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Sarkaritel.com News and Features
India’s Supply Chain gets
paced up with tools of IT
New Delhi, November 29, 2006
While the difficulties in cross border movement of goods
have reduced over the last five years, with the reduction in
the number of entry taxes, government focus is today more on
security issues than on regulatory issues. Session on '
India's Supply Chain - Why So Slow?' during the India Economic
Summit was concentrated on the effort to reduce lead time at
customs.
Government has introduced a Risk Management System and new
machinery that make random checks of incoming items. More than
deregulation, Government is encouraging public private
partnership and investment in infrastructure through Special
Purpose Vehicles, Special Economic Zones, Free Trade Zones,
developing a framework and fiscal incentives to create an
asset base.
Government should consider removing tax and legal
bottlenecks and creating unified markets to help the movement
of goods. India needs to build a backbone of Information
Technology, logistics and highways through Public Private
Partnerships and government incentives. Opening up logistics
and retail will create jobs, fuel domestic consumption, reduce
costs and lead to low cost products for exports. Improving
customs procedures will tremendously reduce lead times and
lead to savings.
India's supply chain structure is fragmented, complex and
lacks discipline. Coordinating and synchronizing the flow of
goods through the supply chain network is missing in Indian
companies. Government should create a supply chain of
regulatory actions required to be taken.
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