Prologis Discusses Same-day Delivery and What’s Trending in DCs

On Bloomberg Television’s “In the Loop,” Prologis chairman and CEO, Hamid Moghadam touched on some of the hottest trends in American distribution including the location of the DCs to the customer and same-day delivery.

Prologis is an owner, operator and developer of industrial logistics real estate across the Americas, Europe and Asia, with a laundry list of ecommerce and fulfillment clients including DHL, Amazon, Walmart and FedEx. Currently, Moghadam said, Prologis it is actively building distribution centers in 21 countries throughout the world.

Moghadam said globally Prologis is building facilities “everywhere” since the world is becoming more interconnected, however, in the United States, he said instead of seeing a major growth in the amount of new centers being built,  the new trend is that the size of the DC growing.

“The buildings are getting bigger, much bigger,” he said. Ten years ago, Moghadam said, the average distribution center was a half a million square-feet, now; the average size is between one and two million square feet.

Instead of being located in a centralized location, distribution centers throughout the U.S. are moving closer and closer to the customer. “Now because of same-day delivery, because of wanting to be close to customers, they are coming right into the big cities,” Moghadam said.

“Whether its same-day delivery or next day delivery, everything is getting quicker, nothing is getting slower,” Moghadam said.

“The key insight there is that everybody is trying to get closer to the customer,” he said.

Erin Lynch is the senior content producer at Multichannel Merchant. Erin can be reached (203) 899-8461 or connect with her socially on Twitter, Google+, and LinkedIn.