Supply Chain Management

What is Future of Supply Chain Management in India

The supply chain and logistics sector in India is one of the largest globally. According to industry experts, the country’s logistics sector is valued at $160 billion and employs more than 22 million people. Despite the disruptions due to the pandemic, the sector is expected to grow at a CAGR of 10% by 2022.

The pandemic has given the industry an opportunity to redefine its global supply chain operations. The sector has now leveraged its workforce and resources to increase efficiency and tackle disruptions. India’s logistics industry has an abundance of manpower and resources needed to expand its operations abroad. This rapidly expanding sector also offers several job opportunities and an academic degree related to this domain helps in making a mark.

Let us now explore the future of the supply chain industry in India, the current trends and career opportunities.

First, we will look at the scenarios and factors that are likely to affect the logistics and supply chain industry.

  • Adoption of Technology:

Advancements in technology and rapid digitalization of supply chain management are gradually bringing a change in how products and services are delivered. Companies are increasingly adopting technologies like Machine Learning, Blockchain and Augmented Reality to stay ahead in the game.

  • Climate change and scarcity of resources:

The supply chain mechanism is subject to changes because of the impact of climate change. Weather occurrences and natural disasters affect the availability of raw materials, disrupt supply mechanisms and affect the well-being of workers.

  • Migration of Labour:

This causes changes in the availability and distribution of labour. Mass migration leads to a shift in the country’s economic potential. It puts forth new challenges but also creates opportunities.

Further in this blog, we will look at how the supply and logistics industry has shown the potential to attain immense growth. There are several factors that have aided in this progress. Below are some of the prominent ones:

  • Improved Logistics:

Automation and better coordination have helped the logistics industry to function smoothly and efficiently. With every new opportunity to grow, businesses must come up with ways to streamline logistics and operations.

  • Better Infrastructure:

The sector has been witnessing consolidation, process standardization, technological upgrade and digital transformation. These have enabled better integration between modes of transportation, users and service providers.

  • Improvement in Marketing Strategies:

In order to grow further, logistics companies need to market themselves and increase their reach. They can promote efficient time management and proficiency in delivering goods on time as the USPs.

  • Optimizing Asset Utilization through Cloud Computing:

Data is a valuable component of logistics and it is necessary to have actual data to make informed decisions. In order to ensure that there is no hindrance in accessing the right amount of data, logistics companies are increasingly relying on cloud computing. This technology also helps in managing a supply chain in a more efficient manner. Cloud computing has also helped logistics companies in ensuring that they are able to store as much data as required.

  • Big Data Analytics:

Big Data has been powering the logistics domain by resolving bottlenecks in the supply chain. Big Data helps in optimizing routing, streamlining factory functions and ensuring transparency in the entire supply chain.

  • New-Age Technologies:

The introduction of new-age technologies in the logistics sector has made it more robust and efficient. Industry experts say the logistics sector is bound to get more innovative with customized and technological advancements.

  • Improvement in Trade Policies:

The logistics industry is directly connected to trade policies. The Indian government has over the past few years worked on improving bilateral trade and foreign investment policies. This has helped the logistics industry to increase its business opportunities.

  • Significant Reduction in Manual Intervention:

The pandemic has reduced manual intervention in a lot of processes. In the logistics sector too, the need for manual functions has been reduced. The quality of delivery has improved to a large extent with more automatic processes.

Read More: What is Logistics and Supply Chain Management: A Complete Guide


Key Trends in Supply Chain Management in 2022

The pandemic brought forth several challenges for the logistics industry and highlighted the need for stronger and more efficient infrastructure. Industry leaders have realized that they need to be prepared for disruptions of this scale so that the rebound time is shorter the next time.

The industry has now undergone several changes with the introduction of new practices and trends. Let’s look at what stood out as the prominent trends of 2022 in the logistics industry.

  1. Demand for Cold Supply Chain:

The pharma sector has been driving an increase in demand for cold storage facilities, particularly because of the manufacturing of vaccines and other life-saving drugs in the wake of the pandemic. According to industry data, the Indian cold supply chain sector is set to grow at a CAGR of 17-18% by 2022. Meanwhile, the boom in eCommerce and home deliveries has increased the demand for ready-to-eat products and frozen foods, which again need preservation in cold storage.

  1. Growth in 3PL and 4PL companies:

There is an increase in preference for 3rd party and 4th party service providers in the logistics sector. Most sectors have started outsourcing their supply chain management functions to experts. The 3PL market in India is expected to grow at a rate of over 11.5% by 2025.

  1. Adoption of Technology:

This is a major trend seen among logistics companies. The supply chain industry has been adapting emerging technologies to increase visibility and build customer loyalty and trust.

Some of these technological adaptions have been:

  • Internet of Things – IoT in logistics enhances visibility and improves inventory management. It ensures transparency, enables condition monitoring and better fleet management.
  • Artificial Intelligence – Logistics companies combine AI algorithms with Machine Learning techniques to help companies deal with demand fluctuations. It helps in reducing operating costs too. AI-based cognitive automation technology enables automation of administrative tasks and speeds up informative-intensive operations.
  • Robotics – This integration has helped logistics companies to increase the speed and accuracy of supply chain processes. It also reduces the possibility of errors. Collaborative robots called Co-Bots and Autonomous Mobile Robots or AMR are being deployed to transport goods in warehouses and storage facilities.
  • Drone Technology – Last-mile delivery by drones has increased customer satisfaction since drones have the capability to reach remote areas.
  • Automation – Warehouse automation has increased the speed of deliveries and enhanced productivity. Several companies are deploying ‘pick and place’ technologies like automated guided vehicles, robotic picking and automated storage.
  • Blockchain – This enables putting in place a decentralized ledger system and helps in sorting problems related to tracking. Blockchain also helps in getting quicker approvals and clearances by reducing the processing time at checkpoints.
  • Use of Data Analytics – Insights obtained from analyzing market data helps in optimizing supplier pricing, inventory levels and risk management. It also helps in identifying anomalies and predicts the need for maintenance.
  • Cloud Computing – Logistics companies use Cloud-based SaaS solutions for solving communication issues and sharing data through secured channels. Logistics integrated with Cloud technology enables access to data without any physical restrictions.


  1. Procurement Priorities

In this section, we will look at what drives the sector and what are its key procurement priorities.

  • Realizing cost savings and optimizing working capital: Delivery of commercial benefit to the business is an essential element of procurement. The availability of real-time data enables better decision-making, cost-saving and efficient management of cash.
  • Rationalizing the supply base: Logistics companies ensure keeping the number of suppliers and third parties at the optimum level. This helps in reducing uncertainties and risks.
  • Better risk prediction & management: Risk mitigation will continue to hold importance in these changing times. Supply Chain vendors are investing in tools and technologies that can predict risks — ethical, environmental or those dealing with human rights.
  • Innovation & collaboration with suppliers: Procurement teams work with suppliers to innovate with products and processes. Many companies are trying to improve their supplier relationship management.


Future Prospects in India

In India, the growth and popularity of e-commerce, affordable data connections and cheaper mobile phones have given a boost to logistics and supply chain management. According to industry predictions, the sector will see a growth of 9-10% in the next couple of years. India has now emerged as the prime destination for logistic service providers in the world.

The reasons why India has a bright future in logistics are as follows:

  • Better Logistics: Logistics supported by technology has become an integral part of the industry. Several warehouses in the country are using automated handlers and IoT devices.
  • Boost in exports: With better exposure to premium brands and industries, exports have certainly got better. The quality of production and standards of manufacturing have improved. Overall, India’s global ranking in this aspect has improved substantially.
  • Logistics infrastructure upgraded: Logistics companies in India have realized the importance of better infrastructure. There are more warehouses now near prime ports. The companies are employing better tailor-made approaches and techniques.

India’s logistics sector has gained prominence because of the rising nation-wide consumerism and India Inc’s vision to work on last-mile delivery efficiencies.

The sector is also emerging as a leading employer of choice due to the increase in digitization, use of global best practices and rising relevance in the economy. There is a strong demand for professionals skilled in logistics. Hence, an academic degree in this domain carries immense value.

Read More: Scope and Career Opportunities After Diploma in Logistics & Supply Chain Management

Logistics firms need people with skills in data analytics, data management, project mapping, warehouse management and process conversion. They prefer professionals with exposure to international business, commerce, foreign trade and accounts.

A student with training in the logistics industry has a wide range of career options like:

  • E-commerce
  • Warehousing
  • Aviation (cargo handling)
  • Freight forwarding
  • Shipping &

Key Takeaways

Professionals in logistics and supply chain management have prime roles in large corporations. They also draw excellent salary packages as their responsibilities are crucial for any company. Logistics has grown in stature and scope to a large extent because of globalization and the associated perks. Government’s initiatives like Aatmanirbhar Bharat, Vocal for Local and the start-up revolution have made this sector the rising star.

Therefore, this is the best time to enrol in a comprehensive course and secure a degree in logistics and supply chain management. Read on to know your best option in this regard.

Join TransGlobe Academy School of Logistics

Offering the right skills and the best training is TransGlobe Academy School of Logistics. It offers Post Graduate Diploma and Diploma courses.

All graduates or candidates with an equivalent degree can apply for the 12-month PG Diploma in Logistics and Supply Chain Management course. The Diploma programme’s eligibility is Plus Two and its duration is 6 months. The tenure of both courses is perfect for anyone who wants to start early in this field. TransGlobe Academy also offers prominent certifications.

TransGlobe Academy helps students bag the best placement and internship opportunities in sectors like aviation, warehousing, hospitality and eCommerce.

Check out our programmes and apply for the Logistics and Supply Management course today.

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