Game Changer!

Between the blistering heats outside to the furnace like enclosure of warehouses,an unsung story of warehousing is slowly unfolding across  the East. While people have given scant recognition to this profession in the past, it is poised to be a game changer for all yearning for a  piece of untapped business potential in the east and north east, opines Anindya Gupta of IBM, Kolkota

 

Traditionally warehousing has been one of the activities of select  business families who started off as stockists and distributors who  were cajoled to offer these services as a value add by the larger  business houses. Among them came a few exceptional first generation entrepreneurs as well as failed manufacturers whose factory sheds were lying vacant after they went bust in the seventies and eighties.

So what do we have today?  There are defunct granaries which are being rebuilt, cold storages which have been converted into warehouses,  factory sheds highly prized inside the city area and outside, and then  some!  This is what is on offer in terms of billable warehousing space for business houses for stockade; available at unheard of premiums.  The same is truer for filling up the gaps in hub &spoke model for  small C grade towns that are the last mile spending hubs for the  booming middle class.

Understand that along with warehouse space providers have emerged  warehouse service providers, logistics service providers, material handing equipment sellers, manpower contractors and the techies who  all are still trying to figure out a long term vision in the grand scheme of things.

Talk to average warehouse man about your troubles in finding the right infrastructure, or the one perfect warehouse that was described in the  check list that came from the head office and you will find his eyes  soft with empathy. The check list is not Martian in nature but it does talk about a clear approach to the road, enclosed to open space  ratios, dock heights, regular dimensions etc something which may be  very basic to the planned operation.

Another major obstacle that east will face for years to come is the  apathy of multiple governments to this essential cog of the business  machine. Many of the warehouses have no security or infrastructure in terms of roads, potable water and electricity to run a sustained  operation.

Let us put some more perspective. The security services that we hire are seldom trained on basic logistic practices as to what  needs to be done when a vehicle / individual leaves or enters the  premises. Same is also true for the basic logistics operator. For most of the courses offered by the logistics institutes none of them  prepare the practitioner for what awaits him or her in the warehouse.

None prepare you for what the industry/ trade expects one to know in  terms of inbound, outbound and internal warehouse processes like stock  reconciliation, load planning, slotting, basic house keeping, kiting  etc. So the hard advice to them is GET REAL!

Govt Apathy

The government apathy becomes more apparent also because there does not seem to be a strong warehousing lobby that would work to define  modern warehousing road map and the way government could come up  to  help at the centre and the state. Of course, setting up logistic parks  are a step in the right direction and but to make them grow is another  story.

The best indicator may be to find out the increase in employment numbers as a whole on a yearly basis along with the revenue  generation. What more can be done? Also involve them in disaster  management drills as they are simply the best wherever they are.

 All is not lost though. Companies are trying out new avenues in terms of financing capital for a long term partnership to set up modern  warehouses with proper infrastructure starting with civil  construction, having large loading bays, moving to standard reusable  pallets, racks, refrigeration facilities.

So be it AT Road in Guwahati  or Anisabad in Patna things are looking up. It is a pleasant surprise  to see structures coming up at Dhulagarh , Dankuni , Barasat on the outskirts of Kolkata which would look the same to the untrained eye  but for those in the trade visiting East after a decade or so , I am  sure it would be hypnotic. Else how do you think are the retail  biggies making money unless they got their infrastructure right?

 What’s Needed

What players in the east needs more and more are long terms  partnerships to develop trained manpower, leaner revenue generation  models, and above all a pragmatic fit in the vision of the larger  corporate houses. Develop proper audit plans & not the eye wash for the cursory stock reconciliation that we all have annually.

With due respect to the CA profession, they are not meant to be warehouse  auditors. They are not trained to count stock or have any inkling of best Supply chain best practices or metrics .This is seriously  separate profession & yet to have a proper launch in this country.

Technology Inputs

Finally, we come down to technology. Let us understand that it is an entire architecture we are talking about here and not a single piece of pirated accounting software on a standalone Pentium three  processor. Oh, we did manage without them long back but then today the game has changed as we all are well plugged into the Matrix!

I doubt  there is a single entity which tries to sell a design to the SMBs of  the warehousing trade who actually cater to around 90% of the entire  trade.  So what is the expected infrastructure say some one at say at Rasulgarh at Bhubaneswar for 10,000 sqft in order to cater to an  apparel giant? What should be his investment in terms of a computer,  phone lines, access to the company’s ERP system, basic office  software, a fax/scan/copier, the cost of associated AMCs, options in  terms of hiring trained manpower, number of printers, etc? How does he approach this? What kind of lease hire options does he have? What  about a similar requirement at Dimapur (Nagaland) or Deoghar  (Jharkhand) or Singtam  (Sikkim).  Note one size does  not fit all!

 Last, but not the least, let us say kudos to all those operators out  there who are on some of the toughest terrain the country has to offer  not only geographically but also politically. Not only do you manage  with the least but are even getting better at managing your aisles and lanes and highs and deeps!

So is it time now for us to check out the evening dispatch plan or….  Probably, the next month’s stock indent with the sales team?

Send your feedback to chandaarup@gmail.com