If one takes the view of supply chain management software providers in India, they claim that India today is one of the best places to grow and logistics and supply-chain business in India. And why not? With such a huge population majority of whom are in the range of 25-35 age group, it’s a given that India is THE land of the future for the logistics and supply chain industry!
As for specific reasons behind this situation, among others, the following are the reasons:
1. Dedicated freight corridor
Supply chain software solutions in India have a new feature to rekon and which going forward shall affect it greatly. And that is the dedicated freight corridor that is being laid by the GOI through Indian Railways connecting various places in India. A likely list of the same is mentioned below:
Western Dedicated Frt corridor 1483 kms Dadri near Delhi to JNPT, Nava Sheva
Eastern Dedicated Frt corridor 1839 kms Ludhiana in Punjab to Dankuni near Kolkata
East-West Dedicated Frt Corridor 2000 kms Kolkata to Mumbai
North-South Dedicated Frt Corridor 2173 kms Delhi to Chennai
East Coast Dedicated Frt Corridor 1100 kms Kharagpur to Vijayawada
South-West Dedicated Frt Corridor 890 kms Chennai to Goa
These are high-speed, high-capacity railway lines meant to carry ONLY goods. Being isolated from the vagaries of passenger transport which involves making stations and all other infrastructure, these lines offer high speeds and a boost to the logistics trade by helping carry larger loads at higher speeds. In times to come, supply-chain management software providers in India will have to fine-tune all their working to take these facts into account.
2. Bigger roads
Like dedicated railway lines, the future of logistics and supply chain in India shall see larger, wider and more sophisticated roads like the autobahns of Germany which shall allow faster turn-around time for cargo and even logistics operations. Supply chain management software in India shall in future have to contend with higher speed of operations all over the country. Things will in times to come, be done in minutes if not hours as compared to days that take place today.
3. Huge warehousing needs of organizations like Ikea
India never felt the need for warehousing at one time. Most needs were met by the godowns of distributors across cities. These were nothing more than dedicated sheds built on empty plots of land with very basic services like storage and stock-keeping. But with the growth of high-value items, the concept of warehousing has undergone a sea-change. Now in some cases, entire assembling and kitting activities need to be done in dedicated warehouses where the most advanced of facilities need to be provided. Supply chain software solutions in India thus have another challenge to cater to and that is to do with keeping track of activities in warehouses, stock positions etc.
4. GST
The country-wide implementation of GST was the single-largest change that the supply chain management software makers in India has to encounter. Prior to that they had to contend with a variety of overlapping taxation systems. But now, they need to handle just one tax though the paperwork is very, very vast and time consuming. In times to come, the GST system would be the single-most important reason why things in India would move easily as compared to olden times.
5. Strategic storage and transport
Warehousing and distribution in the logistics domain are today ruled by reason and not circumstances as was the case earlier. Today, if storage and transport are required, they are done as a matter of convenience. Previously these were done to take advantage of differences in duties and taxes which could sometimes run into crores of Rupees. Besides, there was a time, even warehousing was done not as per needs but as per city octroi rules and taxation exigencies. All that is today’s history, thankfully!
6. e-Commerce sale & purchase
Probably the single biggest change in logistics and supply chain in India is the very way we buy and sell! With everything going electronic, there is practically (in some cases) no reason to hold any asset- including stocks! A term “drop shipping” in the e-commerce lexicon has changed everything where one ONLY needs to order a seller with stocks to deliver the package to a particular address where one delivering and the one accepting have no formal relation! This is the biggest change and indicates the direction in which the logistics and supply chain in India would move. There would be no direct relation between giver and receiver. It would in most cases be incidental!
Supply chain management software providers in India are having their hands full- this when it’s just the beginning! In times to come, things would get a lot more complicated. And a lot more interesting. The best place to be is where it matters most. And the best time, IS NOW!