June, 1999 Feature Article New Age Wizards Facilitate Global Commerce Robert Olsen Tompkins Associates (www.tompkinsinc.com) A flexible new breed of real estate developers meets the needs of businesses that trade internationally Our living rooms hum with sound bites from all corners of the Globe — courtesy of CNN and other modern media. We live in an environment of ongoing information update — constant communication and virtual globalization. We empathize with the homeless and starving, depicted on the TV screen. But more importantly, the television images of new places and products generate demands for products and services that we might not have known existed. Traders of old had to contend with geographic boundaries, compounded by language, communications and time factors. The commercial world of the '90s has transcended these limitations. We live in a virtual economy where it is possible to leverage global telecommunication networks — satellites and file servers — to indulge our purchasing whims on a 24-hour basis. The "global village" of the late '90s, however, is very fickle. As swiftly as the desire for a specific product erupts in a diversity of locations, so too is the swing to total lack of interest. The challenge of the right product at the right place, in order to meet demand, still remains. The problem is, storage and distribution networks take time (and money) to build, unless you have a magic wand, or better still, a benevolent relative in the real estate business. Agile Distribution But this is the '90s — for every challenge there is a solution — in this case agile distribution! (With apologies to those in manufacturing who coined the phrase first). It is now possible to transcend the physical limitations of a fixed infrastructure and locate storage and distribution facilities where and when they are needed. The constraint to dynamic flexibility — manufacturing and warehousing facilities — need no longer be viewed as "cast in stone." A new generation of real estate developers now exists, and they are breaking all the rules. These companies look beyond the traditional view of providing buildings (mere brick and mortar) and are offering a series of value-added products and services. Building upon the foundation of a global network of services and facilities, these organizations have deep financial roots to ensure stability, even in the turbulent global markets that comprise the extended supply chain. Breaking New Ground With their customer-driven capital deployment strategies, they offer more than just a physical network of distribution parks and facilities. They have also invested in intellectual capital — talented individuals who manage and direct strategic facilities and services development. Teams of seasoned transportation, distribution and logistics experts support their customers in establishing the optimal network and facilities to meet the demands of the changing market. Their research and development efforts are focused on creating innovative. master-planned distribution parks and facilities, overseeing every aspect of land planning and the building design process to ensure on-time delivery of distribution facilities. These resources combine their experience in the development, leasing and management of facilities with an understanding of the ever-changing needs of supply chain managers, on a global basis. Similar to transportation companies, who have fleets of vehicles for lease, they have extensive networks of large and small manufacturing and distribution facilities. State-of-the-art buildings are located in mushrooming industrial and business parks, with access to the critical transportation networks, linking the major centers of the globe. Understanding that a global marketplace requires dynamic consistency, these organizations focus on uniformity with the flexibility to evolve within an expanding geo-political context. They truly provide one-stop shopping for all distribution and light manufacturing needs. And if there is nothing in the portfolio to suit the client, they have the financial capability and construction expertise to build a customized facility, in just the right place, in record time, either in a single location or in multiple locations around the globe. Local relationships And their expertise doesn't stop there. These trailblazers have nurtured relationships with permitting authorities which, coupled with an understanding of regional rules and regulations, provide a distinct advantage. They know the ropes and can get around those frustrating procedures that can keep you locked out of a facility for indefinite periods. With their deep pockets and global presence. they have the strength to fund projects internally, eliminating delays that can occur due to financing issues. Success breeds success — they have now developed the critical mass to engage the best contractors to meet impossible deadlines, transforming a previously fixed infrastructure into one almost as flexible as the virtual world of the Internet. In addition to understanding the changing needs of the logistics community, the real estate developer of the future has thought the process through, to include that quicksand of legal agreements. A single lease, which can be amended to suit changing requirements, provides the flexibility to relocate, or expand, to any other property in the network, across the street or across an international border. Either way, the necessity for large sums of capital to support facility expansion is no longer an issue. Working capital requirements are as flexible as these networks of the new millennium. Customizing And while reconfiguring your network or facility to meet current needs, why not take advantage of new technologies and incorporate them in a warehouse retrofit, new facility or expansion? The developers understand the value of customized warehousing and view these improvements as an enhancement to their portfolio. As businesses driven by customer satisfaction, these developers include office space, warehouse layout, equipment and specific customer needs in each package they put together. These "new age" real estate wizards understand issues like clear height, fire protection, column spacing, dock positions and efficient office layouts. The yard is also taken into account, with planning stages visioning into the future to support changing traffic patterns as well as current vehicle requirements. Finally, taking the value-added concept to its limit, some organizations are even offering the full service of facility maintenance or if required by cyclical demand, public warehousing for special handling and storage "temperature" controlled and hazard-compliant. Sound too good to be true? Well, the groundswell of support for this new generation of developers is growing at an astronomical rate. Unlike some of the recent fads in supply chain management this trend makes good business sense: Grow or shrink your distribution network to suit changing markets. Support for the concept has created additional "critical mass" and a concentration of desirable facilities in the key markets of the world providing even more flexibility and convenience. Like the mythical Aladdin's lamp of lore, this option of new warehouses for old seems like something out of a fairy tale. Whatever the interpretation, this is the wave of the future. Why didn't someone think of it earlier? Tompkins Associates is an engineering-based consulting firm specializing in Total Operations. Tompkins helps companies with supply chain management, warehousing, material handling, facilities planning, integrated manufacturing, workplace leadership, team-building, construction services, maintenance, quality and organizational excellence. For more information, visit Tompkins Web site:www.tompkinsinc.com. The Manufacturing Report © Copyright 1999 by Lionheart Publishing, Inc. All rights reserved. E-mail Editorial Dept: tmr-editorial@lionhrtpub.com Lionheart Publishing, Inc. 2555 Cumberland Parkway, Suite 299, Atlanta, GA 30339 USA Phone: 770-431-0867 | Fax: 770-432-6969 E-mail: lpi@lionhrtpub.com Web Design by Premier Web Designs E-mail: lionwebmaster@preweb.com