Technology transforming India's supply chain ecosystem

23 Apr 2022 | Praveen Jain

The logistics sector has historically been India’s largest employer, accounting for 14 percent of the country’s GDP. According to some estimates, the growth in the logistics space is 1.5 times that of India’s GDP, and the market has become extremely fragmented over time due to the large size and low entry barriers. In addition, the industry’s lack of process innovation and limited use of technology has added additional layers of incompetence to the whole value chain over time. However, with the emergence of new age logistics businesses that are challenging the status quo at all levels, India’s whole supply chain eco-system is undergoing a transition. Legacy logistics companies are being forced to integrate technology in order to stay competitive in the market, and they are altering their businesses to fit the new reality.

Curating a cohesion in the chain

A supply chain is a sequence of operations carried out by several stakeholders to ensure that a product reaches its intended destination. Inefficiency at any point in the supply chain has a direct influence on the final goal and leads to a rise in total costs. Furthermore, inefficiency and expense are exacerbated by a lack of information flow between diverse stakeholders.

In this sense, technology is the essential layer that links the entire process together and serves as a bridge for smooth communication between diverse stakeholders.

Synced sight: Real-time visibility and communication

Technology is assisting in bridging the demand-supply gap by addressing information anomalies. To illustrate, once a cargo is ready for shipping, it requires a lorry, and then an empty lorry requires cargo. By linking the truck to the ready cargo, technology helps in maximizing the vehicle’s use. Through the convergence of GPS and SIM-based technologies, Cargo-visibility is being facilitated in real-time even when its on the move; delivering palpable dependability and robustness to the chain. This has changed how businesses prepare since they no longer need to build superfluous inventory buffers or manage disproportionate warehouse areas leading to higher supply chain costs.

Facilitating a futuristic outlook with the fabrication of technology

One of the most critical problems faced by logistics companies is documentation (and its authentication).

This is especially true for sourcing, transportation management, order monitoring, and customs coordination. Blockchain—the technology that underpins cryptocurrencies—is having a significant influence in each of these realms. Blockchain, for the uninformed, is a distributed ledger mechanism that is shared by parties involved or individual stakeholders. Its inputs (which take the form of blocks) are coordinated across the network and cannot be changed once they’ve been recorded.

Furthermore, data science and artificial intelligence are indeed the route forward for logistics companies to improve the customer experience and get their preferred commodities closer to them by predicting demand ahead of time. We’ve already seen incredibly successful organizations across the world, such as

Amazon leveraging AI to create an amazing experience for their shoppers. Indian businesses are adapting to changing circumstances, as seen by the creation of various D2C brands in recent years. Today, these businesses are harnessing data science and artificial intelligence (AI) to better estimate demands for each of their SKUs, allowing them to be closer to their customers and improve the user experience, enabling them to compete with larger players.


Tech-enabled logistics providers are amplifying the supply chain ecosystem’s reliability and assisting businesses in not just improving their planning but also reducing their total logistics costs. India’s visions to become a self-sustaining economy through “Make in India” efforts, as well as its overarching goal to be a predisposed partner in the international marketplace, will be heavily reliant on technology advancements in its supply chain.

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