According to a recent report from Allied Market Research, the global supply chain management market size is anticipated to reach USD 37.41 billion by 2027, growing at a CAGR of 11.2 percent from 2020 to 2027. Development of industrial-grade digital technology, increase in need for improved supply chain visibility and rise in inclination towards cloud-based supply chain management software are the major factors fueling the growth of the global supply chain management market. Furthermore, low deployment cost, rise in use of industrial automation in processing industries, growing regulatory compliance, surge in the need for mass production and connected supply chains to serve the needs of the population are the other factors expected to drive the growth of this market.
Most organizations, not only in India but also in countries across the globe, are resuscitating crisis management mechanisms and remodeling supply chains.
39 per cent of enterprises have faced a severe impact on their supply chain according to a report from Institute for Supply Chain Management. None of the countries can any longer be completely dependent on a single supplier even as they find most appropriate ways for international collaboration. Moreover, the COVID-19 pandemic situation has focused on frail geopolitical stability and legacy systems that immediately needed a reconstruct.
For most supply-chain firms serving the FMCG industries, the bullwhip effect generated inefficiencies and disruptions in the early part of the lockdown. However, now, the manufacturers and logistics enterprises have learnt to cope with these situations. “The lockdown, having led to a higher demand for essential items and a subdued demand in luxury items, retailers are faced with inventory exhaustion. Online delivery options margins and models. Hoarding of essential items causes unnatural spikes in demand and supply fluctuations. The resultant bullwhip effect in the entire supply chain, led to artificial shortages,” says Raaja Kanwar, Chairman & MD, Apollo International.
Some of the significant initiatives including the Air Freight Station policy or the digitalization of customs, were driven back because of the pandemic. However, as businesses are slowly returning to normal, most industry insiders are optimistic about the National Cargo Policy. They are confident that this policy will help in making the country a global logistics hub if it is well implemented. While all players are eager about the steps taken by the government on self-reliance, they believe that an open-ecosystem will provide local industries incentive to build on and be globally competitive. The sector is expectant of recovering lost ground and operating at the best level as demand recommences.
