The fast-emerging warehousing clusters

Vijay Vashisht, AVP Business & Marketing, Safexpress
“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.”

Vijay Vashisht, AVP Business & Marketing, Safexpress

Advantages & Challenges
Expanding or upgrading warehouses in Tier 2 and Tier 3 cities poses both challenges and advantages. These cities have witnessed substantial growth in terms of road, rail, and air connectivity. The improved infrastructure not only facilitates the movement of goods but also makes it feasible to establish warehouses in these locations. Accessibility to major highways and ports enhances the distribution network, reducing transportation costs and delivery timelines as in-city warehouses can significantly reduce transportation costs and improve operational efficiency.

Government policies and initiatives such as Make in India, Digital India, and Production-Linked Incentive (PLI) schemes have incentivized businesses to expand their operations beyond metropolitan areas, thereby attracting investments in these cities. These cities also provides the flexibility to adapt the changing market demands. Businesses can quickly respond to fluctuations in inventory requirements, seasonal demands, and market trends.

However, finding skilled labor in Tier 2 & 3 cities can be a challenge, as many workers may lack the necessary training and experience required for warehouse operations and management. Another challenge is the various regulations and policies across different cities that make it challenging to navigate the legal landscape when expanding or operating warehouses, leading to complexities in compliance and operations.

Growth potential in Tier 2 & 3 cities
Today, more than 110 million square feet of Grade A warehousing stock is available across the country, most of it in the top 8 cities. The largest occupiers are 3PL (third-party logistics) and e-commerce companies. The growth of the e-commerce industry in India has been a significant factor in driving the need for Grade A storage facilities across major cities and now even in tier 2 & 3 cities.

Warehousing rentals and labor costs are cheaper in smaller cities, making it more cost-effective to set up warehouses here. Grade A warehouses offer advantages such as increased height, higher floor load capacity, advanced flooring systems, mechanized material handling equipment, robust fire safety protocols, and a clean environment. As more individuals in these cities enter the workforce, there is a growing demand for goods and services, driving the need for efficient warehousing and distribution networks.

Safexpress
Our complete logistics solutions include transportation, warehousing, and distribution. We also offer supply chain consulting services to raise demand and improve supply chain efficiency. We are currently present in 36 states and union territories of India, operating 24 hours a day, with a route departing every 38th minute
 Our logistics network comprises 73 warehouses, logistics parks, and hubs covering more than 19.5 million square feet. We provide timely and efficient deliveries of cargo and our customer care team is always available to answers queries and resolve any issues.

The company employs advanced technology to track shipments and optimize delivery routes, ensuring punctual deliveries. Using GPS-enabled vehicles enables real-time tracking to provide customers with accurate delivery updates. Our workforce is trained to handle deliveries efficiently and is made aware of the latest industry trends and technologies.

Since adherence to all regulatory frameworks is crucial for the safety and timely delivery of goods, the company prioritizes compliance with food safety, service quality, and environmental health and safety standards. We provide regular training to drivers on safe driving practices, and equip them with safety gear such as helmets, seat belts, and reflective jackets.

Safexpress elevating logistics excellence with comprehensive solutions

Optimizing logistics operations
Safexpress is enhancing its operations to be more efficient, cost-effective, and sustainable. The company is harnessing technology to optimize each phase of goods movement and distribution, ensuring streamlined logistics operations. It is providing supply chain consulting and solutions based on scientific analysis of customer data and offers effective distribution models to reduce overall logistics costs.

We are offering a lean, flexible, and cost-effective service through product diversification and operational optimization. Our safety and environmental policies include providing a safe and healthy workplace for employees and contractors. The company adheres to all the environmental policies to minimize its carbon footprint. It keeps investing in infrastructure to expand its reach to deliver high-quality services nationwide.

Our aim is to provide innovative logistics and supply-chain door-to-door services, identify and even predict market trends. We are using GPS-enabled vehicles, warehouse management systems, transport management systems, route optimization software, and barcoding and scanning technology to provide customers with reliable and efficient logistics services. To ensure sustainable transportation, we have introduced India's first 5.5-ton GVW electric truck, the Eicher Pro 2055 EV.
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