Rise of Warehousing in India’s Booming Economy

Rise of Warehousing in India’s Booming Economy

Investments in logistics and organised warehousing witnessed substantial growth and the forthcoming development of multimodal logistics parks is sure to contribute to the development of additional warehousing zones. In recent times, we have seen some free trade warehousing zones start their operations in full swing.

 Having said that, India’s warehousing industry is still nascent compared to that of the United States and European countries. However, the industry is exhibiting signs of growth with significant support from central government initiatives such as the National Logistics Policy and Gati Shakti.

Some observed trends are:

Increased digitization: Technology adoption is on the rise. With the implementation of warehouse management systems, automation, and robotics, warehousing in today’s day and age is way more techno-centric.

 Infrastructure modernization: the development of infrastructure, including dedicated freight corridors, multimodal logistics parks, modern logistics hubs, and free trade warehousing zones, enhances connectivity and reduces transit times.

 Expansion of Multimodal Logistics Parks (MLP): Logistics parks are gaining momentum as they integrate various modes of transportation for seamless connectivity, making the entire process hassle-free for logistics players. The increased traction has shot up the demand for warehousing.

 Focus on sustainability and green warehousing: Green practices are actively supporting the reduction of environmental impact and improving operational efficiency.

Challenges faced by the warehousing industry in India

 In the recent past, we have come a long way in developing the warehousing industry in India. However, any massive change needs time and patience. Hence, we still have a few challenges to overcome:

 Lack of skilled and specialised personnel: It has become a significant concern, particularly given the rise in volumes, intricate operations, and mounting work pressure that involves multitasking. The industry is recognising that finding the right balance between technology and ongoing training of the existing workforce will be crucial to overcoming the lack of skilled personnel.

 Inadequate infrastructure: Lack of infrastructure has always been a big challenge and it continues to be one, especially in terms of transportation networks and storage facilities. To address this, the government is already focusing on the enhancement and development of efficient infrastructure.

 Regulatory compliance: Companies face the challenge of managing a wide range of compliance requirements that are spread across different areas such as finance, taxation, secretarial, commercial, labour, environment, health and safety. Additionally, they also have to navigate through numerous industry-specific compliance obligations. Businesses should adopt smart and automated compliance solutions to enhance control, visibility, and proactive management of regulatory requirements.

India’s warehousing industry is still nascent compared to that of the United States and European countries

Types of warehousing facilities

 In India, there are various types of warehousing facilities and services catering to the needs of different industries. Here are some common types:

 General warehousing: Multipurpose facilities that provide storage and handling services for a wide range of products such as e-commerce, FMCG, automotive, and electronics.

 Cold storage facilities: Such facilities store perishable goods like fruits and vegetables, dairy products, pharmaceuticals, and frozen food at controlled temperatures.

 Bonded warehousing: Allows imported commodities to be stored under customs supervision without prompt payment of duties and taxes.

 Distribution centres: Concentrate on effective order fulfilment and product distribution, strategically situated to ensure on-time deliveries to specified regions or markets.

 Consolidation warehousing: These are hubs for the process of consolidating smaller shipments into larger, more cost-effective ones.

 Warehousing by the hub and spoke: Central hubs receive items from suppliers and distribute them to regional or local spokes.

Automated warehousing: Advanced technology, machinery, and conveyor systems are used to optimise storage, retrieval, and order processing.

 Industries like e-commerce, FMCG, automotive, retail, pharmaceuticals, healthcare, electronics, industrial manufacturing, agriculture, food processing, and numerous others benefit from these warehousing facilities and services in multiple ways. Most of our warehouses are equipped to cater to the requirements of a plethora of industries.

Sustainability and environmental concerns

With the advent of technology, businesses now have access to new tools for sustainable logistics and supply chain management. They are realising the potential of implementing environment-friendly strategies not only for reducing their carbon footprint but also for lowering operational costs through enhanced efficiency and waste reduction. The government is actively promoting sustainable practices in the industry, encouraging the adoption of energy-efficient transportation methods, greener fuels, and the construction of multimodal logistics parks to support multimodal transportation. Moreover, the industry is poised to increase its commitment towards developing green logistics infrastructure as a result of the government’s strong focus on green energy and sustainability in the 2023 budget.

“It gives me immense pleasure to mention that we are an environment-conscious company and are strongly focusing on sustainability in our daily operations. Through our environment-friendly initiatives, we have been able to save more than 700 trees in the last fiscal year,” states Homi Katgara.

Addressing training needs

Warehousing businesses in India are taking proactive steps to meet the industry’s skilled worker shortage and training demands. To improve the skills of the existing personnel, in-house training, development activities, and certification programmes are being conducted and promoted by warehousing companies in India. “At our organisation, we make sure that everyone receives regular training to satisfy our standards for service delivery. Government-sponsored programmes for skill development like the National Skill Development Corporation (NSDC) and the Skill India Mission offer support and funding. Workshops, seminars, and on-the-job training all aid in the industry’s capacity building, according to him.

With the advent of technology, businesses now have access to new tools for sustainable logistics and supply chain management

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