An unorganized sector contributes a lot to emerging economies such as India. Managing their supply chain is a challenge due to:
a) There are NO best practices available which can be mapped to the practice of unorganized sector (US).
b) There are no formal information systems available in US. Mostly, the information flow is informal.
c) The material flow is disorganized and may involve low level of mechanization/automation.
d) The money flow is also using traditional methods . The extent of e-commerce or payment gateways may not be there.
However, the US supply chains involves a huge amount of manpower. Their supply chains are also an opportunity for mass employment generation. Therefore the challenge is to manage human flow appropriately. Thus supply chains in emerging economies offer an altogether different domain for modellers and analysts.