Advantages of Grade-A Industrial Warehousing for Businesses

Grade A warehousing storage solutions, come equipped with cutting-edge technologies and adhere to industry excellence benchmarks. 

Grade A warehouses are experiencing a surge in demand. This trend is primarily driven by several factors within the industry, including the rise of multi-client warehouses, the increasing prominence of 3PL and 4PL service providers, the necessity for tailored and specialised storage capabilities, and positive governmental backing, exemplified by incentive programs like Production Linked Incentive Scheme (PLI) and the establishment of uniform practices throughout the supply chain. Beyond their efficiency and adherence to regulations, Grade A warehouses efficiently cater to diverse businesses across sectors, providing an intelligent and effective storage solution.

The most recent report from Savills India, a global real estate advisory firm, reveals that the 3PL sector remains the primary driver behind the demand for warehouse space, constituting 40% of total absorption in the first quarter of 2023. Concurrently, the manufacturing sector accounted for 23%. As the warehousing sector expands exponentially, the demand for Grade A warehouses expands with it as well, making up 52% of both total absorption and supply during the same period.

Advantages of Grade A Industrial Warehousing

1. Operational Efficiency: Grade A warehousing facilities boast advanced infrastructure, facilitating superior traffic and cargo management. This infrastructure supports the seamless integration of state-of-the-art Material Handling Equipment (MHE), maximising productivity. Increased loading and unloading docks, along with strategically designed entry and exit points, to ensure swift movement to and from the warehouse.

2. Enhanced Security: Business losses stemming from theft, accidents and human errors are mitigated by Grade A warehouses, which conform to rigorous safety and security standards. These include advanced surveillance and fire suppression systems, tech-enabled 24/7 monitoring, robust Standard Operating Procedures (SOPs) and resources for crisis management.

3. Scalability and Agility: Grade A warehouses are adaptable to short- or long-term operational fluctuations. Their flexibility extends to customization, rendering them well-prepared for future requirements. This versatility is particularly advantageous for accommodating business growth.

4. Sustainability: A pivotal feature of Grade A warehouses, helps in driving enhanced efficiency and responsible resource utilisation. These facilities prioritise eco-friendly practices, from energy-efficient systems to waste reduction, aligning with a commitment to environmental stewardship while optimising operations for a greener, more sustainable future

The escalating demand for Grade A warehouses can be attributed to various factors, including

1. E-commerce Proliferation: The shift in consumer behaviour towards online shopping has propelled the growth of e-commerce activities. The resultant need for larger warehouses capable of storing significant inventories has driven the demand for Grade A warehouses featuring expansive spaces. The agility of these warehouses aligns with the evolving dynamics of e-commerce, where rapid last-mile deliveries are essential.

2. Rise of Third-Party Logistics: Companies increasingly outsource logistics to 3PL providers to enhance efficiency. This trend has driven the demand for Grade A warehouses in Tier I and Tier II cities, facilitating intra-city last-mile deliveries and efficient storage, particularly for sectors like e-commerce and pharmaceuticals.

3. Favourable Government Policies: Government initiatives such as the National Logistics Policy and "Make in India" have fostered a conducive regulatory environment. The manufacturing sector's specific needs are met by Grade A warehouses, which accommodate intricate requirements related to quality control, testing, and specialised equipment.

4. Tech-Enabled Solutions: The demand for digital and contactless operations has surged post-pandemic. Grade A warehouse services provide a platform for cutting-edge technology implementation, minimising human intervention. These warehouses are equipped with advanced tech features like Automated Identification and Data Collection (AIDC), Automated Storage and Retrieval (ASRS), and QR codes that optimise operations.

Grade A warehouses have emerged as a solution for businesses seeking contemporary storage solutions. With features such as 30% additional open space, 30% internal cargo handling area, 40% storage height to enhance movement, improved floor height and construction quality, and reinforced safety measures, these warehouses are in high demand. This demand is driven by the increasing intricacies of logistics and industry-wide endeavours to uphold standardised practices and global quality benchmarks as well.