Infrastructure plays an important role in business and is important part of Supply chain. Companies can invest millions in creating an internal infrastructure mixed with high end ERP technology to very strong supplier base but if there is not enough infrastructural development en route from supplier location to customer location then overall supply chain effectiveness goes for a toss.
This situation is increasingly becoming a big problem in countries like India where economy is growing by leaps and bound but infrastructure development is not picking up at the same pace. Due to which in spite of creating world class supply chain apparatus, it’s becoming challenging to bring in the material from supplier end on time.
How one can design a supply chain apparatus when the infrastructure bottlenecks, which are outside ones control, can nullify all the benefit of having a good supply chain apparatus? This seems to have become a very big problem and organizations are now moving from a very successful Just in Time approach to a situation where inventory levels are increase. These very acts destroys the lean apparatus of the supply chain and add waste in the system in terms of huge inventory, more cost and lessen the control on quality.
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