Logistics Manager presents the summary report for ‘Building the future: unveiling the latest in industrial and logistic properties’, an Aurora Insights report by senior research associate Shannon Minehan and research assistant Henry Johnston.
To get in touch with the Aurora Insights team, contact research@aurorainsights.co.uk.
Introduction
Logistics Manager’s 2024 Industrial & Logistics Property Conference offered a comprehensive exploration of the ever-changing delivery, transport and warehousing sectors. Bringing together the knowledge and insights of 11 property and logistics experts, the conference addressed the industry’s most pressing challenges, innovative solutions, and emerging technologies. Covering topics such as environmental impact, the rising use of electric vehicles and micromobility, innovative uses for robotics and artificial intelligence, and the crucial role of social sustainability, conference attendees learnt how to reduce negative impacts from their warehousing and logistics activities, and how to adapt to changing industry demands.
Environmental impact
Environmental impact is a rising concern in the logistics and property sectors. With governments around the world introducing legislation aimed at reducing companies’ negative environmental footprints, it’s no surprise attention has turned to these industries. These sectors significantly affect the environment, with daily operations producing excessive waste and emissions, exacerbating the climate crisis. Between 2010 and 2020, the United Kingdom commercial and industrial sectors produced 40.4 million tonnes of waste (Defra, 2023), and in 2023 alone, UK commercial buildings produced over 12 million tonnes of CO2 emissions (UK Department for Energy Security & Net Zero, 2023). Consequently, many companies within the property sectors are looking to sustainability initiatives to manage their environmental responsibilities.
DPD is replacing its fossil fuel-powered fleets with vehicles powered by hydrotreated vegetable oil (HVO), having already decreased its emissions by 90% and removed 100,000 tonnes of CO2 from its environmental footprint. Whistl is also reducing its environmental impact, aiming to use 100% renewable energy by 2025 while also improving its recyclability to reduce waste. Furthermore, several companies are offering services to help other businesses reduce their footprints. Mitie, for example, is providing guidance to customers on how to reduce waste, improve recyclability, and create circular economies, while Visku is helping companies to improve sustainability and reduce warehouse space using ‘pallet hotels’, allowing companies to rent only the warehouse space they need.
Electric vehicles and charging infrastructure
Electric vehicles (EVs) and, in turn, micromobility, are also rising in popularity in urban logistics. As of January 2024, over 1 million EVs were sold in the United Kingdom (Webuyanycar, 2024), with this guaranteed to rise following the UK government’s mandate that all new cars sold within the country must be electric by 2035 (UK Department for Transport, 2023) – a date which may be brought forward to 2030 pending an ongoing consultation (UK Department for Transport, 2024). Further, micromobility is also rising in popularity, especially as more micromobility modes of transport such as bikes and e-scooters become readily available.
Evidencing this switch, several property companies at the conference discussed their transition to EVs and micromobility, and the development of relevant infrastructure for these modes of transport to maintain and improve their operations. Fin and Delivery Mates have begun to use e-cargo bikes to complete final-mile deliveries without emitting carbon, noise, or creating congestion, and are also operating their businesses from micro hubs to reduce the space needed for sustainable urban logistics. Similarly, Whistl, DPD, and Yusen Logistics are reducing their transportation carbon footprints by incorporating electric vans, electric trucks, and electric company vehicles into their fleets. Companies like Places for London and Mitie are also offering shared-user charging hubs to improve the availability of these vehicles and reduce the cost of charging infrastructure.
Utilising EVs, e-cargo vehicles, and micromobility solutions allow companies within the property sector to address challenges relating to poor environmental impacts, congestion, noise pollution, and rising costs over time (Peugeot, n.d.; Büttgen et al., 2021). However, as demonstrated by the speakers at the conference, as the number of these vehicles rise, the property sector must also consider the infrastructure needed to match this growth.
Robotics and artificial intelligence
Robotics and artificial intelligence (AI) are also being deployed at a rapid rate throughout the property sector. Able to improve the efficiency of a warehouse’s operations by optimising delivery routes, reducing human labour, and forecasting customer demands (Zhang et al., 2021; Lee, 2018; Drissi Elbouzidi et al., 2023), robotics and AI solutions can improve productivity and thus profitability, increasing the sector’s ability to meet customer demands and deliver items (Zhang et al., 2021).
Consequently, many speakers discussed the implementation of these systems in their operations. DPD is using AI and data analytics in its new warehouses to control operations and complete deliveries. Meanwhile, Yusen Logistics is utilising robots and automated storage machinery to move pallets around its warehouses and efficiently sort goods, eliminating the need for human operators. Finally, Fin is exploring the use of AI to optimise e-cargo bike delivery routes and increase the speed of delivery services. Aurora Insights corroborated this trend, showing that the warehousing sector is rapidly adopting robotics and AI to improve efficiency, safety, reduce errors in stocktaking, and lower costs.
Social sustainability
Social sustainability was another recurring topic discussed at the conference, highlighting its necessity in the property sector. Social sustainability is critical for improving the diversity of delivery and warehousing company management, and for meeting customer needs. HFW and Panattoni (2022) found that two-thirds of third-party logistics providers (3PLs) reported that strong environmental, social, and governance (ESG) practices helped to acquire new customers. Consequently, social sustainability is at the forefront of logistics companies’ operational strategies.
Demonstrating its importance, several speakers discussed their social sustainability strategies. In 2023, Whistl implemented equality, diversity, and inclusion (EDI) targets that need to be met by 2028 to promote inclusion and equality. Similarly, Yusen Logistics is looking to improve its social sustainability through upskilling workers and recruiting from the local community. Further, Vision Logistics is also improving social sustainability through customer interaction, allocating an additional 10 minutes to each delivery so drivers can spend time with vulnerable and potentially isolated customers.
Conclusion
As the industrial and logistics industry continues to evolve, adaptability and innovation are essential in navigating future challenges. Companies in the property sector must consider how they can commit to a greener future, how they will adapt to eco-friendly transport solutions and an increase in EV adoption, how to best utilise robotics and AI, and how to foster improved customer relations and inclusivity in the workforce.
To pre-order the full report, please contact Aurora Insights at marketing@aurorainsights.co.uk.
About Aurora Insights
Aurora Insights is an intelligence and consulting division of the UK’s leading B2B events and publishing company, Akabo Media. Launched in 2023, the business provides research reports and bespoke research offerings supported by ever-growing archives of data collected through the host of events, conferences and exhibitions run by Akabo Media.
To learn more, visit the Aurora Insights website.
