Sri Lanka still loses and allows the perishing of over 30 to 40% of its agricultural, livestock and fisheries produce due to non-use of proper transportation methods and lack of proper cold storage facilities. This factor also adds to the rise of edible goods and attributes towards an increase of inflation.
The private sector seeks their support when launching mega projects but in contrast the public sector has cold shoulders with them and ignores valuable Supply Chain Management ideas.
“Even some of our proposals forwarded to the government on various issues have gone unnoticed,” said President – Institute of Supply and Materials Management (ISMM) Sarath Gamage and Past President, I. G. Perera.
|President and past President ISMM Sarath Gamage and I. G. Perera|
They also said that though there are several infrastructure projects initiated by the government they lack key components which loses its true productivity. “for example the Dambulla economic center does not have a cold storage facility and hence fruit and vegetables cannot be stored for a few days and this leads to huge waste of agri produce.”
Similarly, Sri Lankan railway only transports less than 1% of fruit and vegetables and special carriages should be introduced like in India to facilitate Agro transport.
They also said that the success of Singapore to be a developed nation is their Port but despite Sri Lankan Ports located in better global geographical locations have sadly not been able to exploit it to the nation’s advantage.
“In addition, the high freight costs which have accelerated over 60% in the last two years too negatively contributes towards higher inflation,” they said.
China still accounts for around 60% of total imports to Sri Lanka and a container which cost around USD 900 two years ago now charges around USD 4,000. “The main reason for this is that vessels coming to Sri Lanka are being limited due to several issues and this increases demands which in turn increases prices.”
Supply Chain Management is a fast-developing field of management, having a major influence on economic development and trade both at domestic and international levels. Globalization and regionalization are taking pride in international trade and development of competition is taking precedence over other factors as the driver of business. “The benefits of Supply Chain Management are immense and to name a few; higher productivity, reduce cost, raise output, raise efficient/effective levels, boost cooperation, lowers delay in processes and enhances the effectiveness of Supply Chain Networks and we request the government to talk to us and seek our advice as well,” the duo said.