1. Dr.Harsev Singh CEO Reliance Dairy Foods Ltd.
Supply Chain & Infrastructure Bottlenecks
Dr.Harsev Singh
CEO
Reliance Dairy Foods Ltd. 1 1

2. A supply chain can be looked into as set of agribusiness activities and products that lead to a produce that reaches the final consumer

3. Major Shift from Traditional Farming
The Indian agricultural sector is witnessing a major shift from traditional farming to horticulture, meat and poultry and dairy products, all of which are perishables.
The demand for these products are increasing owing to change in consumption habits of the consumers
Due to this increase in demand, diversification and value addition are the key words in the Indian agriculture today.

4. Weak Infrastructure
In India, the infrastructure connecting these partners is very weak.
Each stakeholder: farmers, wholesalers, food manufacturers, retailers all work in silos.
Demand forecasting is totally absent and the farmers try to push what they produce in to the market.
Data integration, financial flow management, supply-demand matching, collaborative forecasting, information sharing, goods movement synchronization through efficient transport scheduling are lacking.

5. Weak Infrastructure Inefficient price signals Limited reach of mandis
Too many intermediaries, information asymmetry:
Inadequate infrastructure for storage
Lack of cold storage infrastructure 

6. Infrastructure Bottlenecks
Area
Cause
Effect
Ports
Inadequate capacity at major ports
Untapped potential of non-major ports
Outdated equipment
Lack of warehousing
Heavy congestion at most major ports leading to
higher vessel turnaround time
Inefficient handling
Long waiting time
Airports
Few busy airports (Delhi, Mumbai, Kolkata,
Chennai, Bangalore, Hyderabad)
Numerous unused airstrips & relatively less used
Lack of equipment for odd-sized packages,
professional packers, etc
Congestion at main airports   
Inefficient handling resulting in pilferage/damage
High cost of alternate arrangements (prices quoted
by individual loaders)
Roads
Bad quality of roads
Inadequate lanes / lack of maintenance
Inadequate hinterland connectivity
Do not support the axle weight of the trucks & cause the roads to break and cave in
Bad road quality leading to poor speeds, accidents and high vehicle maintenance
Inconvenience due to limited access to
neighboring ports

7. Infrastructure Bottlenecks
Area
Cause
Effect
Railways
Too many level crossings / minimal electronic controls / priority to passenger trains over cargo trains
Limited network and terminals of private players
(container movement)
Inadequate capacity / connectivity
Choked rail network & resultant lower speeds of cargo trains
Transportation delays & cost overruns
Transportation delays
Cold Chain
Unreliable infrastructure / uneconomical size
Inexperienced staff
Less integrated services, inefficiency & resultant
inconvenience Inefficient handling

8. Cold Storage
The total value of India’s cold chain industry is currently estimated at USD 3 billion and reportedly growing at an annual rate of per cent.
The total value for the industry is expected to reach at USD 8 billion by 2015
It can be achieved through increased investments, modernization of existing facilities, and establishment of new ventures via private and government partnerships.
India has 5,400 cold storage facilities, with a combined capacity of million metric tons that can store less than 11% of what is produced.

9. Logistics
Customers are demanding a “single point of contact” for all logistics services and are looking for “one-stop logistics shopping” unable to cope with complexities across their supply chains

10. Logistics
Appreciation of high logistics cost and opportunities for major savings
Increasing competition for both users and providers of logistics, who have to continually improve operations to remain competitive
New types of operations, which can force changes to logistics – such as just-in-time, total quality management, flexible operations, time compression etc.
Need for improved technology for identifying locating and tracking materials

11. in the logistics market Logistic Cost as a % of GDP
National logistics cost vis-à-vis the share of 3PL
in the logistics market
Country
Logistic Cost as a % of GDP
Share of 3PL
India
13-14 %
Less than 10 %
China
18 %
USA
9.9 %
34 %
Europe
7.1 %
54 %
Source : Compiled from Various Sources

12. Areas Requires Strengthening
Pre-cooling facilities
Cold Storages
Refrigerated Carriers
Packaging
Warehouse and Information Management systems
Traceability
Financial and Insurance Institutions

13. Way Forward Partnership should be in areas of
Infrastructure creation / utilization
Processing
R&D
Technology Transfer / Skill up gradation
Creation of Cold Chain
Development of a Robust & Effective Supply Chain
Mproving market share

14. Conclusion
Although it’s still early days, these solutions should lead to better supply chain management in Indian agriculture, reducing inefficiencies and increasing farmer realizations, as well as curbing food waste

15. Thanks !!!
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