Geodis has signed a 10-year lease agreement with PRD Group for a 20,000 square-meter multi-user facility in Minhang district, Shanghai. The facility is set to bolster GEODIS’ contract logistics capabilities for retail partners, providing improved storage and inventory processing to support the fast-growing e-commerce industry that is expected to be worth USD 2 trillion in Asia Pacific by 2025.
The new facility is slated to officially open to GEODIS’ customers in July 2023 and will include a state-of-the-art storage system, consisting of mezzanine flooring, Very Narrow Aisle (VNA) pallet racks, and racking served by Autonomous Guided Vehicles (AGV). The facility will provide the space needed to support large merchandise inventory as well as inbound and outbound procedures. At peak capacity, the site will be able to manage an inventory of close to 20,000 Stock-Keeping Units (SKU). This will include having the space to process up to 300,000 lines per day for GEODIS’ Business-to-Consumer (B2C) customers, in addition to approximately 15,000 lines per day for its Business-to-Business (B2B) clientele.
“Retailers today are facing a dynamic environment, where the rise of e-commerce and omnichannel platforms are changing consumer demands for goods and services. Our goal as a logistics provider is to support our customers – and theirs – by meeting these demands. With this strategic partnership with PRD Group, GEODIS will be tapping into the developed multi-user facility in Shanghai to optimize retail supply chains and provide innovative solutions that not only match but exceed the standards of service required by our retail partners to better serve their customers,” said Onno Boots, Regional President & CEO, GEODIS Asia Pacific and Middle East. “We are excited to work closely with our partners to integrate GEODIS’ operations into the facility in 2023 and continue our ongoing journey to being the strategic logistics partner of choice in the region.”
As part of this facility, retail customers can also expect Value-Added Services (VAS) such as packaging and re-packaging, re-labelling, quality control as well as the handling of return shipments and reclamations.
Aligning with GEODIS’ commitment of advancing sustainable supply chain growth, the lease will also provide the company access to concrete processes that manage carbon emissions, including the use of sustainable construction materials for the warehouse façade, LED lights and motion sensors, automatic energy consumption monitoring systems, which actively keep track of electricity usage, as well as energy-efficient air conditioners. These features in the developed site have been certified ‘Platinum’ by the Leadership in Energy and Environmental Design (LEED) rating system, the highest level of accreditation within the most widely used green building rating system in the world. To complement these, GEODIS’ delivery fleet within the district will also consist of electric vans for urban delivery.