Lapp India set up a new warehouse recently in Maharashtra. Located strategically in Bhiwandi, a city in the district of Thane, the warehouse which is a part of a shared facility will cater to Maharashtra, Madhya Pradesh, Chattisgarh and Gujarat, among other regions in the country.

The newly set-up warehouse is strategically located in a region that offers exemption from the local taxes otherwise applicable for the entry of any goods delivered into the area. This tax advantage helps Lapp India cater in a cost effective manner to existing and potential customers across neighbouring cities such as Pune, Nashik, Baroda and Ahmedabad. Additionally, with proximity to the Mumbai Port, the new warehouse can help Lapp India significantly reduce the duration of any import delivery as compared to the Chennai Port which was the primary import location earlier.

While this is a key benefit for the logistics team of Lapp India, the larger gain here would be for the customers as they will in turn derive the benefit of faster product delivery for orders placed. Further, with the implementation of SAP, the new Warehouse will also enable customers to have access to the stock status on a real-time basis which will help them take relevant purchase-related business decisions.

The warehouse facility is spread over an area of 5,000 sq. ft. and currently has a capacity of 200 pallet positions and can also be scaled up further based on any future requirements. Set up with a capital expenditure of USD 82,950, the facility has an inventory of USD 82,950 which can be increased up to USD 331,800 in a phased manner.