The rise of the services- on-tap economy has set off a literal chain reaction that is affecting the Indian warehousing and Logistics sector. Understanding how and where new warehousing trends impact efficiency, speed and accuracy will help sellers sell better and regain control over the quality of customer experiences.
The domestic warehousing sector contributes to ~14% of the country’s GDP. And while government-led initiatives such as the PM Gati Shakti and the National Logistics Policy are growth accelerators that have invited broader investments , what hits the spot is a centralized platform that connects a bouquet of sales channels,warehouses and courier partners to ensure a smooth execution from the time an order comes in to it reaching your shopper.
Let’s examine what these warehousing trends are, and how you can profit from them.
7 Warehousing Trends Impacting Selling Experiences
In a nation where the selling experience hinges on the degree of digital acceptance, shopper demographic and geographical limitations, warehousing has mixed results. For example, Q-Commerce services more pincodes in Tier-1 and 2 cities versus Tier-3 on account of the presence of more Gen-Z and millennials in those areas, a crowd that typically promotes using such apps. As a result, there are more dark stores in the former than in the latter, with costs varying per square footage. To give you an idea of warehousing costs, dark stores in Mumbai and Delhi cost double than those located in Ahmedabad and Kolkata.
Space and capacity being one of several logistics and warehousing trends, let’s look at the other key trends.
1. IoT, Robotics, and Blockchain Adoption
The Internet of Things (IoT) is connecting different aspects within a supply chain such that a store owner knows what products were picked from inventory and the channel that has to be updated accordingly with new availability. With automatic actions within a,WMS the seller can also facilitate quick movements without getting manually involved every single time. For instance, on the Base system, Automatic Actions linked to a specific marketplace integration can ensure an order that is processed is picked up by the courier partner. The seller and customer subsequently have visibility and access to the same information, which reinforces the customer’s trust in the seller’s capabilities. Besides shipment tracking, the use of blockchain technology conceals payment information and prevents breaches. This year and beyond will see higher adoption rates of these technologies to make the warehouse secure and efficient.
2.Warehouse Management Digital Twins
Digital twins are virtual representations of an actual, physical warehouse that simulates several daily operations. This allows companies to log movements, verify order and ship statuses and take measures to optimize the warehouse’s layout for expedited fulfillment. The warehouse receives and sends inventory, which comprises functions including shelving, putaway, replenishment and restocking, packaging and staging.The digital twin can connect to data and generate insights from to help sellers run durability and integrity tests on their warehouse. Some use cases include;
- Spatial design optimization to cut down walktime, utilize human and robotic efforts to maximize throughput.
- Strategic resource reassignments to minimize lane congestion and expedite pick-to-ship.
- Tracking by SKUs to curb shrinkages.
3.Hyper-localized Commerce
Quick commerce (Q-commerce) or instant commerce is being driven by demand. As a result, AI-driven micro warehousing facilities are picking up in key metropolitan areas. Q-Commerce targets impulse shoppers, offering convenience at a fee (again, at the platform’s discretion). By partnering with local grocers who get access to a wider and assured user base, both sellers and shoppers have a forum to connect and transact. Q-Commerce is rapidly evolving under the pressure, with AI to optimize delivery routes such that dark stores are located closest to a consumer cluster even within the same pincode. It has the potential to increase the nation’s eCommerce penetration which is currently still in the single digits when you compare the percentages worldwide. In fact, Blinkit has piloted the sale of consumer electronics such as the iPhone16 in an effort to focus on non-grocery essentials, requiring the warehousing sector to accordingly evolve.
4.The growth of Cold Chain
Cold storage and refrigeration units for expiry and temperature-sensitive products such as dairy, medical supplies, pharmaceuticals etc is experiencing an uptick thanks to Quick-service restaurants (QSRs) and farm-to-table supply chains. In tier-1 and 2 cities, cold storage players are enhancing their facilities and integrating advanced freezing and preservation technology to make these facilities more energy-efficient without the risk of inventory spoilage.
5. Single stock holding vs. forward-deployed stock
The most interesting warehousing trend this year is the choice sellers can make between single stock holding and forward-deployed stock. In the former, businesses can hold large stock quantities while the latter is better suited to store smaller inventory and position products closer to the market. For those sellers operating an omnichannel fulfillment strategy with several touchpoints, single stock holding is a sensible move that captures sales potential.
6. Connected Inventory
A connected inventory refers to visibility over inventory movements as you upscale operations. It is picking up as a warehousing trend because it offers added information beyond tracking capabilities, including recommendations for reorder points and stock replenishment timings. For logistics providers, this will mean a system that connects scores of stocking, lanes, staging and crossdocking points, which means reduced incidents of missing, lost or stolen goods. A connected inventory assigns accountability at a warehouse-level, ensuring your profit margin isn’t impacted.
7. Green Warehousing and circular supply chains
More consumers are increasingly conscious of the link between their buying behaviors and environmental impact. In a corresponding move, sellers are favoring circularity over linearity to reuse products. In other words, a return to origin equals a return to inventory provided the product checks the quality-compliance box.
Further, many marketplaces such as Amazon are becoming sustainability advocates, with the behemoth promising zero carbon emission by 2040. With green practices such as the use of renewable energy to power warehouses, inclusion of EV delivery fleet and recyclable packaging, we can expect to see a growing number of businesses taking the sustainability oath from this year onwards.
