Behind every thriving business operation, there lies an efficient, cost-effective, and state-of-the-art warehouse facility that aids companies in navigating through challenging times. Although the warehouse is just one component of a lengthy and intricate supply chain, it plays a pivotal role. Originally, warehouses were single-client facilities dedicated to serving the storage and distribution needs of a sole company or business. However, they have evolved into multiclient warehousing to meet modern-day demands.
This dynamic and innovative solution has recently revolutionized the logistics industry, enabling businesses of various sizes to share the same warehouse space, resources, and operational costs, resulting in substantial cost savings, improved efficiency, and heightened flexibility.
Mahindra Logistics, India’s leading 3PL service provider, boasts a vast warehousing footprint of 19+ million sq. ft. across 500+ operating locations in India. Through its multi-client facilities, it offers integrated logistics solutions to serve diverse client categories, including manufacturing, automotive, retail, e-commerce, FMCG, pharma, and more. These facilities are tailored to accommodate the specific needs of different clients while maximizing operational efficiency and cost-effectiveness, offering significant advantages to Mahindra Logistics’ clients.
But, what advantages does Mahindra Logistics’ multi-client warehousing network offer to its clients?
Rampraveen Swaminathan, Managing Director & CEO, Mahindra Logistics Ltd.: “Opting for these state-of-the-art facilities provides several advantages for our clients. Firstly, it allows them to benefit from shared infrastructure and resources, resulting in cost savings. It also helps to avoid the expense of maintaining their own dedicated warehouses; instead, clients can pay only for the space they require. This flexibility is especially beneficial for companies with fluctuating inventory levels or seasonal demand. Secondly, our multi-client facilities provide a scalable solution that can adapt to changing business requirements. As client needs evolve, they can easily expand or reduce their warehousing space without incurring additional investments or long-term commitments. This agility is particularly valuable in dynamic industries where demand patterns and market conditions are subject to frequent changes.
Additionally, our multi-client warehouses are equipped with advanced technology and automation systems, ensuring efficient inventory management, accurate order processing, and real-time visibility. Clients can leverage these technological capabilities to streamline their supply chain operations, improve inventory control, and enhance overall productivity.
Our multi-client facilities are strategically located across the country, enabling efficient distribution and reduced transit times. Our transportation network covers over 19,000 pin codes, helping clients reach their customers in a timely manner, enhancing customer satisfaction and market competitiveness.”
Catering to evolving enterprises that lacked dedicated warehouses or volume to justify private facility costs, the multi-client warehouse concept thrived in recent years. However, the industry recognized the need for more customization to fulfill individual client demands. Thus, the ‘built-to-suit’ warehouse model emerged, offering tailor made facilities to accommodate specific businesses or industries.
Mahindra Logistics embraced the Built-to-Suit model wholeheartedly, meeting clients’ need for greater customization.
How did Mahindra Logistics make the adoption? What is its existing network and expansion plans?
Rampraveen Swaminathan: “In line with our vision to provide best-in-class services and reach our customers, we have embraced the Built-to-Suit (BTS) model. We are expanding our pan-India network of warehouses, encompassing over 4 million sq. ft. of Grade A facilities in strategic locations. Adopting this model is a part of our long-term growth strategy that has successfully helped us offer enhanced efficiency and automation. Currently, Mahindra Logistics operates a strong network of BTS facilities across India, effectively connecting major cities and Tier-II and Tier-III cities. This strategic network ensures comprehensive coverage and efficient service for our diverse client base.
To further expand our capabilities and meet the increasing demand, we have been adding new warehousing facilities to our network. We recently inaugurated a state-of-the-art warehouse in Nashik, with plans to replicate similar facilities across the country. Another significant expansion endeavor is the development of a 1 million-square-foot Warehouse Park in the Chakan-Talegaon region. In the future, we aim to add approximately 2 to 2.5 million square feet of warehousing space annually, with a visionary plan to develop around 30 million square feet by FY27.”
The adoption and growth carried out by Mahindra Logistics in these emerging warehouse models, attests to its firm conviction of staying ahead of evolving demands and fulfilling the distinct requirements of our clients in the warehousing and distribution industry through their comprehensive and tailored solutions.
Mahindra Logistics’ built-to-suit warehouses prioritize innovation and are crafted to ensure maximum efficiency and operational effectiveness. Their customer-centric approach is instrumental in scripting their success story.
How do you meet client specific demand, and what unique aspects are incorporated in your BTS warehouses to meet optimal efficiency and operational effectiveness?
Rampraveen Swaminathan: “We work closely with our clients to understand their unique requirements and tailor our solutions accordingly. By integrating technology and leveraging our expertise, we create logistics solutions that offer flexibility and scalability.
Furthermore, automation and innovation play a significant role in enhancing operational effectiveness. We employ advanced automation systems and robotics for seamless inventory management, accurate order processing, and real-time visibility, streamlining supply chain operations for our clients. The facility in Talegaon will host our first Automation Technology Centre that focuses on the development and deployment of automation technologies such as Artificial Intelligence, the Internet of Things (IoT), Robotics & Automation, ARVR, AGVS, and Blockchain.
Our Grade-A, sustainable, multi-user, dedicated BTS warehouses are designed with state-of-the-art material handling equipment and extensive automation to optimize workflow and improve overall efficiency.”
With sustainability as its prime focus, Mahindra Logistics guarantees the establishment of an eco-friendly infrastructure for its decarbonization strategy. While constructing the Built-to-Suit (BTS) warehouses, the company introduced various green measures to counterbalance the carbon impact of both the company and its clients.
Mahindra Logistics boasts state-of-the[1]art infrastructure projects designed with sustainability in mind, following IGBC/ LEED certification standards. The company commits to using renewable energy sources, conserving resources, and promoting green cover, demonstrating MLL’s environmental responsibility.
What Green Initiative does MLL promote in your BTS warehouses?
Rampraveen Swaminathan: “At Mahindra Logistics, commitment to sustainability is a habit. From using recycled construction materials to efficient liquid discharge management, renewable energy sources, and state-of-the-art automation, these facilities are equipped with onsite solar power generation capabilities that meet energy requirements and provide solar charging for cargo vehicles and personal mobility. Our warehouses boast over 3 million square feet of solar-powered generation and distribution, showcasing our dedication to clean energy adoption. Mahindra Logistics’ EV ecosystem comprises over 1,300 electric vehicles (EVs) and 70 charging stations across 19 cities with an integrated tech stack for last[1]mile delivery operations through EDel, significantly reducing emissions and contributing to a cleaner and greener transportation ecosystem. These warehouses are energy-positive, feeding excess energy back into the grid, truly embodying the concept of carbon-neutral operations, including Green Hive Dashboard for measuring Facility Sustainability Initiatives, Zero Liquid Discharge (ZLD), as well as Bio Toilets at certified facilities.
In line with our commitment to becoming carbon neutral by 2040, we have not only joined the ‘Science Based Targets Initiative’ (SBTi) but have also been successful in getting their validation of its targets for carbon emission for 2021. This initiative mobilizes companies to set ambitious greenhouse gas emission reduction targets, ensuring that our efforts align with global climate action goals.
Overall, we at Mahindra Logistics promote a comprehensive range of green initiatives in our BTS warehouses, reflecting our commitment to driving positive environmental change and fostering a sustainable logistics ecosystem for a greener future.”
IN A NUTSHELL
The built-to-suit warehouse model is set to become the gold standard in modern warehousing as it addresses the challenges of space optimization and cost-effectiveness while also fostering collaboration and synergy among businesses operating under one roof. And, Mahindra Logistics is capitalizing on the strengths of the multi-client approach and combining it with customized solutions, to revolutionize their businesses and drive their clients towards a more agile and competitive future.
