Indian Transport & Logistics
Warehousing

Quick commerce and tech push Indian inventories to precision logistics

Quick commerce and tech push Indian inventories to precision logistics
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India's intralogistics market is experiencing a shift, driven by rapid advancements in technology and the demand for faster, more precise supply chains. This evolution is reshaping industries across e-commerce, manufacturing, and beyond.

In an era where customers expect orders within minutes and businesses are racing to deliver with precision, the backbone of this fast-paced ecosystem is intralogistics. As e-commerce giants and quick-commerce platforms push the boundaries of speed and efficiency, India's intralogistics sector is evolving to keep up, driven by cutting-edge technologies and innovative strategies. But why does it matter? Because the future of supply chains — shaped by automation, AI, and data — is being built today, and those who adapt will lead the way in the race for faster, more reliable deliveries.

According to a report by Next Move Strategy Consulting, the Indian intralogistics market was valued at $1 billion in 2022 and is predicted to reach $4 billion by 2030, with a CAGR of 18 percent from 2023 to 2030, which is huge.

In fact, India’s intralogistics market is undergoing a remarkable transformation, driven by technology advancements, changing consumer behaviours, and the burgeoning e-commerce and manufacturing sectors. These changes are reshaping how businesses handle materials and adopt automation, propelling the industry toward a future of efficiency, speed, accuracy and innovation.


“With rising urban populations, there is a surge in demand for convenience, including faster delivery services. This trend necessitates compact, scalable intralogistics solutions tailored to urban distribution centres.”
Dhirendra Vashisht, Bastian Solutions

While there are several growth drivers for the industry, the one that stands out is the rapid growth of e-commerce and quick commerce platforms, which has heightened the need for streamlined intralogistics solutions, according to Dhirendra Vashisht, Director of India Operations, Bastian Solutions. “With rising urban populations, there is a surge in demand for convenience, including faster delivery services. This trend necessitates compact, scalable intralogistics solutions tailored to urban distribution centres,” he said.

Thus, companies require faster order processing and enhanced accuracy to meet consumer expectations for same-day or next-day delivery. “This has led to increased adoption of advanced technologies like automated storage and retrieval systems (ASRS), conveyor systems, and robotics. Changing consumer preferences for customisation and immediate availability are driving the adoption of technologies such as goods-to-person (GTP) systems and autonomous mobile robots (AMRs),” informs Vashisht.

Bastian Solutions is a material handling and automation solutions company, specialising in technologies to optimise intralogistics operations.

The need to meet the high standards set by global e-commerce giants has also intensified the demand for technologies like high-speed sortation systems and automated guided vehicles (AGVs). “These technologies enable warehouses to process high volumes fast with precision, ensuring that customer expectations are met,” he added.


“There will be a significant shift towards regional inventory placement instead of the centralised fulfilment centre model. Modern sales channels demand quick turnaround times, which can only be sustainably achieved through a regional fulfilment approach."
Harsh Vaidya, WareIQ

While e-commerce and quick commerce are pushing for new technologies, they are also pulling facilities towards urban areas and consumption centres. Harsh Vaidya, Founder & Chief Executive Officer of WareIQ, emphasises the growing shift toward decentralised fulfilment models. “There will be a significant shift towards regional inventory placement instead of the centralised fulfilment centre model. Modern sales channels — whether B2B or B2C — demand quick turnaround times, which can only be sustainably achieved through a regional fulfilment approach,” he said.

WareIQ is a fulfilment technology company specialising in artificial intelligence (AI)-led inventory solutions for e-commerce and direct-to-consumer (D2C) brands. Vaidya's prediction is based on the observation that online platforms often deprioritise or exclude brands from their listings if the inventory is stored in distant locations, “as these platforms are competing with each other to offer faster delivery options,” he reasoned.

After all, shipping orders from distant central warehouses to dark stores leads to significantly higher logistics costs, which erode already slim margins.

Vaidya opines that adopting a regional inventory placement strategy can solve this by reducing shipping costs and improving delivery times. “This approach enhances profitability while meeting the fast delivery expectations of quick commerce platforms,” he added.


“With all key logistics activities managed at one location, companies can optimise processes, enhance client satisfaction, and boost profitability.”
Aditi Kumar, TVS Industrial and Logistics Parks

While Vaidya is emphatic about decentralised fulfilment models, Aditi Kumar, Executive Director, TVS Industrial and Logistics Parks (TVS ILP) is still thinking about the benefits of centralising your logistics operations.

Kumar argues that Integrated Logistics Parks (ILPs) are transforming India's intralogistics sector by providing infrastructure that consolidates multiple supply chain functions under one roof. “They enable businesses to optimise processes by centralising logistics functions, leveraging modern technologies, and promoting collaboration among the stakeholders. By centralising operations such as warehousing, packaging, distribution, sorting, returns management, and final assembly, ILPs give companies full control over their operations,” she added.

TVS ILP is a logistics and industrial park developer with a presence across 42 locations in 17 states in India.

Kumar opines that this integration enables better coordination, real-time tracking, and timely responses to meet demand which in turn impacts efficiency. “With all key logistics activities managed at one location, companies can optimise processes, enhance client satisfaction, and boost profitability,” she added.


“With the use of technology, almost real-time picking is possible today, and picking time has significantly reduced to as low as a minute in the quick commerce world.”
Kamlesh Kumar, Jumbotail

Meanwhile, many large infrastructure developers are heavily investing in developing temperature-controlled storage facilities for online grocery companies to ensure the freshness of perishable items like fruits, vegetables, dairy, and meat, informed Kamlesh Kumar, Vice President- Supply Chain, Jumbotail.

Jumbotail is a B2B e-commerce platform for food and grocery, offering supply chain management, wholesale marketplace operations, and logistics services.

While there have been significant changes in the last five years, Kumar opines that there is still a way to go for the intralogistics sector in India to adapt to the unique needs of customers. “Developing compliant facilities within the urban area to hold more number of Stock Keeping Units (SKUs), solving community-related issues, building farm-to-fresh supply chains and adopting greener practices are areas where we still have a journey to cover,” he said.

Kumar also pointed out the use of AI and machine learning (ML) in grocery delivery and inventory management. To ensure freshness for perishable goods, he informed that smart forecasting systems are developed to help predict the demand and also increase the inventory turn to avoid wastage. “With the use of technology, almost real-time picking is possible today and picking time has significantly reduced as low as a minute in the quick commerce world,” he said.


“Real-time tracking and automation are game-changers for Indian warehouses and distribution centres. They ensure better visibility into inventory and streamline operations, minimising human error.”
JP Mishra, Newland AIDC

While the use cases of technologies like AI and ML are interesting, the ecosystem also needs robust data-capturing mechanisms and devices to bring them to life. Automation powered by advanced data capture enables predictive analytics, helping companies anticipate demand, avoid stockouts and stay ahead of the curve, according to JP Mishra, Country Manager-India, Newland AIDC.

Newland AIDC is an automatic identification and data capture (AIDC) company and their products include barcode scanners, mobile computers, and handheld terminals designed for data collection and inventory management processes.

Mishra said, “Real-time tracking and automation are game-changers for Indian warehouses and distribution centres. They ensure better visibility into inventory and streamline operations, minimising human error.” This is particularly critical for sectors like e-commerce and quick commerce, where speed and accuracy are paramount.

Mishra also informs that the Indian intralogistics sector is rapidly adopting advanced data capture technologies and industries such as e-commerce, quick commerce, and transportation & logistics (T&L) are leading this shift. “Companies like Zomato, Swiggy, and Zepto are heavily investing in these technologies to achieve operational efficiency, ensuring real-time tracking and faster inventory turnover. Moreover, manufacturing and retail are also catching up, leveraging these tools for inventory management, quality control, and supply chain optimisation,” he added.


“Traditional reliance on manual processes and imported technologies has created hesitancy among businesses to transition to automated systems. This challenge is particularly evident in the material handling segment, where nearly 40 percent of accidents are attributed to unsafe practices, with 80 percent resulting from human error.”
Neville Mevawala, Godrej & Boyce

While Mishra is talking about technology adoption, each sector brings distinct intralogistics demands — “e-commerce needs swift order processing and returns management, and manufacturing calls for seamless production-warehouse integration,” says Neville Mevawala, Head of Sales & Marketing, Material Handling Business of Godrej & Boyce, part of Godrej Enterprises Group. “The rapid expansion of these sectors has intensified the need for efficient material handling solutions that can handle higher throughput while maintaining stringent safety standards. This growth has also highlighted the critical requirement for sustainable practices and energy-efficient solutions that align with India's commitment to reducing carbon emissions,” he said.

Godrej & Boyce is a key player in India’s intralogistics sector offering material handling and industrial solutions. In August 2024, Godrej & Boyce announced the introduction of lithium-ion battery-powered forklifts featuring an indigenously developed Battery Management System (BMS) in India. Mevawala added, “These Li-ion solutions offer transformative benefits, including four times longer battery life, 30 percent less energy consumption, and significant improvements in charging efficiency - charging from 20 to 80 percent in just 2.5 hours compared to 6 hours for traditional batteries.”


“Warehousing facilities should be equipped with multi-tier shelving systems that maximise space utilisation, enhance picking speed, and minimise product damage. A robust returns management system is crucial for helping brands minimise losses and avoid cash flow issues caused by stuck inventory.”
Ajay Rao, Emiza

While lithium-ion battery-powered forklifts are an interesting solution to be available in the Indian intralogistics ecosystem, logistics companies must develop expertise in specific sectors. This is particularly relevant for Third-Party Logistics (3PL) companies because, according to Ajay Rao, CEO & Founder of Emiza, the industry is rapidly evolving towards more specialised services, driven by increasing demand from consumer brands.

Emiza is a 3PL provider specialising in warehousing and fulfilment solutions. Rao thinks the way forward is by building dedicated infrastructure, a pan-India network and strict processes. “Warehousing facilities should be equipped with multi-tier shelving systems that maximise space utilisation, enhance picking speed, and minimise product damage. A robust returns management system is crucial for helping brands minimise losses and avoid cash flow issues caused by stuck inventory,” he said.

Additionally, Rao argues that a robust technology platform is indispensable for seamless integration with marketplaces, brand websites, and other sales channels, enabling precise inventory management and Service Level Agreement (SLA) adherence. He added, “Real-time dashboards offering visibility into inventory and order tracking further enhance operational efficiency. Furthermore, an advanced tech framework supports well-defined workflows and strict cut-off times for Same-Day Delivery (SDD) and Next-Day Delivery (NDD) services.”


“Using WMS and inventory management software, entrepreneurs can make internal transfers of goods between companies’ units, and create internal orders with statuses and tasks assigned to certain employees. Conducting inventory counts, stock adjustments, write-offs, and other internal warehousing operations also increases stock level accuracy.”
Aleksandra Malhotra, Kladana

It is impossible to overestimate the importance of technology in this ecosystem. For instance, Aleksandra Malhotra, Director of Kladana in India pointed out that the demand for cloud-based inventory and warehouse management systems (WMS) among Indian SMEs is growing.

This trend is driven by mobile internet expansion, government initiatives like UPI, GST compliance, e-invoicing, and the rise of e-commerce. “Despite this,” Malhotra said, “some SMEs attempt to build custom systems, which often become costly and inefficient over time. Starting with a simple, scalable Enterprise Resource Planning (ERP) or WMS solution is a better alternative. It is easier to implement and adapt as the business grows.”

Kladana is a cloud-based ERP and WMS provider that focuses on empowering Indian SMEs with accessible, scalable, and user-friendly digital tools.

SMEs face multiple challenges with intralogistics inventory and warehouse management. Malhotra explains, “Firstly, tracking stock movements across numerous warehouses, shop floors, subcontractors’ facilities, retail outlets, and more. Using WMS and inventory management software, entrepreneurs can make internal transfers of goods between companies’ units, and create internal orders with statuses and tasks assigned to certain employees. Conducting inventory counts, stock adjustments, write-offs, and other internal warehousing operations also increases stock level accuracy. Secondly, slow order processing can be overcome by using professional software: pick lists, synchronised stock levels, and barcoding for the correct item, bundle, or storage bin identification can improve both speed and quality of order fulfilment.”

While there are opportunities in the market, Vashisht of Bastian Solutions also points out the challenges and risks involved in the Indian intralogistics ecosystem.

Vashisht opines that implementing advanced automation systems can be cost-intensive, posing a challenge for SMEs. Thus he recommends gradually integrating AI, IoT, and robotics to improve efficiency and stay competitive. “Start with scalable, modular solutions that offer flexibility,” he suggests.

In fact, Indian companies are prioritising cost-effective automation solutions and partnering with global technology providers to stay competitive. “They are also adopting hybrid systems that combine automation with manual processes to balance investment costs and operational needs,” Vashisht added.

The integration of automation, AI and IoT not only requires financial investment but also a fundamental shift in operational mindset and workforce capabilities. Workforce adaptation is one of the primary concerns, along with initial investment costs, according to Mevawala of Godrej & Boyce.

He pointed out that the traditional reliance on manual processes and imported technologies has created hesitancy among businesses to transition to automated systems. “This challenge is particularly evident in the material handling segment, where nearly 40 percent of accidents are attributed to unsafe practices, with 80 percent resulting from human error,” Mevawala said.

In October 2024, Godrej & Boyce launched training programmes in collaboration with NGOs and training schools for forklift operators. The business has trained over 3500 operators and aims to train a further 300 operators by FY25.

While a significant challenge lies in training workers who are not tech-savvy to use these advanced tools effectively, JP Mishra, Country Manager-India, Newland AIDC, argues that technology simplifies complex workflows, making it easier for the workforce to adapt. “User-friendly devices with intuitive interfaces, like Newland’s mobile computers, reduce training time significantly,” he said.

By automating repetitive tasks, technology allows workers to focus on value-added activities, boosting productivity, Mishra pointed out. “Moreover,” he added, “real-time feedback through data capture tools ensures workers can correct errors immediately, leading to better overall performance.”

Meanwhile, Kumar of Jumbotail, argues that companies take workforce issues seriously and are adopting flexible staffing models, including part-time workers and gig-based resources, to balance workforce needs.

“Urban workers face long commutes due to high living costs near facilities, exacerbating attrition and operational inefficiencies. Some companies provide affordable housing near the micro fulfilment centres (MFCs) or transport allowances to retain workers,” he said. Kumar also noted that companies also build workforce housing closer to MFCs in partnership with real estate developers.

As the demand for faster, more reliable deliveries intensifies, the role of intralogistics has never been more crucial. From automation and AI to decentralised fulfilment strategies, the Indian logistics sector is at a pivotal moment, with businesses adopting innovative technologies to stay ahead. But the journey doesn’t stop here — though challenges remain, the continued evolution of intralogistics will shape the future of supply chains, ensuring that businesses can meet the ever-growing expectations of the modern consumer. The question isn’t whether intralogistics will transform India’s supply chains, but how soon businesses will embrace the change to thrive in this competitive landscape.

Libin Chacko Kurian

Libin Chacko Kurian

Assistant Editor at STAT Media Group, he has six years of experience in business journalism covering food & beverage, nutraceuticals and now logistics. His current passion is to understand the nuances of global supply chains and their current turmoil. Outside work, he is also interested in philosophy, history, birding and travelling. Mail him: libin@statmediagroup.com Follow on LinkedIn


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