According to the article, there has been description about the changes in the logistic industry… 1 answer below »

According to the article, there has been description about the changes in the logistic industry market demand force. It is affecting the outcomes of the logistics industry because of the fast delivery services and the way of transforming the retail experience. Being the backbone of the e-commerce industry, the rise in demand side of the usage of transportation facilities brings the changes in the market prices. The demand side has been showing changes in order to bring a seamless and better shopping experience for the customers as fast delivery creates the infrastructural changes along with background system provisions. It is always ever changing to bring the economics need for flexibility in the creation of forces through robust system. For retailers, the prime factor to determine the changes includes the geographic location of the rent position with presence of imperative necessities in terms of market forces. According to the data sources, there has been only 5 per cent occupancy spend out of the given total supply chain costs. However, comparatively, there have been more of transport expenses in about given 50 per cent costs of supply chain management. That is why, demand side factors in the retail side are stronger as compared to existing supply side factors. Being situated in the key location of the network, there is greater provision of quick and more access to the cost-effective potential centres for delivering the best solution at competitive market prices. It further enforces the demand side factor composition as it brings the regional position to make it the epicentre as there have been more footprints in the given region. Hence, it can be concluded from the article economics that the demand has been rising because of the provision of last mile logistics which further places more pressure over the rents of the regions and also there is rise in occupancy level in that area. It enhances the supply cost of maintaining the infrastructure by putting pressure over the development factors which further increases the market prices of the land. This includes new developments at Rydalmere, South Granville and Villawood, adding to more recent brownfield developments at Chullora and Enfield. Also, it does not mean that there will be less demand for the efficient, modern and technology based logistics infrastructure in the future.


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