Logistics (which comprises transportation, storing of goods, Warehousing, materials handling, and packaging) is the process of transferring the goods from the point of origin to the final destination that is the point of consumption. With time, the logistics industry is seeing significant growth in India and has become a major focus for the Indian government in the past few years. Out of the three verticals, the major vertical of logistics that is warehousing constitutes nearly 15-35% of the total logistical cost. Earlier what only referred to the storage of goods has now evolved from its primary function and now also includes value-added services such as sorting, packing,
blending, and processing. In India, the warehousing market is highly fragmented with most of the warehouses having an area of less than 10,000 sq. ft. Approximately 90% of the warehousing space in the country is controlled by unorganized players, which manage small-sized warehouses with limited mechanization. Lately, due to the growing attention towards the warehousing industry, the sectors have been attracting investments from international players which are propelling the formalization of the same.
With the evolution of the organized retails sector, modern warehouses for the storage of perishable goods have become essential and have become the backbone of the manufacturing and e-commerce industry. Based on the construction and the amenities provided, there are two types of warehouses, Grade A and Grade B warehouses.
To elaborate on the same Grade A warehouses are usually labeled superior based on their construction, quality, amenities provided like fire-fighting systems, CCTV surveillance, building insulations, LED lights, security systems, and clients among others. Grade B warehouses on the other hand are basic warehouses with essential services. In India, still, Grade B warehouses hold a larger share of warehouse stock as well as net absorption, but with the technological advancement and rapid growth of this sector in the logistic industry Grade A warehouses have witnessed growth with time.
With the changing times, the logistics industry is believed to witness high growth along with the rise in warehouse space requirements. Several e-commerce companies and retailers have been facing a major fluctuation in customer demands due to which they have to be dynamic in their approach as well as the choice of types of warehouse and its location.
Godamwale, one of India’s largest logistic network is helping these companies by providing them with the warehouse of their choice( Grade A and Grade B) and at a location of their need to aid them in managing their inventory in the most efficient manner and deliver their products to every corner of the country with a reduce cost and a reduced Turnaround time. Our Key services include On-demand warehousing, 3PL and E-commerce and B2B Fulfillment centers with on-demand scalability providing flexible, efficient & profitable end to end Omnichannel supply chain solution for companies of all sizes.
This blog is written by Mriganka Garg, she is currently pursuing her MBA from IIM Raipur.