OpScoop Chapter II Issue IV: Railways supply chain goes digital

The Indian Railways is planning to bring transparency in system by developing a common digital platform through integration of information from all departments. This step is expected to save 60,000 crore for the public transporter.


With the entire supply and procurement chain of Railways becoming digitized, payments and procurement will be made electronically. Hence, there will be a decrease in corruption.

abc2Supply chain at Railways

Railways are planning to go digital by incorporating ERP i.e., enterprise resource planning. ERP refers to the systems and software packages used by organizations to manage day-to-day business activities, such as accounting, procurement, project management and manufacturing. Complete digitalization will help in managing operation from one place. It will also enable use of analytics for decision-making, reduction in the inventories and in the procurement cycle time leading to reduced cost of products/services.

abc3ERP to be incorporated for going digital

The railways have been stressing on the need for maximizing the use of ICT i.e, Information and Communication technology for increasing transparency and efficiency of government business processes on the one hand and improving ease of doing business on the other

abc4.jpgICT to increase transparency and efficiency of government business processes

Vast and complex organizations like Railways must have a vision. The organization already has short term, medium term and long term vision, now it must emphasize on having a pan-India vision. Railways have been suffering from major congestion problems.  Even though the rail traffic has increased 16 times after independence; the infrastructure has not grown even four times. As a consequence, railways are operating at 150 to 160 per cent of their capacity which is risky. Currently 60 per cent of rail traffic is handled on 16 per cent of the network. Due to congestion revenues are also affected.

train-chhath.jpg Railway Traffic

Congestion is also affecting punctuality as many trains are passing on the same line. Currently Railways’ punctuality is about 79 per per cent.  A train coming to Delhi may have come in time but cannot enter Delhi because of congestion. Suresh Prabhu said that he has sanctioned 16,500 km of doubling and tripling as against only 22,000 km in the last 70 years.

Congestion at Railways


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