Supply Chain 2025
Supply Chain 2025- Trends and implications for India
India as an economy will differ from its contemporary phase. It will experience growth in terms of its nominal GDP; capturing third place in the world’s economies. Growth will be held by middle income households and working population and rising manufacturing sector. As more citizens will move towards urbanization, consumerism will increase giving rise to demand for products and services. With the shift in the demographics, more of supply chain will be required. So the economy will be bigger and more heterogeneous by 2025. It’s expected that many of tier1 cities will be evolving into mega demand centers, joining the ranks of Mumbai, Delhi, Kolkata and Chennai. Also, the mid-size demand clusters of today will become equally most important markets. The design of supply chain will see a drastic change from city/urban and rural to hyper/mega centres, urban, semi-urban and rural. It would comprise of automation, verticalization, lean and 3PL. Thus, the organizations will have to re-think their mega center supply chain model. Proliferation of segments consists of increasing consumer segmentation, emergence of new channels and increasing product proliferation. Consumer segment will grow in number: increasing awareness, greater per capita income, and online visibility will heighten customization and individual product preference. Increasing dispersion in income levels, lifestyle choices lead to further micro-segmentation. Also niche segments will grow manifold. New channels will expand with increase in internet penetration and growth in modern organized retail. There is a need for customization across the value chain. The whole process from planning, sourcing, making to deliver, needs to be accustomed. It involves more product transition, reducing complexity to below the skin, calling for flexible processes, making production lines more focused with smaller product lots, delivery in omni-channel sales, and late
India as an economy will differ from its contemporary phase. It will experience growth in terms of its nominal GDP; capturing third place in the world’s economies. Growth will be held by middle income households and working population and rising manufacturing sector. As more citizens will move towards urbanization, consumerism will increase giving rise to demand for products and services. With the shift in the demographics, more of supply chain will be required. So the economy will be bigger and more heterogeneous by 2025. It’s expected that many of tier1 cities will be evolving into mega demand centers, joining the ranks of Mumbai, Delhi, Kolkata and Chennai. Also, the mid-size demand clusters of today will become equally most important markets. The design of supply chain will see a drastic change from city/urban and rural to hyper/mega centres, urban, semi-urban and rural. It would comprise of automation, verticalization, lean and 3PL. Thus, the organizations will have to re-think their mega center supply chain model. Proliferation of segments consists of increasing consumer segmentation, emergence of new channels and increasing product proliferation. Consumer segment will grow in number: increasing awareness, greater per capita income, and online visibility will heighten customization and individual product preference. Increasing dispersion in income levels, lifestyle choices lead to further micro-segmentation. Also niche segments will grow manifold. New channels will expand with increase in internet penetration and growth in modern organized retail. There is a need for customization across the value chain. The whole process from planning, sourcing, making to deliver, needs to be accustomed. It involves more product transition, reducing complexity to below the skin, calling for flexible processes, making production lines more focused with smaller product lots, delivery in omni-channel sales, and late