The last year and a half has been a period of tremendous change and disruption. Old dimensions and relations are being tested, and new ones are being formed.
Against this backdrop, logistics and supply chains are playing a critical role in ensuring business continuity and economic revival, and in delivering essentials to people and companies around the globe.
[box type=”success” align=”” class=”” width=””]At the same time, the disruption caused by the pandemic has prompted global supply chain players to rethink how they operate. It has shaken up established networks and opened up new horizons and modes of operating as companies all over the world re-evaluate where they source from and sell to, and re-assess how they can do so in the smartest and efficient way possible.[/box]
For India, these evolving global dynamics represent an opportunity to play a greater role in the world’s supply chains.
At the moment, India ranks 42nd globally on the latest available World Bank Logistics Performance Index (2018), with a score of 3.22 in a list led by Germany. The ranking spotlights six key dimensions. India’s manufacturing sector performs relatively strongly in terms of timeliness and tracking. The efficiency of customs clearance processes, and the quality of trade and transport-related infrastructure, however, are areas that require focus and innovation.[1]
Fortunately, there has been a stronger push by the central government in recent years to bolster the manufacturing and supply chain industry. As a result, India has advanced up the World Bank Ease of Doing Business Index, to 63rd position in 2020, up 17 notches from the previous year.
The government has initiated several development measures and last year in May has announced the special economic and comprehensive package of Rs. 20 lakh crore – equivalent to 10% of India’s GDP, under the Atmanirbhar Bharat Mission, which aims to create a self-reliant India and bolster “Make-in-India” capabilities to establish the country as a global centre for manufacturing and trade.
The mission commits strong investment towards building out the nation’s energy and transport infrastructure, as well as various urban and rural development projects. Other measures are aimed at boosting domestic manufacturing and attracting foreign direct investment.
Over and above such initiatives, digitisation and automation are going to be critical for the manufacturing sector to reinvent itself, and to give the country’s supply chain ecosystem an extra edge. In other words, the ‘Digital India’ initiative which aims at digitally integrating the nationwide supply chain ecosystem, is crucial. It will make India even more attractive for companies across industries and commercial sectors, building on the competencies that make India a land of opportunities today.
Encouragingly, the pandemic has given an extra impetus to the deployment and acceptance of digital infrastructure, including a big push to roll out 5G infrastructure, for example.
India rapidly needs to transform its traditional supply chain models, and a robust nationwide digitised infrastructure is the way forward. It would mean automated logistics and smart distribution ecosystems that are simpler, more resilient, and flexible – that will help facilitate business continuity by offering operational and business flexibility, end-to-end supply chain efficiency in industrial processes, and sustainability in the logistics and warehousing environment.
[box type=”success” align=”” class=”” width=””]What is more, digitized supply chain systems can help smooth customs clearance, improve asset management, capacity utilisation, and process efficiencies, and equip supply chain operators with real-time actionable asset and process intelligence that can reduce downtime and repair and maintenance time, and improve service delivery.[/box]
Armed with modern technologies and predictive analytics capabilities, 21st-century digitised supply chain solutions would help India achieve its Sustainable Development Goals, deliver greener and more energy-efficient logistics solutions, bolster the Make in India efforts, and help the country emerge stronger and better-positioned for the post-pandemic world.
[1] https://lpi.worldbank.org/international/aggregated-ranking?sort=asc&order=LPI%20Rank#datatable
