“This agreement between 14 countries will help accelerate the growth of this sector, and help provide easier access to International Clients, FDI, Knowledge sharing and upgrading to meet international standards for green supply chain,” says Varun Gada, Director, LP Logiscience.

The warehouse market in India is booming. According to Research and Markets, India’s warehousing industry is expected to reach Rs 2,872.10 billion by 2027, expanding at a CAGR of ~15.64% during 2022-2027. The warehousing, industrial, and logistics (WIL) sectors are projected to be crucial for attaining India’s vision of being a US$ 5 trillion economy by FY25. The warehouse and logistics industry has grown significantly during the COVID-19 epidemic, increasing its share from 2% in 2020 to 20% in 2021.

Recently, 14 countries including India reached an agreement on supply chain coordination. In a bid to reduce their dependence on China, the Indo-Pacific Economic Framework agreed on the deal on supply chain resilience and diversification and also outlined the progress on clean economy and trade. To get a clear picture on how the warehousing market in India is going to deal with the pressure of this tremendous change and the pressure of the constantly growing e-commerce sector, Sakshi Kuchroo from Financial Express Online spoke to Varun Gada, Director of LP Logiscience, A Liladhar Pasoo Company.

Q1. Fourteen countries including India have recently reached an agreement on supply chain coordination. What does it mean for the warehousing industry in India and is it prepared to take on this new initiative?

This agreement between 14 countries will help accelerate the growth of this sector, and help provide easier access to International Clients, FDI, Knowledge sharing and upgrading to meet international standards for green supply chain. Coupled with the GoI’s supportive policies allowing 100% foreign direct investment in logistics parks and warehouses and the NLP, the 14-country agreement would mean a fast paced growth that is in line with India’s vision to reduce its logistics costs and become a 5 trillion dollar economy.

Q2. There has been an exponential rise in the e-commerce sector with everything available at the click of a button. Due to this, what are the pros and cons that LP Logiscience has to face as one of the oldest warehousing divisions in India?

With e-commerce becoming a norm across sectors, from clothes and luxury retail to groceries, travel, medical services, pharmaceuticals, hospitality and now even B2B services being offered online, the post COVID world has dramatically changed. And warehousing has been adapting real time to meet the new demands.

One of the key changes that has been brought about by this development is the rise in 3PL and 4PL service providers and growth of warehousing in Tier 1 and 2 markets, needed to expand regional footprint to meet the growing demands of ecommerce. Further, keeping in mind the diverse needs of a variety of products to be delivered, there has been a preferential upsurge in Grade A warehousing facilities, dark stores, evolution of a complex reverse logistic mechanism, and the need for setting up specialized storage for temperature controlled, specialty storage.

It is also the need of the hour to shift towards multi-story warehousing on the back of the increasing demand. This has made the sector gravitate to the transformation toward sophisticated state-of-the-art warehousing and in-city warehousing and has increased the average size of Grade A warehouses by 2x in India.

We at LP Logiscience have been intuitive about the changing demand of the market and as a contract logistics and warehousing service provider, we are also investing in Smart warehouses integrated with technology and automation, to ensure our solutions are not only agile and up-to-mark but also smart and efficient.

Q3. Speaking of technology, what are the tech-enabled solutions that you have come up with for efficient and accurate material movement?

LP Logiscience has been driving tech integration across our operational and supply chain networks. In addition, along with standard WMS features like inventory accuracy, inventory visibility, traceability, and location management, LP Logiscience has also created its own customized tech for a few industry-specific solutions. All our warehouses are cloud-connected, including handheld terminals which are used for all warehouse processes, and have a plethora of tech features.

With a strong business model supported by an IT backbone, LP Logisciece warehouses offer customisation, and flexibility where clients can continue to enjoy superior services while only paying for the storage volume and throughput which has now become the natural extension of LP Logiscience’s business model.

Q4. What are the changes that you have brought in the contract logistics business to gain one of the highest market shares in the warehousing business?

Some of the key areas where we have focused on to create a market differentiator and build brand credibility, include:

I. Compliances – Statutory and legal compliance adherence for storage and handling of specific products is an extremely significant aspect of all LP Logiscience warehouses.

II. Sustainable approach and our green initiatives e.g. switching to CNG, EVs, renewable energy sources and environment protection, that is in line with international standards.

III. Customer first approach – variable billing options, flexible, customizable and scalable options for customers and the deep domain expertise in handling storage for specialized material, has helped us to not only gain important businesses but to also build loyal and long term client relationships.

IV. Automation and digitalization – e.g. robust and customizable warehouse management system, integrated transport management system, control tower, ERP integration etc. that works towards making LP Logiscience warehouses among the smart, modern warehouses in the country that are not only tech enabled but also integrated.

Q5. What is the process that warehouses follow in adhering to safety policies and regulations?

Warehouses must give utmost importance to understanding how the product would react to multiple circumstances like leakage, heat, fire, water, poor handling, etc. The largest threat to any storage is fire. Our warehouses follow a strict set of SOP’s in line with the MSDS (Material Safety Data Sheet) of each of the products, which informs us about the sensitive details of material handling and storing. Some of the infrastructure-related guidelines that we follow include:

• National Building Code laid down by the GOI which is the base guideline for the entire building & safety system design and implementation

• Only flameproof and PESO-approved electrical fittings with FRLS wiring in the premises to eliminate all ignition sources

• ESFR Sprinklers to ensure adequate water spray in case of a sprinkler burst.

• A bleed line system to ensure that if there is any kind of chemical leakage and gets mixed with water then this contaminated water only travels through the bleed line for safe collection in containment tanks and disposal thereof

• Water Storage for adequate firefighting for up to 3-4 hours to ensure that there is enough water until the firefighting department arrives, in case of an emergency

• Insulation throughout the warehouse to ensure a low temperature is maintained vis-à-vis the external environment.

• Beam detectors, heat detectors & smoke detectors to ensure early intervention

• Global standard lightning arrestors to ensure building safety even if lightning strikes

• Anti-static mats

• Flameproof air-conditioning systems

• Adequate ventilation of at least 6 air changes per hour

After the infrastructural safety, then comes the expertise in operating the safety systems of the warehouse. We ensure that there is a well-trained and expert team that is able to use the safe infrastructure correctly at the time of any untoward incident to ensure human and cargo safety.

https://www.financialexpress.com/business/infrastructure-interview-the-14-country-supply-chain-agreement-would-line-with-indias-vision-to-become-a-5-trillion-dollar-economy-varun-gadda-director-lp-logiscience-3115833/