The Indian economy has recently seen serious transformation with regard to the supply chain networks. This has been due to the introduction of GST (Goods and Services Tax) and the lockdown initiated by the spread of Covid-19, revolutionizing the way of living and doing business across all areas. There are certain trends that led to the cost-efficiency of the supply chain networks and these can be listed as under:

Growth in E-commerce sector: The warehousing sector saw a boom due to growth of e-commerce induced by the lockdown due to pandemic. At the same time, the logistics and warehousing sector rapidly reshaped to meet the increasing requirements. One other factor, that added to the growth is the ‘Make in India’ initiative.

Going Digital: The Internet of things (IoT) and incorporation of digital platforms within the warehouse has increased the efficiency of supply chain networks. From automation to using robotics in day-to-day operations in the warehouse management has facilitated continuous real-time update at hand at any point of time.

Unification of various resources: The business opportunities unbound by geographical limitations helped in creating in an effective ecosystem of smart warehouses, 3PL and 4 PL service providers and specialized supply chain networks to work in a more integrated manner, subsequently offering manufacturers and exporters a seamless and cost-effective service.

Spoke-hub distribution: A spoke-hub or hub and spoke model allows delivery partners to plan their daily delivery routes around one hub, finish deliveries in a particular region, and then move on to another hub for any on-demand or extra deliveries. With the introduction of policies that have dedicated a certain area for warehouses and logistics park, it has optimized the distribution system removing the need for multiple storages and bulk transport.

The supply chain networks are witnessing an all-time high but all the players in the chain are looking for reforms that aid lower cost of operations. With the current technology adoption rates remaining extremely high and various challenges like the quality of infrastructure and time to implement projects, there is a lot that still needs to be done.