As the sixth-largest and fastest-growing large economy in the world, India has seen rapid industrialisation across its key sectors over the years, supported by various government initiatives and structural reforms such as the ‘Make in India’ and ‘Atmanirbhar Bharat’ schemes.

India has also experienced a seismic shift in global trade, as ecommerce’s share of retail soars across the globe, while its growing middle class further drives domestic consumption. In fact, India’s ecommerce market could outpace more mature markets to become the third largest market in the world with US$ 350 billion by 2030[1].

One of the industries primed to benefit from this is the warehousing industry, as outlined in a recent white paper by the European Business and Technology Centre (EBTC), titled ‘Leveraging Warehousing Technology for India’s Deeper Integration into Global Supply Chains’. The white paper provides a comprehensive overview of India’s warehousing industry, its opportunities and challenges, as well as insights from industry experts on the way forward.

The need for technological change

Logistics and warehousing play crucial roles in the supply chain, and their efficiency and effectiveness can make or break any business. In this critical space, India presents great potential as a global logistics hub given its ideal positioning between ‘east’ and ‘west’. At present, the warehousing market in India is expected to grow at a rate of 35 to 40 per cent annually[2].

One of the key takeaways in the white paper is that while India’s astounding growth represents a major opportunity for the warehousing industry, it also presents significant challenges. These include India’s current regulatory environment and a hesitation amongst industry players to embrace technology and automation.

Automation can seem intimidating to some businesses who have always relied on manpower. However, to stay ahead of the ecommerce curve and keep up with consumer expectations around fast online deliveries, robust warehouse technologies and infrastructure are no longer a ‘good to have’ but a ‘must have’ for businesses looking to improve productivity, overcome barriers, and cut costs.  As an increasing number of businesses embrace aspects of automation, those who are slow to adopt these new technologies could fall behind competitors.

Looking beyond to look ahead

To identify learnings and best practices for India’s warehousing sector, it is important to look around the region to find out what has worked well for neighbouring countries. As a dynamic and vibrant region, Asia Pacific presents a range of case studies across various industries and markets that present their own unique challenges and opportunities, and how the right warehousing solution can meet their specific needs.

As an Asia Pacific business transformation consultancy focused on helping businesses optimise their entire supply chain, TMX  has depth and range of insights and experience across the region. We work with diverse clients with wide ranging needs, budgets, goals, opportunities, and constraints, equipping us with deep in-market knowledge and understanding of the technological innovations that can help build competitive logistics and supply chain networks across all our markets.

To help demonstrate the scalability and applicability of warehouse automation in India, TMX contributed two differing case studies to the white paper – ranging from one of the largest bottlers in Japan who constructed the warehouse of the future and one of Vietnam’s largest retailers that adopted automation to address its logistical challenges. Both projects saw TMX clients achieve significant savings in operational costs and greater improvement to its performance overall.

Warehouse technology and innovation will continue to play an increasingly important role in advancing supply chains. Download the full white paper today to have access to greater detail on the types of technological innovations employed to meet their specific needs, and specific results achieved thanks to warehouse automation.

[1] India Brand Equity Foundation.
[2] IndianRetailer.com. 

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