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Logistics Real Estate in an Era of Online Sales Blog

Introduction

The last few years have witnessed a sharp demand in logistics & warehousing market in India especially after the pandemic. A grade warehouses with EHS compliant features are in big demand especially from Ecommerce sector and the reasons are not hard to find.

Indian ecommerce market was worth US$ 38.5 billion in 2018 but is expected to touch US$ 120 billion by 2025. Moreover, online shoppers are expected to touch 220 million by 2025. In such a scenario it is but natural despite challenges in terms of technological adaptation the ability to meet faster delivery times provides a unique competitive edge.

So let us first understand what exactly is /b>logistic real estate. In simple terms this real estate deals with company’s logistic requirements. It involves the rental and sale of warehouse, distribution centers and buildings that require storage facilities.

The main players involved in the logistic process are property developers and logistic customers who can be manufacturers, 3PL companies and/or companies who operate their own warehouse facility.

Since this blog is focused on impact of online sales on logistic real estate , let us explore it in more details. Online sales have penetrated like never before even in areas such as food, household items, sports & DIY items where traditionally online sales were lower.

The ever increasing demanding deadlines and flexibility to manager with maximum efficiency the first and last mile delivery which are demanded by customers from companies are key to its business success. Hence it is common for logistics real estate to be present close to urban area to quicken delivery times. Consumers demand due to change in shopping habits immediate deliveries.

This has led to establishment of smaller micro hubs very close to cities which are able to handle high number of orders in a short span of time but with fewer references than in larger warehouses which are away from the cities. Typically, this hub is established in a range of 20km radius of main logistic parks.

While these micro hubs are able to deliver on time, the problem is in their scarcity and high cost of land. It is precisely for this reason that an infrastructure should be in place which optimizes its use. Warehouse managers want the process to be easy and agile with stock management and that stored goods find a balance between maximum storage capacity and operational efficiency.

To maximize space and operational efficiency, we at jay storage suggest 2 types of racking system & solution. They are very broadly categorized into two types.

1) Automated Warehouse

This type of warehouse offers high bay storage with semi & fully automated system. They eliminate the need to for having aisle after every rows thus increasing storage space by roughly 60%. This is an ideal system where land is scarce and prices are high. The systems have limited response time essential with ecommerce companies.

2) Multi-tier Warehouses

This is another option where land is scarce and automation is not required. The initial investment compared to automation system is much less. The system uses maximum height with multi levels and all material is accessible by hand. It also has a flexibility to incorporate mechanical equipment’s when required.

If you are facing a dilemma as to which system will be suitable for your ecommerce business, whether automated or manual, talk to us at Jay storage. We can suggest solutions from pallet racking, radio shuttle racking, mezzanine floors, multitier bolt free system, multitier long span system, compactors, crane based ASRS, rack clad structure, conveyor systems, sortation system…. You name it every conceivable solution is thought off.

Let’s hear from you at the earliest. For more information on storage solutions products visit jaystoargesolutions.com

Call us now +91-9146064222 / 23 / 61 / 62 / 63 / 64 or email us sales@jaystoragesolutions.com to fix an appointment for a short 30 minutes VC with our sales team and learn how we can help you with solving a big problem of small items.

Look forward to hearing from you. Until next time…

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