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Supply Chain Management in Rural Areas

India has a rare mix of both urban and rural pockets at regular intervals. Tremendous amount of logistics supply and coordination is required in rural areas to make the SCM system effective. One needs to be well acquainted with the geographical diversity to take better decisions about logistics. Most of the supplies move generally via these rural areas and hence one should be aware of these areas in a nutshell.

There are certain criticalities pertaining to logistics in rural areas

These are just a few but, there can be many more hindrances depending upon the nature of terrain and climatic conditions. Trading in rural areas is difficult and risky too.

Storage in rural areas is another criticality there are restricted storage areas and also the agro produces are seasonal in nature. These are the consumables which are used round the year, both in season and off-season. Storage starts right from the time the harvest is ready till it is distributed to the consumers.

Various storage options available are

Such products and specifically the farm produce have a shorter shelf life hence planned infrastructure has to be developed for proper storage facility like the cold rooms or refrigerated places. These areas still have a prehistoric transport starting from bullock carts, cycles, hand carts, rickshaw van, boats, animal transport and even stragglers. India has one of the largest road networks in the world with approximately 2.5 million kilometers of road network. National highway accounts to nearly 5200 km, which is barely 2% of the total roads in the country. The movement of goods from rural areas becomes more expensive due to its higher handling costs and number of organizations involved in it.

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