Supply Chain Industry in India And It’s Growth

The supply chain industry is creeping it’s impact on almost all aspects of trade and retail. As India is expanding its economy further, financing the improvement of this linkage sector is extremely necessary for business growth.

A modernized and efficient supply chain makes business very easy and accessible, reduces the costs of manufacturing, and accelerates rural and urban consumption growth due to better market access.

The main idea of supply chain management  revolves around ways apply a total system approach to manage the flow of information, materials and services from getting raw material suppliers through factories and warehouses to the end customer with satisfaction. Recent trends like outsourcing & mass customization are forcing companies to find more flexible ways to meet customer demand and satisfy their needs. The focus is on optimizing core activities to increase the speed of response to meet changes in customer expectations.   

Virtually every industry is broadening its product lines to provide the variety of choices to meet the customer’s demands. The challenge is not only to produce a variety of products but also to distribute the products to a global customer base.

Supply chain management  plays an extremely vital in business today. The term supply chain has it’s roots from from a picture of how organizations are connected together as viewed from a particular company. Many companies have attained significant success due to unique ways in which they have organized their supply chain.

The role of key components of supply chain for fulfilment of India Vision 2020 are as follows:-

·         Warehousing:- In India, the role of warehouses in the overall supply chain was always underestimated. But today, the concept of integrated supply chain management has to focus on all components like transportation, warehousing, inventories, information etc. . All of this to improve the efficiency of supply chain which is extremely vital to the economy of the nation.

·         Transportation:- The means of transportation carriers affects the pricing of products. It affects  delivery performance & conditions of the goods when they arrive the customers.

·         Radio Frequency Identification (RFID):- Radio Frequency Identification is an automatic data collection technology that was initially  tiny computer chips attached to objects that track products as RFID tagged items move through a supply chain. It is an electronic labelling & data collection system using radio frequency signals to identify & count even closely spaced items.

·         Inventory Management:- Inventory management will plays a key role as it affects customer satisfaction. Firms need to maintain the perfect balance between carrying too little inventory & carrying too much. Thus in managing inventory, firms need to balance the cost effectively from carrying larger to resulting sales & profits. 

In this Era of competition, the large Indian manufacturer are struggling not only to grasp control on cost but also to use all the components of supply chain management including logistics, warehousing as a tool of differentiation in both domestic & international market. Due to forthcoming road infrastructure, software capabilities, private telecom network, cheap labor work force and most importantly the availability of end market, the supply chain management is going to strike it’s coin in a big way for achieving India Vision 2020.