TEAM PRABAL
HARSH PARASHAR PRATIK NIMJE
Changes needed to make India Inc.’s supply chain more Efficient and Responsive
PROBLEM STATEMENT
Work Experience:
13 Months | Manufacturing |
TE
Graduation:
Mechanical Engineering
Work Experience:
21 Months | Sales Operations |
L&T
Graduation:
Mechanical Engineering

Recent Trends in Indian Supply Chain
Logistics
• Growth in 3PL & 4PL providers as manufacturing is growing
• Emphasis on Cold Supply Chain
• Affordable Road transport
Warehousing
• The warehousing strategy has built on supply chain efficiency rather
than the consideration to benefit from tax saving.
• Pandemic has pushed warehouses to accelerate automation and
decrease human dependency
Government Regulations
• The new Consumer Protection rules has ensured fair-trade practices
in the market
• With the implementation of GST, manufacturers have shifted towards
tailored supply chain models as per customer requirements.
Consumer Behavior & Economic Trends
• Almost half (83 percent) of people admit they never thought about
how products were delivered prior to the pandemic but now, 77%
considers the supply chain when making a purchase
Comparisons with Other Supply Chains
How is India different as a Supply Chain destination?
Technology
• Digital Transportation Management Systems are used for complete
visibility and control over their transport operations
• RFID is used across industries for real time control and transparency
• Cloud Technology has made supply chains flexible and resilient
Features of Indian Supply Chain
Features of Chinese Supply Chain
• There is a lack of logistics expertise in India. However, in recent
times, companies are focusing on this sector as the critical backbone
of economic development
• Road transportation market is very fragmented with acute inefficiencies
• Advanced logistics services such as supply chain management,
inventory management, logistics consulting, and data analytics are still
under-developed in India
• Unfavorable government policies makes it unattractive for
companies to make heavy investments in logistics
• Special Economic Zones were created in China in 1980s which made
sure that the cities willfully allowed foreign investment to enter China,
resulting in the growth of the manufacturing sector
• To meet this demand, China had to improve its supply chain, and the
first thing they studied was how to bring technology in the logistics
sector, which helped reduce the lead time for any shipment from China
• China also focused on the Logistics of Everything, where they
emphasized customer experience and last-mile delivery.
• China articulated mass distribution of goods to various cities and
countries. So much so that China can deliver over 140 million packages
in a day

Teething Problems in India Inc’s Supply Chain
Demand
• Demand is affected in the post Covid era due to
job losses, transport problems, weak consumer
sentiments, etc.
Supply Chain
• Industries such as automotive &
pharmaceuticals which depend on a single
source for their requirements are facing supply
chain disruptions
Logistics &
Transportation
• Slow Transit networks
• Unavailability of large carriers or large
transportation companies with specialized
services
Warehousing
Workforce &
Labour
Regulations
Facility &
Infrastructure
• Replicating western facility designs pose
challenges of working with local contractors
• Complexity of a manual but high-volume
operations can lead to service failures Investments
• Small warehouses carrying only enough
inventory to cater a closer customer base
• Warehouse management systems are mostly
manual with inefficiencies & complexities
• The shortage of manpower & reduced working
hours have affected the capacity utilization of
industries
• Skill gap between educated and uneducated
people is high
• The shortage of manpower & reduced working
hours affect the capacity utilization of industries
• Skill gap between educated and uneducated
people is high
• Bureaucratic approach provides hindrance to
foreign investments
• Corruption, lack of proper infrastructure, not so
good labour laws affect foreign investments

Industry
Wise Supply
Chain
Problems in
India
Automotive
Logistics Agri-Business
E-commerce
FMCG
Complicated Indian Tax Regulations
Road Distribution Network
Inventory Deployment
Reverse Logistics
Visibility of Supply Chain
Cash On Delivery
Availability across distribution channels
Taxation woes for FMCG sector
Threat of counterfeit goods
Lack of proper infrastructure
Entry of third-party logistic
Close coordination and traceability
Scarcity of resources
Scope to improve yield
Losses in the food chain
Consumption moving towards F&V, pulses
Multiple intermediaries & lack of traceability
Increasing product proliferation
Port And Shipping Problems
Shortage Of Drivers And Delivery Staff
Warehousing And Taxation Discrepancies
High costs & Roadblocks in Transportation
High Order Intensity Ratio
Shortage of talent to fill key roles.
Escalating costs of supply chain operations
Long term secular growth and volatility
High Order Intensity Ratio
Growth of exports

Government Regulations
]
Consumer Behavior & Economic Trends
Changes needed to make India Inc.’s supply chain more Efficient and Responsive
1. Indian companies need to drive
commercial growth from the supply chain
2. Fulfil environmental and social commitment
3. Enable real-time supply chain execution or
automate Supply Capacity Visibility and Analysis
4. Provide flexible work experiences
5. Plan Inventory and Capacity Buffers
• Transform supply chain into a customer-centric mindset
• Develop supply Chain with customer-centric mindset
• Measure performance against customer-experience outcomes
•Adapt sustainability metrics and accounting methods
•Develop the technology product portfolio strategically to incorporate
sustainable technologies
•Establish auditing procedures and extend them to suppliers and partners
• Convert real-time data into real-time analytics
• Accelerate investments to enable real-time analytics
• Build agility into the strategy to continually adapt to innovative
technology
• Supply chain employees need to adapt and evolve the skills for a hybrid,
flexible and technologically enabled workplace
•Technology investments will aid operational execution, making physical
processes less differentiating
• The simplest way to enhance resilience.
• Use contract manufacturers strategically to cater for surge demands
• Buffers allow for variability in the planning to keep us flexible amidst
uncertainty.

Government Regulations
]
Consumer Behavior & Economic Trends
Changes needed to make India Inc.’s supply chain more Efficient and Responsive
6. Manufacturing Network
Diversification
7. Multi-sourcing
8. Nearshoring
9. Platform, Product or Plant
Harmonization
10. Ecosystem Partnerships
• Indian companies need to diversify their manufacturing bases out
of specific countries.
• The cost of retaining multiple supply chain locations needs to be
considered as a cost of doing business rather
• Supply chain leaders need to know their supply chain network to
categorise suppliers by revenue impact.
• Diversification can be achieved by awarding business to additional
suppliers
• Indian companies need to reduce geographic dependence in their
global network and shorten cycle times
• Local supply chains allow for more control over inventory and move
products closer to the end consumer.
• Standardising components can help in harmonisation
• Harmonisation simplifies sourcing policies and creates
opportunities multiple suppliers
• Companies without the scale to support multiple locations on their own,
strong relationships with contract manufacturers and global 3PLs can be
vital in diversifying production and distribution to different countries.
• Consumer demand is volatile and statistical forecasting models have their fundamental
limitations.