MULTILAYER DISTRIBUTION SYSTEM IS A MAJOR BOTTLENECK FOR INDIA
Effective supply chain management is the key to succeed in the corporate scenario,Â especially in the present economic situation.Â Every sector including manufacturing, automobile, services etc. Customer wants the quality in both the product and the servicesÂ at a reasonable price, at the right time and the right place. Today in most sectors, the concept of brand monopoly is history so itâ€™s important for almost all brands to keep up their game. Itâ€™s not just the product quality alone but the delivery and after sale services are equally important
Few more facts:
Expectations of quality products are increasing day by day. The market is customer driven and is no longer supplier driven.
The increases in Due importance to technology and automation resulted in systems being followed in focusedÂ manner in organizations.
Quality products are available at reasonable price. Now-a-days organizations are allocating more budgets and customers investing time on Research & development activities and there are dynamic changes taking place in the market.
Customer wants new products with better features at lower price, and according to their expectations at their footstep. Â Hence the transport, logistics, supplies chain management Just in timeÂ concept are important parameters.
And therefore in manufacturing organizations through followingÂ â€œJust In Timeâ€ concept where the supplier knows what material required by the manufacturer at which location, and accordingly
supplier can access inventory, can deliver good quality products at required location, at right time eliminating the various processes such as Inward / Raw material handling / receipts / duplication of material handling etc. This resulted in cost reduction by manufacturers.
However, in the context, supplier must be in a position to have appropriate inventory, good infrastructure facilities / warehousing facilities for storage of different products in all weather conditions etc.
While doing so, few organizations might face difficulty to follow Just in time concept such as:
Governments policies e.g. broken law & orders, high octroiÂ tax, etc
Lack of good infrastructural facilities such as high-ways, unwanted tolls within the city, etc.
Different issues of geographically and culturally diverse Indian states
Festive mood and unreliable resources on account of it.
Mindset and naÃ¯ve attitude of officials.
All the above factors act as barriers in improving the efficiency of supply chain management process.
In spite of all Odds, there are some organizations which are taking initiatives and allocating required resources such as space, material handling process, increasing their supplier base & ancillaries to set up their manufacturing process, through following successful concepts like â€œJust in Timeâ€.
By taking care the obvious obstacles in the so called dependent supply chain, availing present facilities offered by Govt. & other sectors ensuring good supply chain management system is however, always possible. Classic example of it is Mumbai Dabbawala association which essentially involved in distribution of almost 2 lakh dabbas with 99.99999% accuracy. Sheer hard work and self confidence which has led to their commendable and performance which most MNC are unable to achieve and is acknowledged globally. This association could achieve effective supply chain management and did overcome the bottleneck in the logistics process.
In the modern world, systems can be further improved if every manufacturer takes initiative & determined for his commitment towards customer requirements by making tailor made arrangements to suit the requirements of respective organization.
By taking their customers and suppliers in confidence by prompt delivering the products with following innovative and creative methods by eliminating odd factors and reducing present systems related problems which are beyond control till the time scenario improvesâ€¦ will certainly ensure overcoming of the bottleneck for IndianÂ start-ups.
Prof. Dr. SanjayÂ B. ChordiyaFounder President & Chairman