Robots And Automated Systems Are Transforming Warehousing

Warehouses are not dusty, forgotten spaces anymore — increasingly modern retail is moving up the automation curve

- Krishna Gopalan

The mention of the word godam conjures up images of a dusty, decrepit warehouse. They are hot inside and devoid of even basic work conditions. Ironically, the staff, having done the same manual job for years, is extremely efficient, with the ability to pick out a product in the middle of the grime in no time.

This is how clearing and forwarding agents (CFAs) have operated in India for years. It is a key component of a well-established, low-cost supply chain model that has stood the test of time.

This system underwent little change till around 2005, when modern retail made its move. Suddenly, the Big Bazaars, Spencer’s and Shoppers Stops opened outlets that were several times the size of neighbourhood kirana stores. Larger still was the accompanying product range. There were nearly 100,000 items (from 300 for the largest retailer, at the turn of the century) for the startled consumer. The CFA’s existing infrastructure was proving inadequate. Sourcing products directly from the manufacturer was now a smarter way of doing business; the retailer saw little merit in paying distributor margins. The term ‘supply chain’ gained ground on the back of strides that modern retail was taking.

BITING THE BULLET