Challenges for Supply Chain Management in India

The average supply chain cost in the US is about 8.5% of its entire GDP. In contrast, the average supply chain cost in India is as high as 13.5% of its entire GDP.”

But wait a minute! Because the bad news doesn't end here. In 2018, India's rank in the World Bank's Global Logistics Performance Index (LPI), one of the most recognized ways of measuring the ease of doing business based on the state of supply chain and logistics infrastructure existing in a particular country, fell to 44. Its previous position was 35 in 2017.

Whereas countries like Germany, Netherlands, Belgium and United Kingdom which always tend to eliminate all kinds of barriers in their entire national and international supply chain management systems have ranked first, second, third and fourth respectively.

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All these above mentioned factors do not show any bright side of Indian economy. According to the latest survey, the total value of losses that are occurring, especially due to poor supply chain infrastructure and lack of proper management strategies, is about $65 billion. Clearly, supply chain and logistics management companies in India are certainly suffering from many challenges.

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