Connectivity and logistics go hand in hand — the latter cannot exist without the former. While it may seem that logistics involves a simple, linear process, this couldn’t be further from the truth. Suppliers and distributors have a tiered structure that goes from the supplier of raw materials to the end user buying or receiving the product. And when this journey involves both rural and urban areas, the role of connectivity becomes all the more important — considering that India’s rural areas form the backbone of our agricultural economy.
Despite the sector’s major economic significance, the rural agricultural supply chain suffers from multiple inefficiencies leading to heavy losses. Let’s delve deeper to understand the situation, the challenges, and the types of connectivity that can remedy them.
Simply put, grain, vegetables, and fruit must reach urban India in a timely and efficient manner. This involves warehousing, cold storage, and of course, transportation. In this context, logistics, comprising transformation infrastructure and technological support become essential. However, several challenges stand in the way. These include:
A significant gap between the quantity of agricultural produce which needs storage and its available scientific management,
A major demand-supply mismatch
Poor warehousing capacity that has not kept pace with production and procurement increases
Lack of organized Logistics ecosystem supported by technology
Here’s a look at the different types of connectivity and the measures that can be implemented to address these gaps and ensure a smooth rural to urban supply chain:
Building a state-of-the-art rural distribution ecosystem: This should be designed to give the agricultural and rural artisan community real-time access to urban markets and marginal costs that will help them eliminate wastage and optimize services.
Developing physical infrastructure: Digital connectivity can help boost physical connectivity. While a robust road construction program that connects rural and urban areas is non-negotiable, digital connectivity can have a major impact on the performance of these routes. This is because of the real-time data that allows for accommodation of unexpected disruptions and the changing capacity of the competitive logistics industry.
Transport connections too need to be strengthened. The need of the hour is a rural logistics connectivity ecosystem from small towns and villages to the district headquarters through daily route vehicles that can cover hundreds of kilometers through a hub and spoke model. This will bring in efficiency into distribution management as well as cost optimization through scalability.
Other technology-driven solutions to drive different types of connectivity include:Connecting AI to humans: Contrary to popular belief, humans are not obsolete. The need of the hour is for human capital to work together with Artificial Intelligence, that has the ability to predict demand, risks, and supply availability in real time. Organizations that pick one over the other are likely to suffer in the long run, as operations scale and demand across the country continues to grow.
Implementing blockchain: Blockchain technology is one of the most effective ways to ensure visibility and connectedness between different elements of the supply chain. Real-time updates result in higher accuracy of inventory count and constant updates. This becomes especially important when delivering goods to remote areas, which may involve significant roadblocks or delays.
Implementing a B2B integration platform: A supply chain is a connection of stakeholders potentially spread across the world. This requires a robust B2B platform that connects various cloud infrastructuresand works with processesand applications that span boundaries.
Improvements in logistical capabilities, together with digital connectivity can bridge the rural-urban divide. An optimal mix of digital and physical connectivity is key to improving supply chain processes and ensuring the health of rural industries.
With H&S as your partner, you can focus on providing the best products, while we work on building and executing the optimal supply chain model. Our future-ready solutions help you improve service performance, minimize costs, deliver superior customer experiences —and scale your business to new heights.