By Jaspal Gandhi, Director Contract Logistics, 3SC Solutions
Advanced technologies in dark stores have revolutionised the logistics industry, allowing for
faster, more efficient, and cost-effective delivery of goods. As consumers increasingly turn to e-commerce, the demand for fast and reliable order fulfillment has skyrocketed, prompting retailers to adopt new technologies to meet these needs.
According to Global Data, India’s online food and grocery market are expected to grow at a compound annual growth rate of 20.5% during 2020-2025 to reach $117.4b in 2025. Also, overall e-commerce sales in India are estimated to reach US$ 350 billion by 2030, according to India Brand Equity Foundation. As the e-commerce industry grows, there have been new developments in fulfillment concepts, including dark stores.
Dark stores have become increasingly popular among retailers, particularly during the COVID-19 pandemic, when online ordering and delivery became more common. Dark stores are small warehouses designed for efficient order fulfillment and are prime examples of how advanced technologies can improve the supply chain. The use of robotics, automation, and AI has transformed how goods are stored, picked, and packed, allowing for faster and more accurate order processing. By reducing labor costs and increasing efficiency, dark stores are a more cost-effective solution for retailers.
By using advanced technologies such as Automation and robotics in dark stores, it is possible to handle high volumes of orders with minimal human intervention. They can handle repetitive tasks, such as order picking and packing, without human input, reducing the risk of human errors and enhancing overall efficiency. Robotics can also work around the clock, increasing productivity and reducing the need for human intervention during off-hours.
Another critical technology is AI, that has revolutionised the way dark stores operate. Machine learning algorithms can analyse data to optimise inventory management, improving demand forecasting accuracy while reducing the risk of excess inventory or stockouts. AI can also be used to optimise routing and delivery, ensuring that goods are delivered quickly and efficiently.
While advanced technologies in dark stores offer many benefits, they also present some
challenges. Implementing these technologies can be costly, and there is a risk of technology
failure or malfunction. On the other hand, the benefits of using advanced technologies in dark stores are many, with increased efficiency being a significant advantage.
Using automation technologies such as robots, conveyor belts, and automated storage and retrieval systems, dark stores can process a large volume of orders quickly and accurately.
Additionally, the use of AI/ML algorithms and predictive analytics can help retailers optimise inventory management. This enables them to understand the buying behavior of the customers and keep the most popular products in higher volume to avoid stockouts and lost sales.
Additionally, they can reduce the inventory of products with low sales volume to avoid
excess inventory. Another critical benefit of advanced technologies in dark stores is improved visibility throughout the supply chain. With real-time data and analytics, retailers can monitor every aspect of the fulfillment process, from when an order is placed to the point of delivery. This level of visibility can help retailers identify bottlenecks in the fulfillment process and improve efficiency.
As the demand for e-commerce continues to grow, the logistics industry must continue to
innovate and embrace new technologies to meet the evolving needs of consumers. Dark stores and other advanced technologies are just one example of how the industry is adapting to the changing retail landscape. In conclusion, using advanced technologies in dark stores has transformed the logistics industry, making it more efficient, cost-effective, and reliable than ever before.
Jaspal Gandhi has over 20 years of experience in supply chain operations and logistics domain. His vast and rich experience positions him as a visionary strategist for supply chain solutions. He specialises in conceptualising and implementing SOPs for the enhancement of logistics processes and achieving cost reduction.
