Sunday, November 29, 2009

Supply chain tangle, untangle

Consider the picture above which tell the story of supply chain management challenges in India, so poignantly.

The large land mass with poor and in some cases nil infrastructure is challenging enough. Add to that myriad taxes and levies that are imposed from state to state. GST which was supposed to have been introduced from April 2010 appears to be delayed.

The variance between farm gate to end consumer price can be as high as 4 times for tomatoes largely because of damages which could be as much as 40%.

In isolation all these statements and nice numbers make for lively discussions and debate. When one sees a picture of a truck with paddy being ferried on a barge the reality of managing supply chain in India hits a person, hard.

Are there any solutions to manage this, apart from the clich├ęd statement of setting up distribution centers and transportation management?

I think there is a possibility to address this in a very different way and have written a detailed article about it, which was published recently in the Business Line, Brand Line. Pls click on the following URL to read the article.

Photo courtesy – The Hindu.


Anonymous said...

Hi ,

I believe the solution lies in co-operation as building the infrastructure involves high investment and co-ordination between several parties. So , it seems that its high time that retailers in india start to think up about tie-ups at back end; incentives from state government will definitely give a thumbs up to all.

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