India has come a long way from basic godowns to smart distribution centres. However, a lot of improvement in warehousing is essential since warehousing accounts for 25 percent of the overall logistics costs.
India ranked 44th out of 167 countries in the World Bank's Logistics Performance Index (LPI) and second in the 2018 Agility Emerging Markets Logistics Index. The reason being the overall logistics costs in India that accounts for 13 to17 percent of the Gross Domestic Product (GDP), which is nearly double (6-9 percent) the logistics cost to GDP ratio in developed countries such as the US, Hong Kong and France.
Warehousing is one of the key enablers in supply chain solutions and is the fulcrum for procurement, manufacturing and distribution services which collectively contributes to robust supply chain services. The demand for modern warehousing has increased, and so has its lease period.
PV Sheshadri, CEO, Future Supply Chain Solutions Ltd(FSC), observed, “The supply chain industry is at an inflection point where we will see the demand for good warehousing infrastructure gaining prominence for the next three to four years and this demand needs to be fulfilled with high-quality Grade A warehouses. These modern warehouses are insulated, ventilated and climate-proof with round the clock surveillance and standard quality and safety procedures.”
The warehousing space is expected to undergo a big transformation with the help of advanced techno