CARGOCONNECT-OCTOBER2024 - Flipbook - Page 42
F E A T U R E
POWERING THE
EVOLUTION OF AN
INTELLIGENT SUPPLY
CHAIN ECOSYSTEM
Digital transformation and the adoption of cutting-edge technologies have emerged as critical drivers for
modernising supply chains, especially in the wake of global disruptions that are occurring every other day. The
post-pandemic landscape has already underscored the need for supply chains that are not only efficient and
resilient but also capable of reducing operational costs and mitigating risks. Advanced technologies such as AI and
ML are playing a pivotal role in this shift, enabling companies to enhance visibility, optimise inventory management,
and predict demand with greater accuracy. In India, where the supply chain sector is integral to economic growth,
embracing these innovations is no longer optional but essential for staying competitive. Additionally, the push
for sustainability is now at the forefront, with companies increasingly recognising the importance of integrating
eco-friendly practices alongside technological advancements. This dual approach, focussing on both innovation and
sustainability, is marking the beginning of a new era of smart supply chain management, writes SANDHYA JHA…
I
n today’s hyper-connected global economy,
the supply chain is the backbone of every
industry, responsible for the seamless 昀氀ow
of goods from manufacturers to consumers. The signi昀椀cance of a well-oiled supply
chain cannot be overstated, as it impacts
everything from production efficiency
to customer satisfaction. However, the
traditional supply chain model, which relies
heavily on manual processes and legacy
systems, is rapidly becoming obsolete in the face of
technological advancements. As we transition into
an era characterised by advancements in Arti昀椀cial
Intelligence (AI), Machine Learning (ML), Blockchain,
and the Internet of Things (IoT), integrating these
technologies into the supply chain has become an
imperative for both survival and growth.
The urgency to adopt technology in the supply
chain is particularly evident in India, a country poised
to become a global manufacturing hub under initiatives like ‘Make in India’ and the National Logistics
Policy (NLP). According to a report by the India Brand
Equity Foundation (IBEF), India’s logistics market is
expected to reach US$380 billion by 2025, driven by
the demand for faster delivery and better transparency.
Yet, the sector is plagued by ine昀케ciencies, with the
42 | CARGOCONNECT OCTOBER 2024
World Bank ranking India 38th out of 139 countries
in its 2023 Logistics Performance Index (LPI). The
need for technological intervention is glaring, as it
holds the potential to revolutionise how goods are
produced, transported, and delivered.
India’s growing e-commerce sector further ampli昀椀es
the need for technological integration in the supply
chain. The e-commerce market in India is projected
to reach US$200 billion by 2026, according to a report
by Morgan Stanley, fuelled by increasing internet
penetration and smartphone usage. This surge in online
shopping has put immense pressure on supply chains
to be more agile, responsive, and customer-centric. The
conventional supply chain infrastructure, characterised
by fragmented logistics networks, poor visibility, and
manual tracking, is ill-equipped to meet these demands.
The time is ripe for India to embrace technology as the
key driver of supply chain transformation, ensuring
competitiveness in the global market.
The Need for Speed
The integration of technology into the supply chain is
not merely a trend but a strategic imperative for India,
especially in the context of its ambitious economic
goals. The Indian supply chain management sector,
