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1.

In the present times, businesses across the globe faced Supply Chain disruptions
due covid-19 pandemic. What remedial measures companies are taking or should
take to build capabilities in their Supply Chain so that they are in a better position
to face such uncertainties in future and avoid Supply Chain disruptions and
resulting loss of business revenue?
Unprecedented levels of disruption brought on by the COVID-19 have affected the
domestic and international supply chains. To prevent such disruptions, shippers, logistics
providers, and other supply chain participants can follow the following preventative
measures and best practises.
(a) Diversify sourcing- By integrating different sourcing points across their supply
chains, both nationally and worldwide, organisations can enable more resilient
solutions and effective disruption responses, ensuring more business-as-usual
operations.
(b) Invest in Innovation- Cutting-edge tools like AI/ML, automation, predictive
analytics, and prescriptive analytics help supply chains identify possible
disruptions earlier and adjust in real-time as they take place.
(c) Invest in key technologies- The Warehouse
(d) Management System is one of the most effective technologies that enables
supply chains to withstand such disturbances (WMS). Making sure the systems
and procedures are in top form aids in not only obtaining the money’s worth from
WMS but also in improving the supply chain.
(e) Warehouse Design- The key to maximising efficiency is to have the best
warehouse layout for the operation. A warehouse must react to changes in sales
velocity. A flexible technique must be used if products become more popular or
are seasonal so that they can be moved into and out of prime picking positions
as needed.
(f) Empower the workforce- Providing tools like workforce management systems to
the workforce enables it to preserve employee morale, engagement, and
productivity in times of adversity. When time is of the importance, they offer
greater collaboration, visibility, and direction, optimising operational efficiency.

2. With reference to recently launched Logistics Policy of Government of India-


National Logistics Policy 2022, answer the following:

a. Present Status & Performance of India Logistics Sector


The logistics sector in India employs more than 22 million people and was ranked 44th in
the World Bank’s logistics performance index in 2018, up from 54th in 2014. The
transportation industry currently controls over 85% of the Indian logistics market in terms
of value, and this share is anticipated to stay high for the foreseeable future.

The industry has its own challenges like:


● With limited material handling techniques, scattered warehousing, and insufficient
infrastructure to preserve perishable goods, infrastructure and road connection are
typically a problem in India.
● Infrastructure and road connectivity is a challenge in India often identified with slew of
regulatory hurdles.

Recent trends point to interesting opportunities for the Indian logistics sector in the years
to come. Few of them are:

● Recently, Tier-II and III cities have seen an increase in consumption patterns, leading to
a shift in concentration towards logistics."
● Artificial intelligence has proved crucial in cutting costs, enhancing accuracy, and saving
time through cognitive automation.
● India’s exports are booming right now, reaching new highs in 2018–19 and expanding by
about 11%.

b. Need and Goals of National Logistics Policy 2022


Despite the extremely fragmented character of the Indian logistics business, the National
Logistics Policy seeks to reduce the cost of logistics from its current 14% of GDP to less
than 10% by 2022. The goal of the policy is to increase the competitiveness of Indian
commodities while fostering employment growth and economic expansion.

1) Integrated Digital Logistics Systems


It will establish a system of unified logistics interface as part of the logistics policy in
order to integrate various data sources and provide logistics stakeholders with
cross-sector use cases.

2) Standardisation of physical assets and benchmarking of service quality


standards
One may improve interoperability, lower handling hazards, streamline processes, and
make company operations simpler by standardising physical assets and comparing
service quality criteria in logistical models.

3) Logistics Human Resources Development and Capacity Building


Construction of Capabilities and the Development of Human Resources in Logistics
Action plans should be developed in line with the guiding principles of the
comprehensive logistics human resources strategy in order to address concerns
regarding the development of skills and the establishment of internal capacity in the
concerned sector.

4) State Engagement
Support the creation of state -and city-level logistics strategies. Create institutional
frameworks to guide state and local government activities. State actions are evaluated
and ranked.
5) EXIM (Export-Import) Logistics
Enhancing trade competitiveness and advancing India’s integration into regional and
global value chains in order to create a reliable, efficient logistics network.

6) Service Improvement framework


Enhancing the regulatory interface to encourage standardization, formalization, and
interoperability.

7) Sectoral Plan for Efficient Logistics


Framework for Service Improvement improving the regulatory interface to promote
formalisation, interoperability, and standards.

8) Facilitation of Development of Logistics Parks


Logistics parks, such as multi-modal logistics parks, air freight stations, inland container
depots, container freight stations, cargo terminals, and so on, are connected to one
another via a transportation network to serve as hubs for supply chain intermediary
operations such as storage, handling, value addition, inter-modal transfers, and so on.
Other types of logistics parks include multi-modal logistics parks.

c. Key Features of National Logistics Policy 2022


● Within the next five years, the programme is expected to reduce India's logistics
expenses from 15% of the country's GDP to 8%. In order to increase its exports and
improve the efficiency of its domestic products, India has to reduce its transportation
expenses. The reduction of transport costs leads to a rise in productivity across a variety
of industries, which in turn encourages the production of wealth and new business
ventures.
● By 2030, the government hopes to rank among the top 25 nations in the Logistics
Performance Index (LPI).
● TheNLPwillincludetheUnifiedLogisticsInterfacePlatform. It would combine internet
services linked to transportation onto a single platform, saving exporters time and
resources.
● Companies will be able to contact government entities instantly with inquiries and
grievances because of the ease of logistics services.
● Indian logistics is unstructured yet large. The policy aims to structure the mega-market
and encourage the implementation of blockchain and AI in the nation.
● Every Indian state needs a Logistics Coordination Committee. Every year, the LEADS
index will be used to evaluate each state’s performance. The federal government will
provide a model for enhancing logistical effectiveness, enabling the states to create their
own systems.

d. How National Logistics Policy 2022 will promote multi-modal logistics in India and
its benefits.

The MMLP, which was developed using a “Hub and Spoke”; paradigm, will integrate
several means of freight transportation via inland waterways, railroads, and highways.
The Multi Modal Logistic Park project aimed to build cutting-edge, large-scale
warehouses for various commodities and to serve as a one-stop shop for all services
associated to cargo movement, including storage, customs clearance, parking, truck
maintenance, etc.

The strategy would provide a framework for the establishment of multimodal logistics
parks (MMLPs) in important markets while enabling quicker first and last-mile
connections. \
When it opens in October 2021, the multimodal logistics corridor under the
PMGatiShakti national master plan would help India become more competitive on a
global scale by reducing the cost of logistics by about 8%.

3. Examine the application and impact of following four technologies (i.e. Artificial
Intelligence -AI, Internet of Things (IoT), Robotics & Automation, Blockchain) in
Supply Chain Management.
Include specific examples of application of these technologies to make supply
chains more efficient, responsive and resilient.

Artificial Intelligence
AI is helping to deliver tremendous optimization skills, which are important for more
accurate capacity planning, increased productivity, high quality, lower costs, and
increased output, all while encouraging safer working conditions. These benefits may all
be achieved through the use of AI. These benefits can be achieved through the use of
AI. All of these advantages are made attainable by the implementation of AI into supply
chains. Utilizing technology in the following ways can make the supply chain more
responsive to changes in demand and more resilient to disruptions:
a. Accurate Inventory Management AI-driven tools, thanks to their capacity to
process large amounts of data, have the potential to be extremely useful in the
field of inventory management. These smart systems are able to quickly analyse
and interpret massive datasets, which enables them to provide timely guidance
regarding the forecasting of supply and demand.
b. Warehouse Efficiency: In addition to enhancing production rates and simplifying
challenging operations, artificial intelligence (AI) solutions are able to address
many warehouse problems more rapidly and correctly than a human can. In
addition, automation efforts driven by AI can save crucial time, dramatically
reduce the need for labour in warehouses, and cut the cost of employing that
staff.
c. Enhanced Safety: Artificial intelligence-based automated tools can ensure
smarter planning and more efficient warehouse management, both of which can
improve employee protection. AI is also capable of analysing data pertaining to
workplace safety and providing manufacturers with information regarding any
potential dangers.
d. Reduced Operation Cost: Automated intelligent operations can work error-free for
a longer length, lowering the amount of errors and workplace problems that
occur. These activities can be used anywhere, from customer care to the
warehouse. The increased rates of speed and precision that may be achieved
with the employment of robots in warehouses contribute to higher levels of
overall productivity.

Internet of Things
Making use of GPS and a variety of other tracking technologies, devices that are
connected to the Internet of Things offer a dependable means for certifying shipments
and tracking products all the way through the supply chain. They are also able to monitor
the conditions under which products are stored, which contributes to an improvement in
quality management throughout the supply chain.
The technology can be used to make supply chain more efficient, responsive and
resilient by:

a. Authenticate the Location of Goods at Any Time: It is possible to attach Internet


of Things-enabled devices directly to raw materials, finished commodities, or
even specific containers used for storage. A location broadcast will be sent out by
the Internet of Things device, which will be picked up by GPS satellites and then
utilised to monitor the movement of products.
b. Track Speed of Movement and When Goods Will Arrive:It is significantly simpler
to estimate how things will move through the supply chain if one tracks the pace
of movement as well as the traffic flow of products. Because suppliers,
manufacturers, and distribution centres are able to prepare to receive items, the
amount of time spent on material handling is reduced, and the efficiency with
which materials are processed is increased.
c. Monitor Storage Conditions of Raw Materials and Products: It is vital to have the
appropriate storage environment in order to ensure the correct preservation of
specific commodities, such as food and chemicals. Specialized Internet of Things
devices are able to monitor a wide range of environmental factors, including
temperature, humidity, and exposure to an atmosphere, in addition to the level of
light intensity. These gadgets might even make an alert sound if a certain
threshold is breached in the event that it is exceeded. This makes it much easier
to trace the quality of goods all the way through the supply chain and minimises
the amount of spoiling that occurs as a result of the situation as a result of the
increased efficiency.
d. Streamline the Problematic Movement of Goods: IoT devices allow for the
tracking of goods and the planning of routes, which can reveal where and when
goods experience delays while in transit. This makes it possible to plan for
potential disruptions and find alternative pathways to speed up the supply chain.
e. Locate Goods in Storage: Internet of Things devices can still be used to tag
goods even when they are being held in storage at a distribution centre. Not only
does this make it much simpler to discover particular products even inside a huge
warehouse, but it also ensures precise identification and management of the
commodities that are stored there.

Robotics and Automation


Automation of robotic processes is continuing to play a significant part in a variety of
aspects of the supply chain process for businesses. RPA eliminates a significant portion
of the needless misuse of manpower in a variety of areas, including customer service
and the management of the warehouse. This frees up people to do the work that only
people can do, while robots take care of the more mundane tasks.
The technology can be used to make supply chain more efficient, responsive and
resilient by:
a. Customer Service Needs: Many people don’t know that robotic process
automation can be used in most of the post-sale customer service. This has the
potential to hasten the process, cut down on the amount of time customers have
to wait before receiving a response, and lower the number of errors that occur.
b. Data Entry Automation: The use of RPA in data automation helps cut down on
paperwork and manual labour. It can also remember patterns, such as repeat
orders and customers, along with other features that save time.
c. Order Management: By integrating RPA into this process, a business can cut
down on the number of man-hours that would otherwise be spent on tasks such
as checking stock, fulfilling orders, shipping packages, and monitoring delivery
status. RPA, on the other hand, automates the entirety of this process.
(“78% of businesses that have implemented some kind of RPA system expect to
significantly increase their investment over the next three years.”)
d. Shipping and Logistics: When it comes to shipping and logistics, automation
ensures that everyone is kept informed of any changes to the shipping schedule,
such as cancellations or delays. These types of changes have the potential to
disrupt business operations and result in lost revenue.
Blockchain
The common information technology infrastructure of a blockchain would make it
easier for all parties involved to simplify their workflows, regardless of the size of the
business network they are a part of. If auditors had access to a shared infrastructure,
in addition to this benefit, they would have greater insight into the activities carried out
by participants along the value chain. This visibility would be beneficial for ensuring
compliance with regulations.

The technology can be used to make supply chain more efficient, responsive and
resilient by:

a. Replacing slow and manual processes: Even though supply chains can now
manage large and complicated data sets, particularly those in the lower supply
tiers, are slow and rely entirely on paper. This is the case in many industries,
including the shipping industry, where it is still commonplace.
b. Strengthening traceability: Already, change is being driven by an increase in the
demand for provenance information from both regulators and consumers. In
addition, increasing the level of traceability adds value because it reduces the
high costs associated with quality issues, such as product recalls, damage to a
company's reputation, or revenue lost due to sales of gray- or black-market
goods.
c. Increases transparency: After being added to the blockchain, the veracity of the
information can be validated by a variety of independent attestators. Real-time
modification and verification of the data are both possible with this information.

Submitted by:
Kamna Srivastava
PGMA2122
Section: MA

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