3 Benefits of Consolidating Warehouse Operations

Richmond Park New Development in Cape Town by Atterbury Property

An artist impression of the new premium mixed-use development Richmond Park by Atterbury along the N7  in Cape Town. Tenants and logistics operators are increasingly finding value in consolidating their operations, with similar trends evident in the Gauteng property market.

This blog post was updated on 08 March 2021. 

Companies are under greater pressure than ever before to be more efficient, lean and agile to remain competitive and sustainable in the current economic climate that we find ourselves in today. Consolidation is a popular strategy that has gained significant momentum in the industrial real estate market in Cape Town. The trend is particularly evident among companies that seek to rationalize their existing footprint of activities or to optimize efficiency.

Here are some general benefits of warehouse consolidation to owners and occupiers in the Cape Town industrial real estate market:

1. Improved Efficiency

Companies who prefer a hands-on approach to operations generally benefit from greater overall efficiency when combining their office and warehousing activities under one roof. Various companies that have consolidated have noted a significant reduction in stock losses and quicker turnaround times in deliveries and collections. Inefficient processes associated with outsourced warehouse operations are also eliminated, which results in a more efficient overall management of the product.

2. Better Customer Service

Customer service requirements is a key motivator driving warehouse consolidation. Companies who wish to improve their overall service offering and client experience benefit significantly from having their office and fulfilment centre in the same location. Consider bringing your storage and product distribution under one roof while incorporating a premium office environment that will satisfy both logistical and staffing requirements.

3. Reduced Overhead Costs

Given the rising demand for occupiers seeking ways to consolidate their activities, developers and landlords have responded with innovative new property developments. Across the board, new developments catering to the consolidation trend not only offer premium amenities, but also significant savings in the form of innovative green efficiencies.

Atterbury is just one of such developers leading the trend, evident in the successful Waterfall Business Estate in Johannesburg and their upcoming Richmond Park in Cape Town’s Western Seaboard.

If you would like to find out more about how you can consolidate your operations, contact our office and ask to speak to one of our skilled Property brokers for more information.


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