TRANSFORMING REAL ESTATE SUPPLY CHAIN

Supply chain management for real estate is the management of individuals, properties, processes, vendors, and assets to deliver items or services to the real estate customer. The SCM includes managing total activities of real estate purchasing, selling, or renting an area, building, or housing.

The real estate industry is one of the most dynamic and globally recognized industries that comprise four sub-sectors - residential, retail, hospitality and commercial. In India, real estate sector is the second-highest employment generator, after the agriculture sector. By 2030, India's real estate market is anticipated to be worth USD 1 trillion. By 2025, it will contribute to 13% of the country's GDP. The emergence of nuclear families, increased urbanisation, and rising household income continues to be the primary drivers of real estate expansion in all areas, including residential, commercial and retail. Rapid urbanisation in the country is propelling the growth of real estate. More than 70% to 75% of India's GDP will be contributed by urban areas by 2020.

With the onset of the pandemic, a digital wave emerged in the real estate sector, it pushed even good old-fashioned developers to evolve and adapt to the new digital market needs, in order to survive in the industry and also to manage operations smoothly and efficiently. For SCM, new software solutions with exceptional advanced analytics tools gained popularity in the market. It offers a breakdown of information from all divisions of the business.

For the past 1.5 years, organizations had to reorganize themselves. As a result of this change, the role of supply change became more and more prominent and is even shifting from an operational level to a strategic level. However, by lowering costs and improving performance, supply chain can be truly optimized. When supply chain is managed at the operational, tactical, and strategic levels—it has the best chance of helping its company reach its goals.

While Covid-19 has brought much despair, it's also worth observing the many new beginnings that the first half of 2020 has brought: Perhaps most significant are the glimpses of digital transformation in the supply chain operations. Technology became a crucial market differentiator and brought new opportunities for the industry to evolve and thrive. The industry can utilize supply chain management solutions by managing properties and different ventures, estimating and planning to cater to the need for an exhaustive analysis of supply and interest for properties, documentation and file management, vendor management, purchase orders, streamlining logistics and for managing partners and location. Furthermore, the transparency through technology enables flexibility in an organization's supply chain, which allows them to expand the geographic diversity of suppliers, add more local suppliers and ensure key materials are not sole-sourced.

Today, there is a vast pool of unique opportunities for the supply chain industry to accelerate the market transformation and truly integrate sustainability. With the quick adoption of new trends in the industry, one can make considerable progress on ensuring a transition to a shock-free industry in 2021 and beyond. Some of the emerging trends in the supply chain industry include -

Agility

Today, post the outbreak of COVID-19 in the country, manufacturers and distributors must become much more agile, willing, and able to make changes quickly so that they can respond to disruptions promptly and ensure business continuity.

Blockchain

Block chain technology is progressing with its cost-effective and transparent offerings, it is supporting manufacturers and distributors deliver products faster, eliminate waste and fraud. Supply chain leaders are now able to detect issues quickly using blockchain technology. This would significantly enable cost-saving and improve customer satisfaction tremendously.

Focus on sustainability

Organizations have increased their sustainability efforts, which are now seeping into the supply chain. In the coming years, such large moves require a complete overhaul of steps in the supply chain, from how to source raw materials to how the products are transported to customers.

Customization

The industry witnessed an increasing level of customization in different parts of the supply chain. Building a customized strategy and approach for each segment will play an important role in future operations.

Layered Technologies

Various technologies are being adopted by the supply-chain industry. We can no longer treat technology as an isolated service. Technology will inescapably become the spine of the supply-chain industry. Hence, a more significant push toward integrating and layering technologies, eliminating data silos in the supply chain, while creating dynamic, actionable data across technology platforms is required.

The global pandemic had tested the supply-chain industry, re-emphasized its importance, and created entirely new opportunities and outlooks for years to come. By embracing innovation in the form of various technologies, the industry is all set to face any roadblocks in the times to come and help businesses achieve greater operational efficiency.

PK Mishra

VP - Planning, Procurement and Facilities Management
Salarpuria Sattva Group

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