Vendor-managed inventories need to be tested
It is believed that check posts will vanish with GST. This will be a benefit for transporters as the overall turnaround time will reduce, leading to an increase in profitability, which in turn would lead to better quality vehicles and drivers. The other important impact of GST is that there will be a better match of supply to demand because inventories at several locations will start consolidating. Also, vendor management of inventory as a concept has not yet been fully realised. The new GST regime will encourage the implementation of vendormanaged inventory.
Arif A Siddiqui Founder Director, Coign Consulting