Modernizing the supply chain of India

One of the most important support systems of the Indian industries is the supply chain. A smooth, well-organized and efficient supply chain system is absolutely necessary for any manufacturing set up to function. A good supply chain system can contribute greatly to stability in the business and help to grow it manifold. As such, supply chain industry is an important part of the economy of the country. To ensure a strengthened manufacturing sector, it is important that supply chain sector is given ample importance. Glitches or inefficiency in supply chain system can hurt a business very badly. At times, it leads to losses that are irreparable which may even lead to closure of the business. On the other hand, a sound supply chain system can go a long way in ensuring smooth operations, optimum utilization of resources, competitiveness and maximum business for the company.

Supply chain system includes warehousing and transport systems. Warehousing and transport are fundamental to many manufacturing set up. The role of supply chain system starts with procurement of raw materials from the source for the manufacturing facility. The raw material is then transported to the warehouse for storage. From the warehouses, it is transported to the manufacturing facility when it is required for consumption. After this, the finished product is transported back to the warehouse where it is stored till ready for dispatch. Finally, the product is transported to the distributors and end users. The whole system is like the backbone of the manufacturing sector and hence it becomes essential to strengthen this system for maximum benefit to the business.

Supply chain system in the country has improved manifold in the past decade. With the businesses and manufacturing facilities becoming more sophisticated, demand for improved warehousing and transport facilities arose. It is estimated that about 30 per cent of a product cost is due to the cost incurred in warehousing and transporting. If this system is not efficient, it will result in hight product prices and reduced competitiveness in the market. The age of globalization has forced to companies to make every aspect of their business efficient and hence demand for sophisticated and modern industrial space arose. Modern industrial space replaced old warehouses with improved storage and sorting facilities.

Several logistic parks have been planned across the country to strengthen the supply chain system in the country. Karnataka is an important manufacturing hub. The state government has recently approved logistics park Bangalore to promote manufacturing industry in the area. The logistics park Bangalore will come up in PPP mode having modern warehouses, transport systems, container and cargo depots.