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.”
Rajesh Singhai, General Manager – Business Development, Warehousing Solutions, Rhenus Logistics India Pvt. Ltd.
Challenges
The primary challenge revolves around small volumes and uncertainty in buying patterns, necessitating the construction of larger warehouses. Additionally, warehousing parks are not sustainable in these markets. Secondly, if any of these cities are situated in or near industrial areas, the land cost is reasonable enough for the manufacturing plant itself to become self-sufficient in building its raw material and finished goods warehouse requirements due to the ample availability of in-house land.