Transforming Warehouses by revolutionary technologies.

Technology is transforming every aspect of the warehouse—from tracking inventory to product picking—to get goods in and out as quickly and cost-effectively as possible. As operators face rising costs and a shrinking inventory of prime land, the continued demand for space and labor is spurring innovation that now defines how warehouses are being built.

1) Wireless technology and real-time inventory tracking: Warehouse operators are adopting new technologies to build efficiency into every aspect of the warehouse. Radio frequency identification (RFID) tags attached to each inventory item can transmit real-time data to and from the warehouse floor and inventory management applications, allowing warehouse teams to use mobile devices to track inventory from the moment it arrives.  

2) A hyper-connected facility: In a hyper-connected warehouse, operating systems are laid out in a highly advanced matrix to accommodate the growing mix of technologies. Today's warehouses hold bandwidth for technologies like barcoding, IoT, RFID scanning, GPS, load optimization and future technology innovations that may emerge. With this tech in place, logistics managers can quickly make and execute decisions. 

3) The new forklift: Forklifts, always a familiar sight in warehouses, are more connected than ever. IoT technologies can connect a warehouse operator's forklifts with their enterprise resource planning system and workers across the warehouse, shaving operations time. Some forklift manufacturers are incorporating alternative fuel systems and energy-efficient engines to reduce energy costs.     

4) Growing clear heights: To optimize warehouse utilization, yesterday's 24- to 26-foot ceiling height has risen to the 36- to 40-foot range today. One reason is that automated picking technology can easily reach even the highest shelves. Another is that today's lighting systems can efficiently illuminate tall spaces. Yet a third factor is the availability of fire-suppression technologies that can reach higher ceilings. 

5) Picking tech, picking up speed: From multilingual voice-picking and augmented reality to specialized robots, revolutionary technologies are changing picking practices. These technologies enable logistics operators to expand their labor pools by overcoming language barriers and accommodating a range of skillsets.

6) Sustainability, making strides: Alternative energy and energy efficiency are no longer optional as warehouse operators bring more automation into the warehouse. Solar panels, LED lighting, cool-roof systems, thermal glass, clerestory windows and other new green materials and innovations are leading warehouses into a new age.

7) Human-centric design: As labor shortages rise in many markets, there is a growing importance on workers' quality of life in the warehouse. New features such as effective lighting, air quality sensors and temperature control are more common as design becomes more human-centric. Improving the working environment not only benefits employee health but also reduces employee turnover and facilities risks. 

8) When it comes to land, flexibility is the name of the game: Industrial tenants are demanding flexibility in response to highly variable business conditions. Tenants want the option to add land and space if additional needs arise, like a seasonal rush. "Flex land" could be deployed for needs such as additional truck storage or warehouse expansion.

9) Super-flat to sloped floors: The super-flat floor has long been the norm in warehouses. Although many warehouse operators continue to require exceptionally flat floors for highly precise robotic picking and racking technology, sloped floors are appearing to accommodate technologies for moving inbound and outbound shipments.

Growing Indian warehousing market

The Indian Warehousing Market is expected to be an estimated $12.2 billion in 2020, growing to $19.5 billion by 2025.

The warehousing market is driven by the country's flourishing manufacturing, retail, FMCG and logistics sectors. Furthermore, supportive government policies such as establishment of logistic parks and free trade warehouse zones is expected to spur the market growth through 2025. Also, introduction of GST has led to reduction in inventory and turnaround time, which has led to the removal of check points thereby diminishing state boundaries.

Besides, technological advancements such as advent of AI, IoT, 3D Printing, among others, in the warehousing industry is further expected to create lucrative opportunities over the next few years. Moreover, the emergence of third part logistics and supergrid logistics is further expected to fuel the market growth during the forecast period.

Further, the sudden outbreak and spread of COVID-19 will have short-term impact on warehousing demand due to lockdown and reduced manufacturing activities. Further, it will help in strengthening the warehousing industry in India on account of the shifting consumer preference from offline mode of shopping to online in order to adhere to the social distancing norms.

The Indian Warehousing Market is segmented based on type, ownership, sector, usage pattern, infrastructure, end-user industry, company and region. Based on type, the market can be segmented into general, specialty and refrigerated. The refrigerated segment is expected to witness significant growth owing to the rising demand for such warehouses for storing perishable food items and ensuring food security & safety. Based on ownership, the market can be categorized into public, private and bonded. The public ownership segment is expected to dominate the market during the forecast period. These warehouses are owned by government and semi-government agencies and are rented by them. Such warehouses aid the small traders who don't have their own warehouses.

Based on usage pattern, the market can be split into single and co-warehousing segments. The co-warehousing segment is expected to witness significant growth in the market through 2025. This can be ascribed to the increasing demand for last mile distribution and growing preference for co-warehousing among manufacturers, suppliers, logistic companies as well as startups. Additionally, co-warehousing provides flexible storage that can help businesses meet their needs and give them a better control over their budgets. Co-warehousing provides scalability and helps in reducing overall operational costs.