Hyperlocal supply chain

 

    Hello everyone, This is Sathya M from Amrita School of Business pursuing my second year MBA in Operations.

The balance in the power between the end customers and the suppliers have shifted as the lives of consumers become busy and as there are advances in technology. This shifts the pressure on the supply chain and logistics. The supply chain experts are continuously looking for solutions to fill this gap:

       As online purchase of items becomes easier for the consumers, more number of companies seem to provide offers and hence more the consumers expect. Consumers are accustomed to having purchasing power at their hands. The supply chain is expected to excel in speed as much as possible.

 

    With this shorter delivery timing in concern ‘Hyperlocal delivery’ has been adopted in the supply chain which can fill the immediate end-to-end delivery in the nearest area. Hyperlocal delivery works efficiently by eliminating as many steps as possible in the middle layer. The products catered in this supply chain network are basically consumer products and retail products required at convenience.

      Hyperlocal delivery system is best suited for areas with large population density and has high retail density. The people expect transparency in the product details. This in turn gives people the trust in buying those products.    

      The retail giants will also acquire those hyperlocal models in the future. With the help of e-commerce, local businesses will strive to improve over time. Yet the local businesses will have to compete with the retail giant and technical advancements and efficient supply chain help in bringing their gaps closer in the local market.