How Is the Introduction of Various Automation Technologies Helping Chemical Warehousing Businesses Flourish?

10 Jun



  • Introduction
  • Latest developments in the chemical warehousing landscape
  • The growth of the sector in Asia-Pacific

The success and growth of any sector in the economy depend on the efficiency of its corresponding logistics industry. The expansion of the chemical manufacturing sector thus relies on logistical factors such as transportation, storage, warehousing, delivery, and many more. Out of these things, warehousing is particularly important as most of the chemicals are highly volatile and need to be stored appropriately before they are distributed or sold. Hence, the chemical warehousing industry has gained an important place in the global economy.

The increasing role of automation in chemical warehousing

The increasing use of both organic and inorganic chemicals has indirectly expanded the chemical warehousing landscape. Hence, in the last few years, almost all chemical manufacturing companies have built warehouses on modern lines that have automated technologies to ease the burden. For instance, in November 2023, Allcargo Supply Chain, a leading logistics company, announced the launch of a Grade A chemical warehousing facility in Navi Mumbai, India. Spread over an area of over 5.50 lakh sq ft., the chemical warehouse is equipped with cold storage facilities, modern infrastructure, and advanced warehouse management systems to offer safety, speed, and efficiency in warehousing operations.

Since warehousing activities involve a lot of cumbersome repetitive tasks, automation helps in freeing up manual labor from these activities and engaging in productive, decision-making-related operations. For this, tools like automated picking robots are employed in chemical warehousing operations which can perform tasks like segregation, lifting, placing items on appropriate shelves, etc. Technology companies have even developed robots that can execute barcoding tasks efficiently.

Similarly, automotive manufacturing companies are developing automated guided vehicles for their deployment in chemical warehouses. However, there is one major difference between automated picking robots and these vehicles. While robots mostly perform the work related to segregation, automated guided vehicles are employed at the entrance for receiving the containers goods from the production facilities and offloading them at the warehouse. Software companies are also contributing to this supply chain by designing inventory control platforms that help operators efficiently manage the data related to warehouse goods. These platforms are specifically built to compartmentalize the data related to inventory management and plan the intake and distribution of goods accordingly.

The adoption of collaborative robots is another important development in the chemical warehousing industry. Collaborative robots, unlike other robotic systems, work in association with human labor to execute certain tasks and plan certain warehouse processes. These collaborative robots, along with emerging technologies like the Internet of Things, create a network of different elements working in the warehouse, thus avoiding the repetition of work and optimizing processes.

Studying the reasons behind the rise of the industry in the Asia-Pacific region

The growth of the chemical warehousing landscape in Asia-Pacific is attributed to the increasing revenue share of the chemical manufacturing companies and businesses in this region. As the demand for different materials and chemicals has increased, many warehousing companies have established large godowns and infrastructure facilities to support the manufacturers. Furthermore, the rise of the e-commerce sector has led to the building of warehouses in various tier-1 and tier-2 cities for efficient distribution of goods.

The introduction of blockchain technology has also improved the growth rate of the chemical warehousing industry in this province. Blockchain technology has enhanced the connectivity, transparency, and operational efficiency of warehouses, thus expanding their role in the overall supply chain management. Furthermore, the emergence of advanced technologies like IoT, Artificial Intelligence, and machine learning is expected to bring numerous opportunities for growth in the sector.

Many leading companies are also signing partnership agreements to develop warehousing facilities for the storage of different chemicals. In July 2021, for example, Aegis and Vopak announced that they would jointly establish chemical warehousing facilities in India to store LPG and other such chemicals. Such partnerships are also contributing to the growth of the landscape in Asia-Pacific.

To conclude, the increasing adoption of automated tools like warehousing robots, automated guided vehicles, inventory control platforms, etc., is projected to create favorable conditions for the growth of the chemical warehousing market. At the same time, the growing expanse of the chemical manufacturing sector is expected to positively impact the landscape in the coming period.

For tips and suggestions on how businesses can increase their revenue share in the industry, feel free to contact us.

Akhilesh Prabhugaonkar

Akhilesh Prabhugaonkar

Author's Bio- Akhilesh Prabhugaonkar holds a bachelor’s degree in Electronics Engineering from the reputed Vishwakarma Institute of Technology. He has a special interest in the fields of forensics, world history, international relations and foreign policy, sports, agriculture, astronomy, security, and oceanography. An ardent bibliophile and melophile, Akhilesh loves to write on topics of his interest and various other societal issues. This love for writing made him enter the professional world of content writing and pursue his career in this direction.


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