• The dynamics of supply chains are dependent on the following key issues:

• Dependable infrastructure and distribution of:
a) Power
b) Communication facilities
c) Transportation by air, rail, road, inland waterways and shipping through high seas Levels of automation

• Macrolevel support from the government

• Access to sophisticated supply-chain capabilities

• Purchasing power of the customers

• Industrial climate of the country

• Availability of technology

• Quality of labour and management

• Security of systems and normal law and order situation

• Global outlook

• Corruption-free environment

• Bureaucratic barriers and hassle-free systems and procedures

• Healthy and hygienic environment

• Customer satisfaction is the ‘mantra’ of supply management

• Since the customers have multiple choices at their doorsteps, it has become all the more important to add value, cut costs, respond to sudden change in demand and enhance the value delivery to them to maintain one’s market share.

• The customer will always look for an easy solution to his problems instead of a cumbersome process. The integration of supply chain with the customers will improve the logistics as well as create confidence in the customers about the after sales service and maintenance of the products as and when troubleshooting is needed.

• Supply-chain techniques have played a vital role in creating a competitive force for the marketability of products, by expanding the production base and market share.

• The companies of developing economies have realized that an efficient supply management is an effective tool to achieve corporate objectives.

• In order to create a successful customer-centric supply-chain cycle, the business enterprises must endeavour to synchronize their supply-chain planning whether it is 3PL, 4PL and/or Managed Supply Chain Operations (MSCO) with the product development, procurement, materials, handling, transportation (inbound/outbound) and manufacturing.

• In view of the liberalization and globalization of developing economies, the supply-chain solutions face several challenges. Some of the developing nations, including India, may emerge as an important manufacturing hub in the near future for a number of industries due to knowledge capital and strong technological and industrial capabilities in several sectors. The key factor for any developing country and particularly India would be the creation of dependable facilities for movement of goods and services for indigenous and international operations.

• Business enterprises are having frequent interfaces with their suppliers and customers to retain their business presence in the market due to a tough competitive environment. Business revolution has already taken place in China and today China is leading the developing nations in FMCG markets all over Europe and America. South Korea, Thailand, Taiwan, Malaysia and Indonesia are not far behind.

• By the way, China being the most populated nation in the world is converting the liability of overgrowth into an asset by providing good basic education with technical knowledge and putting a tight cap on the further growth of population whereas we in India are still struggling to evolve a consensus to control and regulate the supply chain of population and how to make the best use of our existing human resources.

• A safe and sound infrastructure is the foundation of an efficient and effective supply chain. All the big brains of India agree that India needs the big bucks to upgrade the existing infrastructure such as roads, rails, sea ports, airports energy and telecom networks to world standards to improve its image and economy.

• Dr Manmohan Singh, The Hon’ble Prime Minister of India in his address to the New York stock exchange during his recent visit to the USA has stated that India may need approximate USD $150 billion for investment in infrastructure requirements. The civil aviation sector may need $45 billion, railways $10 billion, power and telecom sectors would be $75 billion and $25 billion respectively as a breakup of USD 150 billion.

• But mobilizing adequate resources for investment in the infrastructure sector is the need of the hour which will give agreat fillip to smoothen the supply chain constraints.

• Since the commitment of the domestic private sector and foreign investors has not been very encouraging in the infrastructure sector, the Government has to step in with an innovative approach to boost the confidence of the investors. Out of a total of $23 billion of FDI that has flowed into the country in the last 13 years, only $7.66 billion has come for infrastructure sectors like power, telecommunication and transportation.

• Why the development of supply-chain infrastructure should be every developing nation’s top priority is because within the next 20 years half the world’s manufacturing exports could come from developing countries.

• As regards transportation for the movement and distribution of goods and services, which is the backbone of any supply-chain process the less said the better. Let us take the example of our own country in regard to the vision, planning investment and implementation and networking of various infrastructure systems.

• The MNCs are certainly exploring India as a great outsourcing hub for products and components for global markets. In order to attract foreign investors to set up a manufacturing business, the country must develop investor-friendly infrastructure.

• With power you can work 24 hours. But most of the developing economies are still struggling to provide adequate power to maintain the desired growth in the industrial and service sectors.

• Communication connects the five factors of production namely men, money, machines, materials and management facilitating the flow of information and knowledge, which is vital for a supply-chain success. In underdeveloped nations, it lacks the push from the government channels.

• The issues of timing, care and safety can often cause nightmares when small but high-value consignments of life-saving medical supplies, other highly perishable items and items with expiry date restrictions are not delivered in time either due to transportation problems or improper handling and procedural delays at the port of clearance. As such the quality of infrastructure is important for such critical and time-bound deliveries. The logistics firms which offer supply-chain services for transportation, storage, distribution, packaging, temperature controlled storage facilities, tracking and service support cannot afford any goof-ups in such cases.

• The growth and progress of the economy of a nation is reflected by the number of air flights it operates in and out of the country. Air transportation is the leading mode of logistics for movement and transfer of sensitive and bulk cargo to and from India.

• There is hardly any airport of international standards for passengers and cargo handling in India. We are still debating and deliberating on the FDI cap for the development and improvement of our airports’ infrastructure.

• Due to sustained growth in air traffic, both domestic as well as international, since the 1990s, there is virtual choking of all major airports in the country. Finding a parking lot for a night halt at Delhi or Mumbai which are the industrial hubs for the movement and distribution of air cargo is virtually impossible and airlines would soon be compelled to move out to nearby airports or wait endlessly.

• The cost-effectiveness of road transportation is washed away as soon as the rainy season begins. The upkeep and maintenance of infrastructure is far from satisfactory. It affects the bottom line of the business enterprises as well as the overall growth of the national economy. It is also an inhibiting factor for attracting the investment opportunities from foreign countries.

• As regards modernization and upgradation of the existing network of Indian Railways, expansion of capacity on key routes to handle additional freight and passenger traffic, addressing safety concerns, etc., it is said that it is time for a surgery for Indian Railways.

• Despite being an eco-friendly, cost-effective and fuel-efficient mode, the inland water transport system carries only 0.17 per cent of the total inland cargo in the organized sector.

• With regard to sea transportation of imports and exports, in the 15 November edition of India Today under the ‘Business and Economy’ feature there is a pathetic report on the clogged ports about the abysmal infrastructure and surging traffic which cripples India’s container trade gateway at JNPT and exporters losing crores of rupees due to bottlenecks in the movement of export cargo. A garment exporter airlifted a shipment to the US at the cost of Rs 30 lakh which was more than the value of the consignment in order to retain his customer.

• We have segmented attempts to improve particular modes of transport without realizing the impact of such efforts on other modes. Instead we need an integrated approach of the transport infrastructure which will minimize energy use and emissions while maximizing competitiveness of the domestic industry with a paradigm shift in the supply-chain process.

• A practical approach is required to manage the flow of goods, services and information from various sources based on the physical and financial resources available with each developing country to manage the show.

• In order to achieve a sustained superior performance in the supply-chain process, a developing country must strive and evolve an appropriate strategy and execution plans keeping in view the internal capabilities and understand the fundamental needs of the business organizations, which will ultimately give an impetus to their sales, revenues and profits.

• With rapid economic growth in the manufacturing as well service sectors as foreseen for the future, people cannot be denied the fruits of prosperity due to inadequate resources to support and improve the fundamentals of supply-chain infrastructure.

• The administration responsible for the allocation of resources must listen to the signals of the emerging demands of the industry to accord priority to the supply-chain systems which can facilitate the growth of business and commerce.

• It is not due to dearth of resources but lack of willpower, poor administration, corrupt systems, self in the forefront and the interest of nation on the back, which leads to failure of purpose.

• Besides the competition on cost, quality and value addition, today the one with the best supply chain will walk away with the customers.

• Ultimately it will be the vision of the nation and its leadership at the macrolevel and its style of functioning coupled with the leadership of business organizations and the cultural ethos of the employees which will make a difference between the have and have-not markets.