Warehousing and Distribution

Warehousing and distribution connect the manufacturers with the end customers. However, warehousing has become more than just storage space. The advent of eCommerce and online grocery retail has pushed the way your cargo is stored in warehouses and moved to reach the customer’s doorstep.

The internet penetration in small towns and villages was driving the eCommerce growth across the country; the pandemic further escalated it. Suddenly medicines were also being delivered online to tier 3 and 4 towns besides the usual online retail. So even the businesses running physical stores went online and expanded their geographical reach.

Two years back, the Indian warehousing market was valued at INR 1050 billion. However, because of the current scenario, it is expected to grow by 2026 to INR 2243.79 billion at a CAGR of 10.9%. As a result, the warehousing transactions are expected to burgeon from 31.7 million square feet, or over 2100 acres, in 2021 to 76.2 million square feet by 2026. 3PL and eCommerce sectors consume most storage space, followed by FMCD, FMCG, and retail.

The Indian market is expanding, and how! This transition, combined with technology, especially Artificial Intelligence (AI) and Machine Learning (ML), has revolutionised the supply chain industry in India in the past five years. Companies offering warehousing and distribution services now use intelligent Warehouse Management Systems, robotics, and blockchain tech to improve efficiency and optimise space utilisation. But such expansion usually brings along a set of challenges. The land prices are escalating due to a shortage of space. Because of this, Grade A warehouses are emerging as a powerful solution.

Grade A warehouses are massive spaces that facilitate goods storage, processing, and dispatch. They are equipped with advanced tech and robust infrastructure to promote efficiency. Their average rental is $36 per square meter per annum in India compared to $75-80 per square meter per annum in the Asia Pacific.

The average logistics cost per GDP among BRICS nations is 11% compared to the Indian share of 14%. Our country faces massive warehousing and distribution costs due to inadequate infrastructure. As a result, overheads contribute massively to the overall cost of shipping your cargo domestically or worldwide. In such a scenario, having a partner on board who has experience, knowledge, and expertise in warehousing and distribution can take away your worries.

TMT’s Team of Specialists can handle your shipments most cost-effectively and help you save costs through a healthy optimisation of resources.