Efficient Supply Chain critical to success of Retailing; Need for specialized education & training: Experts at FICCI conference

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Amit Agnihotri
Columnist & Author, MBAUniverse.com
Updated on July 28, 2016
If retail industry has to take off in a big way, and farmers have to be integrated directly into the organized set up, putting together a effective supply chain is called for.

With this objective, FICCI organized a two-day technical conference titled 'Winning with Intelligent Supply Chain' in New Delhi on Dec 17-18. Key speakers at the conference included Mr. Rajan Bharti Mittal, Managing Director, Bharti Enterprises; Mr. Sanjeev Asthana, President & Chief Executive, Agri Business, Reliance Retail; Mr. Vikram Bakshi, Managing Director, McDonald, India and several others.

Speaking at the conference, Mr. Rajan Bharti Mittal, Chairman, FICCI Retail Committee and Managing Director, Bharti Enterprises, noted that the projected growth of 25%-30% in the organized retail sector would fructify only if the local trades are linked to the buyers. This required massive efforts on the part of the stakeholders and enormous amounts of capital to beef up the supply chain infrastructure. He called for according 'infrastructure status' to the supply chain sector and tax breaks to incentivise investments in the area.

Mr. Pinakiranjan Mishra, Partner, Ernst & Young, underlined the need for conducive policies to aid the development of supply chain network. He mentioned the cumbersome licensing procedures, cascading and complex tax laws, shortage of experts and store managers, and highlighted the need for a comprehensive course in supply chain management in educational institutes.

Mr. Sanjeev Asthana, President & Chief Executive, Agri Business, Reliance Retail Ltd., said coporates would have to take upon themselves the task of capacity building amongst the farmers and instilling in them best farming practices. He also stressed the need for timely dissemination of market information to farmers and service providers to maximize the gains out of efficient supply chain networks.

Mr. Rajiv Srivastava, Member, FICCI Retail Committee & General Manager-Enterprise & Partner Group, Microsoft Corporation, India spoke of the dire need to bring in IT and communications in setting up efficient supply chains. These two pillars, he said, would be vital in reducing timelines for delivery of products and services to front-end retail stores.

Mr. Vikram Bakshi, Managing Director, McDonald, India said it was important for large coporates to move into the retail sector and develop linkages with the farmers. This would benefit the rural masses, he said, adding that the 1.5 million odd retail kirana stores should not be allowed to hold the 600 million rural people at ransom.

Mr. Arvind Singhal, Chairman, Technopak Advisors Pvt. Ltd., suggested an approach that makes India one common, seamless market, removes barriers in the movement of goods across states, gives freedom of choice to the farmers to sell at whatever prices he chooses to, and reserves land for giving on long-term lease for setting up food distribution centers.

Dr. Raghuvansh Prasad Singh, Union Rural Development Minister, while delivering his valedictory address, outlined his vision of a prosperous rural India where the supply chain networks links the farmers to the front-end retail store through the establishment of cold chains. Elaborating on the massive programme undertaken by the government under 'Bharat Nirman' through the provision of rural roads, housing, drinking water and electrification, the Minister said, these were essential elements in providing connectivity to the rural areas and raising farm incomes in the long term.