Safexpress, a major logistics service providing and supply chain management firm, has launched a huge warehousing facility, covering more than a million sq ft, at Indore, according to a company release.

Built, at cost of Rs 85 crore, the facility will remain open round-the-clock throughout the year, the release adds.

Transit time

Located on Agra-Mumbai section of the National Highway 3, the warehouse is to benefit a large number of traders and industrialists in the growing central region.

It should be possible to ensure fastest transit time, i.e delivering a consignment from Indore to anywhere in less than two days. Indore, it is felt, thus has the potential to develop into a mega logistics hub.

Investment

The company, it is pointed out, is planning to investment more than Rs 600 crore in the next few years to develop similar facilities at 31 other key industrial centres across the country to exploit the opportunities to be thrown up by GST due to be launched soon.

Once the GST comes into force, most companies will be forced to adopt new business and supply chain models in the sense running own warehousing infrastructure may not be the most cost-effective option any more.

Instead, outsourcing it to 3PL providers to meet their supply chain and logistics requirements will be prudent.

santanu@thehindu.co.in

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