Vijay Vashisht, AVP, Safexpress, says, “Over the years, the warehousing industry in India has evolved from mere storage spaces and is moving towards sophisticated warehousing and logistics systems. Backed by the continuous expansion in the manufacturing sector and increased private and foreign investments, warehousing demand in India is on the rise.
This is backed by a very strong institutional interest in logistics, warehousing, and operational integration in recent years, which has transformed the sector from being just a large storage facility to a facility with value addition in terms of inventory management, packaging, etc. It will be prudent to remember, however, that the warehousing industry in India is largely unorganised and is still in a nascent stage of standardisation.
Logistics in India is a historically fragmented industry that is showing signs of churning. Things started changing for good during the last two and a half decades, though, when organised manufacturing hubs and a more comprehensive logistics infrastructure started taking shape. The online retail boom during the last one and half decades has given a much-needed impetus to the initial gains made.
New National Logistics Policy
The broad contours of the policy envisage a Comprehensive Logistics Action Plan (CLAP) which among other things, highlighted the promotion of logistics parks, such as multi-modal logistics parks, air freight stations, inland container depots, container freight stations, cargo terminals, etc., that serve as hubs for supply chain intermediary operations, including storage, handling, value addition, inter-modal transfers, etc., that are connected by a transportation network.
This is massive. It has the potential to transform the logistics and warehousing sector. The policy itself is yet to be tabled, and we should wait for it to come out.
“Safexpress is an early mover as far as Grade-A warehouses are concerned,” says Vashist. Our cutting-edge warehouses are strategically situated on motorways close to manufacturing centres, designed with the intention of meeting needs that may arise 15 to 20 years from now, and furnished with cantilever shades, cross-docks, and several bays to enable simultaneous loading and unloading. These warehouses are also energy-efficient and environmentally friendly. Furthermore, Safeducate, our sister company, is a certified skill development and training organisation that provides students with the necessary skill set for the business.
A renewed focus on foreign and institutional investments in the warehousing sector, especially since the pandemic has online retail as its focus.
Technology and automation
Technology adoption has already transformed the way logistics and distribution are managed. It is very easy to say that technology has reduced TAT and enhanced the customer experience. It has enhanced efficiency and reduced cost and time. Here, technology has come to the aid of humans, not their replacement.
The McKinsey Global Institute estimates that the logistics and warehousing sector has the third highest automation potential of any sector.
At the other end of the spectrum is the truth that logistics and warehousing are “service” and services always have a humane value associated with them. Technology and automation can be successful as long as they help humans rather than replace them.
