Warehousing Act comes into force, receipts now negotiable

The much-awaited Warehousing (Development and Regulation) Act, 2007 has come into force with effect from October 25, 2010. The Act, legislated by Parliament three years ago, makes warehouse receipts negotiable. 

The introduction of a negotiable warehouse receipt system in the country will not only help farmers avail better credit facilities and avoid distress sales but also safeguard financial institutions by mitigating risks inherent in credit extension to farmers.  .. 

The pledging/collaterisation of agricultural produce with a legal backing in the form of negotiable warehouse receipts will lead to an increase in the flow of credit to rural areas, reduce the cost of credit and spur related activities like standardisation grading, packaging and insurance and in development of chain of quality warehouses. 

The government has also decided to constitute a Warehousing Development and Regulatory Authority under the Act with effect from Tuesday (October 26) with the publication of the relevant notification in the official Gazette. 

Besides mandating the negotiability of warehouse receipts, the Act prescribes the form and manner of registration of warehouses and issue of negotiable warehouse receipts including electronic format. 

The Warehousing Development and Regulatory Authority, an official statement said Tuesday, will comprise a chairperson and not more than two members. Significantly, the regulatory authority will register and accredit warehouses intending to issue negotiable warehouse receipts and put in place a system of quality certification and grading of commodities with a view to protecting the interests of holders of warehouse receipts against negligence, malpractices and fraud. 

Source :
http://economictimes.indiatimes.com/news/economy/policy/warehousing-act-comes-into-force-receipts-now-negotiable/articleshow/6818228.cms

GST may trigger consolidation in warehousing space

The goods and services tax (GST) regime could usher in consolidation in the Indian warehousing space, property consultants and analysts said.

With the government pushing for an April 2017 rollout of the single tax structure, many manufacturers who had built or leased warehouses in nearly every state to avoid duplication of taxes don’t see the need to extend their lease arrangements, and can instead own or lease large warehouses in a few strategic locations.

Warehouses across the country mostly facilitate operations of ecommerce firms, automotive companies, and manufacturers of consumer electronics, pharmaceuticals and fast-moving consumer goods. These manufacturers are now looking at having fewer but larger warehouses at locations such as Mumbai, Delhi, Ahmedabad, Chennai, Bengaluru and Hyderabad.

“Instead of having warehouses in all the cities, we will look at a cluster of states where it will be easier to send goods across the country without having to make the customer wait,” said Pravin Shah, chief executive (automotive) of Mahindra & Mahindra. However, he said that his company was waiting for the GST rates to be finalised to chalk out a strategy on consolidating warehousing space.

Experts said that warehouses in tier-I markets may find business, but it will be difficult for those in smaller cities to sustain in the medium to longer term. While some see opportunity to set up new larger warehouses in emerging manufacturing hubs and strategic locations, others are looking at options to convert idle warehouses in smaller cities into residential and commercial assets.

Amazon and Flipkart didn’t respond to ET’s queries, while ShopClues refused to comment.

Meanwhile, the looming shift in strategy is catching the attention of developers. Indospace, a joint venture between private equity firm Everstone Capital Advisors and Realterm Global, is planning to develop big projects at manufacturing clusters with an investment of over $1billion over the next fourfive years to more than double the project pipeline to about 50 million square feet from the current 20 million sq feet.

“There will be a consolidation in this market with the passage of GST, as there will be more focus on setting up warehouses in the manufacturing hubs. This will lead to cost efficiency with reduced cost on transportation, labour and real estate,” said Indospace’s partner Brian Oravec.

“Ecommerce companies in our network are already in the consolidation process with Amazon and Flipkart, and are moving into lar ge warehouses of around 350,000 sq ft from their earlier spaces measuring 50,000 sq ft on an average,” said Mumbai-based Prakhhyat Infraprojects’ proprietor Sumit Bhalotia.

“The warehouses that will become redundant will be bought out by smaller players or will make way for office or residential complexes, as it would not be viable to run with low demand and high rentals,” says Samantak Das, chief economist at Knight Frank.

The government is setting up inter-state industrial corridors such as the Delhi-Mumbai industrial corridor and freight corridors such as the western and eastern dedicated freight corridors. Analysts said that more manufacturing activities will be taken up along these routes, which in turn will increase warehousing demand.

Further, with direct sale, companies’ inventory of goods will also reduce by nearly a third, as goods will move from manufacturing hubs to the dis tributors directly, instead of it being stocked. This will lead to efficiency in the supply chain and cost, said Balbirsingh Khalsa, national director (industrial services and landlord representation), Knight Frank.

The total warehousing space requirement in the top seven markets is expected to grow at a compounded annual growth rate (CAGR) of 8% -from 621 million sq ft in 2016 to 839 million sq ft by 2020 -estimated the Indian Warehousing Market Report 2016 by property consultant Knight Frank.

Source: http://economictimes.indiatimes.com

How many warehouses does Amazon have and where are they located?

In terms of Europe, there are presently 30 fulfilment centres that are operational throughout the EU. This figure, certainly in the UK, is consistently rising as the business continues to branch out.

As Amazon's market share and geographical reach increase, so too does their tightening of operational regulations. They require every shipment to be booked in and it can be a full time job just to manage the intake into Amazon alone. There are supply chain companies that specialise in getting consignments into the various Amazon depots, because of their existing journeys. This means there's a good chance that you can use one of their regular delivery slots instead of booking extra vehicles with perhaps empty space making it less efficient.

If you consider exporting your goods to Europe you can contact our trusted partners Express Road Freight (Netherlands) for some friendly advice.

As of May 2013, Amazon has 49 fulfillment centers spread across 8 countries. Here is the split by country -

• United States – 14 spread across 14 states
• Canada – 2
• France – 3
• Germany – 7
• Italy – 1
• United Kingdom – 8
• China – 8
• Japan – 6

The distribution network of Amazon is one of a kind, the company made headlines in March 2015 when it announced to extend its one-hour delivery service to Baltimore and Miami, this service was formerly available only in New York. The company has warehouses as huge as 1 million sq. ft and its website has more than 65 million visits each month making it the world’s largest online retailer. However, Amazon does not publish comprehensive information about it’s fulfillment centers. But for sellers in Amazon’s Fulfillment by Amazon Program (FBA) this can mean a huge headache when it comes time to collect and remit sales tax. To get an idea of where Amazon might expand to next, research firm Piper Jaffray created a map that shows all of Amazon's fulfillment centers in the US as well as its existing same-day shipping regions.

As of April 2015 they reportedly had 96 ware houses in US alone but the number is speculated to be even bigger, they have furthermore invested a lot in emerging markets and have 4 warehouses  in India, 9 in Germany and 12+ in China. They recently announced about $20B to expand their distribution network in these countries.

For more details on their warehouse locations in US visit Amazon Fulfillment Center Locations

How to manage an effective warehouse

Just because your warehouse is big and full of boxes doesn't mean it can't be fine-tuned into a slick operation

Smart businesses run efficiently. The less time and effort that's wasted getting a task done, the more healthy the bottom line will eventually look. That goes for all processes, and your warehouse is no different. Just because it's big and full of boxes doesn't mean it can't be fine tuned into a slick operation.

The first thing you'll want to get right is your floorplan. Ideally, this is done at the very beginning, but even if you're already running a fully operational setup, the potential efficiency savings could mean that rearranging your layout is still worth considering.

Only a small fraction of the companies that approach him believing they need to move into larger premises really do need to. The rest have enough space already, they're just using it badly.

"Inefficiency just happens. You start with a big empty shell that's high and deep and you slowly begin to fill it as your company grows. Most of the company's efforts are concentrated on generating sales, naturally, and the warehouse gets forgotten. Before long, your warehouse is full, but it's wasted space and you've got a lot of unused potential."

By using your space efficiently, your staff can get jobs done quicker and can complete more jobs in a day, you save on purchase or rent by not expanding unnecessarily, and you can go longer before the huge burden of relocating into bigger premises.

"There are a lot of shelving options. Two-tier or mezzanine, fixed or mobile. If you can squeeze your rows of shelving together, and only open them up when access is required, you can save 50% of your floor space."

One of the most commonly overlooked aspects is product placement.  "Is your number one product the easiest to get to? If your pickers are regularly travelling the length of the warehouse to get to your biggest sellers, you're wasting time compared to keeping everything nearby."

Successful warehouses often employ full-time warehouse managers, but professionals can be hired in to assess your requirements. We offers a simulation tool, which tracks all movements and gives insight into who is travelling where, what's most popular and what changes would improve efficiency.

Once your goods are in the optimal location it's important to keep detailed records with a good inventory control system, which is a process for managing the location, stock on hand and movement history of all items in the warehouse.

Good warehouse organisation increases your capacity to process the company's input and output, and in turn, your revenue potential. A solid working environment with minimal waste will also help motivate your workforce, and working more accurately keeps customers happy.

"All warehouse operations strive to achieve the highest levels of inventory accuracy,"  "The simple principle is that all physical movement or change in status of an item must be reflected in a transaction on the system. The transaction must be time- and date-stamped and referenced to the request that generated the movement.

"To assist operatives in achieving the level of accuracy required, the use of barcode and radio frequency identification technologies provide a quick, simple and accurate way of identifying products and creating stock-movement transactions on the system.

"Operatives also benefit from the ability of the system to optimise both their route around the warehouse when carrying out stock put away and order-picking tasks and the location of products based on usage, size and so on to provide the most efficient stock-location layout."

And even once your warehouse layout has been optimised, and all stock location and movement is tracked in detail, there is further technology available that speeds up the work of the pickers.

The domestic appliance and parts distributor holds approximately 100,000 product types on site and has access to around 1.5 million lines. The firm is based at a six-acre national distribution centre which processes over 180,000 orders on average per month.

To service the demand of the e-commerce boom, the company expanded its floor space and recruited more staff. In addition, it added, including headsets for pickers, and linked it to a custom built warehouse management system.

The system services up to 14 orders within a single route. Items are placed into a box that then passes by a barcode reader, automatically diverting it to the next relevant picking zone. This in turn updates the system and instructs the picking to take place via a voice command.

The system used at Connect Distribution has been configured to operate by priority, automatically directing the picker to the most urgent pick and enabling the company to fulfil a high volume of next-day deliveries.

"Voice has undoubtedly become a mainstream warehouse technology, yet in our relatively traditional industry, implementing it has given us an edge compared with other distribution companies. Crucially, it has enabled us to deliver a higher quality of service and fulfil the high degree of same-day dispatch orders we receive."

How to take Warehouse on Lease

Industrial space is property that generally includes places such as warehouses, light manufacturing buildings and factory/office multi-use buildings. These facilities are typically used for research and development, product production and service, and the storage and distribution of goods. Leasing commercial space is more complex than leasing an apartment or house. A commercial lease doesn't have a standard lease form, and you'll need to sign a commercial lease agreement. You and the owner will work together to create a tailored lease that permits you to operate your business in the industrial space you're interested in. Learning how to find and lease an industrial work space can help you get your business up and running smoothly.

Part 1

Finding Industrial Space

1 - Choose a type of property. 

There are many different types of industrial space, and conducting your search for property will require you to determine what type of property best fits your needs. Industrial property is generally divided into three categories: warehouse property, manufacturing property, and flex (mixed use) property. Within those categories there are many different types industrial property, and knowing your business's needs will determine your property type.

Warehouse - this type of facility is used for storage and/or distribution.

Manufacturing facility - this property is used for creating, converting, or assembling materials

Distribution facility - this is a specific type of warehouse that specializes in distributing goods, rather than creating or assembling them.

Truck terminal - this is a specific type of distribution facility where goods are transferred from one truck to another. Manufacturing and storage do not take place at this type of facility.

Flex facility - this property involves some type of mixed-use facility, which may allow for multiple businesses of varying natures or a single business that uses the property for multiple purposes.

Service center/showroom - this type of flex facility is often associated with machinery and automobiles, and may be comprised of repair facilities, a showroom for various product models, or both.

2 - Search online for property listings. 

Once you know what type of property your business needs, you'll need to search multiple listings to compare prices and floor plans. You can find listings on many real estate websites, or search online for industrial property in your area. Even similar space/floor plans will have different characteristics, so it's important to research and inquire about the needs for your business. Common qualities that are sought in industrial spaces include:

Energy-efficient fluorescent lighting

• Well-maintained sprinkler systems
• Including early suppression
• Fast response (ESFR) systems, 
• Roofs and flooring that can support heavy 
• Industrial equipment 
• High ceiling clearance
• Sufficient parking

3 - View multiple properties in person. 

Even after extensive viewing online, you should always examine properties in person. Photographs may be misleading, and you'll want to visit the property to ensure that you can see your business making good use of the space. But don't stop at one property - some experts advise having at least two or three ideal properties within your price range. That way if one of the properties doesn't work out for any reason, you've got at least one backup that you know you'll be happy with

Part 2

Evaluating Lease Terms

1 - Ask about hidden expenses. 

Some industrial property owners charge additional fees and expenses, such as maintenance fees and upkeep charges for shared facility space. In addition, you'll want to inquire about how utilities are measured and costs divided among tenants.

Some property owners measure utility usage individually for each tenant. Others divide the cost of utilities each month by each tenant's rented square footage.

Find out about utilities, fees, and other expenses before you agree to sign the lease. If the terms are unfavorable, you may be able to negotiate better terms or simply walk away without any obligations.

2 - Know your rental obligations. 

Some industrial landlords cover the costs of repairs and maintenance, but many do not. Unlike residential property, where repairs are typically the responsibility of the property owner, commercial property varies considerably in terms of maintenance obligations.

If you will be responsible for maintenance and repairs, your landlord will need to specify the details of this arrangement (verbally and in the lease, should you sign it), and must disclose how much those costs are expected to average.

3 - Research your prospective landlord. 

Before you commit to a lease with someone, you should do some investigative research into that person's record as a property owner. Has he had numerous complaints from the Better Business Bureau or similar consumer protection groups? Has he had any legal problems or court cases brought on by former tenants? Is he currently restructuring a loan with no signs of financial stability? All of these factors are important to know, as they may be the difference between a property you can work from for years to come and a property you'll have to vacate in six months.

Search online for your landlord's name, and cross check his name with consumer protection groups. You may also want to browse the archives of your local newspaper to see if any court cases have been brought against him by current or former tenants.[21]

Ask your prospective landlord if he's willing to submit to a credit check. Explain that you're interested in a secure, reliable facility, and that a credit check could help secure a long-term partnership.

Part 3

Negotiating a Lease Agreement

1 - Request a pro forma lease copy. 

Before you agree to sign a lease, ask to see a pro forma lease. This will lay out the standard terms of that property owner's rental agreement. It should clarify any lingering questions you might have about the particulars of that property.

2 - Ask the landlord for concessions. 

Don't be afraid to try and bargain with the landlord. Most commercial property owners are hurting from the space being vacant, and in many ways it is a renter's market much of the time. The landlord may say no, but if you pitch these concessions as an incentive to rent for a long period of time, he may jump at the chance to secure a long-term tenant.

Try negotiating the price of the lease, or see if the landlord is willing to work with you by offering money for repairs, subsidized renovation, or even a period of free rent.

You should also negotiate some kind of limit on future rent increases. Tell the landlord that favorable terms will make you more likely to stay for a long-term occupation, which is ultimately mutually beneficial to both landlord and renter.

3 - Ask about add-on clauses. 

Depending on the nature of your business and what you predict will happen in the future, you may want to ask your prospective landlord about certain add-on clauses. These can include terms that permit subletting, co-tenancy, and exclusivity of the property.

Subleasing clauses would allow you to rent out some of your space to other businesses, in the event that you decide to scale back operations or dissolve your business before the lease is up for renewal.

Co-tenancy clauses ensure that your business can continue, even if other tenants renting that property terminate their own businesses and/or vacate the property. They should also give you an option to terminate the lease if the landlord does not meet the co-tenancy clause terms.

Exclusivity clauses ban the landlord from renting out space on your property to direct competitors who might threaten your business.

4 - Hire an attorney. 

Before you actually sign the lease, have an attorney read the terms of the rental agreement closely. You should also review the lease yourself, but a lawyer will have a better understanding of real estate and business laws, and should be able to determine if the lease is fair and legal.

5 - Sign the lease. 

If your attorney believes the lease is fair to you and meets all the necessary legal requirements of an industrial/commercial lease agreement, then it's safe to sign the lease. You can then begin moving your operations into the rental space and start growing your business.

Godown Inc is one of the leading company providing warehouse on rent in India

What Is the Career Path in Warehousing and Logistics

If you’re thinking about taking the steps toward a new employment opportunity in warehousing and logistics, it might be a good idea for you to take some time to map out what your career path might look like. It’s smart to plan for your future, and looking forward to what’s to come will help you make the right steps towards a successful and happy career. While everyone’s journey will look different, here are a few of the major milestones to look forward to during your new career in warehousing and logistics.

Training:

For many areas in warehousing and logistics, it’s best if you have either a relevant certification or proper training in that area. Well-trained jobseekers make the best employees, so it’s always best to plan for your future path with an education.

While some jobs in this area require a college degree, you could also take the certification route. Most certifications will give you both theoretical and hands-on experience, so it can just be a matter of whichever one suits your lifestyle the best. For example, if you have an interest in working with your hands, finding a certification that specializes in logistics could give you a chance to learn all about the quality standards of the supply chain industry while also providing a solid practical foundation for a future career. Looking into local colleges that offer these types of programs could be the first step you take on the path to your future in warehousing and logistics.

Develop Skills:

While a good education is an important factor on any good resume, what employers really want are the skills and experiences to get the job done right. Before you start your career in warehousing and logistics, it’s a good idea to start small—begin with a part time job to gain valuable insight into the industry.

If you’re interested in ending up in food manufacturing, working weekends at a bakery will give you a great overall picture of how the system works. If you’d like to work in consumer electronics, tinkering around with whatever electronics you have can expose you to some of the most important elements of device creation. Nothing looks better on a resume than actual experience and concrete knowledge of the industry, and taking the initiative to learn the ins and outs of your chosen field before your job begins will look most appealing to a future employer.

Partner with Recruitment Specialists:

So you’ve got the education, the skills and the experience—now what? A lot of job seekers don’t know what the next step is on the path to finding their career. While you might spend time searching job boards and contacting various companies, the easiest and most efficient way of starting your next employment opportunity in warehousing and logistics is to partner with a recruitment specialist. Recruitment specialists take the hassle out of job-hunting because they’re experts at what they do. Matching you with the right company and with the right position is their main priority, making all of your hard work pay off with your dream job.

One of the best advantages to working with recruitment specialists is their exclusive access to some of the best warehousing and logistics jobs in the country. Job boards can be a great place to search for employment, but recruitment specialists have built trusting relationships with employers that can’t be found elsewhere, giving you a head up over your competitors. With the right training, skills, and experience, your journey to a career in warehousing and logistics will lead to success with a recruitment specialist.

Career in Warehouse Logistics

Supply Chain / Logistics / Transport / Warehousing / Courier / Distribution

The supply chain, logistics, transport, warehousing, courier and distribution industry is the very backbone of business and sits within the Shipping and Logistics sector. Without this critical element of commerce, goods would not move from supplier to buyer and then ultimately to the consumer.

This fast moving and vital part of industry, holds many career opportunities in all kinds of disciplines from being a warehouse person, to planning the distribution of goods to worldwide destinations. Undoubtedly, the supply, storage and distribution of goods is what makes business work and so the industry itself attracts people from all kinds of backgrounds and professions. This is the perfect industry if you want to start your career path and don’t necessarily have the best qualifications, as there are many opportunities to start in very basic roles and work your way up.

What kind of jobs are available within the Supply Chain / Logistics / Transport / Warehousing / Courier / Distribution industry?

This industry, which is part of Shipping and Logistics is perfect for someone who wants a real hands on job, as there are many opportunities within warehousing and distribution that can give the job holder a real sense of involvement. The different kinds of jobs in this industry include:

• Logistics Coordinator
• Supply Chain Coordinator
• Logistics Manager
• Transport Manager
• Transport Planner
• Warehouse Manager
• Distribution Manager
• Routing/Scheduling Clerk
• Distribution Services Manager
• Traffic Operator

Tips on How to Land a Job in Logistics

Even though the logistics industry is growing, finding a job in this field takes a bit of preparation on your part. Let us help you get a foot in the door and navigate the process from start to finish by following our tips, tricks, and how-to’s.

Tip #1: Determine your career goals.

To reach your career goals in logistics, you must define your ambitions. Do you want to run the company, or do you want to specialize in a particular field? What are your short-term and long-term goals? Sit down and write out a career plan detailing what you want to achieve, then brainstorm ideas for how you’ll get there.

Tip #2: Network, get feedback, and find a mentor.

The cliché is true: It’s not what you know, it’s who you know (though knowing stuff definitely helps). Discuss your career aspirations with someone who currently works in the job you’d like to have, such as a coworker, a family friend, or a connection made through networking. If you currently work at a logistics company, have a discussion with your boss or a human resource staffer about what you need to do to earn a promotion and set yourself on the right career track. Ask your mentor or coworkers to introduce you to others in the field or at specific companies you’d like to work for. If you attended a school with a career office, contact them to ask for advice and connections to alumni.

Tip #3: Determine what you’re qualified for now.

Entry-level job titles in logistics include van driver, dispatcher, scheduler, expeditor, merchandise buyer assistant, and clerk for distribution, operations, traffic, or import/export. Some entry-level jobs, such as operations research analyst or process associate, may require a Bachelor’s degree or other certifications, so determine your skill sets and educational needs before you begin applying for jobs. You’ll save yourself time and rejection-related heartache if you limit the scope of your search to what you can realistically accomplish at this point in your career. If you’ve been working in the logistics field for a year or more, assess your experience based on your inside knowledge of the industry. Salary.com is an excellent resource for researching job descriptions, requirements, and expected salaries.

Tip #4: Seek out general knowledge and formal education.

Read newsletters and trade publications of associations like the American Society of Transportation and Logistics, and the Warehousing Education and Research Council. After you’ve whetted your appetite and gained a working knowledge of the current prevailing logistics ideas and technologies, take it a step further: Research educational programs in your area or online that offer logistics or logistics management programs. Keep your career plan from step #1 (with feedback from step #2) handy in order to structure your search based on your current skills and long-term goals.

Having a relevant education is critical for anyone interested in a logistics career. Logistics degree programs cover subjects such as management, managerial decision-making, distribution and logistics and supply chain management. Given the broad scope of the field, some programs are referred to as an operations management degree or logistics and supply chain management degree. Some schools offer a degree in transportation and logistics.

It’s important to find the right program for your career goals. Below you’ll find a list of accredited schools that offer a number of quality degree options.