Indian Logistics and Warehousing: Tracing the Lifecycle

Warehousing, only 10% of the logistics cost, appears smallest part of logistics business. But, Is this correct! In reality, the site location and its facilities determine the spread of other logistics cost for any warehouse destination. 

Through this report, we aim to identify various key elements of the warehouse segment and identify their inter-relationship on optimizing other logistics cost components in his lifycycle. There are few key initiatives in different stages of lifecycle of a warehouse can re-design the positioning of “warehouse” in the future Indian “logistics” sector.

The component of warehouse lifecycle can be defined as:

• Strategic Decision identify the most suitable location and technical compositions through appropriate supply chain planning – Efficient Supply Chain planning reduces upto 30% logistics cost:
• Marketability dynamics explains inter-relationship of demand, supply and pricing in warehousing segment – India witnessed annual demand (32 mn sqft) outstrips supply (31 mn sqft) for the first time in last 4 years;
• Sourcing of Funds ensures fund availability in cost effective, competitive and hassle-free manner - Less than 10% of investment intentions (USD 7bn) deployed;
• Project Construction and Development and its related technology ensures time bound development strategy – warehouse having 13 m clear height with 5+ ton/ sqm is prime priority now
• Maintenance and its coverage ensures time efficiency and optimum equipment utilisation and achieve performance efficiency – ensure 24X7X365 operation with 100% efficiency

As India’s logistics sector evolves, we are likely to experience several changes in planning, construction and operations of warehouses in the coming years. All stakeholders, including developers, occupiers, fund providers, project managers and maintenance operators need to put in a consolidated effort to synchronize their isolated preferences.