After restarting operations post lockdown, companies have to operate warehousing facility with a smaller number of employees forcing them to opt for automated material handling equipment (MHE).  

In May 2020, manufacturing plants in the country restarted production for the first time since the lockdown was announced on March 24, 2020 to contain the spread of COVID 19 pandemic. In a post COVID world where businesses consciously navigate an uncertain new normal, warehousing is emerging as the most crucial lifeline for Indian industries. “Industry sources prospect the warehousing and logistics sector to be one of the fastest, most strategic asset classes to recover from this pandemic, attributed to the sharp increase in domestic demand and a possible major manufacturing shift, making India 'the preferred destination' for global manufacturers. Warehousing in India, hence, stands as an obvious beneficiary, thanks in part to rapid acceleration of e-commerce demands as well as the accelerated behaviour shift of its commercial business ecosystem that has urgently pivoted to expand a footprint online, simply in order to survive,” said the Welspun One Logistics Parks (WOLP) research paper. 

At present in the warehousing zones, majority of units are using advanced IT systems for warehousing management systems. “All the products which come in are tracked by RIFD and other such tools. Both the supplier and the end consumers of these products, which are kept inside the warehouse, are all connected through technology so that at any given point of time the foreign supplier or the foreign buyer has a complete visibility of what product quantities, amounts are available in which exact locations. So, warehousing management system is highly automated with these IT platforms,” commented Sunil Rallan, Founder, J Matadee Free Trade Zone.

Companies have to operate warehousing facility with a smaller number of employees forcing them to opt for automated material handling equipment. “After COVID 19 pandemic, we see more scope and room for automation where one could see robotics coming in gradually to do the Pick and Pack activity because social distancing norm is going to be the new 

normal in the world going forward,” added Rallan. 

An integrated material handling system involves activities such as handling, storing, and controlling of materials. To increase productivity of warehouses, operators are deploying automated guided vehicle (AGV) systems such as unit load carriers, towing, pallet trucks, fork trucks, and assembly line. With space becoming scarce, automated storage and retrieval systems (AS/RS) - such as unit load, mini-load, person-on-board, deep lane, and storage carousel systems - are being deployed. Thus, space now occupied by raw stock, work in process, or finished parts and assemblies are available for valuable manufacturing space.

With large scale logistics operations now commencing in the country, companies will need to have right strategy for handling logistics and warehouses. Elaborating more this Prof R Jayaraman, Professor of Operations & SCM, Bhavan's SP Jain Institute of Management and Research, said, “Warehouses, which vary in shapes and sizes, must pay attention to hygiene and sanitisation. All the tests and sanitisation of incoming materials and trucks has to be done properly. More tools/equipment should be used to implement no-touch policy to minimise the chances of infection spread. Light forklift trucks can be a good option."

Companies are launching products to meet emerging needs of the market. For example, Godrej Material Handling (GMH) forayed into the 3-wheel electric forklift truck segment in April 2020 with an aim to capture 20 per cent of the market by FY20-21. “Packed with the latest performance enhancing and safety features, we believe this product will set new standards for innovation and safety in its category. It will contribute to having greater efficiencies in warehouse operations. We expect this truck to be a great choice for all 3PL, warehouses and E-commerce companies,” said Anil Lingayat, Executive VP and Business Head, GMH.

In order to follow the strict government guidelines of social distancing, human safety, and hygiene, usage of digitalised and automated material handling equipment is expected to increase in the warehousing and logistics sector in the near future.