The Role of Warehousing in Lifting India's Economy

The Role of Warehousing in Lifting India's Economy

A huge round of applause for warehouse workers for helping India’s logistics industry contribute a significant 13-14% to the country’s gross domestic product (GDP). Their efficient operations and management help the country reap rewards with high economic growth. It serves as a critical component of India’s supply chain dynamics and is likely to be the case over the next decade. With India making serious attempts to be among the elite developed nations by 2047, warehousing plays a critical role in helping the country maintain its growth momentum. They are actually fulfilment centres serving the needs of almost everyone in the e-commerce era where online orders have taken centrestage. 

What is Warehousing?

Warehousing refers to the process of purchasing goods from a manufacturer before storing them in a warehouse before order fulfilment. The warehousing process entails organising and managing inventories before distribution. Warehouse owners hire credible warehouse professionals to do or oversee a variety of tasks. 

Explaining Warehousing Functions

Warehousing practices involve the following functions. 

Streamlining the Logistics Process

Simply creating warehouses won’t serve the purpose. They have to be strategically located so that companies can achieve high operational scale. Strategic location means building warehouses near to a large number of customers so that deliveries can be faster and more cost-efficient. Doing warehousing this way helps streamline the logistics process. 

A Critical Component of the Supply Chain 

Storing raw materials and finished goods at warehouses helps manufacturers free up space in their production facilities. By opting for warehousing, manufacturers ensure efficient arrival and dispatch of materials and goods, ensuring a highly efficient process for transportation. Warehousing for finished goods can help manufacturers operate larger production batches as it serves as an effective storage alternative. The investment in the warehouse will depend on how much space a particular business would require for warehousing services. Businesses may require an assembly line or opt for extra storage space for new products. 

Inventory Management

Inventory management serves as a key function of warehousing. With inventory management, warehouses can track and organise products and goods effectively. Capacity planning is another key feature of warehousing wherein warehouse operations consider evaluating the space needed to accommodate new products.

Optimum Quality Control

Quality control regarding the receipt of raw materials and transporting finished goods is important in warehousing. Inspecting raw materials at a warehouse prevents the possibility of defective materials entering the shelves. These materials may not adhere to the required quality standards, making the eventual customers worried and frustrated. A strict inspection thus helps evade such outcomes. 

Climate Control 

Warehousing is a critical aspect that not only helps businesses with secure storage but can also ensure climate control. Some businesses may appreciate this feature as they may have products requiring climatic preservation. Following such practices helps businesses prolong the life of perishable goods. 

Growth Drivers for Warehousing in India

Warehousing, which is a critical component of India’s supply chain dynamics, is set to witness a monumental rise, attaining a market size worth US$19 billion by 2025. The tall growth estimates are based on a rapid e-commerce boom, the rising demand for effective logistics services, and the government’s emphasis on infrastructure development. The advent of 4.0 further helps warehouses unleash the power of automation, data analytics and robotics to surge ahead in a dynamic business setting where innovations define quality.

Conclusion

Warehouse, as stated above, is a vital cog of India’s supply chain dynamics. Companies are increasingly focusing on strategically placing warehouses to achieve economies of scale. Their endeavour is fast leading the country to an economic high. India’s bid to become a developed nation by 2047 rests a lot on how efficiently warehouses operate across the country from now on. Efficient warehouse operations require roping in talent with the required skills. So, if you are a warehouse owner and require a workforce for a smooth operation, don’t hesitate to contact reBLISS - a smart work platform that is busy connecting businesses like yours with a wide range of skilled professionals. These professionals work on an output-based business model, allowing you enhanced operational efficiency. Collaborate Now!