Warehousing involves the storage of physical goods for further distribution. It enables businesses to have a centralised location to safely store goods in an organised manner and to keep track of the location and time of arrival of goods. It also helps in tracking the time duration for which the goods were stored in the warehouse and the number of goods available in hand. Catering to this need, warehousing companies offer personalised services to businesses, thus enabling them to have better control over the inventory and ensure that customers receive their products on time. The Indian warehousing market is expected to touch INR 2,821.1 billion by 2024. Since the demand for warehousing services in India is expected to grow by 13.57% CAGR during the 2020-2024 period, there is a great scope for growth for warehousing and logistics companies in India.
How do warehousing companies help businesses?
For most businesses, outsourcing their storage or fulfillment operations helps them to save money and boost productivity. The warehousing market in India accounts for approximately 25% of the total logistics cost. Businesses can make use of warehousing companies’ stockroom space and logistics assistance to receive, store, manage and ship their goods. Now, new technologies are available to effectively keep track of inventory and last-mile logistics, helping warehousing companies to deliver orders to customers on time.
Safexpress, one of the top warehousing companies in India, offers to its customers a world-class warehouse management system (WMS) designed to optimize warehouse operations and management. This system helps to keep track of goods right from their entry into the warehouse till they are moved out. With the intensive usage of technology, Safexpress ensures smooth functioning of warehouse operations which include inventory management , auditing and many more such activities.
Advantages of Seeking Services of Warehouse Companies
Warehouse companies can provide warehouse spaces equipped with the latest technology and also implement various measures to ensure that proper safety standards are followed.
- Lower Investments
Companies can avoid huge investment costs in warehouse infrastructure and manpower by outsourcing their requirements to warehouse companies. Setting up your warehouse is expensive, time-consuming, and requires a lot of planning especially with the location of the warehouse.
- Warehousing Requirements Easily Scaled
With the increasing demand for delivered goods, businesses need to be prepared with additional storage space and logistics operations to meet customer demand. Warehouse companies help businesses avail of their existing warehouse infrastructure to manage the increased supply demand. Based on the demand, the usage of warehouse facilities can be scaled as per business requirements.
- Opportunity to Reach Out to a Larger Market
Warehousing companies, with their latest technology and existing infrastructure, can aid businesses to expand into new territories. The ability to efficiently store goods for fast and effective delivery can guarantee customer satisfaction and return business. Warehousing companies are already established in different markets and have tie-ups with other service providers. This can prove beneficial for businesses planning to expand to a larger market.
- Warehousing Companies Have Expertise
Warehousing companies offer their expertise and experience in handling logistic and storage issues to various businesses. They can guide businesses through the customs, paperwork and transportation issues, thus ensuring a smooth supply chain process.
Many warehousing companies in India are marred by improper infrastructure. Compared to the rest of the world, India has the lowest warehouse capacity equipped with modern facilities. With 3PL and e-commerce companies the biggest supporters for organized warehousing spaces, the demand for warehousing is on the rise. Government policies such as the establishment of logistic parks and free-trade warehouse zones are expected to spur the warehousing market growth in the country.
Source : https://www.reddit.com/user/safexpress1/comments/mlz27f/increased_demand_for_warehousing_companies_in/