SUPPLY CHAIN – A POST PANDEMIC MUSING - GOVINDARAJ

 

SUPPLY CHAIN – A POST PANDEMIC MUSING

The Business sector has gone through a peculiar phenomenon through the last 8 months globally. The pandemic, without a precedent has hit every walk of life  and created a complete Industrial Disturbance ; right from BIG Industrial houses to small time MSME s. Literally, the breakout of Covid-19 virus has made the world coming to a standstill. But this was not the reality; the supply chain around the globe has not come to a grinding halt, hence the requisites like healthcare, food etc. were reaching the end users.

The regular practice of business is bringing down expenses, increasing sales which eventually brings higher margins for the smooth running. Here certain practices have already been redefined and Supply Chain is the major among them. We all know managing a supply chain is the effective Materials Administration or in other words, managing Supplies, Process and Delivery.

The post covid scenario was through strategic sourcing, stringent inventory control measures were practiced for effective materials administration. But the present situation has proved that these concepts have to be redefined and already Business Houses are into this, of course with government support. Balancing Supplier-On -Time Delivery Control and Customer-On-Time Delivery Control is a major area.

Here the remarkable change in practices have come namely on Digitalisation. Even though this was in place during pre-pandemic period, was lacking effective utilisation. Now individuals and organisations were depending on digital supply chain practices and found how much administrative costs have been cut as well as redefining demand forecasting. Effective waste management is another area where improvements have come in terms of materials, inventory, transportation and time-management.

Textile industry is an example in converting the stocks to a requisite namely masks and other items to cater to the health care sector. Government too is working on a National Logistics Policy to promote seamless movement of goods across the country and unlock the true potential that India has to offer to domestic and international investors. The logistics sector in India is unorganized and fragmented with many private and public stakeholders. Despite the recognition of logistics being a critical driver of economic development, logistics cost in India is very high as compared to the global peers. While the Government has made headway in organizing this space, by giving the sector infrastructure status, the current crisis has exacerbated the need to develop a robust policy framework to ensure the ease of doing business across states. COVID-19 has led various global players to look for alternative investment destinations and with India being a favoured destination, the warehousing industry is also likely to benefit significantly.

In a nutshell, the following supply chain practices has already been chalked out by organisations to recover from the erosion of margins ----

  •   Effective space utilization of raw materials and bought out parts.
  •   Cost reduction – Freight, Inventory forecast accuracy and packaging.
  •   Cautious spending – only Essentials.
  •   Cost saving on travel due to work-from-home practice/Virtual audits etc.
  •   Align with global materials planning, logistics goals and objectives – Involving all stake holders in the supply chain.
  •   Electronic management, virtual meetings, supplier ownership.
  •   Trade compliance adherence – Ensure Legal and other compliance.
  •   Improved focus on health care

  •   Time management and Risk assessment


    GOVINDARAJ
    Associate Director
    Exim Academy 



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