July 23 event recap: More e-commerce means good news for developers

August 6, 2014 at 2:51 pm

Dr. James Tompkins

Dr. James Tompkins

By Nancy Burke, Gray Plant Mooty

The titans are here and they are changing the landscape.  This was the message delivered by Dr. James Tompkins, chief executive officer of Tompkins International at the July 23 NAIOP Minnesota breakfast presentation. Dr. Tompkins is an international authority on supply chain management and a prolific author who is often quoted in business publications. With his extensive expertise in supply chain strategy, he shared a fascinating inside view on how the giants of e-commerce affect real estate development.

Dr. Tompkins’ key points included:

  • Titans like Walmart and e-Bay combine with our increasing desire for instant gratification and growing attachment to technology to disrupt the traditional marketplace. Our world is transforming from retail- based shopping at the mall to an e-commerce based “click and collect” experience with a demand for same day delivery. This creates an evolution in distribution and warehousing.
  • The rise of e-commerce means the end of the era dominated by distant warehouse centers designed to deliver bulk packages to retail locations.  These warehouse centers are being replaced by more locally-based fulfillment spaces designed to move individual units of product fast.
  • The Minneapolis/St. Paul metropolitan area is well positioned to experience more growth in fulfillment-focused warehousing.  The good news is that an e-retailer establishing a network in the United States will likely want space in or close to the MSP market once it grows to six or more fulfillment centers.  This creates a great opportunity for development of warehouse space in our market.

NAIOP Minnesota extends a big thank you to Dr. Tompkins for sharing his insights along with his humorous accounts of his own family’s evolution in shopping habits and expectations.

Entry filed under: Featured Articles, Industry News, Programs | Events.

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