Managing profitability, reducing costs and meeting customer requirements are the top three priorities of supply chain industry today. In line with global trends, the Indian firms have chosen to retain control over core functions like new product development, sales and operations planning and strategic procurement while outsourcing non-core aspects of production and delivery.
The Indian companies are adopting different supply chain capabilities like, collaborative planning, vendor-managed-inventory and best country sourcing and are also open to increasing interest in next-generation technologies, automation and sustainability.
A Growing Sector
The Indian Supply Chain Industry valued at $ 500 billion is growing at a rate of 6-7 percent per year.
The logistics and warehousing industry’s revenue is anticipated to grow at a CAGR of 10.7% during 2015-2019.
India’s logistics sector is poised for accelerated growth, led by GDP revival, ramp up in transport infrastructure, e-commerce penetration, impending GST implementation, and other initiatives like ‘Make in India.’ The Industry is expected to grow at a CAGR of 8.6 percent between 2015 and 2020, which grew at a CAGR of 9.7 percent during 2010-2015.
India’s cold chain sector is a combination of surface storage and refrigerated transport. The industry has been growing at a CAGR of 20% for the last three years. The cold chain market in India is anticipated to reach Rs 624 billion (US$13 billion) by 2017.