Minimizing cost through tech-driven warehouses

KSH Logistics, with presence in Pune, Bengaluru, Mumbai, Jaipur, Nashik, and Chennai, offers services to FMCD, FMCG, automotive, industrials, and retail. It will expand its network to six cities and increase total acreage to 7,00,000 square feet in 12 months, says Deepak Tiwari, Chief Operating Officer.

Ritika Arora Bhola

How important has it become for logistics firms to design supply chains that are cost-effective and resilient to changing customer requirements?

Supply chain ecosystem has been completely disrupted during the pandemic. All companies faced capacity constraints, warehouses were packed, and lot of material needed space to be stored. Considering the learnings from the pandemic, all organizations and logistics services provider must work towards agile, flexible, and scalable supply chain solutions. The whole idea of having a dedicate facility and self-managing them has to change from the customers perspective. The future needs bigger facilities with flexibility and scalability. We have started our tech-driven multi-client warehousing operations at multiple locations where we offer asset-light plug-and-play model, flexibility, scalability, and other features.

How do you think PM GatiShakti Master Plan along with NLP can transform the Indian logistics sector and boost growth?

The National Logistics Policy and PM’s GatiShakti Master Plan are the game changers for the Indian logistics sector. They will bring inclusivity and offer tremendous opportunity for every player in the field.

Considering the ongoing NH development, DFCs/road infra projects in place, how would you rate infra in India for road transportation in tier II and III cities?

In the country, road infrastructure has undoubtedly become better, especially highways.  It is still not sufficient to support the aspirations of people. Considering the demography of our country, tier II, III cities, and rural India will take considerable time for development. Developed states, cities and towns are choc-a-bloc with infrastructural issues such as heavy traffic, long commuting hours, waterlogging among others. Therefore, it is crucial that tier II and III cities are put on a development mode so that some load from tier I cities can be offloaded. In short, our infrastructure needs a facelift.

The expectation for on time delivery has forced logistics firms to collaborate with the ecosystem partners. How challenging has it become for LSPs to meet customers’ expectations and bottlenecks?

Today each segment of logistics is becoming specialized and, therefore, collaboration is the key. Given the dynamic changes the logistics industry is witnessing, especially due to the growth of e-commerce, meeting the diverse Indian consumer expectations has become a challenge. E-commerce has completely changed the consumer’s mind-set. From the affluent to the lower income segment, everyone expects/demands quicker deliveries. Managing returns also occupies a significant portion of the business. So, reverse logistics has become crucial.

The past few years have witnessed warehousing shift towards tier II and III cities. What are the major factors driving this demand?

The availability of different product categories has increased due to the growth of e-commerce platforms. Consumers are getting a variety without having to step out of their homes;  ease of buying with fast home deliveries has changed the overall buying patterns. This is reflective of growth in tier II and III cities. To meet this rise in demand, we have operations (Dedicated and Multi Client) at Pune, Bengaluru, Mumbai, Jaipur, Nashik, and Chennai. We cater to segment such as FMCD, FMCG, automotive, industrials, general merchandise, and retail among others.

How do you ensure supply chain ops and excellent customer service in the backdrop of competitive pricing, safety, and quality of goods?

We offer A-Grade MCF warehouses across locations, latest being Bhiwandi in Mumbai. We give opportunity to use warehouse space as per their need. We do not need lengthy contracts, no back-to-back guarantees, no warehouse deposits. Our customers get the benefit of asset light plug and play model and the flexibility and scalability that we offer. Through our enhanced techno-logistics systems, we allow integration of WMS & TMS solutions with clients’ ERP systems providing real-time visibility into the client’s supply chain ops and help them save up to 10 per cent of their operational costs. We have EVs that are driving a new revolution in the sector.