LP Logiscience's integrated warehousing systems redefine efficiency
“A multitude of factors like allowing 100% FDI in warehousing and increased adoption of technology have contributed to the growth of the modern warehouse segment in tier 2 and tier 3 markets, including the post-pandemic surge in warehouse demand.”
Varun Gada, Director, LP Logiscience - the warehousing division of Liladhar Pasoo
Concerns & Solutions
Expanding warehouse services to Tier 2 and 3 cities or upgrading existing warehouses in these areas presents challenges like need for compliant Grade A facilities of the right size, setting up agile infrastructure and scalability, recruiting and retaining a skilled workforce, and a comprehensive infrastructure setup with access to local resources like raw materials and suppliers. Effective transportation and logistics with a robust supply chain network, including regional distribution centers are crucial for seamless operations. Internet access and technology, security, and safety measures like surveillance systems and compliance with local regulations, are non-negotiable.
Leasing a warehouse
As a 3PL service provider, we opt not to invest in owning warehouses but instead choose to lease them, as it is much more viable due to lower rental costs compared to metros. Owning a warehouse not only ties up capital but also restricts scalability. It enables businesses to scale up or scale down as needed, without the burden of owning a fixed asset. This adaptability becomes crucial in regions with fluctuating demand. Rental properties for warehousing in Tier 2 and Tier 3 towns offer cost-effective and flexible solutions, making them a prudent choice for businesses.
The warehousing sector has evolved from traditional brick-and-mortar structures to highly sophisticated, technology-enabled, and smart storage solutions. Driven by both the nature of the business and advancements in technology, the sector is experiencing dynamic changes to accommodate the needs of a changing global consumer. Warehouses are growing in size, with the average warehouse in the country increasing from approximately 20,000 sq. ft. to 2-3 lakh sq. ft. According to a report by 'Research and Markets,' the sector is expected to reach INR 2,872.10 bn by 2027, expanding at a CAGR of ~15.64% during 2022-2027.
The pandemic was a true test of this supply chain model, highlighting its resilience and efficiency in handling surging demand across the country when the entire nation was under lockdown. Consequently, warehousing and supply chains have evolved further to accommodate advanced last-mile deliveries, multi-modal distribution networks, dark stores, in-city distribution, and several other hybrid methods.
The post-pandemic boom in warehouses in tier 2 and tier 3 markets, a surge in organized retail and e-commerce, changing consumer behaviors, and supportive regulatory measures, including 100% FDI in warehousing and tech adoption, have contributed to the growth of the modern warehouse segment, which is currently a focus of both investors and owners.
Expanding our operations into Tier 2 and 3 cities has helped us to significantly boost our market penetration. These cities often have untapped markets, allowing us to establish a strong presence and reach previously underserved customer segments.
The wider reach in these cities has not only helped us to broaden our service offerings to customers, but also improved our brand visibility and strengthen our market position. It has enabled us to tap into the growing markets for customers, enhancing our supply chain network, and tapping into the local resources and talent. Additionally, operational costs are notably reduced. Lower real estate costs, labor expenses, and overheads have led to improved cost-efficiency. This cost advantage has allowed us to offer competitive pricing and enhanced profitability.
We offer Integrated Warehousing Management Systems, such as a Web-based, cloud-integrated WMS and customizable systems. Our highly advanced logic-based put-away system and Efficient Forecasting Algorithms ensure optimal inventory positions, resulting in direct cost savings. We also provide Barcode, RFID, and voice-picking-enabled processes for efficient and accurate material movement.
With multiple forecasting models that incorporate exponential smoothing for demand spikes and drops, Advanced Warehouse location Management with configurable racks and locations, and the ability to log in from any part of the world to place orders, the company has become a preferred partner for some leading global companies. In just 11 years since its inception, we have grown the warehousing and transportation business to cover 3 million sq. ft of storage space and reach 10000+ distribution pin codes pan-India, dealing in Specialty Chemicals, Paints, FMCG, and Consumer Durables, to name a few.
As per a report by India Warehousing Market Report – 2023 released by property consultancy Knight Frank, the Indian warehousing market demand in 2022-23 has been primarily driven by the third-party logistics (3PL), manufacturing, and retail sectors. Compared to 2022, the 3PL sector saw the highest rise in demand at 34%. The manufacturing sector recorded a 23% year-on-year (YoY) growth while the e-commerce sector recorded a decline in demand in FY23, mainly due to early capacity building and a gradual shift towards flexibility.
Also, the volume capacity for e-commerce sector experienced a 71% YoY decline in FY23 due to the excess capacity built during the pandemic to meet the surge in consumption. We have also seen a notable rise in demand from segments like Paints, Specialty Chemicals, including Cosmetics.
- LIFTING & SPECIALIZED TRANSPORT, NOVEMBER – DECEMBER 2023
Grade A Warehousing in Tier 2 & 3 Cities Fuelling India's Logistics Sector
The Indian warehousing market is seeing increasing demand with 3PL and e-commerce players being the major occupiers in tier-2 and 3 cities. Factors like the boom in e-commerce, outsourcing to logistics
CJ Darcl revolutionizing logistics & warehousing with cutting-edge solutions
As India's economy grows, there's a continuous demand for warehousing, especially in Grade A and B categories, fuelled by sectors like electronics, retail, FMCG, and manufacturing and these industries
TVS ILP elevates warehousing standards
With the influx of companies venturing into Tier-2 and 3 markets, there's an imperative for the industry to reassess models and strategies so that they can effectively harness the emerging opportunities
NDR Warehousing's network spans 21+ Industrial Parks across India
The growing demand for tech-enabled operations and the widespread adoption of cutting-edge technology have rendered Grade A warehouses highly agile, enabling them to effectively adapt to the ever-evolving
Welspun One tailored Grade-A warehouses elevating industry expectations
The surge in warehousing demand in recent times is largely attributed to the pivotal role played by Tier-2 and Tier-3 cities, fueled by extensive digital penetration, transforming them into significant
Rhenus transforming logistics with end-to-end solutions & real-time visibility
The success of emerging Grade A warehouses in select Tier 2 and 3 cities hinges on the yet-to-be-determined market potential of these regions for the specific products requiring warehousing
Outlook to remain stable for Indian road logistics: ICRA
The road logistics sector will do well in the year 2024, supported by stable domestic consumption and investment demand. According to rating agency ICRA, the industry’s revenue growth is estimated to be in the range
Value Spaces driving logistics forward
The rise of e-commerce has led to a surge in demand for efficient and well-equipped Grade A warehouses to manage the storage and distribution of goods. Naresh Sharma, Managing Director, Value Spaces Logistics
Safexpress elevating logistics excellence with comprehensive solutions
The fast-emerging warehousing clusters have witnessed substantial growth due to the increase in road, rail, and air connectivity, making it feasible to establish warehouses in these locations.
TCI catering to diverse industry verticals
There is rising demand from both the consumer and the business side of supply chains logistics, hence, opportunities for expanding warehouses are lucrative but they come at the cost of upfront investment
eTrans: Driving Safety, Efficiency & Productivity in Logistics
Our customer-centric approach helps us understand the needs and challenges of our customers, allowing us to tailor our solutions to meet their requirement for improved security and productivity
Prozo Offering Multi-Channel & End-to-End Solutions
Our end-to-end supply chain solutions enable fast-fulfilment for B2B, B2C and D2C supply chains and our service lines PFN, PLN, PWLP and PRN ensure that brands have access to the most comprehensive
Smart Tech Enabling Green and Efficient Cold Supply Chain
The adoption of smart technology in temperature-controlled storage and transportation is not only revolutionizing how we manage perishable goods but also offers the promise of a greener and more efficient
Solutions for Cleaner and Greener Supply Chains
Firms that are implementing sustainable logistics methods are in a better position to meet customer demand for environmentally responsible products and services, increase customer loyalty, save costs
Modernizing the Maritime Industry Through Automation
Automation and Artificial Intelligence in the maritime industry is helping companies streamline shipping processes and enhance operational efficiency
Goldhofer impresses at NordBau 2023
Goldhofer and co-exhibitor Volvo Trucks certainly crowds with their first combined presence at NordBau 2023 in Neumünster, Germany. A four-axle »TRAILSTAR« trailer and a three-axle »STEPSTAR« with two pairs
Bruhat Logistics India moves Voyage Chartered Vessel from Vietnam to India
Bruhat Logistics India has recently moved a breakbulk shipment of cranes from Vietnam to India. The cargo consisted of two Crawler Cranes which were dismantled and moved on a breakbulk vessel
Challenges & Opportunities in India’s Container Market
The container industry serves as the backbone of international trade, ensuring smooth and efficient flow of goods across borders. Inland Container Depots (ICDs) and Container Freight Stations (CFS) are vital hubs in the logistics chain, enhancing efficiency
Container xChange - Streamlining Logistics
With the increasing desire for access to a wider range of products across the globe, industries are required to obtain materials and goods from diverse regions. This consumer behaviour has created a need for efficient and cost-effective shipping solutions