The Amazing Scenario of the Current Logistics Parks in India!!

Logistics parks have become increasingly popular in India in recent years. These parks act as central locations for transportation and logistics activities and comprise several warehouses, distribution centres, and transportation facilities. They have a critical role in improving the efficiency of the supply chain and lowering transportation costs. Read along as we explore the current situation of logistics parks in India in detail.

The Growth of Logistics Parks in India

India's infrastructure development and the need for efficient logistics and supply chain operations have led to the proliferation of logistics parks throughout the country. The Indian government's efforts to improve logistics infrastructure and the implementation of the Goods and Services Tax (GST) have further spurred the growth of these parks.

CBRE, a property consultant, reports that India added 29 million sq. ft. of logistics and warehousing space in 2020, despite the COVID-19 pandemic. The supply of logistics and warehousing space grew at a CAGR of 25% between 2017 and 2020, and this trend is expected to continue. India is projected to add 50 million sq. ft. of logistics and warehousing space by 2023.

Major existing logistics parks in india are being built in cities like Delhi-NCR, Mumbai, Bengaluru, Chennai, Hyderabad, and Pune, providing advanced warehousing facilities, transportation infrastructure, and value-added services such as packaging and labeling. Logistics parks are critical to improving supply chain efficiencies in India, thanks to their strategic locations and state-of-the-art facilities.

Strategically Placed Warehouses - The Key to Logistics Park Success

Logistics parks in India owe their success to the strategic placement of their warehouses, which are strategically located near highways, ports, and airports for quick and efficient transportation of goods. These warehouses are designed to accommodate multiple tenants and provide shared infrastructure and services, which results in cost reduction.

Strategically placed warehouses offer a significant advantage by lowering transportation costs, which is critical with the growth of e-commerce and the rise of last-mile delivery. Having warehouses close to urban areas reduce transportation time and costs, which ultimately results in faster delivery of goods. For instance, Bhiwandi, Mumbai's logistics park, is located near the Mumbai-Pune Expressway, making it an ideal location for e-commerce companies that aim to serve customers in both Mumbai and Pune.

Placing warehouses at strategic locations has several benefits, one of which is improved inventory management. By having several occupants sharing a warehouse, it becomes more manageable to monitor inventory levels and avoid stock-outs. This is particularly crucial for industries such as fast-moving consumer goods (FMCG) and pharmaceuticals, where efficient delivery and inventory management are essential.

Moreover, strategically located warehouses can maximize space utilization. With multiple tenants using a single warehouse, it becomes feasible to optimize the available space and reduce wastage. This is especially relevant in India, where real estate prices are high, and every square inch of space is valuable.

Benefits of Logistics Parks in India

Logistics Parks in India have many benefits including:

1. Improved Transportation and Logistics

Companies can benefit from logistics parks that are situated near major highways, ports, and airports, as they enable more efficient transportation and logistics. By reducing transportation costs and transit time, businesses can deliver their products more quickly and reliably. The parks offer integrated facilities, such as loading docks, warehouses, and truck parking, that enhance the speed and efficiency of transportation and logistics. 

2. Cost-Effective Warehousing

Logistics parks allow businesses to save on warehousing costs by consolidating multiple warehouses into one facility, reducing overheads such as rent, utilities, and maintenance. In addition, businesses can benefit from shared resources like forklifts, loading docks, and security services, which further reduce operational costs.

3. Improved Supply Chain Management

Logistics parks provide businesses with the opportunity to improve their supply chain management by centralizing their operations. This simplifies management and streamlines processes, making it easier for companies to manage their inventory, optimize transportation routes, and reduce lead times. As a result, businesses can enhance their supply chain management, leading to increased customer satisfaction and profitability.

4. Increased Flexibility

Logistics parks offer increased flexibility to businesses, allowing them to adjust their operations to changing market demands. These parks allow companies to quickly scale up or down their warehousing and logistics requirements based on their needs. This level of flexibility gives businesses a competitive advantage by enabling them to respond quickly to market changes.

India's dedication to improving infrastructure and supply chain efficiency is demonstrated by the increase in logistics parks. Warehouses that are placed in strategic locations have contributed to this achievement, allowing for quicker and more efficient transportation of goods, better inventory management, and optimal utilization of space. The creation of logistics parks has generated new employment opportunities, enhanced trade, and supported environmental sustainability. With their advanced facilities and strategic positions, logistics parks are expected to play an even more vital role in India's economic growth in the future.