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India’s Supply Chain: Challenges & Future

India’s Supply Chain: Challenges & Future

November 18, 2025 9 min read Industrials
India’s Supply Chain: Challenges & Future

Q1. You’ve led large-scale warehousing, logistics, and supply chain operations for over 18 years across FMCG, retail, ceramics, and multi-category distribution—could you start by giving us a brief introduction to your roles and responsibilities across these leadership positions?

Over the past 18+ years, I have led large-scale warehousing, logistics, and end-to-end supply chain operations across FMCG, retail, ceramics, and multi-category distribution. My roles have spanned greenfield warehouse setup, national distribution network design, capacity planning, transport contracting, 3PL/4PL governance, inventory management, and customer fulfilment. I have managed high-throughput distribution centres, regional warehouses, and pan-India transportation networks supporting both B2B and B2C channels.

In every assignment, my responsibilities have centred on improving fulfilment speed, driving operational excellence, enabling digital transformation, and building high-performing teams capable of supporting aggressive business scale.

 

Q2. With supply chains becoming increasingly unpredictable, what operational shifts have you seen in how companies are redesigning national distribution networks to improve resilience and last-mile efficiency?

In recent years, companies have revisited their network design philosophies to account for volatility, e-commerce growth, and fragmented demand patterns. The most notable shifts include:

  • Decentralisation of inventory through more regional or spoke-level nodes to reduce delivery times and strengthen service reliability.
  • Hybrid fulfilment models where the same facility services B2B, D2C, and marketplace channels with dynamic allocation logic.
  • Greater use of multi-temperature, multi-category 3PL infrastructure instead of heavy capex-led expansion.
  • Strategic buffer creation via strategically placed mother hubs to absorb upstream supply disruptions.
  • Digitally enabled routing and slot-based dispatching to optimise last-mile cost and reliability.

Overall, network design has become more flexible, technology-driven, and built for both speed and risk mitigation.

 

Q3. You’ve managed high-volume DCs and multi-region warehouses—what are the most persistent accuracy or productivity challenges you observe on the ground, and which interventions consistently move the needle?

Across high-volume distribution centres, a few challenges remain consistent:

Key challenges:

  • Inventory mismatches due to improper system transactions or putaway deviation
  • Picking errors during peak volume or multi-SKU picking
  • Space inefficiencies linked to poor layout or dynamic SKU velocity changes
  • Labour productivity variation, especially with contract workforces

Interventions that consistently work:

  • Strict discipline on system–physical sync through real-time scans, cycle counting, and exception reporting
  • Slotting and re-slotting based on SKU velocity to reduce travel time
  • Cross-training, incentive-linked productivity programs, and structured shift planning
  • Standardization of SOPs with visual controls, pick-to-light/voice-assisted picking, and automated check-weigh systems
  • Lean audits and daily performance management routines to sustain improvements

These interventions significantly improve both accuracy and throughput while reducing dependency on individual skill levels.

 

Q4. As organizations adopt WMS, SAP SD–MM, and real-time visibility tools, which part of the supply chain benefits the most from digitalization—and which areas still resist transformation?

Digital tools—WMS, SAP SD/MM, track-and-trace platforms, and IoT visibility—have transformed certain areas more than others.

Where digitalization delivers the most value:

  • Warehousing: WMS brings discipline to receiving, storage, picking, and dispatch, drastically improving accuracy.
  • Transport visibility: Real-time tracking reduces follow-ups, improves SLA compliance, and enables predictive dispatching.
  • Order-to-cash: SAP SD/MM reduces billing errors, speeds up order processing, and sharpens commercial control.

Areas still resisting transformation:

  • Last-mile delivery in fragmented transport markets, where adoption of digital tools is inconsistent.
  • Small vendor and distributor networks, where manual processes continue due to limited digital literacy.
  • Labour-intensive warehouse operations, where behavioural adoption of handhelds/scanners takes time.

Cultural and capability-related change management remains the bigger roadblock than the technology itself.

 

Q5. In industries like retail and construction materials where demand variability is high, what forecasting or replenishment mistakes create the largest downstream impact on logistics costs and service levels?

In volatile industries like retail and building materials, several forecasting errors create significant logistics and service-level challenges:

  • Over-reliance on historical trends despite seasonality or project-driven demand shifts
  • Ignoring regional demand divergence, leading to stockouts in one region and excess in another
  • Improper safety stock norms, especially for long lead-time or imported SKUs
  • Delayed demand signal sharing between sales, supply planning, and logistics
  • Push-based replenishment instead of consumption/demand-driven planning

These mistakes inflate transportation costs, increase inter-warehouse transfers, raise ageing inventory, and lower fill rates.

 

Q6. Managing pan-India logistics involves working with 3PL/4PL partners, transporters, and CFAs—what risk patterns do you see emerging in vendor performance, and how do strong supply chain teams proactively mitigate them?

Common vendor-related risks include:

  • Service inconsistency due to high attrition in 3PL labour
  • Cost volatility linked to fuel prices, route imbalances, and seasonal capacity shortages
  • Compliance lapses—in documentation, safety, EHS norms, and statutory requirements
  • Dependence on individual supervisors rather than strong organizational capability
  • Lack of digital maturity affecting visibility and SLA adherence

Proactive mitigation strategies:

  • Multi-vendor strategy with clear performance scorecards and quarterly business reviews
  • SLAs and penalties directly linked to fulfilment KPIs, accuracy, and safety performance
  • Joint planning for peak seasons and special projects
  • Regular audits, compliance checks, and training programs across 3PL teams
  • Adoption of digital tools for trip planning, GRN accuracy, and real-time monitoring

Strong governance and transparent communication are essential to stabilise vendor performance at scale.

 

Q7. From an investor perspective, which segments of supply chain and logistics—automation, integrated warehousing, 4PL models, or digital visibility platforms—do you believe will deliver the highest long-term ROI in India?

From an investment standpoint, the following segments show strong long-term ROI potential:

  • Automation and robotics – goods-to-person systems, AS/RS, sortation, and autonomous mobility to manage rising labour costs and accuracy expectations.
  • Integrated warehousing and Grade-A infrastructure – driven by e-commerce expansion, GST-led consolidation, and demand for compliant, high-throughput facilities.
  • Digital visibility and control towers – offering real-time supply chain orchestration for multi-tier networks.
  • 4PL and integrated logistics models – as companies increasingly outsource network design, transport orchestration, and vendor governance to experts.

The highest returns will come from models that combine technology with scalable operations, reduce working capital, and unlock speed and resilience across the value chain.

 


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