The Changing Face of Distribution

Transportation represents roughly 50% of total logistics costs. Motorway congestion, increasing regulations for CO2 emissions, congestion, labour shortages are already contributing to higher costs and inefficiencies.

Technology and multi-modal solutions are ready for implementation and offer solutions to the logistics industry. However, for many innovations, evidence of improved productivity is not abundant enough to justify their high cost. For others, legal liability is still unresolved.

So how will Europe’s distribution evolve over the next decade?

We take the view that while current innovations and multi-modal transport still have room for improvement, they will be implemented over the short- and long-term. Current distribution corridors – or “bananas” – will shift in response to Brexit, the Silk Road initiatives, TEN-T multi-modal networks and infrastructure improvements, automation, and autonomous vehicles.

Our new report highlights changes and additions to Europe’s distribution “bananas” and markets that are positioned to take advantage of future distribution patterns. Several case studies are presented to demonstrate either successful technological adoption with improved productivity or the impact of multi-modal connectivity on demand for distribution warehouse space. In all cases, public and private sectors formed a cooperative partnership to ensure financially beneficial and seamless outcomes.

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