Impact of GST on the supply chain networks in India

Abstract

Supply chain networks of most companies are often not optimized based on warehouse location and capacity which ultimately translates to higher costs. There are many factors that often render any network sub-optimal. Changes happening in the internal and external environments such as evolving demand patterns, differences in tax policies, supplier and competitor positions, introduction of new products etc., cause inefficiencies in the network which are dynamic in nature and hence difficult to predict. Every re-designing effort takes a considerable effort and cost for any company, and therefore they tend to avoid such actions. But it becomes imperative to adapt when a major change in the environment occurs, failing which will render the company uncompetitive.