The #Blockchain Keys to Improve India’s Supply Chain

Barcelona, December 24, 2020.- Maritime Gateway magazine has published a very interesting report on the advances of Blockchain technology in India, one of the most populated countries in the world, along with China. Blockchain will help overcome historical inefficiencies in India in this way:

India’s supply chain and logistics sector is undoubtedly one of the largest globally. It’s size, however, is not necessarily a source of comfort.

Pegged at $215 billion, and growing at a compounded annual growth rate of 10.5%, India’s supply chain is marred by an unbalanced logistics modal mix, high indirect costs, poor infrastructure, fragmented networks, and lack of technology adoption, notes a new report jointly published by the Confederation of Indian Industry (CII) and Arthur D Little.

While the Covid-19 pandemic has led to faster adoption of technology, it has also aggravated these supply chain issues. Consider this. Nearly 75% of companies worldwide are experiencing disruptions with most companies, unfortunately, not having any contingency plan to deal with this situation.

India’s supply chain is no different. Logistics cost in India stands at 14% of GDP, compared to the global average of approximately 8%. This has generated a competitiveness gap of $180 billion for India, which could increase to $500 billion by 2030, according to the report.

The report notes that India ranked 44 in the World Bank Logistics Performance Index, last released in 2018–way behind the US at 14 and China at 26. Other South-Asian countries such as Thailand and Vietnam also have high logistics costs. These countries’ costs reach 14- and 16-17% of GDP, respectively. However, they fare slightly better than India on the logistics performance index, with Thailand at 32 and Vietnam at 39.

Transportation represents approximately 40% of logistics costs, which amount to 6% of GDP. Transportation by road makes up the lion’s share of this cost, at about 64%, followed by rail at 30% and waterway and air transport at 5- and 1%, respectively. India has the second-largest road network globally, which totals 5.5 million kilometers, yet national highways account for less than 2.7% of the total network. This puts a severe strain on the national highway network, which carries about 40% of the road traffic.

The rail network fares no better. India has one of the largest rail networks in the world, spread over 1.2 lakh kilometers. However, the average speed of freight trains in India is 24-25 kmph, compared to 38-40 kmph for those in the US and China.

The report asserts that the slow adoption of supply chain technologies, such as AI, blockchain and IoT, remains a major shortcoming.

According to the report, digitization is no longer an option in today’s world. Rather, the entire supply chain needs to be connected by integrating physical networks with digital technology. The latest technology, such as geo-tagging, auto-capture, and big data, enables collaboration, better forecasting, and traceability along the network, which helps to monitor supply chains.

Technology-enabled forecasting helps reduce wastage along the supply chain by allowing organizations to manage demand- and supply-side shocks. AI, blockchain technology, and IoT will
bring breakthrough productivity gains in the supply chain network, the report notes.

The results are already showing in cases where these technologies have been adopted. For instance, automation in packaging has helped industries reduce the workforce by 20-30%, which has curtailed losses due to labour migration, according to the report.

The report cites the example of how Proctor and Gamble (P&G) used technology when a hurricane disrupted the company’s supply chain in New Jersey eight years ago. Hurricane Sandy, which hit New Jersey in 2102, disrupted production in the P&G factory that made 91% of its perfumes, according to the report.

To tackle the problem, P&G deployed a cloud-based platform for real-time information on production and external demand, which helped minimize the fallout. The use of advanced analytics and quick decision-making limited the plant’s downtime to two-and-a-half days. Further, in 2017, P&G used digital tools to predict which suppliers, plants and distribution centers were likely to suffer damage from Hurricane Irma in Florida. This allowed the company to prepare for contingencies and avoid disruption and financial loss, according to the report.
The CII – Arthur D Little report insists that Indian companies should adopt a similar proactive stance if they want to improve their supply chains.

Key findings of the report:

COSTS: Logistics cost in India stands at 14% of GDP, compared to the global average of approximately 8%

DISADVANTAGE: This has generated a competitiveness gap of $180 billion for India, which could increase to $500 billion by 2030

TECHNOLOGY: Supply chains are transforming globally by adopting Industry 4.0 trends including agile networks, disruptive technologies, end-to-end visibility, and risk mitigation Vs. risk management

AI / IoT: India can benefit from the experience of mature economies, which have used emerging technologies such as artificial intelligence (AI), blockchain, and the Internet of Things (IoT) to enhance supply chain operations and resilience

DIGITAL To make India’s supply chain competitive, efficient, and resilient, Vision 2030 aims to pare logistics cost to 7-8 percent of GDP, optimize the logistics modal mix, digitalize 90% of supply chain operations, develop omni-channels, move towards green supply chains and enhance skill development.

  • Top 10 supply chain and logistics trends fueled by digital ecosystems
    Barcelona, March 4, 2021.- Mike Walker, Director of Applied Innovation at Microsoft, has published in Forbes magazine an interesting analysis on the implications of Blockchain technology in Logistics. 1. Digital Giants Incursion Traditional logistics providers are under attack. With parcel …
  • Blockchain Technology Solutions: What is Self-Sovereign Identity and what is it for?
    Barcelona, February 24, 2021.- Blockchain is the provision of decentralized information, in other characteristics. The application of Blockchain technology to the daily life of citizens increases. Today we talk about the Self-Soverign Identity solution according to the information published by …
  • Success against # COVID19 should thank blockchain solutions in critical scenarios
    Barcelona, February 13, 2021.- Blockchain technology has been implemented in several critical scenarios against the global COVID-19 pandemic. Both in the logistics of the different vaccines, as in the capillary distribution. The following report published by IoT For All is …
  • New York Times explains the evolution of #Blockchain #technology in 2021 with its origins in cryptocurrencies
    Barcelona, February 4, 2021.- New York Times, one of the most influential newspapers in the world, has published a great report on Blockchain technology, from its origins to the present day. For your interest, we reproduce a summary below: Don’t …
  • Reflection on the real and true importance of #blockchain #technology in the #supplychain, today
    Barcelona, January 24, 2021.- We have read this analysis by John Walker, President at Holo Sail Holdings Incorporated CEO at Holo Sail Technologies Inc. on the relevance of Blockchain solutions in the supply chain. We hope you find it interesting because …
  • #Blockchain technology participates in the global distribution of vaccines against #COVID-19
    Barcelona, January 14, 2021.- the BSA Foundation is an independent and nonpartisan international research organization aimed at educating policymakers and the broader public about the hugely positive impact that software has on our lives, our economy, and our society . …
  • Interesting #Blockchain project of the pharmaceutical company Pfizer
    Barcelona, January 4, 2021.- Outsourcing magazine published the experience of the pharmaceutical company Pfizer in a Blockchain project a few months ago. Pfizer today markets one of the world’s first COVID-19 coronavirus vaccines. We publish below an extract of …
  • The #Blockchain Keys to Improve India’s Supply Chain
    Barcelona, December 24, 2020.- Maritime Gateway magazine has published a very interesting report on the advances of Blockchain technology in India, one of the most populated countries in the world, along with China. Blockchain will help overcome historical inefficiencies in …
  • Success Story: Blockchain technology improves wine quality
    Barcelona, December 14, 2020.- Blockchain technology and wine manufacturers have come together to create a solution that improves the quality of wine. This is what we read on TechRepublic: Wine shipment, monitoring, and quality-scoring company eProvenance announced the rollout of …
  • Blockchain Success Story: HANSEBLOC Project and the Hamburg Logistics Initiative network
    The German government’s blockchain strategy was not adopted until late in 2019. “I am eager to see how the project develops over the next few years.” Barcelona, December 4, 2020.- Blockchain technology accumulates, day by day, new success stories, projects, public and private initiatives in …
  • #Blockchain infrastructure for two major China Ports
    Barcelona, November 24, 2020.- The freight ports are also committed today to digitize themselves, to implement the latest technologies to gain efficiency, productivity and profitability. Chinese ports have turned to Blockchain technology as a secure technology solution. As reported by …
  • What technology companies are leading the expansion of the #Blockchain in 2020-2021?
    Barcelona, November 15, 2020.- The has published a report on Blockchain technology. The most important investments in the world, the most mature projects, the companies with the greatest potential. It is a diagnosis to take into account to evaluate …
  • España, primer país del mundo en aprobar el estándar de identidad #blockchain
    Barcelona, 4 de noviembre del 2020.- La publicación Blockchain Economía ha publicado la siguiente información en la que destaca un importante avance para la tecnología Blockchain en España. La aprobación de una norma pionera que puede facilitar la implantación de …
  • According to the World Economic Forum by 2027 some 10 percent of global GDP will be Blockchain-based
    Barcelona, October 23, 2020.- Day by day, technological solutions based on Blockchain convince more digital professionals, IT departments in transport companies, public and private organizations, universities, etc. Precisely, from the university world of Australia we bring today this report on …
  • Walmart Canada and Toronto-based #blockchain firm DLT Labs launched a blockchain-based platform for supply-chain automation
    Barcelona, October 15, 2020.- Success stories on the implementation of a new technology are always useful for companies, whether they are multinationals, small and medium-sized companies. Blockchain has been around for long enough to be known to the IT departments …
  • The Intersection Of Blockchain And Supply Chain
    Barcelona, October 7, 2020.- Author: Ayman Shoukry is the Chief Technology Officer (CTO) of Specright, the first purpose-built platform for Specification Data Management. This analysis has been published in Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and …
  • The transport and logistics sector is becoming increasingly digitised as supply chain management and visibility remain as important as ever
    Barcelona, September 24, 2020.- The global economic recession needs innovative solutions, based on technological tools. Blockchain is a young technology solution, but promoting. Professionals who know its advantages count every day its main advantages. Information Age has published a very …
  • More than four out of ten (43%) of senior decision-makers at mid-market discrete manufacturers identified artificial intelligence (AI) among technologies likely to have the greatest impact on supply chains
    Barcelona, September 14, 2020.- During the last weeks, numerous smartphone manufacturers have been presenting their latest devices. Many of them already benefit from Artificial Intelligence (AI) to offer effective and simple technological solutions for anyone. Artificial Intelligence will find its …
  • El matrimonio IoT + Blockchain, las soluciones tecnológicas a incorporar a nuestra vida diaria
    Barcelona, 7 de setiembre del 2020.- La transformación digital que ha empujado la #Covid19 en todo el mundo acelerará la llegada de tecnologías disruptivas y su conversión a soluciones cotidianas en nuestras vidas personales y profesionales. Cointelegraph ha publicado las …
  • The best visual explanation of what blockchain technology is for your business and for your personal life
    Barcelona, August 31, 2020.- The 5th industrial revolution will be technological and each citizen will benefit. For example, Blockchain technology will transform company processes and the way we interact on the Internet. Its importance will be vital in the coming …
  • Blockchain: The best economic time to adopt a disruptive technology, still little implemented
    Barcelona, August 24, 2020.- Blockchain technology is still unknown by large and small companies. Its adoption is slow, according to the CapGemini consulting firm. In other words, now is the best economic time to bet on a new technology with …

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s