OVERVIEW: Logistics refer to the detailed organization and implementation of complex activities. The logistics industry includes activities like storage, freight management, transportation and handling damage claims etc. Superior freight management involves maintenance of goods and thereby quality warehouses are required. The warehouse industry plays an essential role in facilitating trade processes involving physical capital.
EVOLUTION: Warehousing has come a long way since the 1990s. Earlier warehousing techniques relied heavily on immense labour force participation in order to facilitate the operations. Today operations have become technology oriented as indicated by the fact that the cost of automated labour in comparison with human labour has fallen by up to 50%. Warehouses today need fewer on site managers because of the introduction of technological surveillance through CCTV cameras .Even materials used in construction of warehouses have been upgraded to better safeguard the stored goods and cater to the associated handling equipment.
Recent developments include
Heated/unheated warehouses to cater to temperature sensitive goods and Controlled Humidity (CH) warehouses that are constructed with vapor barriers to maintain humidity at desired levels only
Refrigerated warehouses preserve the quality of perishable goods that are kept fresh in freezing and chilling spaces.
Advanced bar code readers are being used to eliminate paper registration and management of goods.
Voice technology for labour guidance is being developed.
The use of robots in storing and transporting goods is growing with the aim to increase time efficiency and aid fork lifters.
MAEKET SIZE: The advent of the 21st century brought about technological advancements which have led to developments in global trade. Consequently the demand for warehouses has increased as logistics and shipping market industry analysis reveals that warehouses today are value adding processes. Logistics and shipping market research reports reveal that the global warehousing and storage market is an essential part of logistics market. North America is the largest geographic region accounting for nearly 30% of the global market and U.S.A. is a leader among nations accounting for more than 20% of the global warehousing/storage market.
COMPETITION: As the logistics industry boom it is natural for companies to face off in the playing field. Evidently some companies are more reputed than others in providing warehousing services. American companies like FedEx Fulfillment and Fulfillment by Amazon (FBA) are highly reputed the latter catering primarily to Amazon businesses. Certain companies like Fulfillment Companies.net focus on developing better client relations by providing custom tailored solutions to match specific order volumes.
Some companies get into business relations like mergers and acquisitions an example of which is South Korea’s CJ Logistics acquiring majority ownership of U.S. based DSC Logistics in June 2018 and Bright Light Partners acquiring First Coast Logistics that same year.
CONCLUSION: As trade and technology increase so will the demand for appropriate storage. The warehouse storage sector is essential for growth of many developing countries and is a key contributor to the advancements in developed countries. The bright future prospects for this sector is visible by the fact that developing countries such as India is willing to undergo high expenditure on logistics, despite technical inefficiencies, evident by the fact that logistics cost in India accounts for about 15% of GDP which is nearly double the logistics cost to GDP ratio in France and U.S. that stands around 8%.
Key Factors Considered in the Report:
Logistics and Shipping Market Research Reports
Logistics and Shipping Industry Analysis
Market Research Reports for Logistics
Logistic Market Research Report
Logistics and Transportation Market Research Reports Consulting
Logistics Business Review
Logistics and Shipping Industry Research and Market Reports
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Ankur Gupta, Head Marketing & Communications