However, FMCG companies in Bangalore are experiencing warehousing problems. This article aims to identify the warehousing problems of FMCG companies operating in Bangalore and analyze the contribution of the real estate consultant in solving these problems.
High costs
A significant disadvantage for FMCG companies in Bangalore is that more capital must be needed to select warehouses. This scarcity negatively impacts the affordability of renting or purchasing warehouse space in Bangalore. FMCG businesses that deal with large amounts of goods where storage is a crucial component of the supply chain constantly face challenges in finding cheap and strategic warehouse spaces.
Infrastructure and Connectivity Issues
Bangalore is still not ahead of many other Indian cities in terms of Infrastructure, specifically connectivity and transportation. The major challenge that affects the transport in Bangalore is traffic congestion, which involves the movement of freights. Delivery is a critical factor among the FMCG firms and, if intervened, leads to stock-outs and loss of customers among the companies.
However, there could be places in the city where infrastructure is not developed to the corresponding degree and, therefore, suitable for warehousing. Inadequate road networks and limited transport facilities in some areas also affect the ability to transport products from one warehouse, retail store, or distribution center to another. FMCG companies use real estate consultants to select and buy warehouses in areas with favorable infrastructure and accessibility, thus dealing with these difficulties.
Technological Advancements and Adaptation
The FMCG industry constantly changes, and technological advancement is central to improving supply chains. Yet, several warehouses are located in Bangalore, and they use traditional approaches to managing stocks and flows, which hampers FMCG enterprises’ involvement in responding to the demands of the contemporary logistic environment. Adopting WMS, automation, and IoT solutions, even at the primary level, takes time and a substantive investment.
As the trend suggests, it is not just replacing old software or machines but a complete reconstruction of FMCG warehousing and training the staff to embrace the changes. Industrial and warehousing property specialists can help FMCG organizations shortlist industrial facilities already integrated with contemporary technologies or for which technological integration is relatively more straightforward.
Regulatory and Compliance Issues
Another challenge that FMCG companies with warehouses in Bangalore face is the city’s complex regulatory structure. The warehousing activity is subject to certain legal restraints, such as zoning laws, safety codes, environmental laws, and other rules. Adhering to these regulations is imperative to avoid legal pitfalls or penalties.
For example, it is challenging to remain compliant in Bangalore as the standards are strict and differ from one jurisdiction to another. This means that every FMCG firm needs to factor in these regulations and take appropriate steps to ensure its warehouses comply with the law. Real estate consultants can be beneficial in advising FMCG companies on regulatory issues.
Labor Challenges
The accessibility and control of the labor force are critical issues in a warehouse’s functionality. The detailed matters concerning the supply chain of FMCG warehouses in Bangalore include the availability of labor, skill, and cost. The increment in population and subsequent migration to other sectors, such as the technology and service industries, is the main reason for the scarcity of workers in warehousing.
Further, the pool of people who can be hired for warehousing positions may need to improve their skills and experience to work in technologically advanced industries. This gap means that more resources must be spent on training and development to efficiently prepare the workforce to manage the warehouses.
Seasonal Demand Fluctuations
Sales volume in the FMCG industry is consistently derived due to various factors related to seasons, festivals, and other market factors. These fluctuations are problematic for warehouse management in Bangalore because the companies themselves have to increase or decrease the scale of operations to adapt to the changes in demand. Stocks in warehouses must be managed to satisfy high demands during peak seasons of demand while avoiding the accumulation of too much stock during off seasons of demand.
These variations need to be accommodated with versatile warehousing systems that can be adjusted to different rates without significant loss in effectiveness. FMCG companies require warehouses that can scale up or down in capacity on short notice. The FMCG sector that needs a more flexible approach to warehouse solutions can seek help from real estate consultants who understand their needs.
Security Concerns
This issue relates to security challenges faced by FMCG companies with warehouses containing valuable goods. Sometimes, products are stolen, and sometimes, goods get damaged in the supply chain process, leading to loss. Proper security of the compound of warehouses is essential in protecting the stored stocks and the integrity of the structures.
With increased industrialization and urbanization, warehouse locations are more at risk of security threats than others. Hence, FMCG companies need security measures, including CCTV cameras, door locks, and guards. Consulting firms may assist in identifying warehouses with upgraded security features or designing and implementing advanced security features for warehouses.
Conclusion
The FMCG companies’ challenges regarding warehouses for rent in Bangalore include space, cost, infrastructure, technology, legal requirements, labor, fluctuating demand, and security. To overcome these challenges, one has to plan well and seek the support of competent real estate consultants.
FMCG companies heavily depend on consultants to help them navigate the complex warehousing landscape within Bangalore. They can help identify which warehouses are most appropriate, which locations comply with the law, which technological advancements should be implemented, and other aspects involving labor and security. This assistance enables FMCG firms to perform efficient warehouse management, enhance the supply chain, and develop sustainable strategies for advancement due to competition in the market.
The warehousing challenges in Bangalore are severe. However, they can be tackled and addressed to provide proper development for FMCG companies in the continuously growing city with the help of adequate strategies and the support of real estate managers.
