Business

How Logistics Parks Are Helping Indian Businesses

People reading the news in India may have come across the establishment of multi-modal logistics parks here. A logistics park is a collection of office buildings, custom-built and prefabricated warehouses, fuel pumps, data centers, transportation depots, labor lodgings, retail facilities, customs houses, and other amenities. Clients may pick the services they want based on their needs and pay a lease to rent suitable premises. Such parks are highly suitable for businesses to transport goods and services easily to customers.

Best Locations for Logistics Parks

The construction of logistics parks close to seaports makes receiving and shipping goods easier, faster, and less expensive. Imported and exported goods are more accessible when logistics parks in India are not far from airports. National hubs, as previously indicated, are strategically positioned near highways and railroads to promote land mobility. Cities such as Bangalore and Chennai offer excellent locations for such kinds of parks.

Expanding Business into International Regions

Custom-designed and sized items are frequently demanded in international markets, necessitating substantial transportation, distribution, and storage expenditure. India’s logistics parks assist enterprises in helping them expand rapidly into international markets. An enterprise can achieve its goal of selling to regions such as South Asia, Africa, and the Middle East by leasing a portion of the logistics park area.

Gati Shakti Master Plan- Heads in the Right Direction

The government’s goal of building multi-modal logistics parks and integrating railways with urban transit will aid the growth of the warehousing industry. Such parks will draw significant investments from institutional investors. The Indian government has already implemented the Gati Shakti Master Plan for cargo ports and expressways. Companies can expect this plan to reduce construction delays caused by discrepancies in micro-planning and micro-implementation of infrastructure.

Multi-Modal Logistic Parks are created by adding numerous value-added services and better rail and road transport facilities to regular logistics parks. The advantages offered by such parks include:

  • Reduction in Freight Costs
  • Low Warehousing Costs
  • One Window Services
  • Excellent Security Systems for Goods
  • 24/7 Services
  • Enhanced Trackability and Traceability of Transport Consignments
  • Less vehicular congestion and pollution, leading to better road conditions for all

Pandemic Led to More Warehouses Being Used

The pandemic has resulted in a large and long-term shift in consumer behavior towards regular purchases, with most buyers shifting towards online transactions. The goods to be transported after online transactions necessitated more logistical infrastructure. To ensure that ecommerce businesses can operate financially during the pandemic, logistics services were enhanced and are constantly being extended across India. Warehouses are being used on lease by ecommerce enterprises to this effect.

Modern distribution networks benefit communities while increasing business efficiency and lowering costs. A reputable logistics park attracts equipment suppliers, construction firms, trucking companies, and consultants. More jobs become available in locations with logistics parks that several enterprises surround. Logistics businesses guarantee that activities are carried out by limiting carbon emissions, which are appropriately controlled during goods movement.

The Growth of Warehousing in India

Warehousing is an essential component of the supply chain for companies that manufacture, export, import, or physically transport items. Warehouses have evolved from simple stock storage areas and low-cost Godowns to smart structures with climate-proofing, insulation, monitoring, ventilation, standard safety standards, and IT infrastructure. The sector has evolved from mainly unorganized, asset-heavy to an organized business offering world-class infrastructure.  The rapid rise of e-commerce, pharmaceutical, and industrial sectors has made evolution possible. Additionally, more favorable government policies and increased institutional investors have also played a role in the rise.

Ways in Which Warehousing is Important for Logistics

  1. Transport– This is the most important part of logistics since it allows items to travel from the supplier to the customer. The buyer rarely receives things directly from the source. Goods must be moved from their point of manufacture to their eventual destination. Enterprises can save money on logistics by consolidating modes of transportation, which is essential for companies that move goods across small distances.
  2. Implementing Quality Assurance Techniques– Goods inside a warehouse must have accurate sizes, configurations, and numbers as per the requirements. The central warehouse guarantees that the right components arrive at the right time and place. Though expensive and sophisticated, container verification checks have become critical. Traditional quality control procedures include visual verification checks and reading codes from containers.
  3. Protection From Unforeseen Events– Issues such as suppliers running out of stock, strikes, and shipping delays are all true. Delays in the delivery of raw materials may cause the production process to stand a standstill. In a distribution warehouse, similar unforeseen incidents may occur. Warehouses prevent damages during shipment to ensure all orders are completed equally efficiently.
  4. Smooth Goods Flow– Warehouses ensure smooth distribution and arrival of raw materials despite seasonal variances.

Business can be made efficient through the services of the best logistics parks. Indian companies are fortunate that the Central Government is encouraging such kind of infrastructural development

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