Tag Archive for 'Supply Chain'

India ranked 9th by UNIDO for Industrial Manufacturing

The UNIDO [ United Nations Industrial Development Organization]  has ranked India 9th in its  International Yearbook of Industrial Statistics 2010 .  This is a welcome news and rather a surprise  considering the country ‘s overall emphasis on the Service Economy  in preference to traditional manufacturing  economy .

Over the last two decades ,  the level of industrial manufacturing in our country did come down and the services sector  especially IT and Retail as well as the Financial sector  had a boom period with double digit growth annually . This also caused a flight of talent  from manufacturing to the IT and other sunrise industry sector .

During the sixties   the shift started  from the Agricultural sector to the Industrial sector  and later on with the advent of IT and the Internet ,  services sector started shining with large export earnings  and attended materialism and  middle class prosperity .  Many traditional industrial sectors like the Tatas , Birlas , Mahindra etc started IT Companies .

In the above scenario , manufacturing did take a back seat but we cannot deny the advantage and process improvements effected in manufacturing using IT applications .  ERP and Supply Chain Solutions facilitated reduction in process time and also Time to Market . Therefore ,  there is obvious synergy which can be leveraged collaboratively along with improvements in the Agricultural sector for an integrated and balanced growth . This will also facilitate an Inclusive Economic Growth in the country .

A squashing protest – a pointer to our dismal supply chain in India.

A news item in today’s Deccan Chronicle with a color photo shows farmers in Ranchi, Bihar trampling on tomatoes after dumping them on a road to protest against the non-availability of cold storage facilities to support a bumper yield. It is estimated that the losses in storage with the Food Corporation of India [FCI] every year is equal to one month’s consumption figure of food grains for our country. A serious drain on our economy which we can ill afford.

We can get garden fresh Washington or Chinese apples in our super market much faster than fresh apples from Kashmir or Himachal. During one of my visits to Baramula and Tangdhar in J&K before the outbreak of terrorism there, I saw apples rotting in gardens for want of adequate transportation to the market place. Now, with insurgency and frequent terrorists attacks, the situation is worse.

We have archaic laws dealing with octroi and inter state  movement of goods and fragmented land holdings in many parts of India still which inhibit mechanized farming and use of better technology to increase productivity and speedy supply chain with reduced to “time to market”. The losses in transit and pilferage in storage adds to this problem.

It is high time that the planners focus on this national problem and provide adequate access to national and global markets to our farmers. Otherwise, such shows of rage as was witnessed in Ranchi will be the order rather than exception.