Augmented reality, IoT and automation using robotics will steer logistics processes and boost productivity.

Alexandre Amine Soufiani

- Managing Director & CEO, FM India Supply Chain

From pure play logistics services providers to 3PL end to end solutions providers, the sector has witnessed a significant change in the last few years. What are the opportunities for 3PL service providers?

The logistics sector in India has gone through a paradigm shift over the past decade. From an increasing number of policy incentives to tech-enhanced warehouses, the sector is now seeing a change in every aspect of its operation.

The focus on making India a global manufacturing hub has caused warehousing clusters to expand rapidly beyond the top cities and into Tier 2 and 3 cities. Also as most of the Tier 2 and 3 cities in India are aligned with industrial hubs the demand for A Grade warehouses in these cities has increased substantially. Parallely, the increasing internet penetration in rural areas in addition to rising household income and the government's push on digital in rural areas, has increased the pressure on manufacturing organisations to move closer to their customer base in these areas. In this endeavour to cater to the hugely untapped rural customer base, organisations have realised the importance of developing quality and world-class warehousing facilities as these facilities not only offer operational excellence but also facilitate cost optimization.

Additionally, the “Make In India” policy will continue to fuel growth for the industry. The warehousing sector is expected to expand manifold, despite the short-term issues, owing to various factors contributing to its future growth. Experts are of the opinion that warehousing would be among the first real estate segments, to recover from the shock of the Coronavirus and will attract huge capital, as investors switch to more resilient asset classes.

How important is adoption of technology in this segment? Also, since 3PL players are emerging as the largest warehousing space occupiers, what are the expectations from developers to facilitate convenience in operations?

Recent technological advancements have changed the face of the supply chain and logistics industry. With convenience and customer experience at the forefront of logistics trends, warehouses and distribution centers need to adapt to the evolving consumer landscape.

During the Covid-19 pandemic, the rise of e-commerce has played a huge role in shaping the way warehouses operate, as have consumer expectations for speed of delivery, customization, product availability and much more.

Blurring the lines between the digital and physical worlds, augmented reality (AR) will provide new perspectives in logistics planning, process execution, and transportation. By adding virtual layers of contextual information onto a heads-up display or other digital device, AR empowers workers by providing the right information at the right time and in the right place.

Further, IoT has the potential to connect virtually anything to the internet and accelerate data-driven logistics. Everyday objects can now send, receive, process, and store information, and thus, actively participate in self-steering, event-driven logistics processes.

The first wave of automation using collaborative robotics has arrived in the logistics industry. Driven by rapid technological advancements and greater affordability, robotics solutions are entering the logistics workforce, supporting zero-defect processes and boosting productivity.

Tell us about your future plans.  

FM Logistic India is focussed on developing Grade A+ Multi Client Facilities (MCF) in the most important economic zones in India. Our Grade A+ MCFs are state-of-the-art facilities that provide the best-in-class services and are built on par with international standards. Our MCFs provide A+ grade warehousing infra with FM2 flooring and vertical storage to enable our customers to optimize space footprint. We also provide top of the line storage and handling equipment. All these offerings help us to increase the operational efficiency of our customers. Thanks to a very high flooring resistance of at least 6 T/m2 it allows up to 12m vertical storage which brings huge cubic efficiency and better productivity allowing competitive operational cost. Each of our facilities offer ample docking stations to enable the smooth flow of inventory without any bottlenecks.

All FM Logistic warehouses are equipped with CCTV surveillance systems. We have also deployed the appropriate access control measures in terms of doors, locks (restricted access to inventory storage area to only specific teams) and other security systems to prevent unauthorized access and improve cargo security. All our warehouses are equipped with beam detector systems and intruder alert systems with SOS sms to the concerned team. Our security team undergoes rigorous training and mandatorily conducts regular checks on a daily basis. We frequently organise night audits as well. Warehouse security audits are organized monthly to identify specific risks, if any.

We are supported in this endeavour of developing Grade A+ Multi Client Facilities by NG Concept - our real estate sister concern.

In 2019, FM Logistic India broke ground for our own MCF in India at Farrukhnagar, near Jhajjar. This new A+ grade facility will be the first in India to combine LEED and FM Global Certification. With a built up area of 700,000 sq. ft. this MCF enjoys strategic access to Kundali, Manesar and Palwal expressways for faster connectivity to all major consumption centres in the North. The MCF will have a storage capacity of 100,000 pallet positions and provide a dedicated area for co-packing and other value-added services. This facility will be operational by the end of this quarter.

Another Multi Client Facility in Bhiwandi, Mumbai spans across an area of 4, 00,000 sqft. This facility, too, is strategically located near and provides faster connectivity to the major consumption centres in the West. Furnished with best-in-class safety and security features, both our facilities will offer cost efficient quality, storage and handling services. We will commence operations at this facility by the end of this quarter.

We recently entered into a contract with Welspun One Logistics Parks to lease warehousing space at Bhiwandi. As per the agreement, Welspun One will lease out approximately 9 lakh sqft of warehousing space to FM Logistic India from the total leasable area of 3.2 million sqft at its flagship Bhiwandi facility for a tenure of 5 years. The Rs 900 crore facility is Welspun One's flagship project and is spread over 110 acres. FM Logistic India, with this deal, will now have an additional 9 lakh sqft of dedicated Grade A warehousing campus in one of the key micro markets in India - Bhiwandi, Mumbai. At a time when efficient logistics services are key to developing omni-channel retail strategies, this move will give FM Logistic a significant presence to service the Mumbai Metropolitan Region, which has a consumption base of 26 million people. The Grade A logistic facility has been designed according to the best industry standards with high spec buildings, 100% compliance to norms and stringent safety standards, allowing FM Logistic to strengthen its foothold in India's economic capital. The campus will also give the company adequate room to consolidate and expand operations in the future.

We also inked a deal with Lodha Developers to develop a 30 acres land parcel at Palava Industrial and Logistics Park with a total development potential of around 1 million feet2 of warehousing space. We will undertake the development of this land parcel in phases over the next 2-4 years.

Moving forward, we plan to expand our operations by another 30 lakh sqft by the end of 2022-23, as announced last year. We will be setting up our own warehouses in the major consumption areas of the country like Mumbai, Bengaluru, Hyderabad, Chennai, Delhi. etc.

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