Effervescence in the warehousing industry


The warehousing industry is observing major changes in recent years. To mention few are as-
  • The industry structure is transforming from fragmented and unorganized players to large organized players.
  • The industry is observing great transformation in working from just storing to planning and executing the supply chain up to the end user.
  • Increasing institutional investor participation in the sector.
  • Implementation of automation  and smart warehousing solutions in warehouse operations.
  • Sharing data and space from other players in the field.
  • New R&D is being carried out to reduce the operational cost and increase the efficiency of warehousing activities.

Government is also realizing the importance of the sector and has started to acknowledge the efforts put by the industry.  
Apart from these innovation or trend few new process and technique are being used by the industry which in coming days will surely put it among the most organized sector. One such process is Traceability.
Traceability is system which mainly refer to tracking the agricultural produce from the point of production to the point of consumption. The system has lots of benefits right from making the system transparent to recalling the product which do not meet the quality. The biggest benefit among is that it can reduce the middleman to great extent and hence reducing the cost of supply chain.

Traceability is a system enhancement and on the same line what was very much required was to break the concept of immovability and high cost of entering into this business. When we talk of warehouse the biggest hurdle is getting the land and building the warehouse on it. This has been major barrier. Once the warehouse is made it becomes immovable and cannot be relocated to the place of demand. This discourage the players to great extent. Almost 70% of the total foodgrains production is retained and consumed on farm level in India. (Source- https://dfpd.gov.in/NationalPolicy_HST.htm) These contribute major share in loss part of total post harvest loss of almost 6-10% of production. The immovable  property of warehouse has made this business non lucrative to most of the investor. But now the issue has been resolved to great extent by Silo bags. 
Silo Bag is a huge plastic bag which can be used to store grains. Apart from its movable property these bags keep the quality of stored grain intact for long period of time. Few benefits of using the silo bags are-
  1. It is movable.
  2. The storage loss is comparatively lower than the conventional structure.
  3. Operational cost is lower.
  4. The quality output is better.
  5. Lower investment is required.
  6. No initial investment required for packaging bags, stacking etc.
The bag has been successfully used by MP Government to store the wheat. While the practice of storing grain in these silo bags are not that common till date but we are hoping that it will get a boost soon. There are lots of innovation going in this industry just like the others. 
The industry is going to transform at much faster rate in next 3-5 years with the entrance of major institutional investors and government initiatives like GST, WDRA implementation, Make in India etc.

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