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Recent Advances in Warehousing Management

Sharing of Global Experiences- Financial / Technical / Logistics

The World of Warehousing

Warehousing Snapshot

Activities involving storage of goods on a large-scale in a systematic and orderly manner Warehouses bridge the time gap between the production and consumption of goods Functions performed
Goods Receipt from factory/ vendor
Material Identification, sorting & storage at an appropriate location Picking from storage on receipt of dispatch orders from customers

Different types of warehouses Contract/ 3PL Warehouses Cross Docking and Trans-Shipment Warehouses Fulfillment/ Consolidation Centers Break Bulk Warehouses Storage Warehouses Temperature Controlled Warehouses Mother/ Centralized Distribution Centers

Packing, kitting/ assembly/ labeling etc

Value Added Services Shipping of the goods and accounting the transactions accordingly

Supply Chain Ramifications of Globalization

Increased Supply Chain Volatility Higher Complexity Supply chain cost optimization a

critical business differentiator

Ability to manage supply chain risk crucial to a successful supply chain

Supply chains are no longer isolated or

fragmented they are increasingly collaborative and networked Integrated Supply Chain organizations of the future

Sustaining the India Advantage

Demographic Mix : Young, vibrant and growing Sustainable growth due to significant domestic consumption and investment Market Economy with increased PPP FDI attractive opportunity Low Cost Base & Home to key industry sectors Agrarian economy is still monsoon dependent not enough shock absorbers in place High Logistics costs a reflection of underdeveloped infrastructure and inability to sustain competitive pricing edge for long A vital cog in the sustenance story is the ability to create supply chain and logistics advantage

Key Focus Areas on Logistics

The white paper aims to highlight critical areas for logistics focus Free Trade Warehousing zones & Logistics Parks Multi Modal Logistics Food Parks & Cold Chains GST International Competition & Logistics outsourcing Warehouse Technology Logistics Expertise and Skills Warehousing initiatives in India

White Paper Highlights

Increased government spend on logistics infrastructure development in 11th Plan. Logistics infrastructure spend expected to grow significantly to 8% of GDP Government spend likely to catalyze private investments Warehousing/ logistics parks key to logistics industry growth in future. In addition to providing an umbrella facility outreach, significant transportation cost savings expected Free Trade Warehousing Zones incented by the Government by way of tax breaks Need to evolve a future logistics roadmap which de-risks the dependence on road transport and increasing the utility of multi-modal logistics including rail and sea Food processing a major focus area and incentives for private players to establish cold chain infrastructure and food parks major driver of enabling food security

GST roll out country wide will result in facility consolidation. Consolidation gains help improve bottom lines and reduce landed costs to the consumer
FDI in various industry segments results in adoption of global best practices. Best practices demand process compliance

Logistics outsourcing and technology adoption are key to enabling create lasting supply chain advantage
Skill augmentation crucial to keep pace with global trends in logistics and warehousing

Key Policy Initiatives

Creation of Warehousing Development and Regulatory Authority [ WRDA] WRDA Act 2007, aims to To make provisions for the development and regulation of warehouses, negotiability of warehouse receipts

Help farmers to seek loans from banks against NWRs to avoid distress sale of
agricultural produce Increased liquidity in rural areas. Encouragement of scientific warehousing of goods. Lower cost of financing. Shorter and more efficient supply chains. Enhanced rewards for grading and quality.

Better price risk management.

Higher returns to farmers and better services (quality) to the consumers.

Project Conceived & Executed By

Mr. R. K. Bhasin, Jt. Director, ASSOCHAM Ms. Satnam Kaur, Executive Officer, ASSOCHAM Mr. Jitendra Kr. Sharma, Executive Officer, ASSOCHAM Mr. Abhishek Saxena, Executive, ASSOCHAM Mr. Vivek Agrawal, Junior Assistant, ASSOCHAM In Association With

Thank You

Warehousing Development and Regulatory Authority