Decoding virtual movers and packers
To manage excess inventory at optimal cost, Agarwal Packers & Movers Ltd. (APML) has recently come up with a very unique concept of virtual warehouse. Sandeep Wadhwa, CEO, APML, enlightens on this new innovation.
What is the concept of virtual warehouses?
After GST has been implemented, our trucking cube has gained greater value as far as storage and warehousing is concerned. Earlier companies used to have several small warehouses at the state level. But in a uniform tax regime this will not be required. With this solution, we can offer our clients the Virtual Warehousing solution. They can just continue with their regional distribution centers (RDCs)/other Distribution Centre, while their goods can remain parked with us in containers in our stock yards. Is there any limitation to space?
Not at all, we have yards, warehouses and branches all across India. Our customers can utilise our warehouses by keeping the cubes there. We can deliver it to them as and when required. They can also store the cubes at their own location.
What is the inspiration behind this concept?
We have seen a greater demand for this concept from our customers. It is not only reduction of cost, it is about ensuring the ultimate objective of increased quality, optimised cost and desired deliverables. What are the benefits?
The benefits include reducing warehousing cost drastically. The clients can not only save rentals but they can lesser their operational cost also. One can see at least 30 percent reduction in warehouse rental and operational cost, 15 percent reduction in packaging cost and 100 percent space can be utilised for the consignment. One needs to pay only for the actual warehouse space required; we are charging the rentals on per day basis. We have removed unnecessary legal contracts and statutory obligations. We are also facilitating movement of stock directly from storage space to desired destination avoiding unloading, reloading charges. Multiple handling of goods in transit has reduced to Zero with Nil pilferage. These cubes are made as per ISO certification which insures no water seepage with safety features provided like Shock Absorbing Pad on cube floor, net and safety belts, etc.