Not that long ago, logistics real estate was considered pretty standard; delivering big basic sheds for clients. This is no longer the case and you can argue that we’re actually ahead of the pack in using technology. For ESR, technological innovations are a way of improving our customers’ operations, creating more sustainable and efficient operations, as well as providing for a Human-centric environment for our customers.

We created the ESR Future Solutions Group (FSG) to proactively identify and evaluate technological, economic and societal changes in our customers’ (and their suppliers’ and business relations’) operations and to determine how these changes will impact the design and operations of logistics facilities. We view the implementation of technology in our facilities in three broad categories:

Operational improvements

We design facilities with the implementation of existing and new technology in mind, to maximise our customers’ ability to operate effectively.

Technology which works to improve operational efficiencies will be the first to be adopted in the next few years, including more robotics and automation in the facilities, electric (and later autonomous) vehicles for last mile deliveries and the use of big data to allow for more predictive decision-making regarding stock levels and delivery routing and timing. The faster rollout of 5G wireless technology across markets will enable more of these innovations to be implemented.

Robotics operating in highly-automated logistics facilities is already common in the operations of many 3PLs, e-commerce companies and other operators. This ranges from simpler robotics technology used to complement human activities to the fully-automated “dark warehouse” with little human activity.

Autonomous vehicles and drones are already being testing in various markets and in many cases the technology is already deemed advanced enough to be able to handle deliveries. The next stage of this evolution will be to improve the infrastructure for such vehicles (at the logistics facilities and the delivery points, including communications), as well as having a regulatory environment allowing for more autonomous operations. We have started collaboration with VRCO, a UK Aerospace company, to design and demonstrate the world’s first cargo drone logistics facility at ESR Higashi Ogishima Distribution Centre, located in the Greater Tokyo Metropolitan Area.

Sustainability & efficiency

Tech helps us manage our logistics facilities and parks in a sustainable and efficient manner. Monitoring and improving energy and water use and conservation, LED lighting systems, using renewable energy – such as solar and wind power generation – where possible and efficient waste management systems are good for the planet and the bottom line. We are also seeing more implementation of advanced technology in park management including security, access control for customers and visitors, parking control and delivery routing.

People at the heart

We believe that technology, coupled with superior design and an understanding of the needs of employees, can improve the usability and working environment within facilities.

Technology allows for better management of temperature, air quality and lighting, at the same time as we incorporate amenities such as staff recreation areas, canteens, child care centres in our facilities. Human-centric design improves employee morale and retention and directly improves business performance.

We work with our stakeholders, including customers, investors and local authorities, to proactively review and implement the latest innovations which improve the design and operation of our facilities, allowing our customers to have more efficient, safer and healthier operations, in a cost-efficient manner.

Further reading:
ESR

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Stuart Gibbons