Phase 1: Industry Profiling

Assignment 1: Industry Overview > Situational Analysis

By Group 6 (Operations)

1. Akarsh Bhatt (PGFB2107)

2. Yashika Mehrotra (PGFB2160)
3. Yash Tomar (PGFB2159)

Industry Chosen for analysis – Supply Chain Management & Logistics

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 Table of Contents

 Section 1: Industry Introduction @ Yash Tomar …………… Page 3

 Section 2: Consumer Profiling @ Yash Tomar …………… Page 3 to 4
 Section 3: Competitive Landscape @ Akarsh Bhatt …………… Page 4 to 11
 Section 4: Industry Indicators @ Yash Tomar …………… Page 11 to 13
 Section 5: Technological Intervention @ Yashika Mehrotra …………… Page 13 to 14
 Section 6: Government and Legal Intervention @ Akarsh Bhatt …………… Page 15 to 16
 Section 7: International Insights @ Yashika Mehrotra …………… Page 16 to 17
 Section 8: Environmental Analysis @ Yash Tomar …………… Page 18 to 21
 Section 9: Industry Forecasts @ Yashika Mehrotra …………… Page 21 to 22
 Section 10: Industry Analysis (SWOT Analysis) @ Akarsh Bhatt …………… Page 22 to 23
 Conclusion: Companies chosen for further Analysis …………… Page 23
 References …………… Page 24 to 25

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Section 1: Industry Introduction:

Supply chain management is the management of the flow of goods and services that includes all the processes that
converts raw materials into finished products. SCM involves the optimization of a business's supply-side of actions
and activity to maximize the consumer value and gain a significant competitive edge in the respective marketplace.
The post Covid global Supply Chain Management market size is expected to grow from USD 23.2 billion in 2020
to USD 41.7 billion by 2026. The major factors propelling the SCM market include demand for greater visibility
and transparency in supply chain data and processes, high growth in eCommerce and rise in adoption of cloud
supply chain management by Small & Medium size enterprises.

Supply chain management is evolving with continuous growth in technology. With the integration of Artificial
Intelligence, Cloud Computing, Internet of Things (IoT) and Advance supply chain management software, the
SCM market is bound to grow and provide better opportunities and services as well as better customer value. The
global top 5 SCM companies for 2021 according to Gartner are Cisco Systems, Colgate Palmolive, Johnson &
Johnson, Schneider Electric and Nestle respectively. Although all of these companies faced a lot of disruption due
to covid but they still managed to not only survive but thrive.

Section 2: Consumer Profiling:

Customers or consumers are organizations or individuals that purchase and use a product or service.  A consumer
can be an organization or company or firm (a manufacturer or distributor) that purchases a product or service to
produce/manufacture another product (finished goods) that they sell to their customers (ultimate customers).
Customers depends on retailers, distributers and producers to meet their needs and demands for products and
services.

E-commerce websites like Amazon, retail stores like Walmart, Telecommunication technology company like
Cisco Systems and companies that deal in FMCG like PepsiCo and Nestle are some of the major consumers of the
supply chain industry.

Keeping in mind the ever-changing landscape of market it becomes crucial to identify a customer’s needs and
wants. For instance, a consumer might want:

 Rapid adoption of New Technologies.

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  Improved Transparency throughout Order Process.
 More Accurate Forecasting.
 Precise Order Tracking.
 Sustainable and Ethical Practises by Producers/Manufacturers.
 Ease of order and delivery.

Supply chain management market works on 6 models of supply chain

 The fast chain models

 The continuous flow models
 The efficient chain models
 The custom configured model
 The agile model
 The flexible model

The changing demographics, social and cultural trends also influence SCM market. For instance, youth which is
considered more tech savvy would want latest technologies like RFID tags, AI powered operations and other IoT
to be incorporated into SCM to provide precise order tracking and more transparency in ordering process.

Section 3: Competitive Landscape

 Who are the major competitors in this industry?

1. Container Corporation of India Ltd. (CONCOR)

 Founded in march 1988 under the companies act, it is the largest Supply chain and logistics company in
terms of sales.
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 Revenue: Rs 6,956 Cr
2. Allcargo logistics Ltd.

 Allcargo is the second largest Supply chain and logistics company in terms of sales.
 Revenue: Rs 6,895 Cr

3. Aegis Logistics Ltd.

 Aegis Logistics was founded in 1956 is the 3rd largest supply chain and logistic company in India
 Revenue: Rs 6,846 Cr

4. Mahindra Logistics Ltd.

 Mahindra logistics Ltd is India’s largest 3pl provider and is the 4th largest supply chain company in terms
of revenue it was formed in 2000 with the focus on rural transportation.
 Revenue: Rs 3,822 Cr

5. Transport Corporation of India ltd.

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 Founded in 1958 transport corporation of India was started as a “One Man, One Truck, One Office”
company is now India’s 5th largest supply chain and logistics company in terms of revenue generation
 Revenue: Rs 2,797 Cr

6. VRL Logistics Ltd.

 Founded in 1976 by Dr. Vijayshankeshwar in north Karnataka with a single truck is now India’s 6th largest
logistics company in terms of revenue generation
 Revenue: Rs 2,128 Cr

7. TCI Express Ltd.

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 TCI Express Ltd. is largest Integrated supply chain as well logistics solutions provider, which was founded
in 1958 as a “One Man, One Truck, One Office” company.
 Revenue: Rs 1,055 Cr

8. Gateway Distriparks Ltd.

 Gateway Distriparks Limited is the only Supply chain company in the whole of India that has 3 verticals
that are capable of working together those are
a. Container Freight Stations
b. Inland Container Depots with rail movement of containers to major maritime ports
c. Cold Chain Storage and Logistics.
 Revenue: Rs 917 Cr

9. Future Supply Chain Solution Ltd.

 Future Supply Chain Solution is India’s largest 3rd party Supply chain and logistics provider in India
 Revenue: Rs 466.42 Cr

10. Adani Logistics Company

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 Adani logistics Company provides end – end logistics and supply chain solutions throughout India and is
10th largest logistics company in India in terms of revenue
 Revenue: Rs 582 Cr.

 Brief about each competitor?

i. Container Corporation of India Ltd. (CONCOR)

 Founded: March 1988
 Headquarter: New Delhi
 Revenue:6473.79 cr
 Owner: Indian Railway, Ministry of Railway, Government of India

ii. Allcargo logistics Ltd.

 Founded: 18 August 1993
 Headquarter: Mumbai, Maharashtra
 Revenue: 7346 Cr
 Founder: Indian Railway, Ministry of Railway, Government of India

iii. Aegis Logistics Ltd.

 Founded: 30 June 1956
 Headquarter: Valsad, Gujrat
 Revenue: 704.90 Cr
 Founder: Kapoor Chandaria

iv. Mahindra Logistics Ltd.

 Founded: 2000

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  Headquarter: Hyderabad
 Revenue: 873 Cr
 CEO: Rampraveen Swaminathan

v. Transport Corporation of India ltd.

 Founded: 1958
 Headquarter: Gurgaon, Haryana
 Revenue: 2452 Cr
 Owner: Government if India

vi. VRL Logistics Ltd.

 Founded:1976
 Headquarter: Karnataka
 Revenue:2,128 Cr
 Founder: Dr. Vijayshankeshwar

vii. TCI Express Ltd.

 Founded: 1958
 Headquarter: Secunderabad, Telangana
 Revenue: 1,055 Cr
 Founder: Mr Prabhu Dayal Agarwal

viii. Gateway Distriparks Ltd.

 Founded: 1994
 Headquarter: Mumbai
 Revenue:1527 Cr
 Group Chairman and Managing Director: Mr. Prem Kishan Gupta

ix. Future Supply Chain Solution Ltd.

 Founded: March 2006
 Headquarter: Mumbai
 Revenue: 466.42 Cr
 Managing Director: Mayur Toshniwal

x. Adani Logistics Company.

 Founded: 20 July 1988

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  Headquarter: Ahmedabad, Gujrat
 Revenue: 582 Cr
 Managing Director: Vikram Jaisinghani

 Are there particularly successful and unsuccessful company in this industry.

Successful Unsuccessful

Driver Logistics Moovo

Yaali Bizappln Solutions TruckMandi

KD practice consulting Zaicus

Private Limited
MaxBPO Thekarrier

Valuetree Sastabhada

 How do the companies differentiate from one another?

A well-oiled supply chain network is the main factor that differentiate the top companies from the rest as a study
by Logistics bureau revealed how businesses with optimal supply chain have been able to bring down supply chain
costs by 15% and hence making them more efficient the following factors help the top companies stand out.

a. Systematic planning and management

b. Transparent and Effective Communication
c. Time-Oriented
d. Customer Centric Approach
e. Flexibility
f. Connectivity
g. Varied plans/open to customizing
h. Up to date with Technology

Other than the above factors Companies like Mahindra Logistics which is a 3 rd person logistics partner has
outsourced warehouses and other facilities. As to reduce its capital expense and has become a largest 3 rd person
logistics provider in India even companies like Gateway Distriparks which has successfully created 3 verticals
namely
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 1. Container Freight Station
2. Inland Container Depots with rail movement of containers to major maritime ports
3. Cold Chain Storage and Logistics.
Which are able to work together and has provided it an edge over its competition.

Section 4: Industry Indicators:

The Covid 19 pandemic enforced us to take into account the role of supply chain management which was far more
significant than many people imagined it to be. When the lockdowns were imposed all over the world, majority of
people within the industry faced supply chain disruption of significant proportions. Learning from these
adversities many organizations and even SMEs has started to implement supply chain management tools to
circumvent any future disruptions in supply of products and services.

A recent acquisition in Supply Chain Management and Logistics Industry occurred in 2018, CaseStack, a
California-based logistics technology and services company with USD 242 million in revenue, was sold to the
HUB Group for USD 255 million. The HUB Group is a publicly traded transportation, logistics and supply chain
management company with revenue of was approximately USD 3.6 billion in 2018.

Some of the key industry indicators for supply chain management industry are:

 Overall Market Size - Global Supply Chain Management market size is forecasted to grow from USD
23.2 billion in 2020 to USD 41.7 billion by 2026.
 Market Growth Rate – Supply Chain Management market is forecasted to grow at a Compound Annual
Growth Rate (CAGR) of 10.3% during the forecasted period of 2020 to 2026

 Recent Partnership - Covalent, a fashion brand using carbon-negative material in its line of accessories,
turns to IBM to create a blockchain that tracks and verifies the positive environmental impact of its
products. Newlight Technologies Inc. is the creator of AirCarbon, a biomaterial made out of greenhouse
gases and intended as a substitute for fiber, leather and synthetic plastic. AirCarbon is presently being used
in products manufactured and marketed by Covalent such as wallets, sunglasses and handbags.

Newlight contacted IBM, which was already in process of development of blockchains for a variety of
industries. IBM assigned each of Covalent’s fashion accessories products a blockchain-based code that
could be used to check and display every step in the production process, along with third-party verification
of the purchased good’s carbon impact. A unique 12-digit code is printed in each Covalent product,
showing the precise time at which AirCarbon was used in production of the item. That code is then entered

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 into Covalent’s website, providing customers with the story of the product’s entire supply-chain journey,
from initial molding to store shelf.

 FDI Policy - The introduction of the Goods and Services Tax, liberalizing foreign direct investment rules,
and increased government spending has helped growth in the sector. India aspires to become a global
manufacturing hub and the government’s initiative like ‘Make in India’ also compels supply chain reforms
nationwide, prompting several centre based and state-based schemes and investments in supply chain and
logistics market. The supply chain industry has an impact on almost all aspects of trade and retail business.
As India opens its economy, a modernized and efficient supply chain can improve the ease of doing
business, brings down the cost of manufacturing and accelerates urban as well as rural consumption growth
due to better accessibility to market. India allows 100 percent Foreign Direct Investment in the
maintenance and development of warehousing and storage facility. Under the FTWZ (Free Trade
Warehousing Zone) scheme, there are several zones in India reserved for warehousing and storage facilities
development.

Until recently, bad infrastructural capabilities had a negative effect on the supply chain and logistics
network in India. Suppliers, manufacturers, and retailers had to factor in delays in the movement/shipment
of goods between state borders due to complicated taxes and bad transportation network which in turn
increased the overall costs. With the new reforms from government, a resolution of these problems seems
imminent.

In the last three years, India’s supply chain sector has witnessed an influx of capital, both foreign and
domestic. Firms like Future Supply Solutions have raised almost US$2 billion (Rs 130 billion) in
investments from domestic and foreign channels. The French firm, FM Logistics, recently acquired Pune-
based Spearhead Logistics, investing over US$8 million (Rs 500 million) with further plans to invest
US$46 million (Rs 3 billion) to set up warehouses all over India.

The development of major ports and a national road network can unleash a huge possibility for supply
chain market in India. Some of the major ports and road network in India has carry the majority of trade
from one destination to another can be seen in the image below.

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Section 5: Technological Intervention:

 Are there technological changes that are affecting the Supply chain industry?

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Technology, to a great extent, has affected, moulded, and influenced the Supply chain Industry. For decenniums,
management was cutting costs, meeting customer satisfaction,
and attaining efficiency and sustainability were the highest and
significant achievements in Supply chain management. But in
this contemporary era, this goal is extended to adopt modern
technology to reduce cost, increase profitability and yield
highly proficient and advanced services for better customer
dynamics.

Several enterprises have invested a considerable amount in

technology efficient, sustainable, and socially responsible
supply chains. For instance, companies such as the Kraft Heinz Company and McCormick &Co fall in this
category. They have to plunge an enormous amount of money into making themselves technologically advanced.
Both corporate are honoured by Freight waves as “Shipper of Choice” This award is known to recognize the
industry’s most innovative or disruptive company.

 Identify specific changes. What impact do they have?

The recent trend of adapting and incorporating the technological changes and advancement includes:

 Big data
 Artificial Intelligence
 Internet of Things
 Cloud computing
 5G technologies
 Autonomous mobile Robots
 Augmented Reality
 Artificial intelligence-enabled Sensors
 IoT enabled Block chain

Further to elaborate: To attain time savage, lower costs, most extensive margins, and highest profitability, the best
return of investment, Cognitive Automation replacing the earlier method of manually collecting and entering the
data and then making decisions based on it.

Moreover, Supply chain Companies are opting for incorporating Artificial Language, Machine Learning, and Big
Data for effectively analysing massive amounts of data, making better decisions, reaching better spot trends, and
even predicting future events in advance, as well as for figuring out correcting measures for the benefit of the
organization. In fact, for attaining better and efficient supply chain planning at a global level, these technologies
are preferred by many companies. Companies are using an Internet of Things-based blockchain as this blockchain
provides a platform that enables companies to create and distribute the ledger. 
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Moreover, Companies are switching to integrating augmented reality, natural language processing, and Internet of
Technology-based sensor technology to make correct data-based decisions and provide various convenient and
quality services more efficiently besides time-saving purposes. The reason behind is that this technology manages
processes, analyses recognize data pattern, and churn the bulks of data so that the company could get a clear idea
of which decision is better for their organizations. Furthermore, what sort of services do Clients want.

SECTION 6: Government and Legal Intervention:

 What are the Government Policies and Legal Policies of past 5 years related to the industry? Is
government regulation and Law Reforms affecting this industry?

1. Impact of GST: manufacturers have shown more interest towards customized supply chain networks as per
as customer’s needs after the implementation of GST. The removal of stock transfer benefits has helped in
increasing the shares of direct dispatches for medium and large-sized dealers. After the removal of multiple
state-level taxes, the stock points were optimised which then reduced the channel inventories. Now there
are fewer transits stays compared to before and this helps in advancing lead times and also reduces
inventory levels at stocking points, warehouse management has also become more efficient. Which has
resulted into superior inventory management. direct out of the state procurements and logistics costs. GST
has helped the manufacturers to expand their vendor based outside state boundaries and alter the sourcing
models profitability Which resulted in a decrease in incoming logistics cost.

2. Impact of FDI policy: The government’s decision of liberalizing FDI and introduction of GST has boosted
up investment in supply chain Industry, which has provided favourable ecosystem for new business within
the industry, which in-turn has paved path for both governments as well private entities to transform the
industry as usual business. The government’s decision of allowing 100% FDI for construction and
maintenance of ports has also helped immensely in this sector together these ports will manage almost
100% more trade by 2025.

3. Make in India: Make in India and supply chain has developed a symbiotic relationship as Make in India
will upgrade Supply chain through Strengthening Freight Network which would boost the efficiency and
develop a well-oiled supply chain network for which there is a dire need in India.

 At the Local, State or National Level? What specific policies effect this industry and how?

 Previously different states had different Tax slabs according to their own state laws but after the
introduction of GST by central government most of such taxes were eradicated and were substituted by
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 common tax called GST Which is segregated and fixed equally between central and state governments
which in turn has helped in creation of favourable ecosystem for ease of doing business in supply chain
operations.
 Focus on Infrastructure development: In recent years both state and central government has pivoted their
interest towards the infrastructure development projects which has helped the supply chain networks to be
more optimistic such projects include

1. Delhi-Mumbai Industrial Corridor: The initiative has granted the companies $2.3 billion USD
for the development of multimodal logistics Hubs in NCR, Maharashtra and Gujrat in phase 1,
Followed by granting of additional $1.5billion USD to the state of Haryana and Uttar Pradesh,
for the purpose of end-to-end supply chain and logistics services
2. Regional Connectivity Improvisation: The project worth of $95billion USD is ongoing for
improvising regional connectivity across the country through railways, roads and inland
waterways
3. Dubai owned DP World has entered joint venture with National Investment and infra structure
fund for the construction of various sea and river ports in view of better supply and logistics
services.
4. Freight Corridor: The project covering 15 states across India for better and more efficient
railway connectivity and doubling the cargo carrying capacity of Indian Railways.
 How is the industry responding?

India has one of the largest supply chain and logistics sector in the world, worth of USD 215 billion
which is growing at a CAGR of 10.5% out of which merely 10-15% of the entire market is owned
by organized players. Also due to the government policies which is creating a favourable ecosystem
and the booming e-commerce sector, it has provided a platform for many start-ups dealing in
logistics and supply chain.

Hence the industry is responding positively to the Government policies and Legal Intervention.

Section 7: International Insights:

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  What types of international competition does this Supply Chain Management face?

Since the global market is developing and heading towards

advancement, India is a developing country and is still
adapting to highly advanced and new technology. Thus, this
global scenario has forced the supply chain industry to
improve its technological advancement, especially in
production, management, and planning. Since India is more
labor-intensive, robotics, automation, and artificial
intelligence are not very developed, unlike other international
competitors. Because of which the accuracy of data and
efficiency of services suffered. Which On an international and
global level threatens the growth of the supply chain industry in India. International Competition has also pushed
the sector to reduce the production cycle and meet customers’ expectations and needs more effectively; otherwise,
this highly competitive global market is unlikely to stay. Further, India’s Tax complicated Policies and structure,
along with a weak distribution network, worsens international competition, which is not in many foreign
competitors. These factors give the industry if supply chain significant problems to face

 From which countries does competition come?

As per the Global Resilience Index, India bagged 60th Position in Supply chain management. Consequently, it
faces competition from 59 countries that are above India. Especially countries, namely, Sweden, the Netherlands,
Germany, Finland, Hong Kong, Singapore, and Denmark, come at top ten positions.

These countries have advanced network distribution channels, advanced technology, optimum operations, and
favourable economic, demographic, political, and environmental factors.

 Advantages or disadvantages that American companies have to face relative to foreign competitors?
 Advantages that American companies have to face relative to foreign competitors.

American is the nation with the largest economy in the world. Further, America is a developed and one of the
advanced countries that enjoys a competitive advantage compared to others. Owing to their foreign policies and
technological advancement, American Companies over there have a competitive edge. Also, the diplomatic
relationship with the industry is growing faster, yielding more opportunities and growth to American supply chain
companies. In this way, American companies like Felux, Outerspace, Airterra, etc., have the advantage compared
to foreign competitors.

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  Disadvantages that American companies have to face relative to foreign competitors.

The South American country is more vulnerable to wind and earthquake perception. In addition, many perceive
that South American Companies are lacking in infrastructure besides indulging in corruption. This view of
American Companies by the world and local suppliers has proved to be disadvantageous for those American
companies relative to the foreign competitors.

 How vital are overseas markets in the industry?

Impersonation of the market within national

boundaries has further expanded into what is
known as the “overseas market.” So is the case of
supply chain management. Supply chain
management on a global level is essential for this
industry. It helps the companies associated with the
sector enter a new market, grasp new opportunities,
and prosper and grow using these opportunities.
Further, it helps the industry adopt and become
equipped with the latest and advanced technology
incorporated worldwide. Integrating the sector with the global market allows the companies to generate the
optimum level of customer service, attain cost reduction, achieve high profitability, have an idea of new and
creative trends, and above all, fast-paced growth. The overseas market also helps the companies of the supply
chain industry reach a broad base of customers more effectively besides helping corporate have smooth
functioning of an organization. It also assists the enterprises in getting a clear idea about high-quality goods.
Further, it aids them with the correct number of products shipping at the right time to the correct location by
integrating global market and industry potential.

Section 8 - Implications of macro-economic conditions for Supply Chain Industry:

Present day supply chain and logistics network has been optimized to recognize minimum shipment times at the
lowest possible price. Although, many political developments, consumers buying suitable products only and global
pandemics like Covid 19 has shown the weakness of this model of manufacturing. With the changing supply chain
challenges, a trustworthy and reliable partner is needed more than ever. Many manufacturers are still suffering
from the impact of global pandemic of 2020 and choosing the right partner to progress further will be critical.

Some of the most predominant macro-economic factors affecting the Global supply chain currently:

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 COVID 19 AND ITS IMPACT ON THE LOCAL AND GLOBAL ECONOMY

 Some parts of the economy will recover to previous levels over the coming months and years but a few
segments and sectors may see their business models being changed permanently. Sustaining Supply and
demand in this uncertain environment will be a major challenge for businesses in the times to come.

 The demand for WIFI & Bluetooth chips and products have sky rocketed with majority of people working
from home. Unfortunately, we are facing major shortages of both goods.

 Shipping delays have become common due to a major increase in home deliveries and substantially less air
cargo channels available due to lockdowns.

 OUR FUTURE RELATIONSHIP WITH CHINA

 Perceptions have shifted on globalism and international trade. Over the next few years, we might

see a decline in the dependence on China for general goods and finished products.

 Another effect of pandemic is the surge in the global automotive industry due to COVID. Most middle-class
commuters have the fear of catching the corona virus while travelling through public transport, therefore many have
bought themselves a vehicle.

 Global semiconductor shortage has resulted in rapid rise in price of electronics, automobiles and many commodities.
There are major delays in deliverers in automotive and electronic sectors due to this shortage.

 A Focus on Sustainability

 Businesses are being challenged globally on all fronts to tackle and resolve the problems & practices that are harmful
our environment.

 Consumers, activists and governments all around the world are trying to influence some changes in forming
strategies to tackle carbon-emitting operations and minimising the use of plastic materials in packaging.

 INCREASING SIGNIFICANCE OF INEQUALITY

 Supply chains that are built on underpaid temporary labour, offshoring and exploitative contracts will become targets
for public and legislative examination in times to come.

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 Supply Chain Management & Logistics contribution to Sustainable Development
Goals (SDG):

The Sustainable Development Goals (SDGs) are a group of 17 global goals that are a "blueprint to achieve
a greater and more sustainable future”. The SDGs were set up by the United Nations General Assembly in
2015 and are planned to be achieved by the year 2030.

The 17 Sustainable Development goals are:

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 Global supply chain management and logistics companies have a huge role to play in contribution towards
the Sustainable Development Goals. Although all the SDGs are equally important but through the
perspective of Supply chain management and logistics the SDG 1 – No Poverty, SDG 8 – Decent Work
and Economic Growth and SDG 12 – Responsible Consumption and Production are most relevant.

SDG 1 - No poverty - End poverty in all its forms everywhere.

Any form of child labour and forced labour must be prohibited, and workers are expected to be paid a fair & living
wage. Poor working conditions are unethical and carry significant investment risks for brands and business
operations. Business models that rely on unfairly & underpaid workers to deliver goods and services does not take
into consideration the environmental and social cost. Therefore, our ongoing engagement is focusing on
encouraging companies to implement credible and robust ethical sourcing frameworks.

SDG 8 - Decent work and economic growth.

The way a company deals with its suppliers and factory workers can lay out valuable insights as to how the
company operates and whether it will thrive in longer term or not. Companies with better governance policies and
practices have a positive correlation with stronger financial results. Engagement with companies with a certain
focus on sustainable supply chain, packaging, waste recycling, and provisions of e-commerce services, specifically
in developing countries should be given importance.

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SDG 12 - Responsible consumption and Consumption

Achieving economic growth and sustainable development requires that we dramatically reduce our ecological
footprint by changing our habits and the ways we produce and consume goods and resources as a producer and as
a consumer as well. A more efficient management of our shared natural resources, and the way we dispose of toxic
waste and pollutants, are important targets to achieve this goal. Encouraging industries, businesses and consumers
to reduce and recycle as much waste as possible and shift towards a more sustainable way of consumption is also
important.

The role of Supply Chain Management & Logistics Businesses

Global Supply chain & logistics companies must realise that there is a role for business to play and that we have
an opportunity and a responsibility to make a real difference. Large corporations have enormous amount of
influence over their suppliers to implement systemic reforms that ensures workplace safety and welfare. Adoption
of zero tolerance policies on global supply chain abuses should also be given its due importance.
Business can’t be successful in a world of increasing inequality, poverty and climate change. Investor’s
engagement with companies on topic of supply chain management and logistics will ultimately help businesses
secure a more reliable supply chain model and sustainable markets for future prospects of growth.

Section 9: Industry Forecasts:

 What are the forecasts for this industry?
As per the Forecasting of the ‘Indian Cold Chain Industry Outlook 2022’, there will be a 17-18% growth
approximately in Indian cold supply chain sector until 2022. This expected growth will be the result of
demand for cold storage by the pharma sector. As a result of Covid, the government has started an
immunization program. This program results in the e-commerce market for FMCG, milk products, meat,
and seafood has grown at 3.6 % thus. Subsequently, the cold chain will increase by 6% approximately.
Further, the evolution of other sectors demands services like transportation, warehousing, inventory

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 management, outsourcing, legal compliances are expanding. This rise will lead to the growth of the supply
chain industry by 11.5%.
 2. In terms of growth in demand? Introduction of substitute goods or services? Likely changes in
technology? Pending shifts in government policy?
The industry of Supply chains is transforming globally. Organizations build agile networks, use advanced
technologies, ensure end-to-end visibility, and opt for risk management since technology is evolving in Indian
supply chain management. As per the estimation, the industry will witness a competitive advantage by
integrating information technology more specifically artificial intelligence, Machine Learning, and the Internet
Of Things. Since the government-imposed taxes like GST, especially after the covid financial crisis, have
forced other industries to depend on organizing supply chain for tax reduction. Thus, it will give the sector a
rise as people prefer to reduce taxes like optimum planning, inventory management, warehousing, outsourcing,
and transporting methodologies. Besides, the Prime minister’s initiative of Make in India and support to start-
ups will also help the supply chain companies and budding start-ups to move ahead, thus contributing to the
overall growth in the Supply chain sector. Government project of building roads, railways, and highways also
gives rise to the supply chain industry. The government relies on this industry to integrate various principles
like vendors, supplies, raw material, transport, contractor, and sub-contractors.

 Section 10 - SWOT ANALYSIS

STRENGTHS:

When the inventory and business model of a company are in synergy, then the Supply chain of that company is
smooth with minimal delays.

The strength of the Supply Chain Industry:

 Strength in Negotiation,
 Coordination with vendors and their effective management along with their timely payment
 Purchasing power of the company.

WEAKNESS:

When the company acts upon wrong supply chain, the operation of the company is hampered thus resulting into
the weaknesses of the company.

The Weakness of the Supply Chain Industry are:

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  Poor Purchasing Planning along with the late payments
 No capitalization and weak purchasing history
 Ineffective vendor management

OPPORTUNITIES:

When the strategy company acts upon is focused to reduce cost and enhance turnover time of the company.

The Opportunities for the Supply Chain Industry are:

 Better control and handling strategy

 Effective warehouse management
 Extension on credit to warehouses.

THREATS:

The threats to company are aimed at future and present prospectus as the threats are within the Market itself.

The threats of the Supply Chain Industry are:

1. Effective coordination with vendors and timely redressal of issues with vendors
2. Effective management of cashflows
3. Better dealing of Bankruptcies

Conclusion – 6 companies chosen for further analysis in Phase 2:

 Out of the 6 companies chosen for further analysis we have made 3 groups each consisting of 2 companies.

Group 1- FMCG
Group 2 - Operations Consultation and Technology
Group 3 – Logistics

 The 6 Companies chosen are:

1. Nestle - (FMCG)
2. PepsiCo - (FMCG)
3. Cisco Systems (Consultation)
4. International Business Machines (IBM) - (Consultation)
5. Container Corporation of India – (Logistics)
6. Mahindra Logistics - (Logistics)

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 References

Section 1 – Industry analysis of Supply Chain Management

1. https://www.financialforce.com/learn/erp/what-is-supply-chain-management/#:~:text=Supply%20Chain
%20Management%20(SCM)%20is,to%20retail%20outlets%20and%20consumers.
2. https://en.wikipedia.org/wiki/Supply_chain_management

Section 2 – Consumer Profiling

1. https://www.achilles.com/industry-insights/the-role-of-customers-in-the-supply-chain/
2. https://www.gartner.com/smarterwithgartner/the-gartner-supply-chain-top-25-for-2021

Section 4 – Key Economic Indicators

1. https://www.marketsandmarkets.com/Market-Reports/supply-chain-management-market-190997554.html
2. https://www.alliedmarketresearch.com/supply-chain-management-software-market

Section 5 - Technological Intervention

1. https://supplychainmanagement.utk.edu/blog/emerging-technology-in-supply-chain-management/
2. https://www.mckinsey.com/business-functions/operations/our-insights/three-game-changing-supply-chain-
technologies

Section 7 - International Insights:

1. https://opentextbc.ca/strategicmanagement/chapter/advantages-and-disadvantages-of-competing-in-
international-markets/
2. https://www.jabil.com/blog/the-misunderstood-global-supply-chain.html

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Section 8 - Implications of macro-economic conditions for Supply Chain Industry

1. https://www.investopedia.com/trading/factors-influence-exchange-rates/
2. https://www.ampcapital.com/nz/en/insights-
hub/articles/2019/march/Supply_chain_and_sustainable_development_goals
3. https://www.ilo.org/global/topics/dw4sd/themes/supply-chains/WCMS_558569/lang--en/index.htm
4. https://www.un.org/development/desa/disabilities/envision2030.html

Section 9 - Section 9: Industry Forecasts:

1. https://www.adlittle.com/en/insights/report/reimagining-india%E2%80%99s-supply-chain
2. https://www.zeebiz.com/companies/news-indian-logistics-and-supply-chain-trends-2021-ii-details-
explained-146136
3. https://economictimes.indiatimes.com/news/company/corporate-trends/tech-balanced-infra-government-
intervention-key-for-supply-chain-rehaul-say-etilc-members/articleshow/85682876.cms

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