The Supply Chain and Logistics Conclave 2024 was a spectacle of how modern-day supply chain and logistics companies gear up to level with technological advancements and disruptions.
From using PM Gati Shakti’s geospatial platforms to maintaining cold chain logistics integrity to warehouse automation, the congregation of supply chain heads, visionaries, and masterminds from all over India had insightful discussions that fueled our quest to deliver highly effective fleet management solutions.
As a supporting partner of the event, Binary Semantics leveraged the opportunity to touch base with the latest trends, challenges, and key technological solutions the modern-day supply chain and logistics industry implements, which we will discuss in this post.
Here are some of the most compelling topics and discussions of the supply chain and logistics conclave — pushing through the constraints of modern-day supply chain and logistics —
Significance of PM Gati Shakti – National Master Plan for Multi-modal Connectivity
Dr. Surendra Ahirwar, Joint Secretary of the Ministry of Road Transport and Highways at GOI, explained how PM Gati Shakti implements its platform for geospatial mapping of everything in the country.
The PM Gati Shakti National Master Plan Platform essentially fosters ease of doing business by providing multimodal connectivity infrastructure to various economic zones. The platform will help companies access different layers of interconnected maps which lead to integrated planning, improved optimization, and reduced time and costs.
In his keynote address on how PM Gati Shakti improves the ease of doing business in India, Dr. Ahirwar mentioned the following —
- The API collects data for attributes that help cover each infrastructure’s characteristics in its entirety. It is further being developed to include infrastructure capacity and utilisation attributes.
- The data collected by the platform will help project heads plan in a profound manner. It will ensure more transparency across teams and operations while fostering rational decision-making all across.
- Not just that, the platform will be loaded with planning tools that can be customised for infrastructure planning with specific requirements. It can even provide an approximate assessment of project cost.
- The API has developed over 160 master plan projects. Some of the most avid users of the National Master Plan Platform are the Ministry of Transportation and the Ministry of Railways.
- The geospatial mapping platform is being developed to list the issues, risks, and threats experienced during the project planning and execution process.
- Moreover, several simultaneous infrastructure projects can be effectively synced to ensure optimal expenditure and implementation.
ONDC — A practical solution to improve supply chain efficiency
Open Network for Digital Commerce (ONDC), a non-profit initiative by the Government of India, is playing a major role in promoting open and inclusive networks for the Indian supply chain players.
Anjani Jagodia, Vice President, ONDC believes that the world’s first inclusive large-scale e-commerce system aims at seamlessly connecting the four pillars of digital commerce — 1) Buyer journey, 2) Seller journey, 3) Logistics journey, and 4) Payment journey. How does it do that? Let’s find out.
How does ONDC benefit the Indian supply chain?
The API developed by ONDC ensures that these four pillars communicate seamlessly, especially when the sellers and buyers are functioning on different platforms. Here are some of the key features of ONDC, as shared by the VP —
1. Interoperability
ONDC aims to enable interoperability between different e-commerce platforms, allowing buyers and sellers to interact and transact across various digital marketplaces. By enabling interoperability and reducing barriers to entry, ONDC allows small and medium businesses to access a larger market, increasing their customer base and sales opportunities. Standardisation and the integration of logistics and payment systems further streamline supply chain operations, reducing delays and improving the efficiency of transactions.
2. Open Standards
It is based on open protocols and open-source software, ensuring that all participants adhere to common standards, which promotes a level playing field. Open standards and protocols enhance transparency in transactions, building trust among buyers and sellers, which is crucial for the growth of digital commerce. The open nature of ONDC fosters innovation, as businesses can develop and integrate new solutions and services that enhance the supply chain and improve customer experiences.
3. Decentralisation
Unlike traditional e-commerce platforms, ONDC promotes decentralisation, allowing various entities like small businesses, retailers, and logistic service providers to participate without being dependent on a single platform. Moreover, the decentralised nature of ONDC can help reduce costs associated with platform fees and commissions that are typically charged by dominant e-commerce platforms.
4. Accessibility
ONDC is designed to make digital commerce accessible to small and medium enterprises (SMEs) and local businesses, helping them to compete with larger companies. By levelling the playing field, ONDC encourages healthy competition among sellers and service providers, leading to better prices and services for consumers.
Panel discussion on key challenges for maintaining cold chain logistics integrity
In a panel headed by some of the most influential intellectuals across the Indian supply chain, we witnessed a highly intriguing and insightful conversation about managing the transportation and storage of temperature-sensitive products. Here are some of the challenges worth mentioning —
1. Temperature Control
Deviation from the ideal temperature can spoil the products, especially in the case of pharmaceuticals and certain foods. Real-time temperature monitoring systems are required to ensure that the desired temperature is maintained.
2. Infrastructure
Adequate infrastructure, such as refrigerated storage facilities, specialised vehicles, and cold boxes, is essential but often lacking, especially in developing regions. The quality and reliability of cold storage and transport infrastructure vary widely, which can affect the integrity of the cold chain.
3. Cost
High Operational Costs Cold chain logistics are more expensive due to the need for specialised equipment, energy consumption for refrigeration, and maintenance of infrastructure. Significant upfront investment is required to establish a robust cold chain network.
4. Supply Chain Coordination
Effective cold chain logistics require seamless coordination among various stakeholders, including suppliers, manufacturers, logistics providers, and retailers. Clear and timely communication is vital to address any issues that arise during transit, such as delays or equipment failures.
5. Risk Management
Developing contingency plans for equipment failures, power outages, and other emergencies is crucial to minimise the risk of temperature excursions. Protecting high-value and sensitive products from theft, tampering, or damage is a concern, requiring robust security measures.
As an industry leader in providing advanced cold chain logistics solutions, Fleetrobo, we second the panel’s quest to overcome such bottomline-bending challenges. Binary Semantics makes sure the reefer-carrying fleets are well-monitored across their trips so that any deviation from ideal temperature can be detected and responded to promptly.
Read More: Overcoming Challenges in Fleet Risk Management
Which advanced technologies help maintain cold chain logistics integrity?
The panel collectively agreed on implementing modern-day technologies to enhance the efficiency, reliability, and sustainability of cold chain logistics. Here are some key technologies discussed in the supply chain and logistics conclave that could help cold chain companies ensure their integrity —
1. Internet of Things (IoT)
IoT sensors monitor temperature, humidity, and other environmental conditions in real-time, ensuring that products remain within specified parameters. IoT-enabled devices provide real-time location tracking, allowing stakeholders to monitor the movement of goods throughout the supply chain.
Read more: How IoT-driven telematics help fleet management?
2. Blockchain Technology
Blockchain provides a transparent and immutable record of the entire supply chain process, ensuring traceability and accountability. Smart contracts can automate compliance checks and trigger actions based on predefined conditions, improving efficiency and reducing manual intervention.
3. Artificial Intelligence and Machine Learning
AI and ML can predict potential disruptions and optimise routes and inventory management, reducing the risk of spoilage and improving overall efficiency. These technologies help forecast demand for temperature-sensitive products, enabling better inventory planning and reducing waste.
4. Remote Monitoring and Control Systems
Cloud-based monitoring systems allow stakeholders to access real-time data and control settings remotely, facilitating proactive management of the cold chain. Mobile apps provide on-the-go access to monitoring data, alerts, and analytics, enabling quick decision-making.
Panel discussion on leveraging competitive advantage through warehouse automation
Nupur Jha, Associate Director Deliver India, Kenvue, shared key insights about the existing state of warehouses and how automation will help boost warehouse operations’ productivity and efficiency —
- Manual labour is marred with absenteeism due to various reasons and that causes a major disruption in warehouse and supply chain operations.
- The presence of labour unions makes the situation worse as companies will have to adjust the yearly payout with respect to the inflationary guidelines.
She further explains how automation will help warehouses be more profitably functional. She believes that the adoption of automation technologies is a one-time cost, which will eventually go down as the technology evolves. For her, the cost of NOT adopting automation across the supply chain is more concerning than the up-front investment.
Adding to her statement was Manish Rawat, Head of Business Development, India, GXO. Speaking on behalf of GXO, Rawat aimed to demystify warehouse automation and its consequences.
When GXO deployed automation, warehouses experienced a whopping 30 percent improvement in labour retention rate as workers were no longer getting fatigued. Moreover, the companies willing to invest in automation were ready to pay top money for drone technology, video/voice-driven technology, and technologies that automate the handling of items.
Companies should consider the Approach of Fear Vs. the Approach of Continuous Improvement because future generations wouldn’t look forward to becoming truck drivers or item handlers. Therefore, companies should overcome their apprehensions and invest in warehouse automation.
Panel discussion on the future of omnichannel logistics for growth and efficiency
Mohit Jauhari, Head SCM, Shriram Pistons & Rings Limited shares his insights on how omnichannel networks will help improve supply chain logistics growth and efficiency.
He believes that the supply chain will experience a 5X jump in omnichannel networks in the next five years. For that to happen, more and more logistics service providers will come up who will set up and integrate logistics across the spectrum of industries. A huge focus will be on data churning to improve the quality of services for the end customer.
The algorithms running the data processing operation in order to generate customer-centric meaningful insights will push companies to adopt a customer-first approach. Most importantly, companies will feel the need to upskill the workforce in order to align them with changing customer expectations and company vision and provide them with the ability to assess data.
Impact of AI on Supply Chain Management
Brish Bhan Vaidya, Head of APAC Strategic Sourcing & Global Buying Center at Uber, presented the powerful contribution of Generative AI in revolutionising supply chain management. While explaining AI/ML and IoT technology implementation across the supply chain, he focused on two key applications in the supply chain and logistics conclave —
Intelligent Document Processing (IDP) for Document Data Extraction
The GenAI-powered Intelligent Document Processing (IDP) can process any type of document and extract information from invoices, purchase orders, shipping documents, and any other document.
In the supply chain, IDP accelerates the processing of large document volumes, automatically categorising them into Bills of Lading (BOL), packing lists, certificates of origin and destination, and more.
Brish Bhan Vaidya, stressing data-driven decision-making, spoke about the importance of timely data availability for decision-making, reduced manual data entry, and better forecasting and inventory management, as these help lower operational costs and improve supplier management.
Chatrobo for Making Elevated Customer Experience
The Strategic Sourcing Head supports the use of AI-driven chatbots to improve supply chain management by offering real-time, smart help at every touchpoint. The chatbots can facilitate fast-paced communication between vendors, makers, and logistics management teams. Its ability to immediately answer questions, process orders, and manage stock levels can assist them to a great extent.
As a proud supporting partner of Supply Chain and Logistics Conclave 2024, Binary Semantics resonates with Vaidya’s insights. Binary Semantics have developed, executed, and observed the powerful benefits of GenAI-powered IDP and chatbots on supply chain efficiency. Moreover, we are eager to further customise and implement these solutions to meet the specific needs of the supply chain and logistics industries.
Conclusion
The world of supply chain is one that never ceases to change. Therefore, to stay competitive across this ever-evolving landscape, companies need to push the envelope and strive for widespread adoption of modern-day technologies, especially ones that help counter the prevalent challenges. Through the Supply Chain and Logistics Conclave 2024, it is quite evident that Indian companies have the necessary tools at their disposal. All they need is a mindset shift that would propel them toward increased profitability. Stay tuned for more informative posts on supply chain and logistics!
