Evolution of Supply Chain Management in India

Over the last few decades, Indian supply chain management has grown significantly. With technological advancements and regulatory reforms, India is now a global hub for supply chains. In this article, we will briefly outline how the SCM in India has changed over the years and what it holds going forward.

Evolution of Supply Chain Management in India

The evolution began with traditional methods of merchandising, which included the use of horses, carts and boats to carry goods from one place to another. The industrial revolution in the 18th and 19th centuries had a major impact on India’s supply chain. It enabled more efficient movement and storage of goods through the introduction of steam engines, railways, etc. In present times, supply chain management is even more essential due to the globalisation of supply chains and e-commerce boom. Thus, there is a need for improvement and efficiency in managing supply chains that are cost-effective for timely delivery.

Supply Chain Management History Timeline

To help you fully understand the evolution of supply chain management, below is a timeline of its evolution:

• Before 1900: Prior to the industrial revolution in the 18th and 19th century, simple tools such as hand trucks were used for loading and unloading process. Also, global shipping was more cumbersome and difficult. 
• 1900s-1960s: The focus on supply chain management between 1900s and 1960s was on optimising internal processes. This entailed production as well as inventory management. Similarly, businesses preferred minimising costs while maximising efficiency during this time.
• 1960s-1980s: This phase prioritised expanding the transportation infrastructure like air travel and highways. The focus was also on growing the global trade, which required new strategies for managing the inventory and the logistics.  
• 1980s-2000s: During this period, technologies like electronic data interchange {EDI), barcode scanners and enterprise resource planning (ERP) systems emerged. Among all the technologies, the introduction of ERP systems proved to be a significant turning point in the evolution of supply chain management in India. This enabled businesses to integrate all their process, including the supply chain management, into a unified platform. Also, tracking shipments, managing inventory, and coordinating with the manufacturers and suppliers was made easy. 
• 2000s-2010s: New markets emerged in this period and the global trade saw a massive growth. It created new opportunities for businesses to source raw materials and sell goods. However, this made the supply chain management more complex. It required businesses to manage their logistics across multiple regions and countries. Also, with the emergence of internet, e-commerce and online marketplaces became more prevalent. New supply chain models, such as direct-to-consumer and drop shipping, were developed. These models relied on analytics and real-time data for managing the logistics and inventory. 
• 2010s-Present: In the present day, the main focus of supply chain management is on sustainability. Now, there is more attention of minimising the carbon emission and favouring labour practices which are ethical. Businesses are also prioritizing waste reduction and the digitisation of the supply chain. This digital transformation allows for more effective management of data flows and ensures high reliability of information.  

Future of Supply Chain Management

India’s supply chain management is set to transform significantly through digitisation, with emerging trends like AI, machine learning, IoT, and blockchain playing key roles. These technologies enhance demand forecasting, order management, and inventory control by analysing data quickly and accurately. IoT devices provide real-time tracking, while blockchain ensures transparency and traceability, fostering a data-driven and collaborative ecosystem. Despite challenges such as ethical sourcing concerns and risk management issues, these digital advancements promise greater efficiency, optimisation, and profitability. Embracing these technologies is crucial for Indian supply chain managers to stay competitive and resilient in a global economy.

Supply chain management solutions

Several supply chain management solutions can be implemented to improve its efficiency. The key solutions include:

• Real-Time Visibility and Risk Management: This helps in tracking supply chain activities and enables businesses to prevent losses and ensure customer satisfaction. 
• Circular Supply Chain and Reverse Logistics: This promotes sustainability and helps to increase profits by managing the entire lifecycle of products. 
• Cloud-Based Software: When the data is stored in the cloud, it can help businesses to manage their inventory and streamline their supply chains. 
• Artificial Intelligence (AI): This solution can help fix the inefficiencies, leading to cost savings and ultimately better decision-making. 
• Internet of Things (IoT) Devices: To better control the inventory and warehouses, IoT becomes a must. It makes the supply chain more efficient and flexible.

Conclusion

To sum up, the evolution of supply chain management has been a roller coaster. It has gone from horse-drawn carts to state-of-the-art technologies such as artificial intelligence, blockchain, and autonomous vehicles. For companies to remain competitive, they must embrace cutting-edge supply chain management solutions and adopt sustainable practices.