logisticstechoutlook

What are the Growth Factors Changing Warehousing in India?

By Logistics Tech Outlook | Monday, November 25, 2019

The modern Warehouse Management Systems (WMS) and other IT-driven solutions facilitate in creating a sophisticated and proficient warehousing network. The system offers integration with automatic material handling equipment, yard management, cross-docking, labor management, billing and invoicing, and others.

FREMONT, CA: Warehousing is a vital component of the logistic value chain and plays a crucial role in the quality storage of products and merchandise during the different stages of transportation. Until a few decades ago, warehouses were mere holding areas, housed in dilapidated buildings with poor light and ventilation facilities.

Since then, warehousing as a sector in India has developed manifold, with the low-grade storage facilities being replaced by pre-engineered edifices that are insulated, climate-proof, and ventilated with surveillance and standard safety procedures.

Growth Drivers of Indian Warehouse Market

Apart from traditional storing services, warehouses in India are now equipped to offer value-added services such as consolidation and breaking up of goods, packaging, labeling, bar-coding, reverse logistics, kitting, and others. The following factors are chiefly driving the development in warehousing in the state:

• Make In India: With the government thrust, there has been a hastened growth in the manufacturing industry, particularly in areas such as pharmaceuticals, textiles, telecommunications, automobiles, and food and beverages.

Top Warehouse Management Technology Companies

• Improved Trade: Apart from manufacturing, fields like information technology, organized retail, telecommunications, and healthcare have progressed dramatically over the last few years, driving consumption and strong demand, leading to the development of warehousing.

• Superior Technology and Digital India: With broad internet penetration, technology-driven growth drivers such as real-time tracking, automation, stock identification, and RFID for automated data collection are becoming ever more popular, even in warehouses in metros and Tier 2 cities.

Further, the modern Warehouse Management Systems (WMS) and other IT-driven solutions facilitate in creating a sophisticated and proficient warehousing network. The system offers integration with automatic material handling equipment, yard management, cross-docking, labor management, billing and invoicing, and others.

• Government Policies: With the grant of infrastructure status to the logistics section, there has been a significant rise in investments in the warehousing sector, particularly for free trade warehousing, logistic parks, and zones (FTWZs). The government policies on relaxed international trade, execution of superior and reformed tax structures such as GST have further led to the growth of the sector.

Check This Out: Top Logistics Tech Solution Companies

Weekly Brief

Top 10 EDI Solution Companies - 2016

Read Also