Grade-A warehouses are in demand by the top logistics companies. The evolution of Grade-A warehouse facilities has impacted the entire supply chain and fulfilled the consumer needs.
Warehouses in India have been used in the logistics sector for over the years. According to Knight Frank a report was launched in 2021 named as ‘India Warehousing Market Report 2021’. The warehousing transactions of primary markets will increase with an annual growth percentage of 19% to 76.2 million sq. ft. by FY26. In FY21 it will be 31.7 million sq. ft.
Covid made an impact on logistics warehouses.
Pandemic impact through Grade-A warehousing
The pandemic played a key role in improving and elevating the logistics industry. This shift towards digitalization and contactless operation, even the customers have left offline operation and lean into online. This led to huge exploration of D2D brands focusing on providing the customers their products at their doorstep.
This emphasized attention on the supply chain, that the entire procedure should be smoothen till the doorstep delivery. The requirement for vaccines, oxygen cylinders, essential supplies and food etc became timely distribution as a priority. The significant uplift in the e-commerce sector is seen.
It boosted the speed of the logistics industry to meet consumer needs for home shopping which is increasing demand and highlighted the significance of last-mile delivery.
The necessary requirements were fulfilled when Grade-A warehouse appeared as a “solution” and it was observed to be in high-demand. As per Savills reports it was confirmed that the warehousing demand in 2021 was highly demanded by e-commerce companies and third-party logistics players accounted for the percentage of 62% total absorption, the manufacturing sector is at 14%.
Grade-A warehouse has opened the doors for logistics sector.
What is a Grade-A warehouse?
Grade-A warehouse has gigantic space which allows storing, facilitating efficient operations of the supply chain and it is built with modern conveniences, technology which provides competencies and state-of the-art infrastructure. As the existing parks have limited space, businesses are often enforced to make decisions for alternate locations which are far from the city. The current scenario, the increasing demand for industrial and warehousing solutions is growing. Those are designed with easy options and they are in the same location. These are orientated with business companies growth plans.
Grade-A parks are located close to transport hubs and connected to state and national highways to keep up with high and the transportation cost to be low. These tactically located spaces in social ecosystems are impacted with reduce employees’ travel cost and time, giving the benefit of the facility to work, live and learn.
The top logistics companies will advance with blockchain and artificial intelligence.
The warehousing space is not limited to Grade-A facilities but even Grade-B and Grade-C is there, this sector is extending its roots in tier- I and tier-II cities. During 2015, only 3% of Grade-A warehouses existed. But the recent report showed around 10% of growth in Grade-A warehouses. This demonstrates the logistics sector is developing and being highly organized.
As per the city’s warehouses, smaller fulfillment centers are rising in demand in top metro cities as time consumption becomes lesser and same-day delivery takes a few minutes. The economy will eventually see the top companies adopting technologies such as artificial intelligence, blockchain etc to satisfy the changing consumer needs.