E-commerce Needs More Distribution Centers Urgently

Source: Reforma

Author: Nallely Hernández

For companies selling online in Mexico, the main challenges lie in reducing operating costs and delivery times in the last mile: that is, the final stretch of the delivery of goods.

However, there is a lack of space for this kind of property, according to SiiLA México.

Although companies have been selling via Internet due to the Covid-19 pandemic, orders are still far from being delivered on the same day of purchase, as is already happening in the US and Canada, and even customers are slowing down the purchase process when they see cost overruns to speed up deliveries.

Therefore, SiiLA remarks that it is necessary that the developers of industrial warehouses of logistics prioritize operational centers focused only on receiving goods to be distributed to the final customer, as well as spaces to receive returns.

E-commerce catapults companies

José Carlos Alemán, CEO of SiiLA México, said that, in order to have industrial buildings of this kind, it is necessary for the government to join in, to allow the reconversion of spaces in areas connected to urban centers, since it is difficult to find land available within cities.

However, the executive considered that, due to the challenge of the lack of space, it is also necessary to make use of strategies such as delivery companies to speed up the delivery of goods.

Another challenge for retailers is the cost of fuel, which represents about 5 percent of operating costs, which must be added to the rent of warehouses or industrial buildings, whose contracts are dollarized, so finding buildings closer to the final delivery locations will reduce operating costs.

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