Unprecedented Demand for Warehousing as Small-time Grocery Stores Vouch for Big Selling Business

Warehousing is the term given to the varied processes involved in the storage of raw or finished products before shipping into the retail markets based on the supply and demand mechanism. In today’s turbulent economies, both logistics and warehousing play critical roles in reducing the gap between manufacturers and consumers. India has a 1.4 billion population and a mixed middle-income developing social market economy, and the consumers depend mostly on food produced from farms. The food produced is stored in state-of-the-art warehouses spread across the metropolis vis a vis Ahmedabad, Bangalore, Chennai, Mumbai, Delhi, and Pune. The food supply chain system in place in India is designed efficiently to reduce wastage during warehouse storage and transportation.
Source: https://www.marketresearch.com/Netscribes-India-Pvt-Ltd-v3676/Warehousing-India-32528958/

 

Models Adopted by Food Supply Chain and Warehousing in India

In recent times small-time grocery stores have shown a phenomenal recovery in the business with high demand for stockpiling. There has been a consumption growth revival of 1.9% and this has been driven by the grocers.
Source: https://economictimes.indiatimes.com/industry/cons-products/fmcg/small-grocery-stores-turn-big-sellers-again/articleshow/100169249.cms
Furthermore, in recent years with policy changes, global investors have significantly increased their presence in the Indian subcontinent. Huge investments are underway in the warehousing and the logistics. The new policy frameworks allow global investors to buy separate warehouses. In the changed scenario, businesses are gradually going through transmogrification and adopting the omnichannel approach. 3 PL is further making headway to drive more investments in manufacturing, logistics, and warehousing.
Source: https://www.thehindu.com/real-estate/warehouses-goods-transport-industry-asset-class-investment/article65579311.ece

Opinion of the Leading Warehousing and Logistics Companies:

Opinion#1

According to Warehousing Express Logistics, a Gurugram-based warehousing and Logistics Company– “With the internationalization of the food industry, and highly perishable nature of grocery products, there is always the need for a well-planned warehousing and logistics.”

Opinion#2

AWL India suggests that the use of tech-based warehousing solutions has become important for delivery of the fresh food items across larger distances. With the incorporation of technology in the warehousing, transportation is smooth and efficient.

Logistics and warehousing in the food supply are indispensable for the safety of food products as well as meeting the overwhelmingly growing demand for superior quality products from consumers. High-end food chains are critical in food safety apart from tracing the originality of the products. The warehousing companies in India are adopting various kinds of models for the efficiency of the food supply chain. These include:

  • Fast-Chain Model – It is ideal for companies that work on products that have short life cycles and are required to be consumed quickly within a limited span of time.
  • Continuous flow Model – In situations where there is high demand for the products in the market that are not changeable, then the continuous flow model becomes effective.
  • Efficient Model – When markets are highly competitive, an efficient model becomes important in the food supply chain. This model is essential for maintaining overwhelmingly high standards.
  • Agile Model – Special food consumables require an agile supply chain model that would also be in alignment with the warehousing needs.
  • Custom configured Model – This type of supply chain model is a fusion between agile and continuous flow models. The model is obligatory for meeting the demands of the varied markets.
  • Flexible Model – The demands in the consumer market may be huge and supply chains need to be flexible to meet these overgrown demands. The Flexible Model is welcoming in such conditions.
  • Source: https://www.highspeedtraining.co.uk/hub/what-is-the-food-supply-chain/

Verdict:

The Indian food industry is incorporating advanced warehousing technology to keep food items fresh as ever. The new age modern-day supply chain and warehousing operations are becoming streamlined, and effective and this trend is also having an impact on the food supply chain in totality.

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