Supply chain optimization India
India has become one of the most significant export destinations across the globe with a huge domestic market.
Align your supply chain to maximize efficiency and enhance customer satisfaction.
It has a competitive cost structure for local manufacturing, a large labor pool, a growing scale and capabilities across several industries and a government that incentivizes domestic production. But it has ranked relatively low when it comes to domestic logistics infrastructure when compared to some regional markets.
The Indian government is investing heavily in infrastructural projects and by doing so improving its roads, railways, airways, ports, power and urban infrastructure. It also introduces the so-called Goods & Service Tax (GST) which has fueled foreign investments and had a very positive impact on the supply chain. Some changes that had an impact on the supply chain were:
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A reduction of transportation time and logistics costs, which led to an increase in operational efficiency and resulted in reduced transit times. Transportation costs have reduced by more than 15%;
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After the implementation of GST, there was no need anymore for businesses to have many smaller warehouses across the nation, but the direction is for a more consolidated set-up which has decreased overall logistics costs;
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The tax burden on business was reduced and digitalization had a positive impact on interstate transport.
Given the sheer size of the country and its dispersed consumer base, it’s good to consider the optimal supply chain infrastructure.
From having a central warehouse to having several warehouses at strategic locations (sometimes in so-called regional logistics parks) to a nationwide (outsourced) logistics infrastructure (as in a hub-and-spoke model). When the India (or global) supply chain has a big impact on service delivery and costs, it makes sense to talk to experts on the ground.
