Demand for warehousing has spiked since the outbreak of the Covid-19 pandemic, according to Databuild CEO Morag Evans.“The rapid surge in e-commerce has accelerated the need among the fast moving consumer goods (FMCG) sector for last-mile logistic facilities that expedite the movement of merchandise in the supply chain and minimise delivery time to the final destination,” says Evans. “This is evidenced in Databuild’s dynamic database of active contacts, projects and tender opportunities, Databuild Online.”The company, which is a knowledge hub for the construction and allied industries, has begun tracking several warehouse construction projects for online retailers. “For example, Takealot is building new warehouses in Cape Town and Kempton Park, while Cotton On has commenced construction on a new warehouse in Midrand.”Along with expanding warehouse and distribution centres, online retailers are also extending their physical footprint, according to Evans. “Amazon has chosen Cape Town as the location of its new headquarters in Africa and the R4.5-billion project, involving 15 hectares of land, was recently awarded to developer W BHO.”Evans says the recent civil unrest and looting experienced in KwaZulu-Natal and Gauteng, which severely jeopardised South A f r ica’s supply chain, will further catalyse a shift in how FMCG manufacturers and retailers set up and manage their warehousing infrastructure.“Rather than putting all their proverbial eggs in one basket and storing their products in one gigantically sized warehouse, we expect to see these role-players making use of a diverse array of smaller warehouses, strategically located closer to large urban centres. This will not only improve the delivery experience for their customers but also mitigate operational risk when it comes to stock security and availability.”According to Martin Bailey, chairman of Industrial Logistic Systems (ILS), another outcome of the unrest has been the decision by several companies to pull out of KwaZulu-Natal completely in fear of further unrest.
