Value Spaces driving logistics forward

Naresh Sharma, Managing Director, Value Spaces Logistics & Industrial Parks
“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 & Industrial Parks

Challenges
Tier 2 and Tier 3 cities face infrastructure limitations, including issues with road connectivity, power supply, and the availability of skilled labor, along with other essential facilities, compared to Tier 1 cities. To address this, companies operating in these cities may find it necessary to invest in comprehensive training programs. Such programs are crucial to ensure that the workforce attains the requisite standards for Grade A warehouse operations, thereby overcoming challenges associated with limited infrastructure. Moreover, regulatory environments in smaller cities can vary, introducing complexities in compliance for businesses. Navigating through local regulations and ensuring strict adherence to industry standards can be a significant challenge.

Quality Infrastructure
Identifying strategic locations with easy access to transportation networks, such as highways, railways, and ports, is necessary. Proximity to industrial zones and major consumer markets must also be considered. Acquiring a sizable plot for the warehouse with room for potential expansion is crucial for long-term operational flexibility. Constructing a modern, well-designed building with high ceilings, ample floor space, and proper ventilation is essential for efficient storage and logistics. Providing ample parking space for trucks and other vehicles is necessary to facilitate smooth inbound and outbound operations. Adhering to local building codes, safety regulations, and environmental standards is essential to ensure compliance and operational sustainability. Obtaining necessary permits and licenses for operating a warehouse is crucial for legal and regulatory compliance. Creating comfortable and functional spaces for warehouse staff, including break rooms, restrooms, and office areas, is important for employee well-being and productivity. Developing and regularly reviewing emergency response plans for situations like fire, natural disasters, and other potential hazards is important to ensure the safety of personnel and goods. Integrating sustainable practices in the design and operation of the warehouse to minimize environmental impact is recommended for long-term environmental stewardship and corporate responsibility.

Value Spaces driving logistics forward

Warehouse Management
The implementation of a Warehouse Management System (WMS) for efficient inventory tracking, order processing, and data management is crucial for the streamlined operation of a Grade-A warehouse in Tier 2 and Tier 3 cities. To enhance accuracy in inventory control, considering RFID or barcode technology is recommended. Investing in suitable material handling equipment, such as forklifts, conveyor systems, and pallet racks, is necessary to optimize storage and retrieval processes. Robust security measures, including surveillance cameras, access control systems, and security personnel, are important to safeguard valuable assets.

Ensuring a reliable power supply and considering backup generators to prevent disruptions is essential, while implementing energy-efficient systems can contribute to cost reduction. Designing the facility with sufficient loading docks facilitates quick and smooth loading and unloading of goods, contributing to operational efficiency. Providing training facilities for staff development is essential for maintaining a skilled workforce. Robust communication infrastructure, including internet connectivity, supports operations and data exchange.

Investing in quality infrastructure from the start can contribute to the long-term success and efficiency of a Grade-A warehouse in Tier 2 and Tier 3 cities.

Growth Prospects

E-commerce: The rise of e-commerce in Tier 2 and Tier 3 cities is a significant growth driver. As more people in these areas embrace online shopping, the demand for efficient logistics and warehousing services increases.

Infrastructure Development: Ongoing and planned infrastructure development projects in these cities, including improved road networks and connectivity, can enhance the attractiveness of these locations for logistics operations.

Driving Factors: As income levels rise in Tier 2 and Tier 3 cities, there is a corresponding increase in consumer spending. This drives the need for efficient and modern warehousing solutions.

Urbanization Trends: Urbanization in smaller cities leads to increased commercial activities and the need for robust logistics infrastructure to support supply chain operations.

Strategic Expansion: Companies are strategically expanding their footprint to diversify risk, tap into new markets, and ensure a more resilient supply chain.

In conclusion, the expansion of Grade A warehouses into Tier 2 and Tier 3 cities presents both challenges and opportunities. Success in these regions depends on a nuanced understanding of local dynamics, overcoming infrastructure limitations, and adapting operations to meet the specific needs of emerging markets.

Value Spaces Logistics and Industrial Parks
Over a decade ago, our team developed world-class logistics and industrial parks to meet the demands for quality warehousing for our esteemed clients. Since then, Value Spaces Logistics and Industrial Parks has created five integrated parks, comprising a million square feet of Grade A warehouses in Panvel, Gurugram, Chennai, Anantapur, and Dankuni. We have plans to expand our footprint to various other locations. Currently operational, these Grade A warehouses boast a developed area of 4 million square feet. Moreover, we are expanding our presence with over 8 million square feet of Grade A+ warehouses currently in development across key warehouse clusters throughout India. All our warehouses adhere to full compliance standards, ensuring a seamless and reliable logistics infrastructure for our clients.

Government policies

The policies governing the warehouse sector in India are aimed at promoting logistics and warehousing as integral components of the country's infrastructure. The National Logistics Policy aims to create a single-window e-logistics market and reduce logistics costs. It emphasizes the development of robust warehousing infrastructure and the integration of technology for seamless logistics operations. The implementation of the Goods and Services Tax (GST) in India has brought about a transformative impact on the logistics and warehousing sector. The introduction of a unified tax system has effectively streamlined supply chains, fostering efficiency and reducing complexities in the interstate movement of goods. This development is particularly crucial in light of the 'Make in India' initiative, which actively promotes manufacturing and, consequently, necessitates robust warehouses for the storage and distribution of manufactured goods. Recognizing the pivotal role of the logistics and warehousing sector, the government is contemplating granting it infrastructure status. Moreover, policies related to Foreign Direct Investment (FDI) in warehousing and logistics play a crucial role in influencing foreign investments and collaborations, contributing significantly to the development of state-of-the-art warehouses. Complementing these efforts, the National Industrial Corridor Development Programme (NICDP) has been initiated with the goal of establishing industrial corridors equipped with world-class infrastructure, including advanced logistics and warehousing facilities. This comprehensive approach aims to not only streamline tax systems and encourage domestic manufacturing but also create an environment conducive to economic development through enhanced logistics and warehousing capabilities.
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