Digitalization and SOP: How is India Solving Its Supply Chain Issues Amid the Coronavirus Pandemic?

Several states have implemented an e-pass formula for service providers.

The Covid-19 pandemic brings demanding situations and also opportunities

Consumer goods and e-commerce corporations are partnering with local retail outlets to meet growing visitor demand.

As the Covid-19 pandemic continues to wreak havoc, the Indian government has extended the nationwide lockdown until May 3, 2020, a step that is surely mandatory for the spread of the virus. This has inevitably led to a disruption in the chain of origin and access to food, medicine and non-public hygiene products in the country.

Following the chain-of-origin crisis caused by the viral outbreak, the central and state governments took steps to allow the smooth movement of products from factories to retail chains and Kirana stores, and allowed for last-mile shipment continuity.

The current situation has led to an unprecedented concerted effort between government and personal sector players, as well as the startup ecosystem.

Industry players, the government, and independent advisory committees have already discussed the strategy to follow once the lockdown is over, with the publication of SOPs and mechanisms to facilitate production and supply chain continuity.

These come with strict implementation of hygiene and sanitation criteria in the origin chain (from production to distribution), a limit on the maximum number of personnel allowed in a production plant, and stricter self-distancing regulations in factories.

Several states have implemented an e-pass formula for essential service providers to allow uninterrupted access to everyday items such as milk, vegetables, groceries, medicines, and non-public hygiene products. Worldwide, virtual projects have been launched to raise public awareness and prevent the spread of contagion.

The government recently introduced the Covid-19 tracking app, Aarogya Setu, which proactively informs citizens about applicable practices and recommendations related to Covid-19 containment.

While the pandemic first had a severe effect on India’s chain of origin system, it also paved the way for the digitization of the chain of origin network. India has lately been working with industry bodies and technology-focused startups to integrate complex technologies such as knowledge analytics, messaging, and real-time GPS tracking to create a nationwide e-source chain network for must-have products.

Once implemented, this will enable faster movement of goods, from production plants to warehouses, distributors and, ultimately, stores and end consumers.

The Covid-19 pandemic brings with it demanding situations but also opportunities. Although we are in the midst of a global fitness emergency, new business models are emerging; Companies are reorienting and reevaluating their business strategies.

As the classic distribution formula comes to a standstill due to a shortage of hard work, consumer goods giants and stores have learned to want to actively engage with third-party origin chain corporations with physically powerful virtual infrastructure. As a result, corporations like technology. Logistics company Delhivery is experiencing increased demand as it has ensured business continuity by implementing contactless delivery features and contact tracing policies for its staff.

One of the main benefits offered by these corporations is that they have in-house employees, unlike classic suppliers who rely on day laborers. In addition, third-party source chain players have a generation stack to digitally take orders, make accurate deliveries, and even forecast visitor calls based on AI-based knowledge analysis. The entire procedure is digitized, from order picking to distribution and last-mile delivery.

E-commerce corporations like BigBasket and Flipkart have also explored new avenues to reinvent their supply chain. They forge partnerships with food delivery platforms like Swiggy and Zomato and taxi aggregators like Uber to take advantage of the available fleet of delivery drivers and drivers and an uninterrupted source of essential items.

Although the concept is not new, hyperlocal delivery of food and must-have items has returned, driven by the current lockdown. Consumer goods and e-commerce corporations are partnering with local retail outlets to cater to developing visitors. demand. A clever example of this is the partnership between Flipkart and Spencer’s Retail for home delivery of groceries and other essentials, along with FoodTech Unicorn Zomato, who introduced Zomato Market to break into the hyperlocal delivery space.

According to Nielsen, India has 6. 65 million Kirana stores, accounting for 90% of the country’s total trade. This means that only 10% are occupied by supermarkets and convenience stores. Once again, the existing crisis highlights India’s desire to take over the department of proximity shops and small kiranas, which have intensified their efforts to offer home delivery of items.

At the same time, giant online corporations are providing offline retail outlets with innovative technologies, such as PoS responses, to facilitate secure and contactless deliveries, a win-win scenario.

Although it is still difficult to expect the long-term effect of the pandemic, it will motivate new inventions in the chain of origin. We will most likely see more localization of the chain of origin and a complete virtual overhaul of the existing chain of origin in the country. network: the probabilities are infinite.

It could even lead to the large-scale adoption of virtual interfaces between stores and Kirana outlets for last-mile deliveries. As history has shown before, corporations are capable of reinventing themselves and emerging more powerful in the face of probably insurmountable challenges. .

The situation is similar to that of the global currency crisis of 2009, which also saw the birth of many high-value startups such as WhatsApp, Pinterest, Slack, and Uber, among others.

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