THE LETTER FROM FRANCE SUPPLY CHAIN #04 - February 2022
TICKET OF THE WEEK
By Laurent Sabatucci, Associate Director - Founder EOL
Long live concerted logistics!

A manufacturer wishing to repatriate its activities from Asia to France risks opting for other countries in Europe or the Maghreb. Is the reindustrialisation of France threatened by a lack of available industrial land and a scarcity of logistics platforms?
The logistics real estate market is overheating with very strong demand (+34% between 2021 and 2020) but the deadlines for warehouse construction projects are either delayed or stopped: the administrative process is always more complex, from 12 months to 3 years. Then, appeals are almost systematic.
In Belgium, on the other hand, the authorities issue building permits within 3 months and subsidise logistics jobs. The Hauts de France region has also made logistics a strategic priority to develop local activity.
Let us not be simplistic or dogmatic. Some projects are borderline and poorly integrated into the local ecosystem and environment. Others are remarkable thanks to more local consultation. These are places of innovation where employees are proud and can develop their skills. French technology companies have proven their know-how: Exotec (order picking robot) was incubated in a Cdiscount warehouse before becoming a French unicorn with worldwide success.
But the trend is towards unmitigated logistics bashing. It is therefore necessary to help elected officials, citizens and associations to make informed decisions by highlighting remarkable projects (Cdiscount, Décathlon, Intermarché, Lacoste, etc.). Then by really measuring the socio-economic impact of warehouses. This is the purpose of the survey proposed by France Supply Chain.
Concerned by the ever increasing difficulties to create new logistic sites in France (lack of land, delay, zero net artificialisation, recourse ... that our European neighbours do not know), France Supply Chain is carrying out a survey whose objective is to characterise the link between reindustrialisation and logistics.
The results will make it possible to measure the economic impact of the impossibility of developing logistics projects in part of the territory
HIGHLIGHTS
Mobile robots increasingly used in warehouses
Robot sales are booming in logistics. For example, the Danish company MIR announced last week that its sales would increase by 42% by 2021. Universal Robots reported a 41% increase. The French are doing well with companies like Exotec (which has just raised 320 million dollars) and Scallog and Alstef, which are on a strong upward trajectory.
The size of the global mobile robotics market, valued at $12.63 billion in 2020, is expected to reach $72.50 billion by 2030! Mobile robotics is growing rapidly in warehouses of all kinds and is profoundly changing the way people work. On the positive side: less drudgery at work and more attractiveness for recruiting employees with new, more technical and more remunerative positions. And also more productivity with increasingly shorter ROI. As for the negative aspects, some will point to a risk of dehumanisation of logistics sites, with increasingly intelligent machines taking the place of employees. Fortunately, the fear of this "great replacement" is still only a fantasy, far from reality.
NOT TO BE MISSED
Kyu: Supply Chain Risk Barometer
The results of the Supply Chain Risk Barometer are out!
This barometer analyses the challenges faced by companies in the aeronautics, automotive, luxury goods/distribution and services sectors in the face of these risks and sheds light on the areas of work to improve their resilience.
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