Industrial Real Estate for Supply Chain Management

Brown-Industrial-Building1A search for industrial real estate unmatched to your supply chain management (SCM) program could be a futile effort.  Imagine operating from an industrial space to facilitate your supply chain vs. one that fails to.  To accurately match industrial real estate to SCM, establish criteria from your SCM program to commence a property search.  (I can meet with your c-level SCM executive to identify the criteria for a search and suggest towns likely to have properties to meet that criteria.)  A 5-point plan and 4-point evaluation rubric can guide both the creation of criteria and the search/secure effort:

  1. Strategize. 2. Design. 3. Implement. 4. Operate. 5. Continual Service Improvement

  1. Strategize.  Identifying how your supply chain and staff operates guides the creation of criteria to commence a search/secure process, preferably by a Tenant Rep well-versed with industrial real estate.  Which of the key points below will fall into your space search criteria?

IRE search crit

Design Icon

2. Design. Implement the criteria from the Strategize phase into a virtual design of an ideal property; this vision drives your search and secure process.  This list of attributes guides the search – selection – secure effort.

I

implementation-icon3. Implement.  CAPM. Plan the relocation as a formal project, run by committee, stakeholders, project team and project suppliers.

operationalizing-the-vision4. Operationalize.  2-3 years lead time is ample to factor in all facets of relocation at a leisurely pace.  This lead time gives your secure effort negotiating advantage and time to revise a search effort if the property of choice becomes unavailable.  The actual relocation effort through go-live date could take 12 months to process.

CCIM logoYour Tenant Rep should evaluate each property reviewed based on the search criteria plus the evaluation model applied by the CCIM strategic analysis model: a) market and competitive, b) site/location, c) political and legal, d) financial.  These criteria are integrated to produce attractive choices and guide the property bidding process.

CSI icon5. Continual Service Improvement.  Before final offers are submitted, arrange a formal meeting of all stakeholders affected by the move (warehouse ops team, mfg team, shipping/receiving team, SCM team, IT).  A thorough paper review and on-site walk-through of each location by these stakeholders will identify which property(ies) fall into choice order.  These staff members are your boot-on-the-ground team/managers who have deep knowledge of facility operations. Their perspective gives your search team valuable feedback on how to proceed with the final bidding process.

The industrial real estate for your business plays an essential role in your enterprise’s SCM.  Precise search criteria support a simple, efficient and expedited search/secure process; any needs for property retrofit are identified during the property evaluation process.  I can help with all facets above, having experience and academics to support it.  If you’d like to discuss the industrial real estate needs of your enterprise, please ask your CFO to fill out the form at the base of “About Me” page, write “Industrial site search” in the subject line, with the CFO’s email signature in the message body.  I’ll reply within 24hrs to arrange an exploratory conference call within their calendar. ###

About Mayer Segal
Click "About Us" link above.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: