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Time to review storage

The drop in sales and the need to reduce costs have led companies to reduce their inventories, bringing idleness to operations. Despite the excess, reducing storage capacity is not an easy decision. First, because the crowd is for the crisis to be temporary, and second, because capacity decisions are based on strategies with a long-term vision, with high switching costs.

Current conditions, however, present great opportunities to review storage capacity. A good alternative is the use of logistics condominiums, which can bring greater flexibility and customized solutions, without the need for high investments by the user.

The low vacancy rate in 2010 and the prospects for growth in retail and e-commerce attracted a large number of investors to the segment of warehouses in logistics condominiums, increasing the availability of places for storage. Linked to the increase in supply, the economic crisis, which was not foreseen at the time when the logistics condominium projects were started, brought about a reduction in demand, making the market more advantageous for those who use this service. According to Colliers international, the average cost of leasing logistics condominiums in Brazil reduced from 2012 to 2013 and has not increased since then, which reinforces the bargaining power of those looking for new places to store their inventories.

Average value of warehouse leasing_ Storage _ILOS

Therefore, the expectation is that there will be good opportunities to reduce the need for warehouse area and the leasing cost per m². This makes the moment propitious for reviewing storage capacity and the search for new market solutions.

 

References

Brazil Logistics Market Report, Colliers Internationalhttp://www.colliers.com/pt-br/brazil/insights/reports>

<http://galpaoaluguelevenda.com.br/2015/06/15/sera-que-vale-a-pena-alugar-um-galpao-em-condominio-logistico-agora/>

https://ilos.com.br

Executive Partner at ILOS, Master's degree in Administration from COPPEAD/UFRJ with an extension at the European Business School – EBS, Germany, and a degree in Business Administration from UFRJ. More than 10 years of experience in training and consulting projects, focusing on Logistics and Supply Chain. In the training area, she developed business games and online courses and currently teaches Data Analysis, Inventory Management, Warehouse Management, in addition to applying business games such as Beer Game in open and in-company programs in companies from various segments, such as Coca-Cola, Nestlé, ThyssenKrupp, Votorantim, Carrefour, Mallinkrodt, Souza Cruz, Via Varejo, Monsanto, Itaú, Renner, Ipiranga, among others. In consulting, he has carried out projects such as Logistics Network Redesign, Inventory Management, S&OP Process Structuring, and Diagnosis of Warehousing and Transportation Operations in companies such as Coca-Cola, Souza Cruz, Editora Moderna, Petrobras, Ducoco, Ultragaz, Silimed, Eudora, among others.

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