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CommodityWireOptimisation Exercise: States save INR 1.28 bln with route optimisation in PDS supply chain
Optimisation Exercise

States save INR 1.28 bln with route optimisation in PDS supply chain

This story was originally published at 20:55 IST on 20 December 2024
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Informist, Friday, Dec. 20, 2024

 

MUMBAI – Twelve states have saved INR 1.28 billion till date after the implementation of route optimisation in their public distribution system supply chain, the Ministry of Consumer Affairs, Food and Public Distribution said in a release highlighting the major activities of the Food and Public Distribution Department this year. "With the completion of one year into the optimisation exercise, route optimisation assessments have been completed in 30 states. Results show tremendous promise, with transportation costs estimated to be reduced by around INR 2.50 billion per year," the release said.

 

The route optimisation is a strategic approach to enhance the efficiency and cost-effectiveness of the public distribution system supply chain, the release said. "The Optimisation exercise involved selecting the most efficient motorable routes for transporting food grains, thereby saving time and reducing costs using Operations Research. This exercise marks a transformative step towards building a more efficient and cost-effective food supply chain."

 

"This initiative is not only an economic win but also an environmental one. Global food miles--representing the distance food travels from production to consumption--account for nearly one-fifth of total food system emissions. Optimising India's food distribution routes can contribute significantly to reducing CO2 emissions, aligning with the country's climate change commitments under the Paris Agreement and its Conference of Parties (COP) targets," the report said. 

 

The interstate route optimisation of movement of food grains from the surplus to deficit states has also been completed by integration with the freight operating information system of the Railway Department. "By choosing the optimal option, states reduced transport distances ranging from around 15-50%," it said.  End

 

Reported by J. Navya Sruthi

Edited by Akul Nishant Akhoury

 

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