Logistics
Location search and logistics real estate
Opportunities and challenges when searching for a location and selecting a logistics property
The right choice of location for logistics real estate, such as a warehouse, has a significant impact on efficiency and costs in logistics. This correlation is independent of the industry and is just as relevant for the retail sector as it is for the manufacturing industry. Warehouse locations can generate advantages through convenient locations, low operating costs and proximity to customers. On the other hand, there are also some risks and challenges – such as high land prices, regulatory requirements and environmental aspects. The balance between infrastructure, labor availability and cost-effectiveness is crucial when searching for a location and selecting logistics real estate.
We use modern tools and technologies in data analysis to optimize decision-making processes. Through a structured project approach, we can quickly and effectively show our clients which region is ideally suited and which locations or existing logistics properties are suitable. We are completely independent of commercial real estate service providers and project developers and can therefore focus entirely on our clients’ processes.
Target setting
Requirements for the location in terms of costs, accessibility, sustainability, scalability
The target definition defines key requirements for the location or property and must be integrated into the logistics network. In addition to location criteria, the target definition is derived from the corporate strategy. Important criteria include costs, infrastructure, customer proximity, sustainability and expansion potential. A clear strategy is required in order to carry out an efficient location search and create long-term competitiveness through optimal logistical and economic conditions.
We guide and moderate the process of developing objectives. Our cross-industry experience, coupled with the specific expertise of our clients, ensures holistic, reliable target definitions. We use tried-and-tested methods to identify all aspects, then weight and prioritize them in a meaningful way.
Our service packages:
- Derivation of the objective from the corporate, operational or supply chain strategy
- Identification and description of criteria for the choice of location or property
- Weighting and prioritization of criteria
Your benefit:
- An objective that is congruent with the corporate strategy
- Cross-industry comparison in the target-setting process by experienced Rothbaum consultants
- A clear formulation of the objective that is holistic and understood within the company
Systemic site selection
From the analysis of suitable regions and locations to the basis for decision-making
During the site search, locations are systematically analyzed and evaluated based on the defined location criteria. The challenge is to quickly and efficiently identify the plots of land or existing properties on the market that come into question in relation to the previously defined location criteria. We have access to the data and potential sites and can therefore use a data-based approach to evaluate the available sites quickly and efficiently.
We draw on a network of partners and service providers, which gives us access to comprehensive databases and detailed information. This information is necessary to identify available countries, regions, locations and plots of land or properties and to compare them with the criteria. In addition, we use the Rothbaum regional database and a developed procedure for property valuation to carry out a data-based analysis and prepare the results in a comprehensible manner. In the selection process, we work our way from a large number of possible locations/properties (longlist) to a selection of favorites (shortlist).
Our service packages:
- Systematic selection of suitable logistics locations
- Market screening to identify suitable plots and properties at the selected location
- Creation of a customized database
- Preparation of a longlist and shortlist for rapid decision-making
- Independent valuation of offered property
Your benefit:
- Prepared results from the analysis of the extensive databases
- We take over the interface to estate agents and property providers
- A comprehensible basis for decision-making
Design of logistics network
Optimization of logistics processes through strategic location integration
The integration of the potential location or property into the company’s existing logistics network requires a holistic view of the influencing factors. If implemented correctly, the processes in the logistics network can be optimized and overall efficiency increased, in particular through shorter transport routes, reduced risk in the supply chain, lower overall costs and improved logistics KPIs, such as delivery times.
When designing a network, we first provide support in realizing a strategically coherent concept. In doing so, we take into account the objectives of the company and the location search in order to develop a suitable logistics network strategy. On this basis, the next step is a tactical analysis of the network, which leads to the optimization of transport routes for warehouse stocks and more flexible transport solutions.
Our service packages:
- Integration of the new location into the existing logistics network
- Strategic network design based on the objectives
- Tactical network optimization
Your benefit:
- Overall optimization of the logistics network through the integration of the new location
- Coordinated logistics strategy based on the corporate strategy
- Improvement of key logistics figures in the network
Concept planning
Detailed utilization concept including construction, operation and resource requirements
Regardless of whether the logistics property is to be designed using a greenfield or brownfield approach, concept planning forms the basis for efficient site and concept planning. The basic structure of the building is designed based on the requirements for the required space, warehouse technology and inbound and outbound processes. This is followed by the planning of a block layout, traffic routes, the degree of automation and IT integration. Important factors in this context are scalability, operating costs and flexibility in the use of the building. Industry-specific requirements and environmental aspects are also taken into account.
We can use a wide range of concept planning references to quickly achieve results and develop solutions that are both customer-specific and proven. We involve the relevant stakeholders so that the concept is supported by all departments involved and company-specific aspects are taken into account. A structured approach with experienced consultants ensures the best possible results.
Our service packages:
- Creation of a basic structure of the building/layout based on the specifications
- Block layout with logistical and functional areas and traffic routes
- Leading the conceptual process to involve all necessary stakeholders
Your benefit:
- Concept planning by experienced consultants ensures that all critical aspects are taken into account
- Layouts and planning documents that show a comprehensible interface to the specifications
- Professional project management to involve all relevant stakeholders in the conceptual process
Business Case
Performance audit, risk assessment and investment appraisal
Checking the key financial figures is usually the most important decision criterion for selecting a location or property, as the financial consequences will have an impact over a long period of time. It is therefore essential that you make location decisions on the basis of reliable key financial figures so that the purpose of the company that is to be established at the location is definitely achieved.
To determine the profitability of your new location, we first calculate the investment, one-off costs and annual costs for the new location from all available information. We compare these calculations with the savings, additional contribution margins, opportunity revenues and capital returns that can be reliably expected. We also take into account the financial benefits that the logistics location will bring to the entire supply chain. We then combine all the available key financial figures and the qualitative characteristics of the various locations from the shortlist in a technical and economic benefit analysis and derive a recommendation for action. As a result, we can offer you sound validation to ensure that you choose the right logistics location.
Our service packages:
- Create a comparative economic calculation
- Analyze technical and economic utility value
- Develop a differentiated recommendation for action
Your benefit:
- You receive a transparent and thorough overview of the expected profitability.
- You can track the financial calculation in key figures individually tailored to your company
- Parameters in the business case calculation can be adjusted again and again to run through sensitive scenarios
- Ultimately, you decide on the location on a well-founded basis
Site development and implementation support
Implementation of the project, construction supervision, process implementation and optimization
A new logistics location is an essential building block in a company’s value chain with a major impact on competitiveness and must therefore strive for operational excellence. On the one hand, however, the framework conditions are changing ever faster: the number of variants and costs are increasing, batch sizes are shrinking and products are changing. On the other hand, new locations always bring new challenges and special features with them – even if it is just different labor law conditions in another country.
For this reason, it has proven to be a good idea to scrutinize tried and tested logistics structures when planning a new location. In order to increase your added value, we work with you to develop possible new building layouts, plan logistics processes, warehouses and picking areas and focus on automation, increased productivity and optimized goods and material flows.
Our service packages:
- Provide project management for site development
- Developing variants for the new logistics location
- Designing building layouts with a focus on automation and increasing efficiency
- Accompany transaction and site development
Your benefit:
- You can concentrate on your core business during the implementation phase
- You receive a variety of different scenarios for possible building designs
- You can identify and utilize potential for increased productivity and flexibility
What opportunities arise when looking for locations for logistics properties?
When looking for a location for logistics real estate, opportunities arise from strategic location advantages, optimal integration of the location into the supply chain, proximity to sales markets, access to infrastructure and government subsidies.
What risks arise when searching for a location for logistics properties?
When looking for a location for logistics real estate, risks arise from high land costs, infrastructural bottlenecks, regulatory hurdles, environmental requirements and negative effects in the existing supply chain.
