Supply Chain Fundamental Rethinking

FY 18 has been a year so far, where each quarter results have been shifting the pendulum for Supply Chains in India. From emerging growth prospects to policy changes impacting demand its been a period of time where Supply Chains have not had a consistent image of market. Q1 FY 18 was impacted due to roll out of GST. (Day 1 of Q2 - 1st July). Channel partners had to go light with Q1 end inventory hence most of the organisations experienced a lesser channel partner demand in Q1. While the retailers recorded one of the highest June sales, contrast was the case for Manufacturers of the products. Q2 FY 18 was attributed to GST implementation issues. The lack of awareness of the systems & other teething problems. Organisations still found a way to encash with  festive season and e-tailers having one of the best times with discount sales. Some celebrated with rural demand for 2 wheelers, tractors recording higher sales indicating good rural demand. Confuses with other data ...

For many of us associated with Supply Chains in India, it is an interesting period of time. There is a realization that environment is shaping up to offer opportunities but Supply Chain Practices are a step out. It can be a late realization of an opportunity or simply an sub-optimal network or a Supplier relationship which is surrounded with uncertainty.  One of the step out is "Technology" adoption and adaption.  My work across many clients makes me realize that Technology applications are evolving in Supply Chains of India. Either it is a natural journey of the organization which has had technology support its back bone of Supply Chain over years hence the applications are seen in practice & utilized for better decision making. But for many, an ERP, is the highest level of an integrated IT implementation. For these Supply Chains of India the sudden advent & need to implement array of Supply Chain applications is like awakening to a frenzy of wind followed ...

What I and probably all folks in India are experiencing is something very divergent to how we grew up in Supply Chain & saw it getting shaped in India. My father tells me that when he bought his first Scooter, good 45 years back, he had to pay INR 5,000 & still wait for the scooter to be delivered at the convenience of the manufacturer. The Demand - Supply gap in Indian context of business favoured the Supply side. He did wait for 6 months to get the delivery of his scooter. Many of us have such stories to remember. A cultural pattern where supply was always constrained hence demand used to get tapered off. I think what Amazon or any e-tailer has done to Indians is that its permanently changed customers "Value System". And its happened way too fast! And Indian Supply Chains are yet to explicitly acknowledge it.   Indian customer traditionally has been unpredictable in his demand patterns, frugal in his budgets & very demanding on his delivery expectatio...