In 1966, Robert F. Kennedy spoke of living in “interesting times”: periods of danger and uncertainty, but also of extraordinary creativity. His observation fits the transition between technological waves—and it fits the moment we are living through now.

The convergence of automobiles, trucking and computer-based planning systems transformed retail and supply chains in the twentieth century. It created hub-and-spoke distribution networks, out-of-town superstores, malls and the car parks required to serve them.

Today, the Digital and Robotic Age is creating another transition. The combination of artificial intelligence, automation, ubiquitous connectivity and autonomous, alternative-fuel transport is reshaping how goods are made, stored and delivered.

The PAL supply chain

I call this emerging model the PAL supply chain: Personal, Automated and Local.

It is driven by three converging forces:

• Automation, AI, robotics and additive manufacturing improving efficiency and enabling smaller-scale production.
• Faster, more pervasive connectivity—especially as 5G expands—creating a more connected supply chain and a less centralised workforce.
• Lower-cost physical transport through autonomous, electric and alternative-fuel vehicles.

The PAL supply chain replaces a mass-manufactured, human-operated and offshored model with a more agile, resilient and responsive network. Its purpose is to understand consumer needs and bring goods to people, rather than expect people to travel to goods.

A retail paradigm shift

The retail apocalypse was already under way before COVID-19. Store closures accelerated as e-commerce changed consumer expectations and weakened the economics of many physical locations.

The pandemic intensified that shift. Consumers who had not previously embraced online shopping were suddenly compelled to use it—and discovered how convenient it could be. Same-day delivery, smart lockers, collection points and home delivery became central to the retail proposition.

That creates a new challenge: how can retailers provide rapid, affordable delivery in dense cities where space is scarce, roads are congested and historic infrastructure limits what can be built?

Future visions

Companies such as Amazon have long understood that same-day and same-hour delivery cannot be sustained without a fundamental redesign of the supply chain.

Automated fulfilment centres, delivery robots and drones are early examples. More speculative concepts—airborne fulfilment centres, drone hives and even underwater inventory storage—show how far the search for new logistics models can go.

Not every patent will become a practical solution. But the direction is clear: the future network will combine large automated facilities with smaller, local nodes that bring inventory closer to demand.

A new future in an old world

Europe faces a particular version of this challenge. Demand for logistics services is rising, but available logistics land is limited. Historic cities cannot simply be demolished and rebuilt around a new distribution model.

At the same time, many cities are reducing vehicle access through congestion charges, pedestrianisation and climate initiatives. The result is a difficult equation: growing demand for rapid delivery, limited space to store goods and an overloaded road network.

The answer may be to reimagine, revitalise and repurpose the infrastructure of the previous wave.

New life for old malls

Abandoned malls, superstores and former big-box retail sites offer a compelling opportunity. They are large, close to population centres, connected to major roads and already equipped with utilities.

Rather than building entirely new fulfilment centres, retailers can convert these empty shells into logistics hubs. The approach shortens the distance to customers while making use of infrastructure that already exists.

Repurposing is not merely a practical response to vacant real estate. It is a way to turn the legacy of an old retail model into the foundation of a new one.

Down in the tube station

Moving goods from regional fulfilment centres to urban locations is another challenge. Road freight adds to congestion and emissions, which is why underground logistics is attracting renewed interest.

Pneumatic tube networks once carried urgent mail, paperwork and money through cities including London, Vienna, Berlin, Paris and Prague. The technology is old, but the principle remains powerful: move goods below ground, away from crowded streets.

Projects such as Switzerland’s Cargo sous terrain, Germany’s CargoCap and the UK’s Mole Solutions are revisiting this idea with autonomous, electric vehicles and modern control systems. Disused rail lines, metro infrastructure and historic tube networks could become part of a twenty-four-hour logistics pipeline.

Repurposing car parks

Car ownership and urban parking demand are likely to decline as cities restrict traffic, remote work changes commuting patterns and mobility becomes more service-based.

That creates a new opportunity for underground car parks. Located close to consumers, these spaces can be converted into automated micro-fulfilment centres with temperature-controlled storage, robotics and rapid local delivery capability.

The model is already emerging. Underground facilities in Paris and automated urban fulfilment centres in Tel Aviv demonstrate that constrained spaces can support high-performance logistics when automation is designed to fit them.

Automated, open and everywhere

The final link in the network may be the automated, cashierless store. Computer vision, sensors and digital identity can allow customers to enter, select goods and leave without a traditional checkout.

These stores can operate as both retail outlets and micro-hubs. They can be supplied from larger fulfilment centres or urban logistics nodes, then support collection, delivery robots or drones for the final leg to the customer.

The European PAL supply chain can therefore become real through a combination of sixth-wave technologies—AI, robotics and autonomous vehicles—and repurposed fifth-wave infrastructure: disused shops, malls, underground car parks, pneumatic tunnels and rail lines.

The future of logistics does not always require a blank canvas. Sometimes the most imaginative solution is to give the past a new purpose.

Source: Originally published by P3 Logistic Parks, June 12, 2020. Written by Sean Culey.