Local Markets can help Supply chains to increase profitability

The Corona pandemic has disrupted the supply of goods and services in the world. Most of the countries are facing

numerous problems due to the COVID spread. It has negatively affected business and global trade. As the virus is

spreading rapidly, countries have stopped everyday businesses and have locked down the country. Yet, there is

high pressure on the government to control the spread of the virus. The governments have invested a huge amount

of money in the healthcare sector for the cure and also have to provide basic needs to the entire population.

As businesses are stopped and the economy has frozen, this is putting a strain on the economy and that too

when the world economy is in recession.

Modern-day are capable of solving such problems effectively and efficiently. The modern-day supply chains

are designed in such a way that they can handle such disruptions and solved complex problems very effectively.

Today’s supply chains have two main tasks to look at 1.) New sources of raw material & 2.) Fast ways of production

in order to meet today's demand. The task is to provide a solution that is cost-effective as well as customer-friendly

to be competitive in the race. There are many possible ways to buy raw material and goods which are cost-effective

and of good quality. The most effective way is to buy raw material and goods locally. This will not only help businesses

to reduce their procurement and logistics costs but also at the macro level, this will help to stabilize the economy.

Buying goods or raw materials locally can help businesses in various ways such as:- getting potential suppliers

which can produce locally and provide the same quality of material at a low cost, it will help businesses to reduce

the transportation & logistics costs as they are getting the goods/raw materials within the country itself, buying

locally will save business hefty taxes of imports and other aligned costs; apart from these benefits, businesses can

also receive subsidies from the government for buying and producing locally. From the economy’s side, local

businesses will flourish and the economy will stabilize & start to grow. It will reduce unemployment and provide jobs

for everyone. It will also help to increase the GDP of the country and to reduce inflation. Furthermore, it will motivate

exports and will restore the world economy.

Today, supply chains can deal with many complex problems very effectively and can plan & execute strategies to

increase productivity, cost-effectiveness, and consumer satisfaction. If businesses adopt this strategy they can

increase their profitability, consumer-base and can expand their businesses locally. Governments can also take

part to motivate companies by reducing the taxes and providing subsidies to produce locally. In a country like India,

adopting this strategy now will help to save the local industry. This will automatically reduce the dependence on other

countries as the money flows within the economy and will boost exports.