What's Happening?
Prologis Labs, an innovation center opened by Prologis in November 2018 in San Leandro, California, is dedicated to evaluating new products and services that could improve supply chains. The facility employs seven Prologis employees with expertise in engineering,
computer science, and real estate information technology to conduct research and analyze results. The center's flexible design allows for various configurations to test logistics-related technologies in settings resembling fulfillment, shipping, receiving, and reverse logistics areas. Prologis Labs collaborates with Prologis Ventures, a subsidiary investing in logistics-related startups, and Prologis customers and supply chain partners to drive innovation. The center has conducted numerous experiments, focusing on autonomous work trucks and IoT technologies, to enhance operational efficiency and customer experience.
Why It's Important?
Prologis Labs plays a crucial role in maintaining Prologis's competitive edge in the logistics real estate industry. By fostering innovation, the center helps Prologis address common supply chain challenges related to labor, transportation, and warehouse operations. The research conducted at Prologis Labs allows the company to explore technologies with commercialization potential, offering customers solutions without disrupting their operations. This approach strengthens customer relationships and positions Prologis as a partner in their success, rather than just a real estate provider. The innovation center also serves as an educational facility, helping shareholders understand the complexities of logistics real estate and the importance of staying ahead of technological advancements.
What's Next?
Prologis Labs is considering expanding its operations due to capacity constraints and the need for confidentiality in some experiments. Discussions are underway about establishing 'pop-up labs' across the country in temporarily vacant spaces within Prologis's portfolio. This expansion would allow Prologis to continue innovating and collaborating with customers and startups. The company aims to integrate innovation into every line of business and region, making it a responsibility for all employees. Products and services successfully tested at Prologis Labs are available through Prologis Essentials, an online portal for customers, further enhancing the company's offerings.
Beyond the Headlines
Prologis Labs exemplifies how innovation can be systematically approached to create competitive advantages in the real estate industry. The center's work highlights the importance of collaboration with customers and startups to drive industry change. By focusing on logistics technologies, Prologis Labs contributes to the evolution of global supply chains, addressing pain points and offering solutions that enhance efficiency and customer satisfaction. The center's expansion plans indicate a commitment to continuous innovation and adaptation to industry needs.
