Syndicate content

Supply Chain Management

India: A logistics powerhouse in the making?

Karla Gonzalez Carvajal's picture
Photo: Daniel Incandela/Flickr
The numbers are in: India now ranks 44th in the latest edition of the World Bank’s Logistics Performance Index, a relatively high score compared to other countries at similar income levels. This number matters not just to the logistics sector, but to India’s economy as a whole. Indeed, logistics can directly impact the competitiveness of an entire market, as its ability to serve demand is inextricably linked to the efficiency, reliability and predictability of supply chains.

Broadly defined, logistics covers all aspects of trade, transport and commerce, starting from the completion of the manufacturing process all the way to delivery for consumption. To say that it is a complex business is an understatement.

First, there is always a delicate balance between the public arm, which provides the roads, railways and waterways, and lays down the rules and regulations, and the private sector, which has responsibility for carrying out logistics operations in a smooth and seamless manner. This fine interplay is further complicated by the globalization of manufacturing which—with many more ports of call in the logistic chain—is putting ever-increasing pressure on the sector. In addition, there are very practical challenges in integrating different modes of transport, in speeding up border crossings, and in dealing with trade protections–all of which impact external trade.

But as difficult as it might be, creating a well-functioning logistics sector is essential to any nation looking to compete in the global economy. India is a case in point. To fuel its global ambitions, the country has taken active steps to up its logistics game.

Campaign art: Is slavery woven into your clothing?

Roxanne Bauer's picture

People, Spaces, Deliberation bloggers present exceptional campaign art from all over the world. These examples are meant to inspire.

The textile industry, in particular the manufacturing of apparel, has long been a key industry in South Asia.  It provides those with relatively low skills with job opportunities. It also has a unique ability to attract female workers; women’s share of total apparel employment is much higher than in other industries in nearly every country in the region. In recent years, Bangladesh, India, Pakistan, and Sri Lanka have made substantial investments in world apparel trade. In 2012, for example, apparel represented 83% of Bangladeshi exports and 45% of Sri Lankan exports.

Nevertheless, the apparel industry in many locations is burdened with poor working conditions and hazardous, degrading policies that damage the environment.  The harsh conditions that many workers in the developing countries must face have been qualified as “slave labour” by The European Parliament.

The Behind the Seams initiative is a new campaign dedicated to improving the conditions of workers in the international fashion industry and to raising awareness about the environmental impact of the industry. Because bad conditions throughout the production of clothing has a greater impact than just the factory. They started with a clear idea: transparency is the first step to transform the industry. There should be no mystery as to who is making your clothes, and all aspects and impacts of a brand’s supply chain should be known and regulated.
 
There should be no mystery
Source: Behind the Seams

Here is a model Indian States can implement to ensure smooth flow of medical supplies to health facilities

Shanker Lal's picture
Photo: John Isaac / World Bank

Though the Indian government has steadily increased funding for its health sector, per capita allocation is still low; reform is thus critical to effectively utilize the available budget.

​The underlying question is: Given a set of resources, how do you procure goods in a way that achieves value for money and maximum efficiency?

In India, procurement of health sector goods has been a major concern for the government. Drugs and medical supplies are not procured and distributed in time, and this interruption in the delivery of services in health facilities affect the general population’s health outcomes.