Odd Lots GXO's CIO on the Past, Present, and Future of Warehouses
Jul 26, 2021
Mark Manduca, Chief Investment Officer of GXO Logistics, brings insight into the evolving warehousing industry. He discusses how e-commerce has transformed warehouses from simple storage to complex operations, emphasizing automation's role in enhancing efficiency. The conversation highlights challenges such as labor shortages and real estate pressures in the logistics sector. Manduca also touches on future trends, including the growing importance of sustainability and the strategic partnerships necessary to navigate an increasingly complex supply chain landscape.
AI Snips
Chapters
Transcript
Episode notes
Warehouse Complexity
- Warehouses are becoming increasingly complex due to e-commerce and returns.
- This boom in warehouse demand is expected to continue growing massively.
Logistics: A Revenue Driver
- Choosing a logistics provider is a revenue decision, not a cost decision, impacting 100% of revenues if chosen poorly.
- E-commerce has significantly increased warehouse complexity, requiring more scalable and technologically advanced providers.
Fragmented Warehousing Market
- The warehousing market is highly fragmented, with GXO, the largest pure-play asset, holding only 5% of the market.
- $300 billion of the warehousing market remains in-house, presenting a significant opportunity for third-party logistics providers.