Significance of Supply Chain Management in Public Distribution System

Development of a proper supply chain management system to manage the food distribution network to achieve food security is one of the major challenges confronting the world today. India and China, two major economy of the world face the challenge and pressure to feed over half of the total world population. Although, our country India has achieved self-sufficiency in food grain production and surplus food stocks are available in the FCI godowns across the country, but due to inefficiencies of operation and entrepreneurial abilities, majority of beneficiaries of the resources invested by them are not targeted to the correct population. The availability of such food to people who have challenges on social and economic front should get benefit of physical access is the key of any distribution system. Therefore a strong supply chain policy for the distribution of such food in various parts of country, a proper plan for optimal distribution of the procured food grains among such population is required. Any failure in any of the channel of this system procurement -transportation - warehousing - transportation - distribution system can lead to large scale famine in the effected region of country. Therefore, it is very important to maintain entire supply chain from farmers to the beneficiary is managed in an integrated manner.