Beyond Freight: The New Role of India’s Supply Chain

As India’s manufacturing, consumption and distribution networks become increasingly complex, supply chains are moving beyond their traditional role as a support function to become a critical driver of competitiveness and growth. The next phase of transformation will depend not only on stronger infrastructure but also on how effectively technology, multimodal connectivity, resilience and sustainability are integrated into everyday operations. In this interaction, Manoj Tripathi, Chief Executive Officer, TCI Supply Chain Solutions, shares his perspective on the forces reshaping India’s logistics and supply chain landscape. He discusses the practical role of AI and automation, the evolution of warehouses from storage facilities into intelligent fulfilment nodes, and the need to connect infrastructure assets into seamless multimodal networks.

AI and automation in logistics are moving from experimental concepts to practical, measurable applications across India. However, it is important to distinguish between AI as a productivity and decision support tool, which is already creating value, and AI as a fully autonomous decision maker, which is still evolving.

The strongest applications are in areas with large data volumes, repetitive processes and clearly defined operating rules.

In transportation, AI is delivering value through route and load optimisation, vehicle utilisation, predictive alerts, ETA management, safety and quality control, and exception management. In warehousing, it is improving inventory accuracy, manpower productivity, equipment planning, replenishment, picking productivity and the early identification of bottlenecks. In planning, AI helps organisations process larger datasets and identify patterns that individuals may not detect consistently.

At TCI, our philosophy is to standardise and digitise processes first, then apply the appropriate intervention through AI and analytics. The next major productivity gain will come from making logistics increasingly exception-driven.

A control tower manager should not have to monitor thousands of data points and vehicle movements continuously. Systems should identify deviations and prioritise the situations requiring human intervention.

At the same time, the industry may be overestimating how quickly AI can independently manage complex physical supply chains. Logistics operates in the real world, where disruptions are frequent and human judgement remains critical.

Our control-tower model illustrates this approach. IoT-enabled devices, GPS, driver monitoring systems and telematics tools capture operational data. AI and analytics identify patterns, deviations and exception points; operating teams then take the required action. The real value of AI is not more dashboards but converting large volumes of data into a smaller number of actionable decisions that improve productivity, response time, visibility and customer service.

Consumer behaviour in India has changed significantly, particularly with quick commerce expanding from grocery into consumer durables and other categories. This is reshaping customer expectations around speed, flexibility and fulfilment.

For me, a smart warehouse does not necessarily mean a fully automated warehouse. Warehousing is evolving through three stages: first, organisations digitised transactions; then, they connected operations and improved visibility; now, they are moving towards the intelligent warehouse, where data supports and anticipates operating decisions.

A smart warehouse should know what inventory it has, where it is located, what is likely to move next, what manpower and equipment will be needed, and what exceptions could affect fulfilment—ideally before the customer experiences them. We are therefore moving from inventory management towards inventory intelligence.

Visibility is also shifting from periodic reporting to real-time information. WMS, scanning, planning systems, IoT, automation, transportation systems and ERP platforms are increasingly connected, enabling more seamless information exchange.

Warehouses are no longer viewed only as storage facilities; they are becoming fulfilment and distribution nodes within a larger supply chain network. Productivity must, therefore, be assessed not only by cost per square foot but also through inventory accuracy, throughput, order cycle time, cost per transaction, equipment utilisation and service levels.

Going forward, India will see a combination of highly automated facilities and technology-enabled, people-assisted warehouses.

India has built a strong infrastructure foundation over the past decade, with substantial investment across ports, highways, railways and digital initiatives. Programmes such as PM Gati Shakti, the National Logistics Policy and ULIP are creating the architecture for a more integrated logistics ecosystem. India is in a much stronger position than it was five to seven years ago.


This is an abridged version of the story published in the September edition of the magazine. To read the complete edition, click here.

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest ...

LATEST NEWS

Click to listen highlighted text!