Home industry supply-chain-management supply chain crunch hits big sheds in Australia

Supply chain crunch hits big sheds in Australia

Supply Chain Management

CIO Bulletin
2022-09-06

Australia’s largest privately-owned container logistics operator says rampant demand for warehouse stores across the nation is a sign of retailers changing from “just in time” to “just in case” supply chain management.

Construction of warehouses failing to keep up with demand even as big real estate firms such as Stockland gain development approvals and roll out major new industrial business parks.

The $8.4 billion ASX-listed Stockland began work on stage 2 of Leppington Business Park, and stage 3 of the Ingleburn Logistics Park will start shortly, adding 84,000 square meters of much-needed logistics space in Sydney’s growing southwest corridor.

Despite the scramble to build extra sheds, ACFS Port Logistics co-founder Arthur Tzaneros said the spike in demand for storage of palletized goods had outstripped the supply of warehousing, leading to sharp rises in rents and a scramble by logistics and storage providers to find and lease sheds.

Warehouse users have gone from a mentality of “just in time” delivery to “just in case” stock dealing with their supply chains.

Stockland executive general manager of logistics and workplace Tony D’Addona said the company hopes to ease the supply problem with $1.2 billion of active development projects.