Friday, April 25, 2008

'The usage of IT in the back-end supply is fairly low in India.'

‘Biggest challenge for retail is underdeveloped supply chain’

Behind the glitz and glamour of the neighbourhood retail chain that you are fond of nowadays (the local kiranawalla is not a priority anymore) is a very efficient supply chain. The job isn’t complete if you happen to have just products stacked up in the shelves. Somebody has to manage the supply chain as well. This is where supply chain management (SCM) comes in. But as far as India is concerned, therein lies the risk too.
From movement and storage of raw materials, inventory, and finished goods from points of origin to consumption – the current retail boom in India can only sustain its momentum if supply chain management is given top priority by retail players. An underdeveloped supply chain cannot help retail stores. It will cause more harm.
“To achieve profitable growth over the longer term in the retail sector, supply chains need to be realigned into efficient, agile and adaptable networks that can handle larger volumes, expand reach, balance costs and address the demographic variations while providing scalability,” said Pinakiranjan Mishra, Partner (Retail & Consumer Practice), Ernst & Young, to BrandLine in an a e-mail interview.

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