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Importance of Warehousing in Chennai

The rise of Warehousing in Chennai as a growing trade hub during the British colonial era can be traced back to its advantageous coastal location. Nestled along India's eastern seaboard along the Bay of Bengal, Chennai occupied a central role in facilitating trade activities. This prominence was largely made possible by the existence of two prominent ports: Chennai Port, the second-largest cargo port in India, and Ennore Port. Furthermore, auxiliary ports like Kattupalli Port have also contributed significantly to the growth and enhancement of Chennai's trading infrastructure.

Warehousing/Godown in Chennai: Major Clusters

The main focused areas for warehousing facilities in Chennai are primarily organized into four key clusters: Sriperumbudur-Oragadam, NH 16/GNT Road-Periyapalayam (North Chennai) & GST Road-Maraimalai Nagar.

Warehousing in Chennai: Regional distribution

The Sriperumbudur-Oragadam cluster, including areas like Mevalurkuppam, Mappedu, Mannur, Pollivakkam, and Thiruvallur, is a manufacturing hub and key to the automotive industry in Chennai. 

The NH 16/GNT Road-Periyapalayam cluster encompasses northern areas along the Grand Northern Trunk Road in North Chennai. Historically an industrial zone, it's now attracting e-commerce, FMCG firms, and major 3PL players, especially in the NH 16/GNT Road-Redhills area.

The GST Road-Maraimalai Nagar cluster comprises storage facilities in the southeast of Chennai, encompassing areas like Chengalpattu, Sengundram Industrial Area, and Maraimalai Nagar. It caters to both the city's emerging industrial needs and overflow demand from the Sriperumbudur-Oragadam cluster.

Warehousing in Chennai: Rentals

Grade A space rentals cost in the Sriperumbudur-Oragadam belt typically fall within the range of 205-269/square meter per month (19-25/square foot per month). In the NH 16/GNT Road-Periyapalayam belt, Grade A space rentals range from 172-194/square meter per month (16-22/square foot per month). These regions represent rental markets that are somewhat higher.

In contrast, the  GST Road-Maraimalai Nagar belt offers comparatively more affordable rental rates for Grade A spaces. In the GST Road-Maraimalai Nagar belt, rentals range from 237-280/square meter per month (22-26/square foot per month).

Warehousing in Chennai: Transaction trend in 2023

Despite a year-on-year decline of 11%, Chennai's transaction activity remains robust, with the 3PL sector dominating occupier transactions. The total transaction volume decreased from 0.47 million square meters (5.1 million square feet) in FY 2022 to 0.42 million square meters (4.5 million square feet) in FY 2023. It's worth highlighting that, while transaction volumes have dropped compared to the previous year, they are still higher than any period before FY 2022.

Regarding the distribution of yearly transactions by industry, 3PL companies took the lead in Chennai's warehouse space demand, representing 44% of all transactions. They were followed by the manufacturing sector at 24% and the Fast-Moving Consumer Durables (FMCD) sector at 17%. The shift in consumer behavior, the growing importance of Supply Chain transparency, and the increasing demand for efficient vendor and inventory management have prompted companies to outsource their logistics needs, contributing to the expansion of the 3PL sector.

During FY 2023, warehousing storage purposes accounted for 89% of the transaction share, in contrast to the 69% share observed in FY 2022. The industrial segment, which encompasses a range of manufacturing activities in warehouse parks, contributed only 11% to the transaction share, a notable decrease from the 31% recorded in the previous fiscal year. This decline can be attributed, in part, to reduced engagement from manufacturing firms, which also saw their transaction share decrease from 38% in FY 2022 to 24% in FY 2023.

How To Choose the Best Warehousing Companies in Chennai for Your Business? 

Choosing the most suitable warehousing company for your Chennai-based business demands a comprehensive evaluation of your unique requirements, the facility's attributes, and the provider's capabilities. Some of them are listed below:

Optimal Warehouse Location:
The strategic location of your warehouse or 3PL in Chennai directly influences both time and transportation costs. Conducting a comprehensive analysis of your business and supply chain is vital to pinpoint the ideal warehousing location. For instance, if your business involves extensive import and export activities, proximity to ports or transportation hubs is indispensable. Likewise, if frequent restocking is part of your operations, being close to the city with convenient access to highways is essential for efficiency.

Warehouse Layout:
Choosing the perfect Godown in Chennai demands a crucial consideration: Is the selected warehouse equipped to meet both current and future storage requirements? Precisely assessing the warehouse's size and dimensions is essential. The chosen provider should offer adaptable solutions that align with your evolving needs, efficiently handling your business's fluctuations, whether it's expansion or downsizing. A deep understanding of your business is vital for the provider to anticipate and address varying space requirements, ensuring cost-effectiveness during periods of lower demand.

Ensuring Safety:
When choosing a warehouse in Chennai, safety is paramount. Select the providers with secure storage facilities, including alarms, cameras, fencing, and theft prevention measures.

Consider Customer Reputation:
For your warehouse in Chennai, your chosen warehousing company's reputation is pivotal for your brand. It's essential to opt for industry leaders in your specific vertical, as their track record directly impacts your business. Reliable providers offer client surveys, feedback channels, and a robust client portfolio, instilling confidence in the services you intend to use.

Integrated Tech-Enabled Solutions:
Enhance efficiency by partnering with warehousing companies in Chennai that utilize advanced Warehouse Management Systems (WMS). It enables improved inventory visibility, better handling of demand fluctuations, seamless integration of execution systems and workflows, and enhanced storage and distribution performance. A reputable warehousing provider should offer a WMS system with cloud-based integration, and there are Software-as-a-Service (SaaS) options available for this technology.

How Godamwale can help you set up efficient warehousing and distribution in Chennai?

Godamwale is India’s largest and best in class warehousing, 3PL and fulfillment company with presence in more than 126 cities. Apart from its extensive network, flexible and scalable business model, and seamless operational efficiency, the proprietary technology supply chain platform distinguishes it as a leader among its competitors.

Here are some of the benefits of using Godamwale's supply chain technology:

• Avoids stockouts and minimizes inventory holdings by 25%, aging reports: Godamwale's technology helps brands to optimize their inventory levels, which can lead to reduced costs and improved customer service.
• 100% inventory & order accuracy: The software uses barcode and QR code scanning and other technologies to ensure that orders are picked, packed, and shipped accurately.
• No manual processes, 100% scanned based operations: Godamwale's spftware automates a number of manual tasks, which can free up employees to focus on more strategic tasks.
• Product lifecycle tracking with attributes like batch id, serial nos: It helps brands to track the lifecycle of their products, which can help to improve quality control and reduce recalls.
• User based transactional control – FIFO, LIFO: The technology allows brands to control how inventory is managed, which can help to improve efficiency and reduce costs.
• Track critical KPIs, enabling rapid response to changes in supply or demand: Godamwale's technology offers brands immediate access to real-time data concerning various essential performance metrics, enabling them to swiftly adapt to shifts in supply and demand.

The cutting-edge and user-friendly supply chain application revolutionizes your conventional warehouse, turning it into an automated and digital facility capable of handling intricate tasks while boosting operational efficiency.

Godamwale's supply chain technology offers the potential to enhance your supply chain's effectiveness, lower expenses, and release tied-up capital. If you'd like to explore how Godamwale’s supply chain technology can benefit your company further, please feel free to get in touch with us.

Conclusion

The warehousing and third-party logistics (3PL) sector in Chennai occupies a pivotal role within both the city's and the broader region's economic landscape. Chennai's strategic location along the Bay of Bengal has propelled it to become a vital logistics and trade hub in India. As businesses continually expand within this dynamic city, Chennai's warehousing industry stands balanced for consistent growth, firmly establishing itself as a fundamental component of India's flourishing logistics ecosystem.

At Godamwale, we are committed to addressing these evolving demands by providing swift, adaptable, and cost-efficient order fulfillment and shipping services through our extensive network of interconnected warehouses. Our innovative platform, "Inciflo," assures seamless operations and unparalleled transparency, strengthening our position as the preferred choice for warehousing solutions in Chennai. Regardless of whether your operations are based in bustling urban centers or remote rural areas across India, and whether you're a startup or a rapidly expanding brand, Godamwale delivers comprehensive and tailor-made solutions that align with your unique requirements.

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The post Warehousing in Chennai: A Guide & Report 2023 first appeared on Godamwale.

The post Warehousing in Chennai: A Guide & Report 2023 appeared first on Godamwale.