Articles

Industries whose future heavily depend on supply chains

by Akash Sharma Akash Sharma
Global warehouse developers consider India as a perfect fit for the development of logistics parks; prime reason being the sudden increase in domestic consumption and cost-effective outsourcing. Over the last few years, automotive, retail, pharmaceutical and agricultural industries have gained tremendous traction. Supply chains in India are getting quickly filled as investors and developers are taking a keen interest in investing in this area.   

Let’s see what opportunities lay in the future of Indian warehouse industry. 

The automobile industry 

The reason why the automobile industry is growing faster than any other industry is because foreign players are specifically showing interest in it.  With the increase of importance in efficient logistics and just In Time (JIT) services, the evolution has never been so fast. We are also expecting a boom in emergence of 4PL services that will enable the industry players to create a perfect blend of in-house and outsourced service components to manage supply chains. Government is also playing an important part in boosting this sector by establishing Special Economic Zones (SEZs). 

Retail industry 

For multinationals and private equities, Indian retail market has always been the most attractive destination. The reason behind it is increasing urbanization, disposable incomes, and favorable demographics.  Most of the existing players are planning for large expansions and new players are also looking forward taking advantage of organized Indian retail market. There has been a rise in Warehouse in Pune, Bangalore and Delhi as well. 

The demand for modern warehouse space in south India is also increasing and it is expected that the retail market is going to get a big boom in coming years, especially in Chennai and Bangalore. Global players are realizing the importance of rising demand for modern warehouses in India and they are looking for partnership with domestic real-estate companies.  

Not just urban areas but rural areas are also attracting global retailers. Although, rural areas do not have well-developed infrastructure but global retailers are keen on establishing their base over as they will be getting the opportunity to invest in cold storages and customized warehouses that are near to the farms.  

The pharmaceutical industry 

Interestingly, economic downturn did not affect pharmaceutical industry in India or many countries to such an extent. In order to support the growth of the pharmaceutical industry, investors should make sure that logistics operation and integrated supply chain work in an organized fashion.  Many pharmaceutical industries preferably outsource logistics from 3PLs due to lower operation costs and supply chain efficiency.  Moreover, customers are also looking forward outsourcing their logistics operations from logistics service providers, which means more consolidation and integration of logistics is likely to happen in the future.  

Pharmaceutical products are temperature sensitive and they require highly reliable and safe places for storage. The Indian pharmacy industry is eyeing for global goals. Hence, they need to maintain high-level cold-chain management practices to maintain the competitiveness in the market.  

Agriculture industry
 
Last 2 years have been a little dicey for Indian agriculture sector but thanks to the government, NGOs, and some private entities, things have been a bit smooth now. In order to develop this sector, the investors have to deal with several challenges such as supply chain inefficiencies, heavy losses on commodity and lack of proper storage. The supply chain activities in our country are handled by state-run CWC and FCI or some other unorganized sectors. The current scenario of this industry has pretty much changed with the entry of private and multinational retailers into the market.  


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About Akash Sharma Freshman   Akash Sharma

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Joined APSense since, May 8th, 2019, From Delhi, India.

Created on Sep 24th 2020 01:29. Viewed 117 times.

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