We are focussing on equipping our teams with more digital tools to meet the needs of customers.

Kesavan Krishnamoorthy

- Head - Marketing, Godrej Storage Solutions

How do you access the impact of Covid on the warehousing sector? Which industries/ sectors are taking up more space on lease?

Covid 19 pandemic has had a mixed effect on warehousing in India. Yes, there has been a dip in the overall space absorption totalled across various sector; however the impact is not uniformly spread among them. While sectors like e-commerce and 3PL associated with them have been able to increase absorption on the back of a surge in demand due to lockdown and social distancing concerns, sectors like physical retail, consumer durables etc have taken a hit. Pharma, food & beverages and cold chain associated with these have also shown robust increase in warehouse space absorption. As per our estimates, FY2021 witnessed a 11% to 13% dip in warehouse space absorption YoY.

For someone operating in intralogistics, this pandemic year has brought about the need to operate at two distinct levels of maturity to satisfy two sets of needs driven by sectors at opposite ends of the spectrum.

E-commerce, the torchbearer in such gloomy times is trying to cope with an explosion in needs that necessitates setting up of Mega DCs in short time with very high levels of automation to cater to their high throughput demands. This has forced players like us to integrate technology in the solutions we offer. AT the same time, other sectors who want to keep investments to minimum are looking at standardised solutions that are quickly available at aggressively competitive rates. The challenge for us has been on striking a balance between these inherently different needs as our resources and time are also limited.

As per our estimates, e-commerce and 3PL have contributed to close to 60% of warehouse space absorption in FY'21. This is followed by Manufacturing at ~18%, Food & Beverages and associated cold chain at 6%, Pharma at 6% and other making up the rest.

In the current pandemic scenario, why is technology adoption so important?

As mentioned above, adoption of technology is the only way to provide optimal solutions to those sectors who are quickly scaling new peaks in warehouse throughput and complexity in operations never before seen in India. Adoption of technology now stems forth not just from need to optimise, but also the need to ensure a safe working environment in the current pandemic situation. From the efficiency and throughput improvement angle and also for lowering dependence on erratic manpower availability, there has been a spurt in demand for automated material conveying and storage systems.

How is GSS enabling effective space management & what are your future plans?

At GSS our emphasis has always been on providing the best value for our customers. We have been working closely with our customers in understanding application specific needs and have deployed specialised and trained team of SMEs in co-creating solutions with our customers. We too are trying to ride the crest of digitisation and technology wave that is sweeping this industry. We are designing our solutions around ensuring operational safety for man and material. We have quickly adopted technology integration to ensure optimal management of material and information. We have introduced a new service offering audit and training services to customers for ensuring safety of operations and extending service life of solutions offered. We have also started adopting mechanisation of processes through the installation and life cycle that will move to automation in a phased manner. We are also focussing on equipping our sales and solution building team with more digital tools to meet te changing needs and expectations of customers.

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