Supply Chain in Emerging Market Vs. Developed Nation
Emerging markets like India are often chided for their poor and unreliable supply chains. A much cited number- India spends13% of GDP on Logistics compared to 8-9% in Developed world. We are supposed to be wasting 30% of agri produce due to non-availability of cold chains etc.
But are our supply chain really that bad? Do we need our supply chain to be working the way it works in- say Germany?
Take example of cold chains- if all the food consumed by Indians were to move through cold chain- what will be additional diesel required with its impact on fuel subsidy bill?
Cold Chain vehicles consumes 5 times more fuel than a normal vehicle. Thus, if all vegetables moving from Nashik were to travel in temperature controlled vehicles- imagine the jump in fuel required.
This does not mean we do not need cold chains or reduce wastage. But we can not apply models of developed economy on emerging markets in an as is mode.
Emerging markets like India are often chided for their poor and unreliable supply chains. A much cited number- India spends13% of GDP on Logistics compared to 8-9% in Developed world. We are supposed to be wasting 30% of agri produce due to non-availability of cold chains etc.
But are our supply chain really that bad? Do we need our supply chain to be working the way it works in- say Germany?
Take example of cold chains- if all the food consumed by Indians were to move through cold chain- what will be additional diesel required with its impact on fuel subsidy bill?
Cold Chain vehicles consumes 5 times more fuel than a normal vehicle. Thus, if all vegetables moving from Nashik were to travel in temperature controlled vehicles- imagine the jump in fuel required.
This does not mean we do not need cold chains or reduce wastage. But we can not apply models of developed economy on emerging markets in an as is mode.
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