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Why one should lease rather than buying warehouses

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Warehouse management has become an integral business component to scale up businesses and ensuring customer satisfaction through state-of-the-art supply chain management and efficient inventorization. Warehouses ensure seamless and efficient product delivery framework, mapping logistics to a streamlined process ecosystem, spreading wings far and wide to satisfy customer requests from far flung regions. The big question then is: should entrepreneurs buy or lease warehouses? Seemingly a simple choice to make, but there are a variety of factors which go into making the decision. With the emergence of a massive real estate market , competitive pricing   models, warehouse decentralization has become indispensable for companies, especially those in e-commerce logistics, to ensure enhanced customer experience and loyalty.   According to CBRE, leasing of warehouses spaces has grown by a massive 31% Y-o-Y to 13 million square feet across 8 Indian cities in the first half of...

How far have we come from Godowns

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Indian Warehousing market is undergoing a tectonic shift, moving from mere brick-and-mortar dilapidated godowns to state-of-the-art warehouses, equipped with technologically-enabled amenities, quality infrastructure and robust storage mechanisms. With e-commerce boom and digital revolution underway, there is a huge demand by consumers for goods of all types to be delivered at their doorsteps using affordable, competitive pricing models. Businesses have better control over their product inventories in a warehousing model over the traditional godown model, ensures timely delivery model and contributes towards establishing a positive RoI over the longer horizon. Timely order processing results in better shipment rates and exquisite user experience, which is indispensable to sustain and provide a sustainable and tangible business value to the consumers.   Warehousing services, hence is a key block towards establishing a profitable supply chain ecosystem. Varying weather conditi...

Difference between Ready to move and Built to suit warehouse facilities

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According to Knight Frank’s India Warehousing Market Report 2019, warehousing markets in India witnessed a growth of 77% year -on -year in leasing in April 2018 – March 2019. Builders and developers are in pursuit of constructing huge warehouse spaces to satisfy occupier needs and flexibility. Largely, two models evolve in the space – Built to suit and Ready to move warehouse facilities. Built-to-suit (BTS) warehouse facility is a model wherein occupier is committed to taking space on lease and the space is customized according to his/her requirements by the developer. All the design and construction requirements are shared at the outset by the leaser, which when agreed upon, the actual warehouse construction commences, as per the specifications of the business firm and the BTS agreement signed at the outset.   Customised design as per client’s needs is brought to life using resources and expertise of developers. This unleashes the dynamism and flexibility that businesses...

Co-warehousing: The next big thing in logistics industry

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After co-working and co-living, the next big thing in the world of shared spaces is co- warehousing - collaborative workplaces for businesses with physical products and art entrepreneurs. With e-commerce witnessing unprecedented boom across the globe, many small businesses are facing logistics issues especially last-mile delivery which carries an in-proportionate cost . Having a conventional warehousing space in India means long, multi-year contracts, hiring operation staff, acquisition of expensive machinery, its maintenance, and not to mention the monthly utility bills. Thus, warehousing marketplace is experiencing a trend towards collaborative economies and greater flexibility, where different businesses can seamlessly receive, store and ship merchandise from a shared warehouse without the harshness of costly rents, maintenance or long term commitments. Such spaces also give businesses ability to customize a storage plan that matches very specific needs, regardless of co...

Will Co-warehousing find a space between us?

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You might be wondering why are we discussing co-warehousing? Are we talking about killing the business? So, a ‘No’ for all your doubts. It is all about sustainable and affordable means of development.  We were at the IWS Summit, where many panellists were discussing on agenda like land scarcity, resource scarcity, sustainable development. We were awestruck to find the buzz created by the concept of Co-warehousing. Every key player discussing the change in the picture of Warehousing once the idea of Co-warehousing infiltrates it.  As usual, some favoring its relevance whereas others throwing points to counter it. Listening from a distance, it hit my senses that this question cannot be lost in the foggy air outside. Whatever goes below this is an outcome of the discussion. Specifically talking about the E-commerce giants, co-warehousing played a vital role in their establishment.  With just hearing the word “Warehouse” there is an imaginary picture formed in...

How E-commerce is transforming the logistics ecosystem in India

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Indian eCommerce landscape is undergoing a mammoth transformation. One of the most promising   sunrise sectors, the industry is slated to grow from $39 billion in 2017 to $120 billion by 2020, clocking an astonishing 50% CAGR. This growth pattern bodes well for several industries, in particular to the logistics ecosystem. The emergence of eCommerce behemoths like Amazon, Flipkart has brought about an enabling environment for the establishment of an end-to-end, comprehensive logistics framework. Both eCommerce and logistics market complement each other and a synergized collaboration is for the benefit of both. The seamless integration of logistics infrastructure with eCommerce platforms is definitely one of the critical factors contributing towards their exponential growth. Rapid adoption of digital technology presents immense scope of integration between both sectors. Building a sustainable Supply Chain , which is both efficient and customer-oriented is one of the promis...

Warehousing Leasing - What does it hold in Indian scenario

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Indian warehouse leasing sector is on the cusp of experiencing unparalleled growth in the overall Indian economic landscape, seldom visible in other sectors. Largely driven by online e-commerce boom, positive technological disruptions and favourable governmental policy reforms, the warehousing construction and leasing market is fast becoming a major peripheral sector indispensable to contribute towards positive user experience. No wonder, developers don't want to lose out on this high yielding asset, and are tying up with global investors to capture a foothold in this exciting market. The magnitude of the sector's growth can be gauged from the fact that leasing of warehouses increased by a whopping 31% year-on-year in 8 major cities in first 6 months of 2019 alone, according to CBRE. The race to acquire huge land spaces to build and maintain massive warehousing spaces is a phenomenon largely fuelled by technological advancements, with user demand and contemporary busin...