NIDO Group expects automation to cut operational costs by around 25% for D2C brands

Warehousing automation firm NIDO Group has successfully automated multiple 3PL or third-party logistics warehouses and is successful in managing order volumes of 9 lacs orders per day for over 40 Direct-to-Consumer (D2C) brands across the country, the company said in a statement.

The D2C market is experiencing explosive growth, with consumer spending expected to rise by over 35-40% during the festive season, according to the intralogistics automation firm.

“This surge in demand places immense pressure on logistics providers to deliver products quickly and efficiently. As a result, the adoption of warehouse automation technologies, including conveyors, sorters, and fulfillment centers, is becoming essential for effective operations. These systems streamline the processing of orders, reduce manual handling, and minimize errors, ultimately ensuring that customers receive their products on time,” the statement said.

Also Read Festive season demand soars: D2C brands see 250% growth on quick commerce platforms Diwali Special: Consumer durable cos eyeing 30-50% growth this festive season, say premium products to supercharge 2024 sales Indian apparel exporters to report revenue growth of 9-11% in FY25, capex spends to increase too in FY25 and FY26 Room air-conditioner industry to post sales volume growth of 20-25% in FY25 on climate and consumer trends, says ICRA

Also read: Navigating the challenges of learning logistics technology: Key strategies for professionals

Nirav Doshi, Founder & Managing Director, NIDO Group said, “This festive season, we expect a 30% increase in the volume of orders processed using automated solutions compared to the previous year. Automation can lead to a 22-25% reduction in operational costs for D2C brands, helping them manage large order volumes without significant cost escalations.”

The company’s warehouse automation solutions are designed to meet the unique challenges by implementing advanced conveyor systems and sorting technologies, so that the company can optimize its fulfillment processes, significantly reducing lead times, Doshi added.

“The benefits of warehouse automation extend beyond cost and time savings. By boosting efficiency, NIDO Group enables its clients to increase sales and improve customer satisfaction. Furthermore, this technology is crucial for reaching consumers in tier 2 and tier 3 cities, which are emerging as key demand centers, ensuring that their demands are met swiftly and effectively. Even the most remote locations can enjoy timely deliveries during the festive rush with automated systems,” the company said.

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