September 1st, 2010 
Malvika
A report made a revelation that every year India loses a whooping $ 65 bn due to inefficient supply chain management system. This loses happens in spite of the retail sector being in the high growth mode.
The report, which released on 1st September 2010, said that the inefficiency could hamper the growth pace of this happening sector.
According to the report by the apex industry body titled ‘Global competitiveness of retail supply chain–Challenges, Strategies and Recommendations’, the sector is expected to touch $879 billion by 2018, but if its supply-chain system’s challenges are not addressed, its growth could get hampered
The report further said, “Since Independence only 20 per cent capacity has been added to the railway network but the traffic has increased ten times. In a sector where margins are wafer-thin, the supply- chain management is a critical enabler to profitability and this has to be improved.”
The report also maintained that the supply-chain costs in India are about 12-13 per cent of the GDP as compared to 7-8 per cent in developed countries. Hence, India loses out around $65 billion annually.
It further added that the challenge also lies in the country’s demography, geographical spread, distinct consumer preferences and differential taxation laws, which needs to be addressed.
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