Reinvigorating the warehousing sector
Rajesh Jaggi, Managing Partner, Everstone and IndoSpace Real Estate, talks about the trends, growth and the nitty gritties involved in the warehousing industry post the implementation of the GST regime.
From mere brick and mortar shelters to highly sophisticated stockrooms, the warehousing industry is getting a quick makeover. What is your take on this?
The improving domestic economy, the fast- growing e-commerce industry and technological innovations are leading to the makeover of warehousing industry. We are also witnessing a technological overhaul in warehousing, such as automation. IndoSpace designs and builds warehouse facilities that cater to the complete infrastructure requirements of clients and enables them to implement the latest technologies and automation. We also provide build-to-suit options for proper planning and implementation of any technology required, such as conveyor belts, in rack sprinkler systems, high roof for automated racking systems, etc.
As stacking heights have increased, floor quality has become even more critical. Imperfections in floors are magnified when products are stored up to 30 feet high. Superflat floors help here. IndoSpace warehouses with super-flat floors are structured in such a way that their vast floor spaces are available, unhindered by walls or columns and are of top quality to allow for easy manoeuvring of forklifts for storage or pick and pack. This also allows for abundant creativity in laying out plant and equipment, be it for a light manufacturing factory or a logistics warehouse.
How has the consolidation of warehouses helping the industry to grow?
The uniformity in taxes and removal of interstate checkpoints is leading to consolidation of warehouses into bigger spaces and greater overall efficiency, especially among larger and modern firms. GST is enabling companies to plan their manufacturing and distribution locations more strategically. There is a clear trend towards larger, more modern warehouses spread across fewer but better locations.
IndoSpace sees even more robust growth in the future as a result of GST. There will be more organised players in the business as demand increases and IndoSpace, being the largest and most modern player in industrial real estate in India, has a head start in catering to the surge in demand. In the next five to seven years, we will have around 50 million square feet of modern developed and underdevelopment light industrial and warehousing parks from the current portfolio of 30 million square feet.
What latest technological developments could be expected in the near future?
Advanced technology has enabled warehouses to upgrade themselves for greater reliability and efficiency, as well as allowing for easier adjustment to customer demands. IndoSpace has planned modern technological developments and built infrastructure that enable customers to introduce latest innovations in our warehouses. As industry leader, we are witnessing the following changes:
Innovation in storage and shipping:
Warehouses now store more diverse products. Many organisations have evolved innovative systems to facilitate storage and shipping. One of these is the chaotic storage system by which new items are placed on any available shelf to save time. The floor layout seems to show no logical scheme, but the products can be tracked technologically.
Software upgrade:
There are many inventory management software systems available, from basic bar coding systems to advanced, real-time data-streaming ones that connect everything – from initial supply to shipment in the warehouse.
Better tracking:
Everything in warehouses can be tracked faster because of technology. At any time, almost anyone in the organisation can find out where a specific product is. This avoids product loss, which, in turn, makes warehouses more efficient.
Robotics:
Robots are slowly changing the face of modern logistics/ warehousing resulting in more efficiency across the entire supply chain. Robotics in warehouses can help in inspections, security, inventory management, and data gathering. With the surge in e-commerce activities, robotics can help people and companies work faster and boost productivity.
In the next five to seven years, we will have around 50 mn sq ft of modern developed and under-development warehousing park