Supply Chain Competitiveness: Finding The Right Multimodal Mix

In the supply chain, utilising multimodal services with a single service provider offers a more seamless experience compared to employing multimodal services with multiple providers. This is an area with significant potential for growth, as the industry needs to collaborate more cohesively, as discussed by industry veterans. 

"During the pandemic, we observed a surge in multimodal shipments needed to reach our customers, hospitals, labs, etc. What we have noticed is that when we use multimodal with one service provider, it works far more seamlessly compared to employing multimodal with multiple service providers, which we have not been able to integrate well. This is an area where there is significant potential for growth, as the industry needs to work together," said Ashutosh Dhar, Supply Chain Director at Becton Dickinson. 

While discussing cargo, Ajay Gupta, Group Chief Supply Chain Officer at Jakson Group, said, "India is at a very nascent stage, and we've evolved to the extent of receiving cargo either by air or sea. Entities like Container Corporation of India or Concor are improving their footprint, covering a larger geography in the country to bring it closer to customers. However, it is not truly a cliché multimodal operation where all inland waterways and other avenues are utilised. Concor is a viable option, and the way it is growing is a testament to the fact that we are moving in the right direction." 

On the other hand, Bharat Bhushan Rathi, Head of Distribution and Logistics, Mankind Pharma, discussed the scope of improvement and investment in the sector. He said, "We have come a long way from the time when things were coordinated over the phone regarding the container reaching, etc., to today where everything is handled automatically. Obviously, there is room for improvement because managing different people and different service providers on a single platform—especially during a time when customers want details and wish to track their shipment almost every hour—is on the verge of change. The groundwork has been done, but it can't be accomplished by one person alone. The people and industry users must come together, and we need to invest a lot." 

"With the government's focus on this multimodal setup, vast corridors are being developed. In the next five to seven years, we will see significant growth in the multimodal sector. The key is to have strong players in the service industry who are willing to provide end-to-end solutions. Even if companies are open to embracing change, they remain sceptical about the visibility of the cargo at any given point in time. So, if businesses lack confidence in the status of their shipments, it becomes a scenario most companies want to avoid," said Rajat Dhar, Head of Supply Chain at United Colours of Benetton India, while speaking at the BW Supply Chain Summit & Awards 2023.