India’s warehousing market is expected to reach INR 2,872.10 bn by 2027, expanding at a CAGR of ~15.64% during 2022-2027. With the boom in e-commerce, last-mile deliveries, just-in-time deliveries, and omnichannel operations, the warehousing sector is witnessing exponential growth. Government initiatives and policies such as single window clearances, NLP, and foreign investments have contributed to the positive growth of the Indian warehousing sector. The Make in India initiative by the government has boosted the manufacturing sector.
The increase in domestic manufacturing activities subsequently fuelled the demand for warehousing facilities in the country. Over the years, warehousing as a sector has become more organized. The widespread adoption of tech has further led to a boom with businesses relying on AI, IoT, ML, robotics, and automation to streamline storage and distribution operations.
Technology has contributed to a more consistent, efficient, and accurate warehouse operation. With the growth of 3PL providers and the expansion of warehousing facilities in India, shared or multi-client warehousing has emerged as a practical solution for growing businesses. Sharing the costs of space, labor, and technology ensures flexibility for businesses. This article will elaborate on the benefits of adopting a multi-client warehousing solution by outsourcing to a 3PL provider.
No investment in CAPEX
Businesses running a dedicated warehouse is fully responsible for the fixed costs incurred for space, personnel, and technology, including investments towards recruiting, and training warehouse staff, and maintenance of warehouse equipment. These are to be borne by the business irrespective of fluctuations in demand and production. However, with multi-client warehousing solutions, costs are variable by the number of products stored and shipped out, eliminating the need for CAPEX investment. The cost of personnel, technology, and equipment are built into the pricing package for using the space. This results in lesser costs and enables businesses to plan more efficiently as the costs are now more predictable.