Warehousing Facilities in India

The warehouse is a planned storage space or stockroom, which is well-equipped with the advanced and real-time tracking mechanisms. This space is for the efficient storage and handling of the goods and materials. The warehouses are stacked with the state-of-art facilities, which are used by manufacturers, exporters, wholesalers, businesses, etc. Earlier, they were known as godown and now sophisticated we called them warehouses. They hold a prominent place in the logistics sector and play a significant role in quality storage of goods. It also helps in merchandising during various stages of transportation.

The E-commerce industry is growing at a rapid rate and this is the major reason due to which warehousing facilities in India have come a long way to become a backbone of supply chain management. The online stores gained so much popularity in the recent time due to the ease of getting delivery at the doorstep and this is possible due to the seamless dispatch of the products from one location to another. Consignment delivery is not a kid’s play, however, warehouses play a vital role in the delivery. They provide value-added services like packaging, labelling, bar-coding, breaking and consolidation of products, reverse logistics, etc.

With the adoption of advanced digital technologies such as automation, Real-Time Locating System, and Radio Frequency Identification (RFID), warehousing facilities in India are becoming increasingly popular in tier 2 cities and metros. The modern Warehouse Management System (WMS) helps in creating efficient warehousing networks that provide automatic material handling, cross-docking, billing, labour management, invoicing, etc. Warehouses contribute to the profit of the companies in three ways such as:

1. Manage Inventory:

The warehouse accommodates the buffer inventory to smooth out the fluctuations in the demand and supply. This factor plays a significant role in the logistics industry and helps to gain the trust of the customer. In the time of high demand, warehouses help in timely delivery. It is essential to maintain good customer services.

2. Investment Stock: Due to the large storage space, companies can store the commodities whose prices fluctuate on a global scale. The stocking up of these commodities can help the company and provide benefits. As these commodities can be sold when the price is favourable.

3. Stocking up supplies: In the organisation, the warehouse helps in the effective use of capital and labour. The company can buy and store the supplies in the warehouse when they get commodities at a favourable rate.

Warehousing is essential in providing an uninterrupted supply of material and goods from source to destination. It is a vital hub in the centre of the supply chain. The warehouse is a dynamic operation and provides a profitable return on investment than many companies and organisations realise.