Warehouses are an important component of the logistics sector and act as a bridge between the manufacturing plants and the consumers. Warehouses, earlier, served the purpose of storing goods; however, recent years have witnessed a major transformation in their role. Today, companies are turning to modern manufacturing which involves the use of advanced technologies in the production of highly innovative and state-of-the-art products. This has given rise to customized warehousing, which, in the past few years has seen phenomenal growth.
According to The Asian Age, it is estimated that the warehouse sector is witnessing a growth of around 10 percent every year and its volume currently stands at $7.8 billion. Another study published in NBM & CW – Infra Construction and Equipment Magazine – suggests that by 2024 the warehousing industry in India will reach around Rs 968 billion. A report by Knight Frank states that warehouse leasing has seen an increase of 77 percent in 2019.
The changing face of warehousing in India
Warehousing has been an integral part of businesses since the very beginning. However, with changing times and the demands of both the industry and the consumers and the introduction of retail and chain stores, the warehousing sector also underwent significant changes. The traditional forms of warehouses gave way to customized warehouses, which, more than storage spaces have become kitting and assembly units. Also, fuelling the demand for customized warehouse spaces for rent is the growth of the e-commerce sector across the country. Its impact is profound in some of the major metros of the country like Delhi, Mumbai, Chennai Bangalore etc.
Customized warehouses, which come stocked with modern facilities and infrastructure, have helped manufacturing units increase their profits. Many warehouses have successfully amalgamated the old technologies like barcode readers with the new ones like Quick Response. Some other innovative technologies used are the Real-Time Location Systems and Radio Frequency Identification that are used for automated data collection. Many of the warehouses are also employing superior technologies such as automated systems which help increase the profitability of the organization. The modern and customized warehouses are not just responsible for storage, but also play an effective role ranging from production and packaging to pricing, labeling and ultimately, shipping of the product.
Advantages of customized warehouses
Customized warehouses rely on modern technologies and this has helped manufacturing units and businesses to significantly reduce their manufacturing time, thereby, saving on substantial expenses. Earlier, certain functions like assembling of parts were performed at specific plants. However, the advent of customized warehouses has witnessed these functions being performed at the warehouse itself, thus, saving a lot of time. By employing warehouse management systems, the manufacturing units have significantly reduced their labour expenses without comprising on the quality of services. It has also enabled the organization to improve the accuracy of its inventory and creating robust customer service.
The Indian retail market is becoming competitive with each passing day as new companies are entering the arena. To stay ahead in the race, emphasis needs to be made on acquiring new technologies to make customized warehousing the norm of the day. It will boost businesses and help them make their manufacturing process stronger and effective.
Info Source: The Asian Age, NBW & CW
Tags – customized warehouse, advance warehouse, warehouse sector growth, warehouse on rent
