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How do I Start a Warehouse Business?

Saturday, January 12, 2019

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How do I Start a Warehouse Business? Warehouse Business - Startup Ideas

Warehousing is the act of storing goods that will be sold or distributed later. While a small, home-based business might be warehousing products in a spare room, basement, or garage, larger businesses typically own or rent space in a building that is specifically designed for storage. A warehouse is a building for storing goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial parks on the outskirts of cities, towns or villages.

The function of storage can be carried out successful with the help of warehouses used for storing the goods. Warehousing can also be defined as assumption of responsibility for the storage of goods. By storing the goods throughout the year and releasing them as and when they are needed, warehousing creates time utility.

Market Outlook

The Warehousing and Storage industry provides its clients with storage facilities for a wide variety of goods. Although a large proportion of this is general merchandise, the industry also offers specialized storage of liquids and gases, agricultural commodities and refrigerated goods. Industry revenue is expected to grow at a strong compound annual rate of 8.3% over the five years through 2018-19 to reach £19.8 billion.

On-demand warehousing is the ability to switch on warehousing services as and when required. Storage capacity is the principal service, but all other services related to the movement of inventory to and from the warehouse must also be included in the model. It is warehousing services that can be scaled up to meet peak demand, but then scaled back to previous levels when no longer needed.

Warehousing involves storage of goods and merchandise in order to protect the quality and quantity of the stored products awaiting future use. It is an integral part of the logistics value chain, forming the node, which allows for collection, sorting and dissemination of goods within the supply chain.

Global Warehousing Industry Outlook

·         The global warehousing market was valued at approximately $1.6 trillion in 2016 and is expected to grow at a CAGR of around 7-8 percent to around $1.8 trillion by the end of 2018

·         Regions, such as Europe and North America and some parts of APAC, including Australia and Singapore, have high market maturity due to tight supply conditions and higher technology adoption

·         Parts of APAC, such as India and China, are expected to be the future growth driving markets for the warehousing industry owing to the forecasted increase in manufacturing facilities, high number of top container ports and due to the expected robust growth in the e-commerce sector, which is expected to grow from $1.1 trillion in 2016 to $1.8 trillion in 2018

The Indian warehouse market was worth INR 1,463 Billion in 2017. The market is further projected to reach INR 3,179 Billion by 2023, at a CAGR of 13.6% during 2018-2023. Warehousing involves storage of goods and merchandise in order to protect the quality and quantity of the stored products awaiting future use. It is an integral part of the logistics value chain, forming the node, which allows for collection, sorting and dissemination of goods within the supply.

Warehousing which was once sidelined in the larger scheme of things is now rapidly gaining prominence across the Indian realty sector. There are many factors, at the micro and macro-economic level that are coming to play, making warehousing an attractive proposition for investors looking to leverage the significant tailwinds witnessed around it.

Warehousing in India has travelled far, from being glorified godowns to the modern, technically fitted floors with computerized specifications. The formerly concrete or low-grade steel godowns are now increasingly being replaced by pre-engineered, factory produced steel structures which are often assembled at a location. These modern warehouses are insulated, ventilated and climate-proof with round the clock surveillance and standard quality and safety procedures.

The warehousing industry in India is still at the beginning stages and has huge tracks to cover in terms of equalling the global standard. In the scenario of halting technology penetration and advancements, the country has an access to huge manpower and abundant labour but efficient training mechanisms and skill development are not at par with the rate of industry evolution needs.

Warehouses are commercial buildings used by manufacturers, exporters, importers, transport businesses, wholesalers, and customs to store and load goods. They are usually large enclosed spaces or buildings near industrial areas in cities, towns and villages. Warehousing is a major part of supply chain and logistics activities. It includes the movement and storage of materials within the warehouse, involving standardized procedures of transaction, shipping, receiving, stow away and pick up.


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