Inside Exclusive Conversation with Aparna Sharma, HR Practitioner & Independent Director on Corporate Board
Vishal Kedia, Founder & Director, Complykaro Services Pvt. Ltd.
Sanjay Desai, General Manager –Asia, Supply Technologies
Dear Readers,
As we step into the new Financial Year 2024-2025 and embrace the heat of Indian summer, our latest issue seeks to champion diversity and inclusion, reflect upon leadership in supply chain, and brace for the summers with cold and frozen food accessible across through our cold chain logistics. And if you are still struggling with the concept of Blockchain and its applications in the supply chain, we have an article just for you.
As a nation we pride ourselves on our diverse cultural, linguistic, and religious mosaic. However, equal opportunities are still a long shot. In this issue’s Cover Story, we delve into how businesses across the subcontinent are redefining their frameworks to be more inclusive, fostering environments where diversity is not just celebrated but is also seen as a keystone for innovation and growth. This narrative is not just about acknowledging differences but leveraging them as a force multiplier to drive India’s economic engine forward.
Our Special Report puts the spotlight back on the criticality of the cold chain infrastructure in India. We explore the advancements and hurdles in this domain. We also shed light on the innovative solutions companies are adopting to keep the cold chain unbroken and resilient.
In India, April marks the commencement of the new financial year. This year is especially significant, as it precedes a period brimming with anticipation—the Lok Sabha elections. Over the next three quarters, we will witness the unfolding of events that will shape the political and economic landscape of our nation.
Whatever be the political and economic situations, the relentless nature of the supply chain and logistics profession will continue. Through the pages of our magazine, our mission has persistently been to provide that additional insight, empowering professionals to excel in their unceasing efforts.
Warm Regards, Charulata Bansal Publisher Charulata.bansal@celerityin.com www.supplychaintribe.com
The traditionally male-dominated domain of supply chain management has undergone a notable shift, welcoming remarkable women into pivotal roles, whether in strategic decision-making, warehouse management, or ensuring seamless last-mile deliveries. Our featured Cover Story delves into this compelling paradigm shift, showcasing women’s ascendancy to the driver’s seat in the supply chain domain.
As experts unequivocally emphasize that India’s cold supply chain faces a pivotal juncture between innovation and adaptation, trends shaping this year set the stage for a stronger industry. This Special Report traces the changing dynamics of cold chain segment and presents the wish lists of user companies from 3PLs to strike the right equilibrium…
Sanjay Desai, General Manager – Asia, Supply Technologies, emphasizes, “Supply chain is at the forefront leading the way for organizations in a convoluted economic environment.”
Aparna Sharma, HR Practitioner & Independent Director on Corporate Board, highlights, “A commitment to full inclusivity is now a leadership and business competency.”
Vishal Kedia, Founder & Director, Complykaro Services Pvt. Ltd., stresses, “Diversity and inclusion (D&I) are not just trendy terms; they are fundamental components of a successful and sustainable organization.”
Sanjeev Kumar Roy, Chief Procurement Supply Chain Therapist, introduces the concept of Blockchain technology and discusses its application in revolutionizing the traditional supply chain processes, which are often based on “multiple bilateral links joined together to form a chain” as opposed to the Blockchain, which is based on the “formation of an open ecosystem for collaboration”.
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Ele a ng India's F t re thro gh Integrated Infra De elopment in Road, Rail, Air, Sea, and Water a s No otel, Interna onal Airport, M mbai J ne , . am - pm
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Unfolding the F t re: Roadmap to USD Trillion Econom in Three Years
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Global Hori ons for Make in India: Na iga ng Challenges, Sei ing Opport ni es
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Unit in Di ersit : Harnessing Cross-Sectoral Collabora on for Accelerated Gro th
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Pioneering Change thro gh Inno a on and Start ps
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S ppl Chain Resilienc & Risk Management
The Indian cold chain market size grew to Rs1,81,490 crore in 2022, and it is expected to reach Rs3,79,870 crore by 2028, exhibiting a CAGR of 12.3% during 2023-2028, per the recent estimates by Imarc. As experts unequivocally emphasize that India’s cold supply chain faces a pivotal juncture between innovation and adaptation, trends shaping this year set the stage for a stronger industry dynamic. In coming years, stakeholders aim to adopt technological advancements, sustainable practices, collaborative efforts across the supply chain and focus on skill development to meet the evolving needs of this vibrant market. The Special Report traces the changing paradigms of cold chain segment and presents the wish lists of user companies from 3PLs to strike the right equilibrium…
THE global cold storage sector has expanded rapidly in the past decade, growing from around 550 million cubic metres in 2014 to an estimated 785 million cubic metres by 2022. This reflects a 4.5% compound annual growth rate (CAGR). Assuming this same CAGR, the market will grow to more than 1.1 billion cubic metres by 2030. Despite strong potential growth, this is arguably a conservative estimate. A JLL research stated that rising interest in the cold storage sector is underpinned by the structural growth drivers of the market. Global disruptions highlighted the importance of resilient supply chains, and the vital role cold storage real estate plays in these networks. Changing consumption patterns and the movement towards e-commerce has led to a surge in the need for efficient cold chain logistics and more cold storage real estate. These factors have and will continue to have long-term demand implications for the
amount of cold storage space needed, how they are designed and operated, and where they are located.
Our Q&A with experts from various industry domains brought forth intriguing insights into the transformational cold chain landscape. Here’s what they highlight…
How is the cold chain segment performing over the years?
Preeti Saluja, Pharma Cold Chain Expert and Consultant: While the cold chain market was always growing, it came into limelight and especially the pharma cold chain, when Covid-19 hit us and the rest is really the history. More so, the growth of the pharmaceutical cold chain market can be directly proportional to the increasing demand of therapeutic modalities, such as biologics, more than 85% of which require cold chain management. Great number of biologics are currently being tested in clinical trials. Cell and gene therapy is another segment requiring cold chain
among other biological segments. Therefore, the anticipated success of these drugs is likely to act as an impetus to the growth of market. Moreover, the need for importing / exporting goods (food, pharmaceuticals, and chemicals) from / to other geographical regions has emerged as the major driving force for the cold chain transportation industry segment. As a result, the cold chain market is expected to grow considerably in the coming years.
Further, the cold chain market is benefiting greatly from the integration of internet of things, artificial intelligence, and real-time temperature monitoring devices, which aid in ensuring the safety and quality of pharmaceutical products in transit. The only from here is the growth path.
Kartik Jalan, Founder & CEO, Indicold: As per industry estimates, the Indian cold chain market size reached Rs2,052.7 billion in 2023. Looking forward, the burgeoning Indian cold
In India, the cold chain industry is poised for significant growth, driven by factors like increasing investments in infrastructure, government initiatives to get nutritious food to consumers, and the adoption of advanced technologies. The global warming phenomenon presents both challenges and opportunities for the cold chain sector, as rising temperatures necessitate more stringent temperature control measures while also creating greater demand for cold storage and transportation services. Indicold's mission aligns with addressing these challenges by providing sustainable and technologically advanced cold chain solutions to meet the evolving needs of the market. The future of the cold chain industry through our lens will likely see continued investments in warehouse automation, such as automated storage systems and robotic picking technologies, to further enhance operational efficiency and meet growing demand.
chain market is expected to reach Rs5,596.9 billion by 2032. The cold chain segment in India has demonstrated remarkable growth in recent years, with the market size expanding at a CAGR of around 14-15% annually. This growth is propelled by various factors including increasing consumer demand for fresh and frozen foods, rapid urbanization, and the expansion of organized retail and e-commerce sectors. To meet these demands, a range of cold chain solutions have emerged, such as refrigerated transportation, cold storage warehouses, and advanced temperature-controlled packaging. Additionally, warehouse automation is set to play a crucial role in optimizing cold chain operations going forward, with technologies like robotic palletizing, automated storage and retrieval systems (AS/RS), and conveyor systems streamlining inventory management and order fulfilment processes.
Mandar Kulkarni, Head – Warehouse & Logistics, Sun Pharma: The “Cold Chain” in Pharmaceutical Industry is the end-to-end system of manufacturing of vaccines, transporting, storing and distribution till end user often within the temperature range of 35°F (2°C) to 45°F (8°C). The cold chain in the Pharma industry has been on a steady incline in recent years. The global cold chain market for pharmaceuticals is estimated to be worth $6 billion in 2023 and expected to grow at 9% CAGR and may go up to $11 billion the forecast period 2023-2027. The continuous R&D
in pharma sector along with launch of the National Health Protection Scheme (NHPS) in India in 2018, with the objective of extending healthcare insurance, is adding into the growth in demand for pharmaceutical products in India. Also, the growing consolidation in the global healthcare logistics market will facilitate the global pharmaceutical cold chain logistics market for pharmaceutical industry growth. Hence to cater the larger volume requirements, the pharma/end user companies will look for designing and building the efficient warehousing, transportation and distribution specialized in coldchain healthcare logistics services. Apart from this, the pharma establishments and related service providers will use market consolidation as a strategic tool for overall business expansions. This market consolidation strategy will adopt the regional technologies developed from regional players and expanding their market presence in the competitive market. These factors will increase the cold chain logistics for pharmaceuticals market growth during the forecast period.
Tushar Ghai, Senior Manager — Supply Planning & Operations, Bira 91
The India Cold Chain Logistics Market size is estimated at US$10.30 billion in 2024, and is expected to reach US$13.58 billion by 2029, growing at a CAGR of 5.67% during the forecast period (2024-2029). The rising demand for perishable goods has been propelling
market growth. Furthermore, a shift in consumer behavior is driving the market tremendously. The India cold chain logistics market is a fragmented market consisting of a large number of local players to cater to the growing demand. Companies investing in streamlining the supply chain and having advanced technology have an edge in getting a good share of the market. Global players can partner with local companies to invest in the market and gain profits.
Preeti Saluja: There are many challenges. If we look deeper into the figures of the damage and wastage of pharma product due to broken cold chain, numbers are quite alarming. Alarming enough to swing into action to ensure to provide correct ambience for temperature control management. Challenges in broader terms could be categorized as challenges related to correct packaging and cold chain storage, which could include disrupted temperature control, risk of contamination and damage. The very fact that broken cold chain in pharmaceuticals could lead to ineffectiveness and loss of efficacy, more so, poses a risk of it becoming fatal for humans. There have been instances when people have lost their lives due to ignorance in the matter and therefore it cannot be overstressed.
While we may think that we can control 100% of the cold chain journey, in reality, we cannot. Simple reason is the many links in the cold chain journey and at times, there could be
anticipated challenges and there could be unanticipated challenges like equipment breakdown, incorrect storage of the samples, mix ups, incorrect handling of the packages containing temperature control products and sometimes when you try to control all other aspects, tarmac happens.
Kartik Jalan: Challenges within the cold chain industry include maintaining consistent temperature control throughout the supply chain, managing operational costs, adhering to stringent regulatory requirements, handling the complexities of international shipments, and minimizing the environmental impact of cold chain operations. To address these challenges, various solutions are implemented. Automation technologies, such as IoT sensors and automated monitoring systems, enable real-time data collection and temperature monitoring, ensuring compliance with regulatory standards and minimizing product spoilage. Additionally, advanced warehouse automation solutions, such as robotic palletizing and automated storage and retrieval systems (AS/RS), streamline inventory management and order fulfilment processes, reducing operational costs and improving efficiency. Furthermore, investments in greener technologies for refrigeration and packaging contribute to minimizing the environmental footprint of cold chain operations, aligning with sustainability goals. Overall, the integration of these solutions helps overcome challenges and ensures the reliability and efficiency of the cold chain process.
Mandar Kulkarni: The Cold chain begins when vaccine gets manufactured, moves through to the state or national distribution centres and ends with the local immunization provider. Since the vaccines are consumed by human beings, each stakeholder involved in handling vaccines is responsible for maintaining the temperature controlled condition (avoiding temperature excursions) and preserve the potency at each and every step during storage transportation. The altered potency and integrity of vaccines is irreversible & can affect the quality and its effectiveness if not controlled within the prescribed temperature range (on either side of temperature range-up/ down). The Cold chain involves several complex challenges under distribution,
technology, warehousing, packaging solutions, standardization in packing, process oriented, business challenges, quality and temperature excursion challenges. Distribution challenges can be haul capacity utilization, reefer vehicle load formation, PTL shipments facing airline connectivity issues, packaging issues may include proper shipper material & sizes along with right type of gel packs, business challenges due to demand fluctuations, process & technology challenges may involve visibility & monitoring system. The challenges/risk areas can be addressed through proper storage/transport, effective communication & coordination among several stakeholders involved in supply chain, vehicle quality, addressing power failure/breakdown issues, etc. There is need to monitor the movement and temperature of plug in the cargo transport unit throughout its journey. The vaccines/pharma cold chain products are very expensive and hence needs proper control on all parameters to prevent losses.
Tushar Ghai: Cold chain logistics in India is growing rapidly and is currently the most focused area in the supply chain management industry. A few common gaps currently in the ecosystem include:
Limited Tech Integration: Several cold chain logistics facilities still rely on manual temperature monitoring and inventory management processes. This lack of tech integration leads to data inaccuracies and delays in decision-making, increasing the risk of product spoilage. It directly impacts the safety, quality and profitability of temperature-sensitive goods. However, the introduction of artificial intelligence, the Internet of Things, and machine learning are accessible, and it is ideal to incorporate these technologies into the cold chain management structure.
Inefficient Infrastructure: The cold chain infrastructure in India is still developing and needs to improve its efficiency. Many regions, particularly remote and rural areas, need proper storage facilities and transportation networks for a seamless cold chain. This infrastructure needs to be improved to enable seamless distribution of temperature-sensitive goods, which is otherwise hindering its reach till the end
consumers.
No Cost Efficiency: Business operations with cold chain logistics are capitalintensive, and energy costs comprise a significant portion of the total expenses. Inefficient refrigeration systems and a lack of cost-effective energy solutions certainly increase operational costs, making it challenging for businesses to maintain a profitable cold chain.
Unorganized Industry: Despite growing rapidly, India’s cold chain logistics remains largely distorted and unorganized. Several small players operate independently, generally needing more standardized practices and quality controls.
Scope of Human Error: While most of the cold chain facilities in India function manually, the scope of human error remains a significant concern. From incorrect temperature settings to mishandling of products during transportation, the potential for error is high.
What are the wish lists of user companies in managing temperature sensitive goods?
Preeti Saluja: There could be a long list of wish lists:
The robust packaging systems, which lasts longer than standard 72/96/120 hrs with minimal external management to manage parcel size shipments.
Predictive temperature management for Pharma using AI which enables selection of right packaging for specific routes.
AI interference for selecting the shortest and effective routes.
Better infrastructure at the airports, no matter how much we boast of having seamless processes and perfect infrastructure, I think at a global level, we are far from achieving the perfection. In case of heavy loads at the airports, ground handling agencies still struggle for the space in their freezers and cold rooms. Better infrastructure across the globe is one of the major wish lists for sure.
Managing offloads with the airlines,
The cold chain market is benefiting greatly from the integration of internet of things, artificial intelligence, and real-time temperature monitoring devices, which aid in ensuring the safety and quality of pharmaceutical products in transit. Sustainable and intelligent packaging solutions are a talk of the town now. Smart packaging which could not only be able to provide the real time tracking but also do predictive analysis based on AI. Technologies like big data, predictive analysis, and AI are ushering significant benefits to the pharma sector’s cold supply chain. Real-time temperature-monitoring and control in smart storage warehouses, facilitated by AI, robotics and IoT, are facilitating accurate and consistent temperaturecontrolled environments, reducing the risk of product spoilage.
not sure, how this could be controlled though.
Temperature management at TARMAC would take my biggest vote.
When it comes to cold chain sea shipments, the biggest challenge is managing the plug off timings, so better thermal blankets with PCMs could be the answer amongst other solutions.
For pallet size shipments, availability of active/passive systems at the remote locations could be an answer to many challenges.
Supply chain management through drones for remotest of the locations is another chapter to be read. Understandably some trials are on their way for sure.
Kartik Jalan: Clients managing temperature-sensitive goods seek greater efficiency, reliability, and sustainability in the cold chain process. This includes real-time monitoring, automated systems for temperature control, and environmentally friendly packaging solutions. Indicold, a leading player in the Indian cold chain industry, aligns with this vision by providing end-to-end cold chain solutions with a commitment to sustainability and innovation. Through warehouse automation, Indicold enhances operational efficiency and product integrity, ensuring that temperature-sensitive goods are handled
with precision and care throughout the supply chain.
Mandar Kulkarni: The basic wish lists consist of maintaining temperature condition (NIL temperature excursion cases), timely deliveries to locations wherever urgencies exist for serving cancer patients and addressing critical illnesses. The express delivery solutions at optimum cost, zero missed deliveries are desirable. Other expectations may be for freight cost reduction by optimizing the right packaging solutions for different sizes of packed vaccine shippers. In case there is expected delay in deliveries (> 48 hours) due to any issues like air connectivity, road challenges, etc., then there should be back-up plans for arranging separate facilities/re-packing infrastructure for replacement of gel packs so that the current maintained temperature condition gets extended for few more days. The online tracking of temperature and deliveries, timely alerts through SMS/mails and on time actions could be the requirements. Need to have adhered vehicle checklist points along with data loggers/GPS enabled FTL, Milk run and PTL temperature controlled solutions to ensure that each shipment is shipped in the most optimum mode of transport, increasing its reliability. It’s also important to have drivers trained and equipped for quality monitoring, risk management, repairs, sensitivity and escalations through matrix to address any unforeseen issues.
Tushar Ghai: In my view, the most important wish list in managing the
temperature sensitive goods is the adoption of more mature ecosystem to handle temperature sensitive and shelf life sensitive products. Secondly, end to end tracking of vital parameters for maintaining and ensuring the product quality & integrity is crucial. Moreover, there needs to be competitive pricing for maintaining cold chain and transporting temperature sensitive goods in order to ensure high customer satisfaction and great brand execution. Lastly, there is always a challenge of availability of a “Good Fit Vehicle” which should be resolved as part of ecosystem transformation and necessary training sessions.
Are logistics companies preparing to brace the latent demand and do we have state-of-the-art cold chain infrastructure in place to cater to the demand when it comes to cold chain shipments by air?
Preeti Saluja: Logistics companies may want to do many things but the reality of the situation is that logistics companies alone cannot do everything as they are also dependent on many other service providers to ensure that cold chain is maintained, to name a few, correct packaging is required to ensure that the qualification time of the box should be enough for it to last for its total transit time, once the shipment is handed over to the airlines, airlines and ground handling agencies must ensure the correct storage of the shipment and ensure to have the least of the tarmac exposure. Some agencies are also introducing cool dollies for this reason. Human Resources at the airlines and
The basic wish lists consist of maintaining temperature condition (NIL temperature excursion cases), timely deliveries to locations wherever urgencies exist for serving cancer patients and addressing critical illnesses. The express delivery solutions at optimum cost, zero missed deliveries are desirable. Other expectations may be for freight cost reduction by optimizing the right packaging solutions for different sizes of packed vaccine shippers. In case there is expected delay in deliveries (> 48 hours) due to any issues like air connectivity, road challenges, etc., then there should be back-up plans for arranging separate facilities/re-packing infrastructure for replacement of gel packs so that the current maintained temperature condition gets extended for few more days. The online tracking of temperature and deliveries, timely alerts through SMS/mails and on time actions could be the requirements.
GHAs must be properly trained to handle temperature sensitive products .After the shipment has successfully reached destination, correct storage is required until the time it is custom cleared and delivered. As for the state of the art cold chain infrastructure, it will be, of course, a wish list for many stakeholders but so far, we have miles to go.
Mandar Kulkarni: It is important to have the stocking of pharma products/ vaccines near consumption points to reduce the transit time and meeting on time requirement of hospitals/ patients. The planning of right quantum of stocking SKUs against inventory norms at central distribution centres as well as at regional depots can help in addressing this issue. The strategic location of warehouses can be based on market volume demand/needs and also can be supported by inputs on statewise variated electricity rates. Secondly, there are many 3PL companies coming up with large cold storage facilities and may provide logistical extension too. There are couple of service providers/ partners working in collaboration for building large sized upgraded warehouses nearby metro cities with technological advancements. If there is high variation in demand at client end, then if required, such kind of facilities can be availed based on variable cost basis with actual usage per pallet cost basis. There can be an advantage of consolidation and reducing overall supply chain costs. The collaborative approach across several companies within industry would be
the future. There are various innovative initiatives that would play out well in the future such as warehouses near consumption point, multi-temperature modular partitions to reduce electricity consumption and costs (also vehicles with partitions), etc. It is also important how the segmentation within cold room/ cool room is done along with modular partitions for reducing electricity costs.
Cold chain solution can have insulated pallet blankets, collapsible pallet storages, or which provides thermal barrier systems cover pallet loads to provide an enclosed thermal environment that passively manage product temperature during storage and transport. Pre-qualified offthe-shelf temperature-sensitive courier shippers designed temperature-sensitive deliveries in specific insulation like PU, EPS, PU polyurethane, Vacuum insulated panels, etc.
How are logistics companies preparing to brace the latent demand and do we have state-ofthe-art cold chain infrastructure in place to cater to the demand?
What’s happening on warehousing front as well in this regard?
Kartik Jalan: In India, the cold chain industry is poised for significant growth, driven by factors like increasing investments in infrastructure, government initiatives to get nutritious food to consumers, and the adoption of advanced technologies. The global warming phenomenon presents both challenges and opportunities for the cold chain sector, as rising temperatures
necessitate more stringent temperature control measures while also creating greater demand for cold storage and transportation services. Indicold's mission aligns with addressing these challenges by providing sustainable and technologically advanced cold chain solutions to meet the evolving needs of the market. The future of the cold chain industry through our lens will likely see continued investments in warehouse automation, such as automated storage systems and robotic picking technologies, to further enhance operational efficiency and meet growing demand.
What are the innovations happening in this space?
Preeti Saluja: There are several innovations happening. Cold chain market stakeholders have started talking about and implementing a lot of newer technologies. The cold chain market is benefiting greatly from the integration of internet of things, artificial intelligence, and real-time temperature monitoring devices, which aid in ensuring the safety and quality of pharmaceutical products in transit. Sustainable and intelligent packaging solutions are a talk of the town now.
Smart packaging which could not only be able to provide the real time tracking but also do predictive analysis based on AI. Technologies like big data, predictive analysis, and AI are ushering significant benefits to the pharma sector’s cold supply chain. Real-time temperature-monitoring and control in smart storage warehouses, facilitated
by AI, robotics and IoT, are facilitating accurate and consistent temperaturecontrolled environments, reducing the risk of product spoilage. There is so much that is being tested at the moment and if I can say so, also being used when the budget and operational requirements meet each other.
Kartik Jalan: The cold storage industry is buzzing with innovation. First off, there's a significant focus on automation, with smart cold storage systems utilizing IoT sensors for real-time monitoring and automated storage and retrieval systems revolutionizing warehouse operations. Energy-efficient refrigeration technologies are also making waves, using variable frequency drives and evaporative cooling to minimize energy consumption. Then, there's the exciting development of traceability solutions like blockchain and RFID tags, ensuring product quality and compliance throughout the cold chain. Lastly, we're seeing advancements in insulation materials like vacuum insulated panels and aerogels, enhancing temperature stability within storage facilities. These innovations collectively drive efficiency, reliability, and sustainability in cold storage operations, marking an exciting evolution in the industry.
What are the regulations in place to enable such a highly specialized cold supply chain?
Preeti Saluja: Maintaining product quality and integrity requires a coordinated effort by stakeholders involved across the supply chain. It requires clear communication of risk mitigation guidelines. GDP (Good Distribution Practices) guidelines are needed to monitor and control pharmaceutical products from manufacturers to end consumers. Major pharmaceutical regulators like US-FDA, WHO, European Union, and PIC/S have issued GDP guidelines in their respective jurisdictions. The Indian regulator - the Central Drugs Standard Control Organization (CDSCO), has developed and issued draft guidelines for Good Distribution Practices (GDP) for pharmaceuticals in 2018 for comments.
What are the emerging trends in cold chain packaging?
Kartik Jalan: From an outsider's perspective, emerging trends in
Traditional warehouses with 40-foot ceiling heights are not conducive to efficient refrigeration because the square footage of the roof introduces heat from solar energy, increasing the load on the refrigeration system. Additionally, there may be an opportunity to increase the pallet capacity of a building footprint by 12% to 25% by raising the clearance height to 11 metres, up from 10 metres.
Source: JLL
cold chain packaging include a focus on sustainability with eco-friendly materials, integration of smart packaging technologies for real-time monitoring, emphasis on convenience and efficiency with lightweight and pre-packaged solutions, and customization to meet specific product and branding needs. These trends are shaping the industry towards sustainability, efficiency, and customer satisfaction. Indicold currently looks to partner with companies to provide such services as and when required by its customers.
What are the conducive policy mechanisms from the government?
Preeti Saluja: For India - National Logistics Policy (NLP) was launched on 17th September 2022 by the Prime Minister, Shri Narendra Modi. The targets of the NLP are to: (i) Reduce cost of logistics in India; (ii) improve the Logistics Performance Index ranking. As per Invest India Forty air cargo ports have been built to increase exports, and thirty airports have been equipped with cold storage facilities. There will soon be 35 multi-modal hubs nationwide, enabling seamless freight movement. The government of India has permitted 100% FDI in warehousing, which is especially needed for developing the growth of state of art cold storage facilities. With the imminent need for specialized equipment and storage solutions to maintain product integrity, FDI also helps accelerate Tech integration, which is a pressing need of the sector.
Funding from the government plus FDIs will bridge the gap and empower logistics companies to build cutting-edge infrastructure to upgrade and modernise the cold supply chain.
How is new age technology shaping the cold chain segment?
Kartik Jalan: New age technology is redefining the way goods are being transported, stored and distributed. Blockchain technology is being increasingly adopted to enhance transparency and traceability in the cold chain. Real-Time Monitoring: IoT (Internet of Things) devices and sensors are being integrated into cold storage facilities and transportation vehicles, enabling real-time monitoring of temperature, humidity, and other crucial parameters. Predictive maintenance techniques powered by AI (Artificial Intelligence) are helping cold chain operators anticipate equipment failures before they occur. Innovations in cold energy storage technologies are making cold chain operations more sustainable and environmentally friendly. Automation and robotics are streamlining cold chain operations, reducing dependency on manual labor and minimizing the risk of human error. Drones and autonomous vehicles are being explored for last-mile delivery in the cold chain segment. New-age technology is revolutionizing the cold chain segment, driving increased efficiency, sustainability, and reliability across the entire supply chain. At Indicold,
Higher quality insights are decisive for refrigerated products, therefore 2024 will see more investments in software that can improve visibility on the whole supply chain. Better tools will need to come in place to effectively monitor temperature-sensitive cargo and create an unbroken cold chain that has real-time visibility on the product conditions using uninterrupted data. Real-time monitoring will become even more precise, with GPS-enabled devices placed in the containers.
we are using data analytics, real time monitoring, predictive maintenance and building unique, state-of-the-art, future ready sustainable cold storage marked by cutting edge technologies.
Tushar Ghai: At present, the industry is undergoing rapid transformation, fueled by technological advancements in packaging materials and monitoring systems. Innovations in insulation, like the use of advanced aerogels and phase change materials, are enabling more efficient and longer-lasting temperature control. Concurrently, the integration of the Internet of Things (IoT)-based monitoring systems in packaging solutions is enhancing the traceability and reliability of the cold chain. These technologies enable real-time tracking of temperature and humidity levels, ensuring product integrity throughout the supply chain. This technological leap is crucial for sectors like pharmaceuticals where the efficacy of temperature-sensitive drugs and vaccines hinges on consistent cold chain management.
How do you foresee the expanse of pharma cold chain in times to come?
Preeti Saluja: Given the inclination of industry stakeholders towards forging strategic alliances focused on the development of cold chain products, we believe that the cold chain market is likely to evolve at a rapid pace in times to come. If I can say so, this is the era of the mergers and acquisitions, many stakeholders are undertaking initiatives to forge alliances with other industry
/ non-industry players and link the activities together to provide seamless cold chain services. stakeholders are actively engaged in providing multiple services related to the temperature controlled packaging solutions, such as reuse and rental services that involve reusing and leasing of the container / shipper for the transportation of pharmaceutical products. Drug distribution companies are tying knots with specialised logistics companies. Marriage between specialised temperature control packaging systems and logistic companies are proving to be a successful association. Passive and active containers collaborations and many others could be seen. In this era, the expanse of Pharma Cold chain is only going to get bigger and bigger, the aim is clear – expansion of portfolios for respective stakeholders and also their geographical reach.
Kartik Jalan: In the future, the cold chain is set to expand significantly due to globalization, technological advancements, evolving consumer preferences, climate change and regulatory requirements. This growth will be driven by increased demand for perishable goods and the need for more sophisticated infrastructure to meet rising expectations for quality and safety. Tier 1 and 2 cities are more likely to attract significant capital inflow and new capacity creation in the forthcoming years. India’s cold supply chain faces a pivotal juncture between innovation and adaptation. Trends shaping this year set the stage for a stronger industry. In coming years, stakeholders aim to adopt technological advancements, sustainable
practices, collaborative efforts across the supply chain and focus on skill development to meet the evolving needs of a dynamic market.
Mandar Kulkarni: The constant market surveys by the teams, predictive analysis, symptom analysis would constantly evolve the distribution pattern of pharma products. Companies are investing in healthcare supply chain and cold chain capabilities by providing cold chain facilities worldwide. They can offer tailored solutions for transport of temperature-controlled healthcare shipments within India to for 6,000+ postal codes. The express logistics (road/ air) by consolidation of shipments across whole pharma industry would be key for faster deliveries at optimum cost shared among them. Service partners will be integrating IoT technology for near realtime monitoring, ensuring visibility and product integrity. The growth in pharma industry will be accelerated with digital transformation journey along with innovations backed by data to strengthen the pharma eco-system. Also, the life science companies along with service partners would be proactively working on building the intelligent supply chain, which is customer-centric supported by technology and innovation.
The advocacy for Women @ Work has resonated across all sectors, igniting a fervent call for change. While the seeds of change are already sprouting, the pace of growth needs to be aggressive. Both globally and within India, we have enough and more inspiring tales of women taking charge and leading their organizations with unparalleled grace and skill. The traditionally male-dominated domain of supply chain management has undergone a notable shift, welcoming remarkable women into pivotal roles, whether in strategic decision-making, warehouse management, or ensuring seamless last-mile deliveries. Our featured Cover Story delves into this compelling paradigm shift, showcasing women’s ascendancy to the driver’s seat in the supply chain domain. Additionally, this section offers the perspectives of leading change agents committed to fostering diversity and inclusivity within organizations, ensuring environments where women thrive with safety and motivation.
WOMEN have made a strong comeback to the supply chain workforce in 2023, with gains at nearly every level of leadership, according to a survey by Gartner, Inc. The advances were particularly prominent at the C-Suite and executive level, where 26% of those roles (CSCO, SVP, EVP, CPO) are now filled by women, an all-time high and up from 19% in 2022. The survey showed that women now make up 41% of the supply chain workforce, up from 39% in 2022. However, frontline representation continues to lag, with women filling just 31% of these roles. “It’s particularly encouraging to see women make gains at the senior executive level, as we know that when a woman holds the top supply chain position this has a positive correlation with more women in leadership and in all roles through that organization,” said Caroline Chumakov, Director Analyst, Gartner Supply Chain Practice.
An increase in organizational goals around gender equality since 2020, as well as growth in the number of supply chain owned initiatives are clearly having a measurably positive impact on women in supply chain. The data suggests a virtuous cycle is possible as more women reach top leadership roles in their supply chain organizations, with a clear finding this year that a woman in the senior-most role leads to more women in leadership and all roles within the organization.
“This connection between female leaders and the effect on women in the workforce has positive implications for how supply chain leaders can better design their efforts to improve representation of women in supply chain,” said Chumakov.
Chief Supply Chain Officers (CSCOs) routinely report challenges with attrition broadly at frontline roles in manufacturing and logistics, particularly when compared to roles at desk-based jobs. The ability to attract more women to frontline roles— and especially in leadership roles in the physical operations ranks—could form a material competitive advantage over those who are unable to do so.
Providing flexibility was the most effective initiative in attracting and retaining women to frontline roles, significantly outperforming other areas such as benefits, employee engagement programs and even a focus on pay equity. However, only 41% of supply chain leaders had implemented an initiative dedicated to workplace flexibility at their organizations. “There remains a mismatch between employers’ fears of chaos and instability as a result of workplace flexibility policies and the realities of what we see in our research and case studies of successful supply chain organizations. What we see in our research is that flexibility is benefiting both the organization and their female employees,” said Chumakov.
Drawing inspiration back home, in a move that's testament to gender parity across workplaces, Dabur India has set up an all-women production line with
100% women employees at its largestever greenfield plant near Indore. In this first-of-its-kind development, a crew of 20 women are engaged in the production of Dabur's range of Vatika Hair Oils – a range of products 'Made by Women, for Women'. The move is part of Dabur's efforts to build a more diverse workforce and promote women empowerment in the manufacturing industry. The company will be further expanding this initiative with the inclusion of 30 more women in its factory workforce, going forward.
This all-women production line has been established at Dabur's Rs 550-crore greenfield manufacturing unit being set up near Indore in Madhya Pradesh. This line has been established to meet the growing demand for its range of natural personal care products, particularly hair oils. This line has a capacity to produce over 2.5 million packs per annum and will be operating in 3 shifts.
"Our groundbreaking move is not just a powerful statement for gender equality and women's empowerment in the workplace, but also serves as a shining example of breaking stereotypes and providing equal opportunities. This unit exclusively produces a range of hair care products designed by women, produced by women, for women. This unique approach ensures that the products cater to the diverse needs and preferences of the female consumer base, fostering a strong sense of connection between the brand and its consumers. And in the process, this unit is also significantly contributing to economic independence," Rahul Awasthi, Global Head of Operations, Dabur India Ltd.,
An increase in organizational goals around gender equality since 2020, as well as growth in the number of supply chain owned initiatives are clearly having a measurably positive impact on women in supply chain. The data suggests a virtuous cycle is possible as more women reach top leadership roles in their supply chain organizations, with a clear finding this year that a woman in the senior-most role leads to more women in leadership and all roles within the organization.
said.
The introduction of an all-women workforce, Awasthi added, has proven to be a catalyst for higher productivity, enhanced team cohesion, exceptional efficiency, attention to detail, and commitment to quality, translating into a 10% increase in the factory's overall productivity.
Since September 2023, Flipkart has been actively hiring women for fulfilment and sortation centres in Haryana. Amazon India also recently announced the launch of Women in Night Shifts (WINS) at one of its large Sort Centre in Haryana. In addition to Amazon’s existing initiatives, WINS is designed to provide a safe and supportive work environment for women, ensuring equal opportunities for both men and women to work in various shifts, and championing inclusivity for all.
In some states in India, regulations prohibit the employment of women in night shifts in warehousing operations facilities primarily stemming from concerns about women's safety and wellbeing. Amazon India has actively engaged with state governments to advocate for equal work opportunity for all. Through dedicated efforts and collaboration with authorities, the company has successfully enabled night shift operations for women across select sites in Tamil Nadu, Rajasthan, Gujarat, Maharashtra, Karnataka, Uttar Pradesh, Telangana, Punjab, and now, in Haryana.
"We believe in creating equal opportunities and addressing barriers that women face in the workplace and are thankful to the government for their support in enabling women to work in night shifts.," said Liju Thomas, Director – HR, India Operations, Amazon India. "The launch of WINS reiterates our commitment to promoting gender equality and nurturing a safe work environment for our employees and associates. We prioritize the safety and wellbeing of our associates offering comprehensive measures, such as transportation facilities, and enhanced security arrangements for those working in night shifts. We intend to extend this initiative to other sites in Haryana, reinforcing our commitment to a diverse and secure work environment.”
These efforts align with the broader
objective of increasing the representation of women in blue-collar roles within the industry.
Flipkart boasts a workforce comprising close to 30% women in its supply chain, including last-mile delivery roles. The company reportedly has over 800 women currently working night shifts across various locations in Haryana. Zomato also boasts over 2,000 female delivery partners nationwide. Presently, women constitute approximately 10% of the overall workforce in e-commerce companies. However, this figure is expected to see a significant uptick, with projections indicating a 25% growth in the size of the women workforce in the industry by 2024.
While working on the Women @ Work Cover Story, we received an interesting report by Reuters which honored Trailblazing Women 2024 In Supply Chain. We picked up few of the most impressive and thought-provoking insights of winners for others to get inspired and take challenges head on…
Andrea Fuder, Executive Vice President, Chief Purchasing Officer, Volvo Group, in Reuters’ report, was quoted as saying, “Investing in women and unleashing the potential of diversity is not just the right thing to – it’s also a clear business driver for Volvo Group. We are a people centric company, where all individuals can contribute and thrive to their fullest potential! I’m proud to lead our Purchasing team, with over 40% women, in building an ecosystem of supply partners to shape the world we want to live in!”
Karen Jordan, CSCO, PepsiCo, “Seeing is believing. Women need to see the opportunities that exist for them at all levels of any organization. At PepsiCo Beverages, we use our scale to ensure that women have the vision to see how they can thrive in any role from frontline to leadership.”
Kathryn Wengel, Chief Global Supply Chain Officer, Johnson & Johnson, “Women are catalysts for creating healthier people, healthier communities and a healthier world, and I’m proud
I believe the stereotyping around supply chain is the reason more women are not picking supply chain as a career option. Organizations need to make changes to ensure these stereotypes are broken. We need more women at leadership roles. We also need to encourage senior women leaders need to support the younger ones thru mentoring and sharing of own experiences. Young girls should find safe space to voice concerns and get them addressed. While some of these things are taking place as we speak, the pace is frustratingly slow. We need more urgency in this agenda with visible movement across the industry.
of the work we’re doing to advance women’s leadership in the fields of science, technology, engineering and manufacturing, and to inspire and develop the next generation of leaders. At Johnson & Johnson, everything we do is guided by Our Credo. It codifies our commitment to patients, the world community, stakeholders and our employees who work with us throughout the world. For more than 130 years, diversity and inclusion has been key to the success of Johnson & Johnson—starting as far back as 1908, when the company hired its first female scientist. And although this longstanding commitment is engrained in our Company heritage, we know there is
still much more work to do.”
Taking a leaf from these awe-inspiring quotes, we reached out to women professionals in supply chain and dived deeper into the changing dynamics of Women @ Work. Here’s what they said…
Women in supply chain used to be rare. However, inspiring stories of women leaders like you in this field are changing that narrative,
At Horizon, we prioritize capability and skills above all else. We hold a positive bias towards women with equal qualifications, ensuring a fair and inclusive workplace. Further to make our workplace safe, healthy, and supportive, we have internally established a POSH cell, which I personally lead to guarantee a thriving environment for our female employees. With three of our nine leadership members being women, Horizon demonstrates its commitment to diversity. Additionally, we sponsor skill development initiatives for all employees, including women, and foster networking through our Women’s Mentorship program, connecting them with women leaders across various industries for valuable exchange and growth opportunities.
inspiring others to join. Could you share your journey into supply chain and a message for women professionals?
Aarti Garde, Sr. Team Leader – Supply Chain Analytics & Digitalization, Elanco Innovation and Alliance Centre India, IAC: I began my journey in the supply chain industry as an eager engineering graduate, taking on the role of a planning analyst for Johnson & Johnson's medical devices business. This experience was instrumental in providing me with a comprehensive understanding of supply chain planning. I was fortunate to be under the guidance of exceptional leaders and mentors who encouraged me to further my education with an MBA. After 3.5 years in the corporate world, I pursued my PGDM from the Goa Institute of Management. This further broadened my perspective, teaching me how the supply chain is interlinked with other organizational functions.
Following my post-graduation, I joined Elanco in 2018, which was then a division of Eli Lilly, and have been part of this organization for the past six years. I embarked on my career at Elanco as a Demand Analyst and also played a pivotal role in the SAP Integration Project after our acquisition of Bayer Animal Health, serving as the Integration Process Owner for Demand Planning and Deployment. Today, I am proud to lead and develop the Supply Chain Analytics and Digitalization Team. Our team focuses on statistical forecasting, inventory analytics, Six Sigma and digital projects and business processes. In 2021, I also achieved my APICS CPIM certification.
In my decade-long career, I have primarily focused on planning and analytics. As I look towards the future, I am keen on delving into the manufacturing side of the business. I believe this will allow me to better understand the processes and intricacies involved, thereby enhancing my holistic understanding of the supply chain.
To all the professionals out there, my message is straightforward:
Love what you do. Passion is a driving force that can propel you to great heights.
Focus on the impact you are making within your organization. It's not just about the role you play, but the value you add.
Clearly define and work towards your essential wins, development goals, and career plan.
Seek out mentors and maintain regular connect with them. Their guidance can be invaluable.
Keep your mentors, seniors and leadership team informed about your career aspirations.
If you adhere to these principles, success is not just a possibility, but a certainty. And remember, always strive to broaden your horizons and seek out new learning opportunities. The more diverse your experience, the more wellrounded and adaptable you become. This adaptability is crucial in today's everevolving business landscape.
Pooja Malik, Head – Leasing, Horizon Industrial Parks: Throughout my career, I've remained rooted in the real estate sector and have been driven by the desire to expand my knowledge across various business functions within the industry. In my initial years, I contributed to the growth and development functions of retail giants such as Carrefour, Walmart India, and Decathlon Sports India, with a focus on expansion and business development strategies. From there, in a natural transition to a higher leadership role, I took on the position of Senior Vice President – Leasing, IndoSpace, learning all about the logistics real estate sector here. Progressing from a regional to a national head of leasing at Horizon Industrial Parks, I've continued to evolve and learn in this dynamic field and hope to continue in the coming years.
As a woman in this field, I've always believed in the power of hard work and competence, allowing my abilities to speak for themselves. I firmly believe that dedication and capability are the true keys to success. Secondly, and perhaps most importantly, establish a supportive ecosystem that nurtures your career and ambitious goals, allowing you to focus your energy on activities that
directly contribute to your success. This means effective delegation both at home and in the workplace.
Himani Kanwal, Senior Principal, Miebach Consulting GCC: I chose supply chain because it was a wonderful intersection between engineering and management which worked well for me to leverage my strengths. I never viewed it from a gender point of view. And that’s what I would recommend to all young women also. Find your strengths and interests and then a job/role/startup that helps you leverage those. Skills are not gender based; else world’s best Chefs won’t mostly be men.
Dr Seema Narera, FMCG Vertical Head, South Asia, Maersk: I started my journey in Supply chain with Unilever, while working in the front-end supply chain and managing Order to Cash process. Since then, I moved across different legs of supply chain leading Demand Planning, Supply Planning, procurement, WnD, etc. Today I am heading South Asia FMCG vertical for Maersk Integrated logistics. Please note that traditionally people confuse supply chain with only trucking, running factory operations or managing “godowns” while today supply chain is a vast function which is increasingly getting automated, safe and transparent. There is a plethora of opportunities in demand planning, procurement, vendor management in addition to traditional logistics. Also, with businesses relying more and more on supply chain to drive competitive advantage for their businesses, there is a need for smart multitaskers and not just execution specialists in this field. I would highly urge women to consider Supply Chain as a career option and delve deeper into it before cancelling it out as “Not for Women” work.
Why do you think women tend to avoid supply chain careers? How can companies address these barriers, and do you see the situation improving?
Aarti Garde: Historically, the supply chain industry has been male dominated, a trend largely attributed to misconceptions about the nature of the field and the lack of visibility of successful
women in this sector. Many women may not choose supply chain as their career path due to a limited understanding of what the field entails, often perceiving it as purely operational or technical, and overlooking the strategic and managerial aspects. However, I'm witnessing a significant shift in this landscape. More and more women are exploring careers in supply chain, breaking barriers, and making their mark in the industry. This is a promising trend that showcases the evolving dynamics of the field.
Corporations can further accelerate this change by taking proactive measures. They can foster an inclusive culture that values diversity, ensuring that their policies support women in the workplace. Promoting the diverse roles within the supply chain industry is another crucial step. By highlighting the strategic, analytical, and managerial aspects of these roles, companies can appeal to a broader range of talents, including women. Mentorship programs can also play a significant role. Pairing aspiring women professionals with established leaders in the field can provide valuable guidance, support, and role models, encouraging more women to consider careers in supply chain.
Moreover, educational institutions can contribute to this change. By integrating more supply chain-related subjects into their curriculums, especially in engineering and business courses and organizing guest lectures they can provide students with a comprehensive understanding of the field, thereby encouraging more women to consider this as a viable and rewarding career path.
Pooja Malik: One of the probable reasons behind women not choosing supply chain previously and even to some extent presently as their preferred career stream is safety concerns in warehousing locations. Factors such as distance, transportation issues, and the inability to take up late-night shifts due to security concerns pose barriers for female employees. While gated parks provide a level of safety within the premises, they don’t extend beyond the gates when the employees commute home.
On the other hand, last-mile delivery roles, situated within cities, are more conducive to employing women. In recent
In the journey towards a more inclusive supply chain ecosystem, women can break biases and build support systems through a combination of clarity, communication, and organization culture. Having clear career goals and voicing these ambitions is crucial. When women articulate their aspirations and seek support, they not only pave the way for their own advancement but also set a precedent for their colleagues. With determination, support, and a conducive work environment, women can break through barriers and contribute significantly to an inclusive supply chain ecosystem.
times, there has been a growing realization that women are good workers. They work hard, stick with their jobs, and don't quit easily. This is beneficial for businesses because it costs time and money to train new employees, so it's better when people stay in their jobs. To address these barriers, corporates can focus on enhancing safety measures, providing transportation facilities, and offering flexible working hours to accommodate the needs of female employees. Moreover, promoting a culture of inclusivity and actively encouraging women to pursue careers in supply chain through targeted recruitment and retention strategies can
Women in supply chain need to vocalize their stories to other aspiring youngsters to encourage them to join supply chain ecosystem. Also, existing women need to vocalize their needs to organizations to make a more conducive work environment for future. Senior leaders should encourage newcomers to take risks, try unconventional roles which prove a support system and fall-back plan. Unless we try, we will not know what all is possible in breaking these barrier.
contribute to further improving gender parity in the sector.
Himani Kanwal: I believe the stereotyping around supply chain is the reason more women are not picking supply chain as a career option. Organizations need to make changes to ensure these stereotypes are broken. We need more women at leadership roles. We also need to encourage senior women leaders need to support the younger ones thru mentoring and sharing of own experiences. Young girls should find safe space to voice concerns and get them addressed. While some of these things are taking place as we speak, the pace is frustratingly slow. We need more urgency in this agenda with visible movement across the industry.
Dr Seema Narera: Like I said,
traditionally supply chain is viewed as running operations in far-flung areas where godowns and factories are established. Due to lack of accessibility and infrastructure, these places were considered unsafe for women to work in, which ultimately became a deterrent for women as well as businesses to see them as possible work option for women. However, now infra is rapidly getting better. Physical and network accessibility improvement has made the areas safer. Businesses are also making conscious efforts to define Safe travel SOPs, provide company monitored and managed transport while also driving gender diversity in hiring agenda. Also, today, as we have some women leaders rising to the top in supply chain function, more women would get encouraged to make supply chain a career option without worrying about growth options.
Diversity and inclusion have become one of the key corporate strategic pillars. How is it shaping up in the supply chain and logistics domain?
Aarti Garde: In the supply chain and logistics sector, diversity and inclusion are paving the way for innovation and improved decision-making. Diverse teams bring a wealth of perspectives, sparking creativity and comprehensive problem-solving. Moreover, an inclusive culture attracts a broader talent pool, essential in an industry often facing talent shortages.
However, we must recognize that the journey towards true diversity and inclusion begins at the educational and knowledge level. While many organizations are committed to their D&I initiatives, the challenge often lies in the lack of diverse applicants. This is where educational institutions and early career guidance play a critical role. By promoting supply chain and logistics as a viable career path to a diverse student population, we can ensure a more balanced pool of applicants.
Additionally, organizations can proactively reach out to underrepresented groups through career fairs, internships, and mentorship programs. This not only increases awareness about the opportunities in the sector but also demonstrates the organization's
commitment to diversity and inclusion. In essence, while we are making strides in fostering a diverse and inclusive environment, the journey begins much earlier. We need to ensure that the path leading to our industry is accessible and appealing to all.
Pooja Malik: At Horizon, we prioritize capability and skills above all else. We hold a positive bias towards women with equal qualifications, ensuring a fair and inclusive workplace. Further to make our workplace safe, healthy, and supportive, we have internally established a POSH cell, which I personally lead to guarantee a thriving environment for our female employees.
With three of our nine leadership members being women, Horizon demonstrates its commitment to diversity. Additionally, we sponsor skill development initiatives for all employees, including women, and foster networking through our Women's Mentorship program, connecting them with women leaders across various industries for valuable exchange and growth opportunities.
Himani Kanwal: Supply chain functions have a lot to catch up on in the coming time. The average no of women in SC functions usually ranges from 10-12% compared to 30-35% in finance or marketing. Some organizations have made progress to hit 30% in supply chain after years of efforts. We need more focus from the corporates on female talent in supply chain.
Dr Seema Narera: There is a diversity agenda drive for increasing women workforce across levels in supply chain. Some interesting developments are occurring because of that. The warehouses are being designed to have infra which is conducive for women to work. Necessities like ladies’ washrooms were not available in earlier days. While now we have an example of “Pink Warehouses” where every single job is being done by a woman. Maersk inaugurated one such warehouse last year in Dadri. Similarly, there are Pink Multiplexes, Pink QSR stores, etc., which are making bold statements that women can handle every single job at any hour of
Flipkart boasts a workforce comprising close to 30% women in its supply chain, including last-mile delivery roles. The company reportedly has over 800 women currently working night shifts across various locations in Haryana. Zomato also boasts over 2,000 female delivery partners nationwide. Presently, women constitute approximately 10% of the overall workforce in e-commerce companies. However, this figure is expected to see a significant uptick, with projections indicating a 25% growth in the size of the women workforce in the industry by 2024.
the day/night and run a very successful business operation.
Moving towards a more inclusive supply chain ecosystem, how can women break the biases, address challenges, and build support systems for each other in this evolutionary journey?
Aarti Garde: In the journey towards a more inclusive supply chain ecosystem, women can break biases and build support systems through a combination of clarity, communication, and organization culture. Having clear career goals and voicing these ambitions is crucial. When women articulate their aspirations and seek support, they not only pave the way for their own advancement but also set a precedent for their colleagues.
An organization's culture plays a significant role in this process. A culture that encourages open dialogue, values diversity, and supports career development can help women overcome challenges and biases. As women receive support, they are often inspired to extend the same to their colleagues, fostering a cycle of empowerment. Lastly, it's essential to remember that no goal is unattainable. With determination, support, and a conducive work environment, women can break through barriers and contribute significantly to an inclusive supply chain ecosystem.
Himani Kanwal: I believe women should focus on 3 areas – 1) Build sponsors amongst senior leaders in the organization; 2) Support other women at
work be it their peers, junior or seniors. Build your community and support system at work; 3) Call out biases more openly at workplace especially in instances of micro aggression.
Dr Seema Narera: Women in supply chain need to vocalize their stories to other aspiring youngsters to encourage them to join supply chain ecosystem. Also, existing women need to vocalize their needs to organizations to make a more conducive work environment for future. Senior leaders should encourage newcomers to take risks, try unconventional roles which prove a support system and fall-back plan. Unless we try, we will not know what all is possible in breaking these barriers.
What steps can organizations take to empower women in supply chain?
Aarti Garde: To empower women in the supply chain industry, organizations can start by offering mentorship programs to college students, providing early exposure to the industry and guidance. They should also cultivate an inclusive culture, addressing biases and valuing every contribution. Policies that support career advancement, such as equal opportunity initiatives and flexible work arrangements, are essential. Finally, ensuring women's representation in leadership roles can inspire and motivate others, showing what's achievable in this field.
Pooja Malik: To empower women in
the supply chain, organizations can take several proactive steps. Firstly, they can invest in improving infrastructure, especially connectivity to warehousing parks from urban areas, and provide better public amenities to ensure safe access for female employees. However, I do not advocate for implementing reservation quotas as a quick-fix solution. Instead, fostering an organic and inclusive environment through initiatives such as targeted recruitment, mentorship programs, and leadership development opportunities can create a more sustainable approach to gender diversity and empowerment in the supply chain.
Himani Kanwal: It’s often seen that organizations measure men and women on different standards. While men are measured and promoted on potential, women must demonstrate multiple cycles of success for the same promotion. There are more doubters than sponsors for women. Women are expected to meet a much higher standard of performance. This needs to be addressed at the earliest possible.
Dr Seema Narera: Organizations need to make gender neutrality not as a Code of conduct but as a part of day DNA of the company. It starts with basics like gender neutral language, encouraging diverse interest in team while planning team connects, meetings, offsites or travels. Showcasing their women workforce to the front to attract more women and a healthier gender mix across levels.
“The changing workforce demographics expect its leaders to be socially and environmentally responsible, to better understand Talent Management, and to create places where diverse contributions are maximized for the enterprise’s strategic benefit. In short, a commitment to full inclusivity is now a leadership and business competency. Deficiencies here will limit a leader’s effectiveness and advancement in much the same way as a lack of financial acumen,” highlights Aparna Sharma, HR Practitioner & Independent Director on Corporate Board.
What are the challenges that women face at the Workplace?
What are the strategies that can help them address and work on the challenges?
Even well into the 21st Century, women continue to face unique challenges at the workplace. Long-standing issues like the wage gap, the glass ceiling, and hostile work environments persist and new challenges caused by the COVID-19 pandemic have disproportionately affected women. Some of the persistent challenges such as Societal mindset; Gender Stereotypes; Pay Disparity; Imposter syndrome; Lack of Equal Opportunities; Difficult to overcome Career gap/ Rejoining the workforce; Bias in Hiring decisions; and Lack of sensitivity are constantly challenging women to prove their mettle time and again and sometimes even dissuade them from charting their professional journey.
While such eventualities will persist, there are ways, which can help them
reach their goalpost. First & foremost, they must be confident about their capabilities. Women should find a Mentor who can guide them to take on the desired career path. They must be able to advocate for themselves. Women should build a support system on whom they can bank upon and shouldn’t hesitate to ask for help. Most importantly, women must be proactive and celebrate their successes. Ultimately, the challenges that women face at the workplace are not just women’s issues, they are everyone’s issues.
Even if you are not directly impacted, you can still have an important role to play in recognizing and overcoming gender bias at work. One of the most important things you can do is to educate yourself on the issues and understand the experiences of women around you. Listen to their stories and be willing to learn from them. You can also start by examining your own biases and assumptions, and actively work to
address them.
If you are a manager or an employer, you can take steps to address these issues by conducting regular pay equity audits, establishing a clear career path for employees, and providing opportunities for training and mentoring. You can also create a safe reporting system for employees to report any incidents of harassment or discrimination.
If you are a coworker or colleague, you can be an ally to women by speaking up when you witness discriminatory behaviour and creating a supportive and inclusive work environment. This can include actively listening to women’s experiences and perspectives, offering to help with projects or assignments, and advocating for policies and practices that promote gender equality in the workplace.
It’s important to remember that change takes time & efforts and addressing these challenges is an ongoing process that requires commitment and dedication from everyone. We may not see immediate results, but every small step we take towards gender equality is a step in the right direction.
How can HR professionals aim to strike the right equilibrium when it comes to diversity & inclusion?
Promoting and improving diversity and inclusion at the workplace is a crucial initiative that many companies are now taking. A diverse workforce, in terms of age, race, religion, nationality, sexual orientations, gender, gender identity, brings diverse viewpoints and perspectives to the company. Diversity at the workplace does not necessarily mean inclusivity at the workplace. Making Diversity a priority is important; so is
Creating a Culture where people from all backgrounds feel Included. Inclusivity is the key to maintaining (not just creating) Workplace Diversity.
What are the best practices that companies can implement to offer a safe & sound working culture for women?
w Know the Diversity Goals and Vision of your organization and its connection to the overall business objectives. Commit to the process by understanding how diversity impacts your role, and how your role impacts the success of the diversity initiative.
w Participate in Employee Engagement Surveys and respond as openly and honestly as possible. Finding an Internal Champion with whom you can comfortably express concerns and/or elicit advice can be instrumental in supporting your efforts.
w Actively engage in the Diversity effort. You can take part in or start an Employee Resource Group (ERG), or volunteer to chair or serve on committees that organize diversityrelated events and activities. Consider becoming a mentor, mentee, or part of a co-mentoring relationship. These activities require commitment of time but represent a valuable opportunity for personal and professional development.
w Become Culturally Competent. Take the time to learn about different cultures, races, religions and backgrounds represented by your colleagues. Ask your co-workers
to share some of the customs and practices associated with their cultures. Become familiar with diversity-related terms and, if you err, apologize and ask for help.
w Treat people in a way they wish to be treated rather than the way you wish to be treated. Common social activities and practices that are comfortable for you may not be comfortable for everyone. Most importantly, be Respectful always. Diversity exists everywhere — not just in the office. Take these diversity principles into your community and your home.
w Drive Positive change in the organization. Be a Spokesperson for diversity issues that are not necessarily your own. Any organization will find it difficult to ignore the powerful voice created when groups representing different diversity dimensions unite.
w Welcome Ideas that are different from your own and support fellow teammates. The creativity that comes with diversity can help you generate new ideas or improve a process already in place. It can also make work more interesting, engaging, and fun.
w Understand the diversity elements you personally bring to the organization. Diversity comes not only in the form of Culture, Race, and Gender but also includes elements such as Socio-Economic background, Education level, Geographic location, Sexual Orientation, Thought process,
Diversity work is a journey, not a destination. It takes time, patience, and perseverance. Be tolerant of co-workers who do not yet appreciate the value of diversity or who may not always behave respectfully. Often, negative behaviour comes from ignorance rather than malice. A willingness to educate can go a long way.
and many others. Each of us brings to the table a lifetime of experiences and knowledge. Each of us is different and adds value to the organization because of these differences.
w Commit to Continuous Improvement. Be willing to learn, accept feedback, and listen to the concerns of those around you. Even the most enlightened individual can find opportunities for growth.
w Communicate and educate. Diversity work is a journey, not a destination. It takes time, patience, and perseverance. Be tolerant of coworkers who do not yet appreciate the value of diversity or who may not always behave respectfully. Often, negative behaviour comes from ignorance rather than malice. A willingness to educate can go a long way.
How can diversity impact success at the workplace?
Here are 5 advantages that a diversified workforce can bring to your company…
Greater Creativity and Innovation: Whenever a group of like-minded people are put together, they will generate similar ideas. This is because their thinking patterns are very much alike. However, if you change things up by mixing diverse individuals together,
you’ll have a workforce that’s more prone to Creativity and Innovation — two important ingredients for success. A heterogeneous workforce will be able to exchange unique perspectives and spark fresh ideas.
Increased Productivity: Diversity and Productivity go hand in hand. Research has found that diversifying your team can boost productivity by 35%. A diverse workforce is more likely to understand your customers’ needs and come up with ideas to fulfil them. Diversity at the workplace will also increase employee morale and instil a desire to be more effective and work more efficiently. This will greatly increase the productivity of your business.
Reduced Employee Turnover: A workplace that encourages diversity and inclusion will make employees feel valued and accepted. This will ensure happiness among your workforces. Happy workers will stay with your company for longer, meaning you’ll spend less money and time on recruiting. By reducing your employee turnover, you’ll have more time and funds to invest elsewhere in your business.
Connect to a Wider Range of Consumers: If you want to target a wide range of consumers, you’ll need a diverse workforce. By hiring individuals of varying backgrounds, languages,
Increasing revenue is a priority in any company. By reaping all the benefits of a diverse workforce, you will come closer to your goal of increasing profits.
A recent study by the Boston Consulting Group (BCG) found that companies with a diverse workforce and increased innovation generated 19% more revenue than companies with lower diversity scores. The proof is in the numbers.
etc., you can ensure that your company appeals to a wider target market. Because your employees come from different backgrounds, they’ll be able to connect with consumers from all walks of life.
Increased Revenue: Increasing revenue is a priority in any company. By reaping all the benefits of a diverse workforce, you will come closer to your goal of increasing profits. A recent study by the Boston Consulting Group (BCG) found that companies with a diverse workforce and increased innovation generated 19% more revenue than companies with lower diversity scores. The proof is in the numbers.
In one of your posts, you have emphasized, “Diversity and Inclusion is a fundamental Business Competency”. Can you elaborate on this pls?
The changing workforce demographics expects its leaders to be socially and environmentally responsible, to better understand Talent Management, and to create places where diverse contributions are maximized for the enterprise’s strategic benefit. In short, a commitment to full inclusivity is now a leadership and business competency. Deficiencies here will limit a leader’s effectiveness and advancement in much the same way as a lack of financial acumen. There are various facets of D&I as a differentiator:
w Companies that increase diversity create a significant competitive advantage for themselves and their shareholders.
w The ability to recruit and lead a diverse workforce is now a critical business competency within talent management. Companies that do not invest in mastering this competency risk falling behind in the war for talent.
w Companies and managers that don’t hold leadership accountable for improving diversity and inclusion hurt their bottom lines.
How can diversity and inclusion be promoted in the workplace?
Diversity at the workplace is essential to
creating a thriving business, especially when it comes to Employee Engagement. Workplace diversity encourages Creativity and Innovation because every team member, from leadership to frontline employees and mobile workers, brings their own unique backgrounds, experiences, and perspectives to the table. Here are some ways to improve Employee Engagement through Diversity-focused initiatives and Operational processes for the workforce:
Educate Managers on the Benefits of Diversity in the Workplace: When workplace diversity is celebrated, and management is empowered with the appropriate resources, the potential of your workforce becomes unlimited.
Create More Inclusive Workplace Policies:
Inclusive strategies that support diversity and inclusion in the workplace such as:
w Allowing employees to take off work for religious holidays that may not be officially observed by the company
w Offering On-site Daycare
w Review your office set up to ensure an inclusive facility, such as the availability of non-gendered restrooms
w Extending the option for flexible work hours
Communicate Clearly and Create Employee-Led Task Forces: Managers should feel confident in their internal communication with employees using inclusive language and avoid making any assumptions. This is a great initial way for managers to set up open and respectful internal communication channels.
Regularly ask for feedback from your diverse workforce and create dedicated diversity task forces with team members from every department for candidate recruitment and training. This ensures transparency as well as ownership and buy-in from the whole team.
Offer Meaningful Opportunities for Employee Engagement: Initiatives such as employee survey can help companies find out where employees
CEOs can help their company attract the best—and most diverse—talent by being involved in diversity promotion. Prioritizing Diversity at the workplace through intentional, focused, employee engagement programs support recruiting efforts. It improves overall satisfaction, performance, retention, communicates your company’s core values, and bolsters your brand identity and reputation.
like to spend their free time and arrange both work-based activities and external employee engagement outings.
Create Mentorship Programs:
Employees with high potential should be offered mentors regardless of their age, race, sex, or other factors. If a companysponsored mentorship program isn’t feasible, there are other ways of providing similar opportunities, including:
w Support Professional Development opportunities by contributing to employees’ Continuing Education. The more they know, the happier they are and the more productive they are as employees.
w Connect employees to outside resource groups, like those dedicated to young professionals and women’s leadership.
w Make sure your leadership team reflects diversity as well by hiring and promoting diverse candidates into those roles.
While these are all great ways to promote workplace diversity, it’s always important to set a good example from the top down. When the C-suite is directly involved in workplace diversity programs or initiatives to improve inclusion, employees take notice.
CEOs can help their company attract
the best—and most diverse—talent by being involved in diversity promotion. Prioritizing Diversity at the workplace through intentional, focused, employee engagement programs support recruiting efforts. It improves overall satisfaction, performance, retention, communicates your company’s core values, and bolsters your brand identity and reputation.
“Diversity and inclusion (D&I) are not just trendy terms; they are fundamental components of a successful and sustainable organization. While there has been a notable shift in organizations taking D&I seriously, creating a diverse and inclusive workplace necessitates more than just policies; it requires a cultural transformation. The landscape of diversity and inclusion is expected to evolve, with a greater emphasis on gender equality, more inclusive workplace practices, and increased representation of women in leadership roles,” emphasizes Vishal Kedia, Founder & Director, Complykaro Services Pvt. Ltd.
Why is the Indian industry struggling with gender equality at workplace?
Corporate India grapples with achieving gender equality in the workplace due to age-old cultural beliefs, patriarchal norms, traditional gender roles and most importantly non-compliance with regulatory laws relating to Diversity & Inclusion. Additionally, companies often lack the necessary awareness and willingness to address gender disparities, leading to unconscious bias and stereotyping.
What are the challenges that women face at the Workplace?
What are the strategies that can help them address and work on the challenges?
Women encounter various challenges in the workplace, including gender
discrimination, unequal pay, limited career development opportunities and difficulties in maintaining worklife balance. Strategies to overcome these challenges include being aware of regulatory laws and company policies around Diversity and Inclusion and engaging in professional career development programmes.
How can HR professionals aim to strike the right equilibrium when it comes to diversity & inclusion? HR professionals can achieve a balanced approach to diversity and inclusion by implementing inclusive policies and practices based on laws that are regulatory in nature and relate to employability and diversity & inclusion. This involves ensuring implementation of a fair recruitment process, having in place a robust evaluation mechanism
for promotions, having in place proper redressal mechanisms for employee grievances, providing equal career growth opportunities thereby fostering a supportive work environment where all employees feel valued, productive and protected.
What are the best practices that companies can implement to offer a safe & sound working culture for women?
Companies can cultivate a safe and supportive working environment for women by implementing compliance with Prevention of Sexual Harassment (PoSH) Act, offering flexible work arrangements, providing maternity leaves as per the law, bridging the pay gap between genders and promoting diversity and inclusion throughout the company.
How can organizations like yours create an awareness among women on the diversity & inclusion best practices and raise their voice against any unethical practices?
Complykaro is an ISO 9001:2015 & ISO: 29993:2017 certified and empaneled as a resource company for providing POSH training by Ministry of Women and Child Development, Government
of India. Complykaro advises over 600 companies in India to be compliant with various laws including the PoSH Act. We provide instructor-led training as well as scenario-based e-learning solutions in all languages. For PoSH, we have sensitized about 50 lakhs employees and trained about 50,000 ICC members apart from providing external members. In addition to that we offer training and compliance solutions extensively on other regulatory D&I laws such as Transgender Persons (Protection of Rights) Act, 2019, the Rights of Persons with Disabilities Act, 2016 (RPWD), and the Human Immunodeficiency Virus and Acquired Immune Deficiency Syndrome (Prevention and Control) Act, 2017 as well. We also offer training solutions around other regulatory topics like Anti-money laundering, Anti-Bribery Anti-corruption, Prevention of Children against Sexual Offences (POCSO) Act, Code of Conduct, Whistleblower Mechanism and Risk Management.
How can diversity impact success at the workplace?
Diversity can positively impact workplace success by bringing diverse perspectives, ideas, and experiences to the discussion table. This will enhance decision-making, bring about innovation, and improve
In day-to-day dialogue, unconscious bias lurks beneath the surface, shaping interactions and decisions. Training and awareness initiatives are crucial in uncovering these biases, fostering a more inclusive workplace culture where diversity is valued and respected. By acknowledging and addressing unconscious bias, organizations pave the way for equitable opportunities and collaborative environments where every voice is heard and valued.
problem-solving abilities which shall ultimately contribute to the overall success of the company.
What are the governing laws for diversity & inclusion in the country?
The legal framework for diversity and inclusion in India includes the Equal Remuneration Act, 1976, the Maternity Benefit Act, 1961, the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013, the Transgender Persons (Protection of Rights) Act, 2019, the Rights of Persons with Disabilities Act, 2016, and the Human Immunodeficiency Virus and Acquired Immune Deficiency Syndrome (Prevention and Control) Act, 2017.
How do you foresee the landscape shaping from here on?
Diversity and inclusion (D&I) are not just trendy terms; they are fundamental components of a successful and sustainable organization. While there has been a notable shift in organizations taking D&I seriously, creating a diverse and inclusive workplace necessitates more than just policies; it requires a cultural transformation. The landscape of diversity and inclusion is expected to evolve, with a greater emphasis on gender equality, more inclusive workplace practices, and increased representation of women in leadership roles.
Presently, most of the corporates are focusing primarily on recruitment with respect to gender diversity but I believe that companies will soon be forced to look at other D&I constituents also. In fact, from FY 2023-24 as per the new SEBI ESG Rating Framework, companies would need to be compulsorily basis pay parity between gender as well as infrastructure etc being provided for differently abled amongst others.
“Supply Chain as a career function may not sound like a great value preposition. At times, it appears as ‘thankless’ depending on many factors. After running commercial supply chain function for last 40 years, I can say with great pride, that supply chain is one (and probably the only function) that can impress and drive other functions in the organization like (Sales / Finance / Quality / EHS & Sustainability). If you look at the current environment, supply chain is at the forefront leading the way for their organization in convoluted economic environment,” shares Sanjay Desai, General Manager – Asia, Supply Technologies, during this exclusive interview…
You have been a part of this everevolving highly dynamic supply chain domain for close to 35+ years. What have been some of the transformative moments over these years? Would you like to share with us some interesting insights / case studies that you have witnessed or were a part of during these years? Since the last 3-4 decades, supply chain industry has undergone significant transformation, driven by technology, globalization, natural disasters and changing consumer expectations. These are just a few. As we move forward, we can expect further advancements in technology and continued focus on sustainability, resilience, and conservation of resources. Let us look at a few transformative events that have forced supply chains to change their game.
a) Rise of Global trade along with China’s prominence: The period from year 1985-2000 was marked by a significant expansion of global trade, driven by various economic, financial, and technological factors. During this time, China invested in
R&D, People skills and manufacturing technology which allowed them to assume a position of prominence. As China leveraged this advantage, it led to the further development of more complex and extended supply chains across the globe.
b) Financial crisis in 2008-09: The American meltdown during 2008 had a profound impact on global finance/ real estate/ banking and supply chains to the tune of 15 trillion USD leading to disruptions in capacities, liquidity, demand, and supply. The damage / aftermath of this event highlighted the need for supply chains to be more “risk averser” as well as the need to carry-out serious “due diligence”.
c) Rise of e-commerce: Since the last 20+ years, e-commerce proliferation of the global platform has forced the supply chains to creating efficiencies for faster, more flexible distribution and last mile delivery processes.
d) Natural disasters: A few natural disasters in Japan/ Thailand and Australian Fires highlighted an
Sanjay Desai is an experienced commercial operation professional. Currently he is running Asia Commercial Vertical for Supply Technologies, USA as VP/GM based out of Singapore. In the past, he has been running profit & loss for over 500 million USD leading more than 2000 professionals located remotely across 30 international markets. He has led many Fortune100 multinationals in various segments like Pharma, FMCG, Oil & Gas, MedTech, IT/ Technology and Chemicals successfully for the last 40 years. Sanjay’s expertise lies in developing commercial & operational strategies, developing people’s skillset, and enabling market growth. He is a mentor for a couple of startup incubators. He sits as an advisory member on multiple startup and MSME organizations in SEA.
Our human capital is either a great asset or an opportunity depending on how you view it. As a senior professional running end to end supply chain, you don’t need to know or have answers for everything, no not at all. But you need to know how much time / money to invest in engaging your key resources in managing priority tasks. You need to know your P&L calculations at the top of your head, so you do not slide down the path of “diminishing marginal value” on various initiatives that you invest your resources. At the same time, retaining the basics and Keep It Simple Sam (KISS) approach is a key to finding success. Our solution can NOT be more complex than the problem.
inherent lack of resilience and sustainability in the longer / extended global supply chains.
e) Technology as a game changer: Technology has been a game changer in supply chains in multiple ways. Technology helps to make processes simpler, helps businesses leaders and users to scale their operations at fast speed with 100% accuracy and allows them to interact with suppliers and customers at clock speed in a centralized manner. Organizations who are better able to leverage various technologies can gain a competitive edge and better adapt to the evolving demands of the marketplace.
f) Renewed focus on sustainability & conservation of resources: Currently the entire world is focused on sustainability/ conservation of resources and ESG across various sectors and regions including a strong execution focus over our supply chains. This focus is not only driven by ethical considerations but also by a belief that sustainable practices will lead to cost savings, enhanced brand reputation, and long-term business resilience.
You have handled supply chain function of various sectors be it FMCG, pharma, life sciences and Oil & Gas / Chemicals. What, according to you, were the peculiar differences and similarities in managing such crucial supply chains?
We all know that supply chain in its inherent form is a generic function. The principles, processes and applications
don’t differ too much. They are transferable from one industry to another in a holistic manner. Said in another words, the concept of the supply chain is generic and applies broadly across industries. However, when it comes to the specifics of implementation and execution, then it will vary with the requirements of the industry. There are some peculiarities which differ by product / industry type. Let us look at few peculiarities for three types of industries (Pharma, FMCG and Oil & Gas) …
Pharmaceutical: Highly regulated, requires batch (lot) management and serious expiry or near expiry management. Quite often needs cold chain management for storage and transportation.
FMCG: Generally non-perishable, with a high focus on fast turnover and high volumes, low value high velocity.
Oil & Gas: Products with varying levels of processing, requiring specialized transportation and storage facilities example - HAZARD classifications.
Pharmaceutical: Strict regulations governance in manufacturing, distribution, and sale.
FMCG: Regulations focus more on labeling, safety, and quality standards.
Oil & Gas: Regulations primarily relate to environmental, safety standards
and HAZARD during storage & transportation. Needs strong adherence to containment and recovery.
Pharmaceutical: Distribution is often through specialized channels, like pharmacies, hospitals, clinics, and valueadded resellers
FMCG: Distribution is widespread, including supermarkets, convenience stores, and online retailers.
Oil & Gas: Distribution is through a complex network of pipelines, tankers, and storage facilities, with retail distribution at gas/ petrol stations.
Pharmaceutical: Demand is often stable but can be influenced by factors such as epidemics or regulatory like stringent manufacturing requirements due to Intellectual Property (IP).
FMCG: Demand is driven by consumer preferences, marketing, and seasonal factors.
Oil & Gas: Demand is influenced by economic factors, geopolitical events, and technological developments.
Pharmaceutical: Longer lead times due to regulatory approvals and manufacturing processes, requiring careful sorting, expiry and FiFO
FMCG: Shorter lead times and higher inventory turnover, with a focus on
minimizing stockouts.
Oil & Gas: Lead times can vary depending on the source and mode of transportation, with inventory management influenced by price fluctuations or foreign exchange. It is important for supply chain professionals to understand these differences in detail. These differences are crucial for designing effective supply chain strategies and ensuring the efficient delivery of products to customers. As a supplier or manufacturer, you need to know the “ecosystem” very well to play / shift your game from time to time.
In your 25+ years of experience in this highly dynamic field, what have been the crucial learnings achieved? It has been a fantastic ride for the last 40 years of active learning at the same time deploying these learnings on the ground. I belong to the generation called “Baby Boomers” which basically means that I started to work even before I was 20 years due to the need of the hour. Finding a job even before completing under-grad studies was the sole purpose and pathway to success. I consider myself lucky, that I started my career with one of India’s greatest and best FMCG organizations as a warehouse worker. This organization was a great learning ground for me at the right time. After completing my graduation, I moved to a couple of roles within the same organization as the opportunities opened. I continued on the same trajectory and path for the next 40 years and moved into new organizations, different geographies, taking on new responsibilities. It allowed me to travel to multiple continents and learn new skills. I would like to share some of the learnings which helped me all these years!!!
Work seriously to get better at managing people, be a good mentor, believe in reverse learning, develop an ability to be empathetic and show compassion to people’s needs.
Get used to being uncomfortable, learn new skills, embrace change management head on
Have a vision & purpose, as they help to drive innovation, filter noise & focus on goals.
Consistently “Do something today for tomorrow” to enhance long term implications of our actions and decisions we make today – they do come back tomorrow (sometimes a broken arrow !!!)
Develop a resilient and sustainable approach towards achieving your goals. This helps our ability to adapt and be mindful of the implications of our actions on people & organization.
As you have spent your significant professional journey in pharma and allied segments such as health care & life sciences, what crucial role does supply chain play in enabling seamless business operations? Pls elucidate with some use cases. Supply chains all over the globe have evolved not just in structure & execution but even more from a perceptive value to business into a real profit center value today. One of the leading industry segments that overcame these shifts is Pharmaceutical Supply Chain. The pharmaceutical industry was one of the early leaders that moved away from traditional manufacturing centric supply chains to a diversified & de-centralized multi-channel supply chain model. During the last 40 years, it evolved much bigger mainly driven by various factors such as technological advancements, regulatory changes, and shifting market dynamics. It opened new channels of generic manufacturing, slowly moving away from strong lobbies of IP controlled manufacturing models. This has enabled Healthcare & Life Sciences products to be available at clock speed and at affordable prices to mass scale population especially in Asia and African region. Let us look at a few examples…
Cold Chain monitoring system: Cold chain monitoring systems use IoT sensors and AI enabled data analytics to monitor the temperature and humidity of pharmaceutical products during transportation and storage. These systems provide realtime visibility into the condition of
the products, ensuring they remain within the required temperature range to maintain their efficacy. This technology helps reduce the risk of product spoilage and ensures the quality and safety and efficacy of the products. Cold Chain products are expected to grow 12-15% per annum for the next decade in the global economies.
Clinical Trials: Clinical trials involve numerous stakeholders, including researchers, sponsors, regulatory bodies, and patients, which require finite planning and execution at every stage. An efficient supply chain can help streamline the clinical trial process and reduce the risk of delays or errors by ensuring the timely delivery of materials, maintaining proper inventory levels, and complying with regulatory requirements.
What have been the challenges in managing the supply chain? How can companies overcome the same? Any example that would like to share?
Supply chain as an independent function started to evolve around late1970s in the Western world. In the beginning of 1990s, as the epicenter started to move slowly to Asia, China accelerated its R&D and manufacturing spend & capabilities. This helped the western world to move their manufacturing footprint into Asia, mainly driven by low cost and high agility. This was the beginning of a fragile / lowcost supply chain era, which continued for more than two decades. During Covid-19 disaster, these fragile supply chains were disrupted globally with lessons learnt that we need to re-design our supply chains to build resiliency and robustness. Few of the critical challenges that a supply chain organization will continue to face in any era are…
a. Talent management: Recruiting / training and developing supply chain professionals is a key challenge for supply chain professionals. We need to invest, to train/ re-train our workforce as there will be usual attrition due to growth in this industry for the next two decades.
b. Glo-calisation (Global + Local): Organizations need to be mindful that they need to run their supply chains at local level execution but managed and designed at global level for visibility, sustainability, and higher integration usings standard technology.
c. Developing TCO principle (Total cost of ownership): It is critical now more than ever before to adopt the broader principle of cost of total ownership. The TCO principle will help companies make better decisions in supplier selection, negotiation, product design, pricing, and customer retention, ultimately leading to improved profitability and competitiveness.
d. Risk management: Supply chains are exposed to various risks, including natural disasters, geopolitical issues, and supplier disruptions. Managing these risks requires proactive planning and mitigation strategies which address many real-time (to be) scenario planning.
e. Know your customers: Organizations who invest in understanding their customers are better positioned to succeed in the marketplace on all fronts. Knowing your customer is critical to stay competitive, meet customer expectations, comply with regulations, and manage risks effectively.
What has been one of the most challenging tasks that you have achieved in your professional journey so far?
I enjoy working, connecting with great minds, learning from different challenges & opportunities. Our human capital is either a great asset or an opportunity depending on how you view it. As a senior professional running end to end supply chain, you don’t need to know or have answers for everything, no not at all. But you need to know how much time / money to invest in engaging your key resources in managing priority tasks. You need to know your P&L calculations at
You need to invest in the right talent, grow them in the organization so they can contribute to your goals. Optimize this pool of talent to develop a sustainable strategy and execute it with purpose and intent. Of course there are impediments, but having a great team to support is THE “mantra” for success even in adverse situations. That is the power of your team. Encourage a culture of continuous improvement and innovation in your organization to drive redundancy, wastage cost and stay closer to the competition. Complacency and accepting status quo are the “bane” of modern supply chain.
the top of your head, so you do not slide down the path of “diminishing marginal value” on various initiatives that you invest your resources. At the same time, retaining the basics and Keep It Simple Sam (KISS) approach is a key to finding success. Our solution can NOT be more complex than the problem. Our ability to manage our RESOURCEs effectively is a key element to achieving results in a sustainable manner. I am very proud to say that during the last 40 years, I have mentored, promoted/ moved many talented professionals in international markets. It helped me to improve the performance of my team, leading to greater employee satisfaction within my organization.
You have also witnessed honing / creating a huge supply chain talent pool in your previous stint. What do you think are the skillsets that a new age supply chain professional must possess/ what are the qualities that they lack, and they must work upon? Supply Chain as a career function may not sound like a great value preposition. At times, it appears as “thankless” depending on many factors. After running commercial supply chain function for last 40 years, I can say with great pride, that Supply Chain is one (and probably the only function) that has the ability to impress and drive other functions in
the organization like (Sales / Finance / Quality / EHS & Sustainability). If you look at the current environment, supply chain is at the forefront leading the way for their organization in convoluted economic environment. To excel in this environment, supply chain leaders must have a diverse set of skills. Let us look at a few major ones.
Empathetic leadership: Capability to develop, build and create a high performing team with empathy, passion, and genuine love for people’s growth.
Comfortable with digital technologies: In the modern world, being comfortable with emerging technologies like (AI, Blockchain, DT) is becoming close to mandatory.
Functional/ technical knowledge: In-dept understanding of the endto-end supply chain functional / technical and dependent knowledge is given (must have)
Project management techniques: Skills to create high level project planning, extract project data and create insightful analysis for complex decision making, keeping it simple.
Sustainability and ethical
The pharmaceutical industry was one of the early leaders that moved away from traditional manufacturing centric supply chains to a diversified & de-centralized multi-channel supply chain model. During the last 40 years, it evolved much bigger mainly driven by various factors such as technological advancements, regulatory changes, and shifting market dynamics. It opened new channels of generic manufacturing, slowly moving away from strong lobbies of IP controlled manufacturing models. This has enabled Healthcare & Life Sciences products to be available at clock speed and at affordable prices to mass scale population especially in Asia and African region.
integrity: Clear understanding of ethical / ESG practices including impacts of our industry on society, environment, people, and organization.
What are the tenets of Building & Sustaining Supply Chain Strategy of the Future? Would like to cite a success story that would motivate user companies to imbibe these lessons in their respective organizations? Building a sustainable supply chain strategy for the future requires leadership wisdom, functional expertise, wider knowledge about the ecosystem, manufacturing and distribution technologies, customer integration and global trade and tariffs understanding. There are many more depending on the geographical location / the product and the industry type. Let us look at a few critical ones.
Keep customer in the center: Focus on understanding and meeting customer needs by delivering products and services efficiently and economically. Keep customers at the center whenever you intend to build any solution. If the process or solution is NOT helping the customer’s cause, you may need to go back and review its execution.
Leverage globalization & localization: Learn and develop strategies that consider the complexities of global supply chains, including trade regulations, cultural differences, and geopolitical risks. You need to balance your global outreach for regional/ local execution and benefits. While you do NOT need a 100% accurate cookie-cutter, you need horses for the courses design approach.
Develop and grow talent: You need to invest in the right talent, grow them in the organization so they can contribute to your goals. Optimize this pool of talent to develop a sustainable strategy and execute it with purpose and intent. Of course there are impediments, but having a great team to support is THE “mantra” for success even in adverse situations. That is the power of your team.
Passion for continuous improvements: Encourage a culture of continuous improvement and innovation in your organization to drive redundancy, wastage cost and stay closer to the competition. Complacency and accepting status quo are the “bane” of modern supply chain.
Risk management and resilience: Develop a culture of risk assessment upfront in the organization not just as lip service or for paper exercise purpose. Strategic risk assessment builds the organization’s ability to be prepared for disasters, accidents, and supply chain disruptions in the marketplace.
Collaborate in the ecosystem: Collaborate with your suppliers’ and customers’ partners to foster a culture of sharing gains and leaning on each other to create value in your networks. As the competition grows, staying together and leveraging each other’s strengths is a key component for sustainable growth.
If you take a look across industries, two organizations who demonstrate these traits stand out in the crowd are 1) TATA group and 2) Reliance Hydro. Both the organizations are known for their sustainable supply chain practices – their investments in the People, their focus on innovation and passion for ethical sourcing and community development, their initiatives in renewable energy and water conservation. Both the groups set a great example for many to emulate them.
How do you foresee India’s emergence as global supply chain superpower in the years to come?
India presents itself as an appealing investment geography for investors globally, thanks to its strong macroeconomic fundamentals, positive demographic placement, improved ease of doing business and access to resources for expanding manufacturing facilities. This is the result of the local government and private /public partnership working together with domestic business to realize this potential.
Let us look at a few major parameters which make India one of the most favored destinations for economic growth over next decade.
Largest skilled workforce: India has a large and growing pool of young skilled workers, particularly in technology and engineering fields. This workforce can support advanced
manufacturing and innovative solutions, making India an attractive destination for companies looking to diversify their supply chains.
Huge domestic market plus export: India is one of the world’s largest consumer markets, offering significant opportunities for companies to establish manufacturing and supply chain operations to serve the domestic market as well as for export market which is growing rapidly year over year.
Technology adoption: India is increasingly adopting advanced technologies such as artificial intelligence, robotics, and automation in manufacturing. These technologies can improve productivity and competitiveness. Further as India accelerates its adoption of advanced technology, the cost of acquiring technologies decelerates in the same vein.
Government investments: Indian Government has launched several initiatives to boost manufacturing and improve the ease of doing business, such as the “Make in India” campaign or “(PLI) Production Linked Incentives and various regulatory reforms. These efforts aim to attract domestic and foreign investments in the manufacturing sector.
Cross-border trade developments: India’s trade and tariff policies are shaped by a combination of geopolitical considerations, economic objectives, and domestic priorities. India Govt implemented major initiatives like Export Promotion Capital Goods (EPCG) and Merchandise Exports from India Scheme (MEIS). These initiatives focus predominantly on cross-border trade.
How can companies achieve supply chain network optimization? Is there any step-by-step approach?
Any interesting anecdotes that you would like to share with us from your experience…
Supply chain is a scientific function which
has the ability to design / develop physical infrastructure, technology footprint by analyzing current data and future strategy. One of them is Network Optimization. Simply explained, this is a process of analyzing and improving the flow of goods, information, and money between suppliers, manufacturers, distributors, retailers, and customers. It also involves selecting the appropriate locations for our warehouses/ distribution centers taking into consideration the shortest available transportation routings. It takes into consideration future inventory and stocking levels aligned to expected sellin and sell-thru. Network optimization can be a long drawn 10-step process. For now, let us look at top 5 processes…
a. Collect & analyze data (As Is): This includes understanding the structure of the network, number of various players involved, their geographical locations, their roles in the system, as well as collecting data on performance metrics such as cost per unit shipped or inventory levels, average distance covered, velocity/ heat map of your customers. This data should be collected from all relevant sources such as supplier contracts, WMS records, freight contracts, Purchase orders received, shipment to customers.
b. Look for signs that tell you it is time to optimize your network: There are two ways to look at the data. You can look at performance indicators and the inefficiencies within (Inside) the organization. Alternatively, you can look at external factors to see their impact on your business from outside and the need to address these efficiently.
c. Develop “to be” structure (optimization plan): This plan should be tailored to your specific needs and goals. Ideally it will show how the success looks like. It will include a timeline for implementation, including a high-level budget for the project. It is also important to create a team to lead the effort and secure necessary resources and approvals prior to beginning “blue printing” phase of the project.
d. Implement optimization plan: This is where the rubber meets the road. Be sure that you have trained all employees who are part of the optimization project. It is beneficial to provide additional training to concerned employees on any new technologies or application software that you are using.
e. Measure, monitor and control:
Once the plan is implemented, evaluate the results, monitor them, and adjust as required to process new data. Remember that the changes you make to the processes must have a positive impact on the results, or else you need to re-adjust. You need to built-in as many “to be” scenarios using the data available till you find the right combination where freight costs, inventory holding costs and customer satisfaction scores are optimized.
A classic case study, executed in year 2015, is associated with an organization who is the leader in “Serving Medical Science” to customers globally. It grows 90-95% due to acquisition and 8-10% due to organic growth. It markets over 100 brands globally via their footprint in 65 international markets. It has a large number of multiple suppliers, manufacturing sites, distribution channels and service centers. To optimize their supply chain network, they implemented a comprehensive network optimization strategy. This involved using advanced analytics and modeling tools to analyze its supply chain network and identify opportunities for improvement. Couple of critical parameters were consolidation of its distribution centers to optimize inventory levels, increase their outreach to customers (within half a day delivery) at the same time, reduce freight costs and enhance overall supply chain efficiency. Over a period of two years, they were able to optimize their warehousing footprint in Asia from over 75 warehouses to less than 30. The optimization allowed them to improve their customer delivery efficiency, reduce inventory holding costs, and enhance customer service using “milk run” concepts.
When people hear about Blockchain technology, they immediately think of “Bitcoin” and because of this dark and nefarious association, the underlying Blockchain technology has been always been viewed suspiciously due its rather radical approach to data sharing on an open platform using cryptography. However, the application of the Blockchain technology itself is not just limited to digital currency as the technology can be used for open collaboration for any information across almost any industry. Through this article, Sanjeev Kumar Roy, Chief Procurement Supply Chain Therapist, introduces the concept of Blockchain technology and discusses its application in revolutionizing the traditional supply chain processes, which are often based on “multiple bilateral links joined together to form a chain” as opposed to the Blockchain, which is based on the “formation of an open ecosystem for collaboration”.
THE biggest problem in the transitional supply chain is the lack of open and trustworthy information availability across the supply chain caused by multiple issues – trust, technology and legacy practices being the top ones. A typical supply chain is a series of bilateral contractual links that are put next to each other to form a supply chain and every link in the supply chain is a bottleneck for information flow, trust erosion and technology gaps. The gaps prolong the supply chain cycle, increase the extended supply chain cost due to assumed risk in every link and result in an overall disconnected supply chain from an end-user’s perspective. The Blockchain technology has the potential to tackle these key gaps through the
use of the open permissioned ledger system, which creates an ecosystem where information flows openly albeit in a permissioned manner, reduces the assumed risk in the supply chain and hence reduces the total cost of the supply chain while making the supply chain more agile and adaptive.
Difference between a traditional supply chain and the one structured on Blockchain technology
The key difference between the traditional SCM and a Blockchain enabled SCM is the positioning of the SCM links. Whereas in the traditional SCM, the SCM links are generally enabled in the form of a connected network where every party is connected to the network as an equal player.
Sanjeev Kumar Roy is an experienced Global Procurement Transformation expert with a focus on Category Management and Digital Procurement. He has executed several strategic cost management and supply chain transformation projects across multiple geographies and industries during his career spanning over three decades. His expertise lies in domains such as Gamification, Supply Chain Strategy, Logistics & Distribution, Digital Transformation of SCM, and Agile Product Management. He has worked in four continents and managed organizations up to 150 people and spend upto $2 Billion.
What does Disintermediation mean? Will intermediaries like banks disappear in the new scheme of things?
No, not at all. Intermediaries like the banks will play a very involved role in the supply chain of the future except that the role and the positioning may be different from the ones they have played over the past 1000 years where they have basically dealt with parties on a bilateral basis. In this case, the banks (and other intermediaries like shippers, inspection agencies, customs brokers and distributors) will be part of the ecosystem and they will all have the same level of information as the other players in the ecosystem. E.g. when a raw material supplier is ready to ship the goods, the notification is received by the inspection agency, shipping agency and the bank alike and the inspection agency has inspected and passed/failed the goods, then, the same information will be available to the entire supply chain; thus, enabling a “dis-intermediated flow
of information”. The shipper will know exactly when to pick-up the goods and if the smart contract allows the producer to be paid upon successful inspection and shipment of the goods, then the payment will be released at that stage and all these transactions will be visible to the entire eco-system, albeit, on a controlled basis.
The Blockchain technology is fundamentally different from the usual ecommerce transactions and the following are the founding and differentiating principles of the Blockchain technology:
NOTARIZATION: Every transaction happens on a distributed ledger and hence, there is a perfect notarization of every transaction across the system. The whole eco-system knows exactly what the source of the information was and the technology enables the authentication, thus, removing the need to verify the information again through
the use of test certificates, bill of lading or letters of credit as an example. These commercial tools/documents, actually, all reside inside the Blockchain system.
TITLE TRANSFER: It allows easy title transfer for any property whose ownership is controlled by the Blockchain, but these may not just be limited to digital property like software/music, but could also include physical property like raw materials, goods, house, cars, etc.
Since every transaction is visible in the ecosystem, the system of records of where each product originated, from a compliance or QA perspective, can be traced backwards with authenticity. This is of particular importance in international trade as concerns around origin, labor practices, and denied party is gaining importance.
Every transaction
that has ever taken place is shared with the whole ecosystem, thus, the histories of the transactions are always available; thereby, eliminating the chances of information being hacked/manipulated/ distorted to suit one party.
SMART-CONTRACTING: The most powerful feature of Blockchain 2.0 is smart contracts which basically means that the smart contracts are not just available but always have to be complied with. One cannot bypass smart contracts, thus eliminating the need to “check the checkers” and enabling more focus on partnership and less on compliance.
The business case for Blockchain technology is based on the following key business value:
1. Reduced Total Cost of Ownership: Blockchain technology offers a viable alternative to traditional supply chain solutions at a fraction of the total cost of ownership.
2. Speed and Reliability of transactions: Moving the transaction from a series of bilateral transactions to an ecosystem based clearing house allows the transaction to happen in a miniscule amount of time compared to traditional methods, and since the Blockchain technology operates in a secure environment, the transactions are a lot more reliable than the traditional ones.
3. Synchronized and consistent sources of truth: Unlike traditional systems which can have multiple source of truth that may not always be in sync, the Blockchain technology enables a single source of truth available to all players in the system; thus, preventing any attempts to manipulate the data to suit one party.
4. Self generating audit trail: Since every transaction in the Blockchain is recorded and is an integral part of the transaction process, there is an audit trail of each and every transaction in
the ecosystem down to the point of discomfort. However, it is this level of detail that forms the foundation of the trust in the Blockchain ecosystem.
Some of these applications are already being used by Blockchain ecosystems around the world in their nascent form, although the possibilities are only limited by the imagination and collaboration in ecosystems. Some of the simple applications are:
Procure Materials: In a Blockchain enabled supply chain, the buyer places a PO in the smart contract ecosystem, the raw material supplier receives the information and sends the raw material to the producer who manufactures for the contract, the system then sends a notification to the inspection agency which records the details of the goods to be inspected. These records will be available (till eternity) to enable any audit on QA issues faced anywhere in the downstream supply chain. Once the inspection agency has issued the certificates in the smart contracts, the shippers can arrange to ship the goods and issue the Bill of lading in the system which, depending on the contract, might trigger the payment against the letter of credit (also captured in the ecosystem) and this information is also available to the downstream supply planners to enable the manufacturing. Since the smart contract information input is authenticated using the technology, the reliability of the information is significantly higher than the traditional. It also breaks down the siloed organizational behavior that can erode overall extended supply chain value.
Roche, a leading pharmaceutical company, has launched a groundbreaking blockchain-enabled procurement platform with the support of key partners such as Deutsche Bank and IBM. This innovative platform aims to transform procurement by leveraging blockchain technology. The value proposition of blockchain in supply chain management is profound. By utilizing blockchain's immutable ledger and decentralized architecture, Roche's platform ensures transparent and secure transactions
throughout the procurement process. This transparency enables real-time tracking and traceability of products, from raw materials to finished goods, enhancing visibility and accountability across the supply chain.
Moreover, blockchain streamlines documentation and verification processes, reducing administrative burdens and operational costs. Smart contracts automate agreements and transactions, facilitating faster and more efficient procurement processes. Overall, Roche's blockchain-enabled procurement platform promises to revolutionize supply chain management by promoting transparency, efficiency, and trust among stakeholders. This initiative sets a precedent for leveraging blockchain technology to drive innovation and sustainability in global supply chains.
Manufacturing sector: Time and Quality sensitive manufacturing supply chains lose a lot of value due to discrete information gaps in the supply chain. These information gaps can generally be traced to parochial behaviors from the discrete supply chain links in the ecosystem. For example, the manufacturing process of an airplane like A380 involves the physical and information coordination on approximately 4 million parts with 2.5-million-part numbers produced by 1,500 companies from 30 countries around the world. Extended supply chain traceability is a challenge as regulations require companies to have complete traceability on the parts used in the manufacturing process including details of the manufacturing process. All these information availability is managed through brute force resulting in increased cost of production. A block chain technology will enable the ecosystem players to record the information only once and the same information will be made available to the all the players in the ecosystem. The use of Blockchain technology allows the manufacturing stakeholders to focus on manufacturing and not be held back due to information gaps, trust issues in the supply chain which are common in today’s manufacturing environment where suppliers often work in silos.
Time and Quality sensitive manufacturing supply chains lose a lot of value due to discrete information gaps in the supply chain. These information gaps can generally be traced to parochial behaviors from the discrete supply chain links in the ecosystem. For example, the manufacturing process of an airplane like A380 involves the physical and information coordination on approximately 4 million parts with 2.5-millionpart numbers produced by 1,500 companies from 30 countries around the world. Extended supply chain traceability is a challenge as regulations require companies to have complete traceability on the parts used in the manufacturing process including details of the manufacturing process. All these information availability is managed through brute force resulting in increased cost of production. A block chain technology will enable the ecosystem players to record the information only once and the same information will be made available to the all the players in the ecosystem.
Boeing, a leading aerospace company, along with key partners such as Honeywell and Airbus, is pioneering the integration of blockchain technology to reshape aviation supply chains. Supported by technology firms like Microsoft and IBM, this initiative aims to enhance transparency, security, and efficiency in the aviation industry.
Blockchain technology offers a transformative value proposition in supply chain management for Boeing and its collaborators. By leveraging blockchain's immutable ledger and decentralized architecture, the aviation industry can achieve real-time tracking and traceability of aircraft parts, ensuring authenticity and compliance throughout their lifecycle. Moreover, blockchain facilitates smart contracts, automating contractual agreements and procurement processes, thereby streamlining operations and reducing administrative overhead. By fostering collaboration and data sharing among stakeholders, blockchain promotes interoperability and trust in the aviation ecosystem. Overall, Boeing's adoption of blockchain technology signifies a significant step towards revolutionizing aviation supply chain management, driving innovation,
and enhancing reliability in the industry.
Provenance is the biggest issue in the $75 Billion diamond industry and needless to emphasize, quite opaque in terms of transparency and conflict/synthetic minerals might be contributing to a growing portion of the problem facing the industry. Conflict minerals (or Blood diamonds) are not just the biggest parallel source of black money flow but also a social problem in some of the developing countries. Kimberley Process (KP) is a multi-government initiative which is working together to enable the certification and authentication of the diamonds as they pass through the various aspects of the supply chain. Everledger and IBM have been piloting a new Blockchain-based technology that allows every diamond in the rough and polished stages to be fingerprinted in the Blockchain ecosystem, thus, enabling a very open information on the source of the diamonds that will be passing through the various aspects of the supply chain. Thus, cutting down on counterfeiting which was nurtured in the physical supply chain through counterfeiting of physical
documentation. The principles of how the diamond industry has been able to tackle a growing social and commercial problem can be extended to other forms of supply chain like Crude Oil and Luxury goods too as these industries also suffer from source of origin issues and as a result lose a lot of value.
Based in Australia, BHP is a multinational mining and natural gas petroleum company. Collaborating with Minehub, a registered trademark of Minehub Technologies, BHP endeavors to digitize its supply chain operations for mineral concentrates. Minehub facilitates the secure and immutable recording of crucial data points at every step of the mineral concentrate's lifecycle, from extraction to transportation.
The transparency provided by Minehub serves to mitigate fraud, minimize disputes, and ensure adherence to responsible sourcing standards. Through its platform, Minehub automates diverse supply chain procedures, including trade documentation, approvals, and payments. This automation not
only streamlines operations but also reduces paperwork, fostering enhanced overall efficiency in BHP's supply chain processes.
Trust and proven documentation have been the biggest barrier in international trade since time immemorial – Shipping line Maersk in collaboration with IBM launched TradeLens, a blockchain platform for facilitating international trade. The platform streamlines and enhances the documentation workflow thus improving transparency in the international trade. This particular product ran into commercial issues where Maersk and IBM scaled back its investment in early 2023 citing “commercial viability”. However, the seeds of an open ledger concept have already been sowed and it is just a matter of time when the commercial barrier is broken again.
Ford Motor Company, in collaboration with IBM, has launched a blockchain pilot program to ensure the ethical sourcing of cobalt, a critical material used in lithiumion batteries. The initiative involves key stakeholders such as Huayou Cobalt, LG Chem, and RCS Global, aiming to enhance transparency and accountability in the cobalt supply chain. The value proposition of Ford's blockchain initiative lies in its ability to provide immutable and transparent records of cobalt production and supply chain transactions. By leveraging blockchain technology, Ford ensures that cobalt is ethically sourced, thereby mitigating the risk of human rights violations and environmental exploitation associated with mining operations.
Through real-time tracking and traceability, Ford's blockchain pilot enables stakeholders to verify the origin of cobalt, ensuring compliance with responsible sourcing practices. This not only strengthens trust among participants but also drives sustainable practices and ethical standards across the supply chain. Overall, Ford's blockchain
initiative sets a precedent for enhancing transparency and integrity in global supply chains.
The Mobility Open Blockchain Initiative (MOBI) boasts a formidable lineup of key sponsor companies, including BMW, Ford, General Motors, and Renault, among others. These industry giants have come together to revolutionize Supply Chain Management (SCM) through blockchain technology. MOBI's value proposition in SCM lies in its ability to enhance transparency, traceability, and efficiency across the supply chain. By leveraging blockchain's immutable ledger and decentralized architecture, MOBI enables secure and real-time data sharing among stakeholders, ensuring visibility of products from source to destination.
Through smart contracts, MOBI automates SCM processes, such as order tracking, inventory management, and payment settlements, reducing manual errors and fraud risks. Additionally, MOBI fosters collaboration and standardization within the industry, promoting interoperability and innovation in SCM practices. Overall, MOBI's initiative in SCM promises to drive transformative change, optimize processes, and create a more resilient and sustainable supply chain ecosystem for the automotive and mobility industries.
American logistics giant UPS partnered with Inxeption, an e-commerce platform, to introduce Inxeption Zippy, a Blockchain-based solution. Inxeption Zippy is designed to optimize and fortify the supply chain procedures for B2B transactions. By harnessing Blockchain technology, the platform ensures comprehensive oversight and validation of product movements throughout the supply chain.
Through automation, Inxeption Zippy facilitates multiple supply chain functions such as order processing, inventory monitoring, and payment reconciliation. The platform guarantees the secure recording, authentication, and validation of transactions, mitigating
the risk of fraudulent activities and fostering trust among stakeholders. Inxeption Zippy empowers businesses to efficiently manage their supply chains, monitor shipments, and access real-time insights and analytics. This heightened transparency and operational efficiency contribute to enhanced inventory control, cost reduction, and accelerated order processing.
Founded in 1962 by Sam Walton and James Walton, Walmart, a prominent American Multinational Retail Corporation, has teamed up with IBM to enhance the transparency and traceability of its food supply chain. Following the collaboration with IBM to develop a traceability system using Hyperledger Fabric, Walmart achieved the remarkable feat of tracing mangoes stored in its US stores within a mere 2.2 seconds. Moreover, Walmart has significantly bolstered food safety and quality by swiftly pinpointing the source of contamination. Suppliers affiliated with Walmart diligently documented every stage of their mangoes' journey through the supply chain, from farm practices to storage conditions to transportation. The success of this initiative has motivated Walmart to extend its Blockchain integration to other products, including leafy greens and pork, reflecting the company's commitment to ensuring the utmost transparency and reliability throughout its supply chain network.
Established in 1849 by German entrepreneurs Charles Pfizer and Charles F. Erhart, Pfizer, a renowned US-based pharmaceutical company, has partnered with Chronicled, a Blockchain-driven supply chain solution, to enhance the security and traceability of pharmaceutical goods. The collaboration with Chronicled aims to tackle issues related to supply chain inefficiencies, counterfeit medications, and regulatory compliance. Pfizer has implemented an immutable ledger system for each pharmaceutical product, recording essential data such as batch
numbers, location information, and expiration dates. Furthermore, Pfizer and Chronicled have taken significant strides to enhance the integrity, transparency, and security of pharmaceutical products. These efforts ensure that patients receive authentic and safe medications while minimizing the prevalence of counterfeit drugs in the market.
Implementation of a Blockchain Technology based solution is not easy as it poses a lot of challenges – the key ones being:
Lack of awareness and understanding: Blockchain is still an enigmatic black box to most nontechnology people and its association with Bitcoin does not help the situation either. Blockchain technology’s radical approach with a permissioneddistributed ledger challenges the core of the business practices for the last many centuries where every business entity has maintained their own ledger. This is by far the biggest challenge for non-IT professionals.
Industry Maturity and trust level in the ecosystem: Industry maturity and a certain level of trust is prerequisite for the conception of any Blockchain technology enabled supply chain solution. Unless the industry is screaming/rallying to solve an industry-wide issue this will be a non-starter.
Cost of technology and positioning conflict with internal ERP systems: Most of the companies already have multiple ERP Systems, which companies have incurred heavy investment over the last 5-10 years. A Blockchain technology solution, in its most ideal form, competes with and replaces a significant role played by these ERP systems. This is not going to be an easy battle both within and outside the company. The TradeLens platform was impacted by the cost of the technology.
What does all these hype mean
Blockchain technology is not a one size fits-all solution considering the uniqueness and the complexity of the ecosystem that it has to breed within. Blockchain technology makes most sense under the following key conditions:
1. Complexity and Volume of the transactions is high: The commodity being transacted should have complexity in terms of speed of information handover, number of title changes, custodian issues, high number of transactions that are difficult to capture.
2. No well-established market authority exists: Unlike well established and mature markets like stock markets, the commodities that are more likely to become candidates for Blockchain are the ones where there is no established authority over the market allowing the creation of the Blockchain ecosystem.
3. Transactions are easily quantifiable: Materials and services alike are performed against industry standards which are easy to trade and transact against.
4. Industry wide issue: The whole industry has to recognize and acknowledge the problem to be resolved. Initiatives taken by a single player or service provider will not go a long way unless it is recognized as a key industry issue (like conflict minerals or trade settlement).
for supply chain management professionals?
Blockchain technology is no doubt a disruptive innovation that has the potential to rewrite the books of supply chain management as we have known it, but like all technology hype, it is important that supply chain professionals don’t consider this as a panacea for all their supply chain problems. Blockchain technology has a place in complex supply chains, but the ecosystem maturity is a pre-requisite for any investment in the technology, and the success of the solution will heavily depend on the problem faced by the whole ecosystem rather than one player (conflict diamonds is a great example to quote). It is important that the players in the ecosystem align on the problem to be solved to ensure that there is focus on the solution that emerges. Needless to say, the investment in these ecosystems is the most readily accepted if they come
from a neutral party rather than one involved in the supply chain and this is where the governments, economic development boards and banking groups can play a role. Leading experts are predicting the Blockchain technology adoption to be in the following chases – early experiments during 2020-2025; Growth during 2025-2030; and Maturity from 2030 and beyond. It is important for leading supply chain strategists to form a POV on the applicability of the Blockchain technology to their own supply chain from a strategy perspective.
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