Customers need is driving warehouse transformation

With a booming eCommerce industry and technological innovation, the Indian logistics and warehousing business is expanding. The sector has evolved from a transportation and storage-focused activity to a specialised role that includes, end-to-end product planning and management, value-added services for last-mile delivery, predictive planning, and analytics.

As India's warehouses and logistics business advances with the adoption of new technology, there are certain challenges that must be resolved to ensure a seamless logistics business.

Rajnish Gupta, VP and Head – India & Subordinate Business, Zebra Technologies, speaks about the challenges the market faces today at the India Warehousing Show in New Delhi.

“Apart from the rising logistical costs, there is a desire for faster delivery. Customers are used to eCommerce platforms and want same-day delivery, 30-minute delivery, and quick shipping. We as a customer want to know where our box is, and we need to verify that it is accurate and that it arrives on the desired schedule time and day,” said Gupta.

“All of this is possible if you have access to technology, such as tracking and tracing. The issues, as I see them, are the high cost of transportation, the lack of insights into where your items are coming from, the transfer of the package, and accuracy. People want to foresee demand, while manufacturers want to manufacture just in time. These are the several issues that this business is now facing.”

India has made significant investments in modernising its infrastructure, including railways, roads, and ports. These infrastructural enhancements are crucial for the efficient circulation of products and will benefit the warehouse industry. But what are the primary motivators for warehouse investments in India?

“Warehouses are expanding exponentially. It is important to understand how the manufacturers will manage the loads during, for example, the big billion sale season time. Manpower is not getting cheaper and people are demanding more efficiency, people want more accuracy. I believe warehouse organisations will have no option but to use technology. Our surveys have revealed that consumers understand the cost of not using technology, as well as the risks of not implementing technology. Customers' need is driving warehouse transformation. As a result, investments will be made in technology, expansion and specialty warehouses such as cold chains. There will be considerably larger warehouses that are capable of fast turnaround, from a basic operation of warehouse management to an advanced level,” Gupta said.