How would Narendra Modi’s Currency Ban Affect Logistics in India
Narendra Modi became a social media trend when he announced the currency ban covering the Rs 500 and Rs 1000 notes. He also became the most discussed person within groups of small enterprise business owners. Narendra Modi’s pitch regarding the currency ban revolves around a takedown of corruption and terror infrastructure. Both points are valid and worth getting behind.
Let’s go back to the aforementioned group of small business owners. Consider one of them, let’s call this person Mr. J. Now Mr. J has to pay his driver. Mr J. cites Narendra Modi while trying to convince his driver to take his payment when the banks reopen with the updated currency standard.
Another person from the group indicates that its high time the logistics in their choice streamline. Logistics management system in the country sometimes sees a gulf between the haves and the haves not. On one hand, established entrepreneurs would not feel the pinch of Narendra Modi’s battle against corruption. On the other hand, however, the small scale entrepreneurs would find it hard to shift gears and adapt within the comparatively unorganized logistics system they are exposed to.
Mr. J. broods on the topic and then comes up with a solution.
He sanctions an impromptu meet of lead investors of his company and convinces them of the merits of investing in a proper logistics management solutions to provide for their needs. The benefits he tells them are manifold.
- Instances like the current one, where the money market underwent a sudden demonetization, there have to be safeguard for the company.
- The dependency on paper currency acts as an old milestone in a new set-up. Paper currency, even though liquid, can’t match the liquidity of virtual or plastic money. Realizations of all payments can be done instantaneously and cash management can be moderated efficiently.
- Logistics management solution technology instills a digital transformation that not only streamlines the delivery system, but also increases the efficiency of the work flow. Nowadays, many leading logistics management solutions companies like LogiNext, offer real time tracking for all their shipments. The level of automation checks the quality and consistency of the company’s goods and services.
- Such integration of a logistics management solution would render the company immune to cash flow crunch, arising from the current positive stride of our Prime Minister, Narendra Modi. It would also make the company resistant to any future fiscal and monetary policy changes following the banning of certain currencies.
- Digitalization of the credit system of the company would be mean that logistics planning can be synchronized across all checkpoints. The driver can be automatically paid digitally as soon as the shipment is checked at the destination checkpoint. This would build the trust factor amongst the employees and go a long way in cutting red-tape, bureaucracy, and yes, corruption, which was Narendra Modi’s intent all along.
Mr J. puts across these points and asks them for a belief that better things would come if they believe in the now. Believe in the economy now and the economy would rise and grow. Believe in technology for your logistics now, and the company would succeed and flourish.