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Defense and Security Studies  Original Research 
Vol. 6, No. 1, 2025, pp.39-48 
https://doi.org/10.37868/dss.v6.id284 

This work is licensed under a Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/) that allows others 
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 39 

 
Inventory woes and logistic bottlenecks: operational challenges in the 
SCM of the Indian defense sector 
 
Sandeep Sharma1, Ravi Chaurasiya2, Rohit Mohite3, Sandesh Akre4  
 
1 Dr. D. Y. Patil School of Management, Lohegaon, Savitribai Phule Pune University, India    
2 Dr. D. Y. Patil School of Management, Lohegaon, Savitribai Phule Pune University, India  
3 Dr. D. Y. Patil School of Management, Lohegaon, Savitribai Phule Pune University, India  
4 MET Institute of Management, Mumbai University, India 

 
*Corresponding author E-mail:  sandysharma1986@gmail.com    

Received: April 25, 2025 
Revised: May 12, 2025 
Accepted: May 13, 2025 
Online: May 16, 2025 
 

Abstract 

Supply Chain Management (SCM) in the Indian defense sector represents a 
strategic function that supports operational readiness and national preparedness. 
This study undertakes a qualitative analysis based solely on secondary data sources 
to examine key dimensions of defense logistics operations. The research draws 
from government audit reports, policy documents, defense procurement reviews, 
and institutional publications to synthesize insights into current SCM practices. The 
analysis identifies several areas of interest, including inventory visibility, supply 
alignment, infrastructure utilization, and inter-agency coordination. Observations 
indicate that existing logistical frameworks, shaped by well-established protocols 
and multi-tiered structures, are undergoing transformation with increased emphasis 
on integration, automation, and data-driven decision-making. The study also 
reflects on the evolving role of digital technologies and policy reforms in enabling 
more responsive and cohesive supply chain mechanisms. Recommendations 
emerging from the review include the implementation of enterprise resource 
planning (ERP) systems, application of predictive analytics for supply planning, 
and the formation of integrated logistics command structures. Additionally, the 
importance of organizational adaptation and capacity-building is emphasized to 
ensure readiness for future operational demands. The findings suggest that 
continuous improvement in defense SCM can be facilitated through structural 
realignments, informed policy direction, and the strategic adoption of modern 
technological solutions. 

© The Author 2025. 
Published by ARDA. 

Keywords: Supply Chain Management (SCM), Indian defense, Inventory 
management, Logistics, Operational challenges 

1. Introduction  

In the complex landscape of national security, logistics and supply chain management (SCM) function as the 
invisible backbone of military effectiveness. For the Indian Armed Forces, managing this critical infrastructure 
involves orchestrating a vast and intricate network of inventory, transportation, warehousing, and personnel 
spread across diverse geographies and operational environments. Despite its importance, the defense logistics 
system in India has been consistently characterized by inefficiencies, outdated practices, and fragmented 



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40 

coordination among the Army, Navy, and Air Force [1]. The need to transition from reactive, manual inventory 
practices to agile, technology-enabled, and responsive systems is not just a logistical imperative but a strategic 
necessity in the face of evolving threats and operational demands. Historically, Indian defense logistics evolved 
from colonial-era administrative structures that prioritized procedural rigidity over operational flexibility [3]. 
While reforms have been initiated periodically, such as the adoption of e-procurement platforms and the 
establishment of integrated logistics nodes, the core logistics functions remain siloed and hierarchical [2].  

Current inventory management practices often rely on outdated manual systems that lack real-time tracking 
capabilities and advanced forecasting tools. As a result, the defense forces frequently face paradoxical scenarios 
of overstocking obsolete items while simultaneously grappling with shortages of mission-critical supplies [22]. 
A fundamental weakness lies in the lack of integration and interoperability across logistics divisions. Each 
service arm maintains its own inventory systems, supply chains, and logistics infrastructure, often leading to 
duplication of resources, underutilization of assets, and misaligned procurement schedules [12]. For instance, 
the absence of a unified inventory platform prevents real-time visibility into stock positions across warehouses 
and depots, significantly impairing decision-making during urgent operational requirements [11]. This siloed 
approach also hinders the establishment of centralized command and control mechanisms, which are essential 
for dynamic threat response and joint operational planning [1][2].  

In contemporary defense environments, where threats are unpredictable and require rapid mobilization, a 
modern SCM framework must be built on agility, integration, and predictive intelligence. Advanced SCM 
concepts such as Performance-Based Logistics (PBL), Just-in-Time (JIT) delivery, and integrated Enterprise 
Resource Planning (ERP) systems are already well-embedded in global defense practices [24] [26]. In contrast, 
Indian defense logistics remains anchored to legacy systems, lacking the digital transformation necessary for 
speed, accuracy, and efficiency [22] [30]. Moreover, the hierarchical structure of the logistics organizations 
often resists innovation, favoring status quo processes over adaptive reform [21] [44]. 

 
Figure 1. Operational challenges in the SCM of the Indian defense sector 

An illustrative example is the functioning of the Indian Army's supply chain under the Quartermaster General’s 
(QMG) strategic vision. While recent innovations have been reported, including pilot applications of automated 
tracking systems and blockchain in select logistics units, the implementation remains sporadic and lacks full-
scale institutional adoption. The reliance on civilian transportation assets and public procurement channels 
further complicates supply chain responsiveness, particularly during conflicts or natural disasters, when time-
sensitive deliveries are critical [19] [20]. These challenges are not only technological but structural. Logistics 
functions are dispersed among various directorates, often operating under different administrative and financial 
rules. The lack of standardized operating procedures (SOPs) for inventory forecasting, procurement, and 
distribution reduces supply chain visibility and slows response times [34].  



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41 

In critical scenarios, such as border stand-offs or rapid deployments, the inability to mobilize equipment, 
ammunition, and essential supplies in real-time can compromise operational readiness and troop morale [45] 
[46]. In recent years, the Government of India and the Ministry of Defense have taken notable steps to improve 
logistics efficiency. Initiatives like the Integrated Logistics Management System (ILMS), Defense Logistics 
Information System (DLIS), and the promotion of private sector participation in defense manufacturing and 
supply chains aim to bridge capability gaps [18]. Furthermore, the emergence of India’s Micro, Small, and 
Medium Enterprises (MSMEs) sector as a contributor to defense production offers new opportunities to develop 
decentralized, responsive supply chains [46].  

However, to fully leverage these possibilities, it is essential to invest in educational interventions, digital 
capacity building, and leadership development in logistics operations [17]. Global best practices show that 
military logistics can serve as a force multiplier when it is intelligent, automated, and integrated [25]. In 
countries like the United States and the United Kingdom, defense logistics has adopted advanced tools such as 
predictive analytics, AI-driven inventory planning, drone-based last-mile delivery, and digital twin simulations 
for logistics infrastructure management [23]. While India is making gradual progress in these domains, the 
defense supply chain remains more reactive than predictive, often failing to anticipate and prepare for 
contingencies [2].  

This is especially problematic in high-stakes scenarios involving national security and international diplomacy, 
where delays in troop deployment or equipment mobilization can carry significant geopolitical consequences. 
This research adopts a qualitative case-based methodology to examine the operational inefficiencies within 
Indian defense inventory systems. By conducting interviews with logistics officers, observing warehousing 
practices, and reviewing official audit and logistics documents, the study aims to uncover the systemic issues 
impeding inventory performance. The findings indicate a convergence of procedural, infrastructural, and 
technological challenges that cumulatively erode supply chain efficiency and increase operational risk. Notably, 
issues such as redundant stockpiling, erratic demand forecasting, poor cross-service coordination, and limited 
use of digital tools emerge as core bottlenecks [1] [5]. To address these challenges, this study advocates for a 
multi-dimensional strategy that includes the implementation of AI-driven forecasting systems, the creation of 
centralized logistics command centers, and the adoption of ERP-based inventory platforms tailored for defense 
environments. Additionally, modern logistics frameworks like Performance-Based Logistics (PBL) and 
modular supply chain design should be institutionalized to enable faster, more flexible responses to evolving 
military needs [3] [5]. Equally important is the upskilling of logistics personnel through targeted training 
programs that introduce emerging technologies and global best practices [15].  

2. Research method  

This study adopts a descriptive qualitative research approach to examine and interpret the challenges and 
opportunities in inventory management within the Indian defense supply chain. A descriptive approach is 
particularly suitable for complex institutional environments like military logistics, where understanding the 
interplay between structure, processes, and outcomes is essential. Descriptive research aims to present data in a 
way that is easily understandable and relatable for both academic and practical audiences. This method allows 
the study to generate insights grounded in empirical observations and institutional realities, rather than relying 
solely on theoretical constructs [8] [9] [10]. 

3. Research design 

The research is exploratory in nature and employs a case study methodology to investigate real-world logistics 
practices in the Indian defense sector. This design enables an in-depth exploration of inventory management 
systems, focusing on practical workflows, operational inefficiencies, and organizational constraints. The intent 
is to describe and evaluate current service practices while identifying key areas for improvement (Fig. 2) in 
inventory control, warehousing, and supply chain responsiveness [3] [5]. 

3.1 Data collection methods 

Data were collected using multiple qualitative methods to ensure a comprehensive understanding of the issues: 

 Document analysis involved reviewing Comptroller and Auditor General (CAG) reports, Ministry of 
Défense (MoD) annual reports [28][33], and relevant logistics manuals. These documents provided an 
institutional perspective on procedural inefficiencies and resource utilization patterns. 



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Figure 2. Conceptual framework 

3.2 Data analysis technique 

This study uses a descriptive analytical technique to synthesize the collected qualitative data. Data analysis was 
conducted inductively, where patterns, themes, and insights emerged from the ground up rather than being 
imposed from a predetermined hypothesis [35] [45]. The process involved categorizing qualitative data into 
thematic clusters such as: 

 Inventory visibility and tracking challenges 

 Over or under-stocking issues 
 Cross-service coordination gaps 

 Technology adoption and digital integration 

 Training and capacity-building needs 

Once categorized, the data were interpreted in relation to existing literature and operational frameworks to 
determine root causes and propose actionable improvements. The goal was to not only describe existing 
conditions but also articulate points of service enhancement that could guide future modernization efforts [40] 
[41]. 
 

3.3 Validity and reliability 

To enhance the validity of findings, data triangulation was employed by comparing insights from interviews, 
field observations, and document analysis. By drawing from multiple sources, the research minimizes individual 
bias and ensures that interpretations are consistent with actual operational contexts. Reliability was ensured by 
following a consistent protocol for interviews and observation, and by documenting each step of the data 
collection and analysis process in detail [19] [20] [21].  



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Figure 3. Bridging training and technology gaps in defense inventory management [6][33][34] 

The diagram in Fig. 3 highlights key challenges in defense inventory management, divided into training gaps 
and technology gaps. Training issues like skill shortages, resistance to change, and limited exposure to best 
practices lead to technological shortcomings such as poor inventory tracking, overstocking, shortages, and 
coordination gaps, ultimately weakening operational efficiency [31] [32] [45]. 

4. Results and discussion  

This section contains a description of the results of the community service process, namely an explanation of 
the dynamics of the mentoring process (various activities carried out, forms of technical action or program 
action to solve community problems). Table 1 presents a structured overview of the core challenges 
undermining inventory management within the Indian defense supply chain. The descriptive analysis draws 
upon diverse data sources - including field interviews, institutional reports, and academic literature—to identify 
patterns that impact supply chain efficiency, responsiveness, and accountability [12] [15]. A primary concern is 
the lack of real-time visibility and tracking, which remains a persistent obstacle due to outdated, manual 
inventory systems. Closely linked to this is the problem of overstocking and obsolescence, where large 
quantities of non-moving inventory occupy valuable space and tie up financial resources. Conversely, shortages 
of mission-critical supplies reflect systemic weaknesses in demand forecasting and planning [6] [16]. 

The fragmented coordination across the three defense services exacerbates these issues, leading to duplication 
of efforts and inconsistent inventory protocols. This is reinforced by technological and procedural inertia, where 
resistance to digital transformation and lack of ICT literacy impede the adoption of modern logistics tools. 
Additionally, procurement delays stemming from bureaucratic inefficiencies further stall the supply chain, 
particularly when rapid deployment of resources is required [22] [23]. Another notable gap is the absence of 
performance metrics and accountability frameworks, which prevents the defense logistics system from assessing 
service levels or supply chain effectiveness comprehensively. These challenges are deeply structural and require 
more than surface-level reforms. The analysis recommends implementing ERP systems, AI-driven forecasting, 
and Performance-Based Logistics (PBL) to modernize inventory processes [24] [33]. 



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Table 1. Descriptive Analytical Summary of Key Inventory Management Issues in Indian Defense Supply Chain [2] [15] 
[34] 

Theme Source Observed Issues Implications Recommended Action 
Inventory 
Visibility & 
Tracking 

Interviews with 
logistics officers; 
Field observation; 
CAG reports 

Absence of real-time 
inventory tracking; 
Manual ledger-based 
systems still in use 

Delayed 
replenishment, stock 
discrepancies, and 
limited situational 
awareness 

Implement ERP with 
RFID/barcoding; 
centralize digital 
inventory dashboards 

Overstocking & 
Obsolescence 

MoD Annual 
Reports; Depot 
visits 

Excessive stock of 
outdated or non-
moving items due to 
forecast inaccuracy 

Wastage of space and 
financial resources; 
reduced warehouse 
efficiency 

Introduce AI-driven 
demand forecasting tools; 
review item lifecycle 
policies 

Shortages of 
Critical 
Supplies 

Field officer 
interviews; 
Operational 
readiness reports 

Frequent 
unavailability of 
mission-critical parts 
and medical stores 

Operational delays 
during missions; 
reliance on emergency 
procurement 

Create a predictive 
analytics model for high-
priority inventory needs 

Inter-Service 
Coordination 
Gaps 

Joint logistics 
policy documents; 
Bhalla (2009); 
Repswal (2021) 

Lack of uniform 
protocols across 
Army, Navy, and Air 
Force logistics 
systems 

Duplication of effort, 
incompatible 
processes, and 
underutilized assets 

Develop Joint Logistics 
Doctrine; adopt 
standardized inventory 
procedures 

Technology 
Adoption 
Barriers 

Reports from GS1 
India; Military 
Sphere (2024) 

Limited ICT training 
among staff; 
resistance to 
digitization of 
warehousing 

Slow modernization; 
suboptimal data 
capture and reporting 

Train logistics personnel 
in digital platforms; 
conduct ICT capacity 
workshops 

Procurement 
Delays & 
Bureaucracy 

CAG Audit (2022); 
Officer interviews 

Long lead times due to 
manual tendering and 
bureaucratic red tape 

Missed mission 
timelines; frequent use 
of urgent local 
purchase mechanisms 

Streamline procurement 
via e-tendering 
platforms; empower 
regional purchase cells 

Lack of 
Performance 
Metrics 

Observations and 
logistics manuals 

No uniform KPIs for 
stock movement, 
service levels, or 
fulfillment times 

Inability to benchmark 
performance; poor 
accountability 

Introduce PBL 
(Performance-Based 
Logistics) model with 
measurable KPIs 

The analysis in Table 2 highlights critical human and technological challenges impeding the effectiveness of 
inventory management within the Indian defense supply chain [3] [10] [23]. Despite ongoing modernization 
efforts, the persistence of skill gaps among logistics personnel continues to undermine operational efficiency 
[4] [8] [17]. Interviews and field observations reveal that many staff members rely on outdated manual systems 
and lack familiarity with advanced supply chain tools such as ERP platforms, predictive analytics, or RFID-
based tracking systems [1], [10]. This gap is not merely technical but reflects a deeper resistance to change, 
often fueled by fears of job redundancy and lack of confidence in digital platforms [10] [30]. The existing 
training modules, often heavily theoretical and outdated, fail to address dynamic, real-world logistical 
challenges [2] [12] [16] [28]. Another concern is the poor integration of scenario-based simulations and civilian 
SCM practices in training programs [5] [9].  

Exposure to private sector best practices and crisis logistics simulations could significantly enhance the agility 
and preparedness of defense logistics personnel [6] [13] [15]. The lack of such exposure creates an insular 
training environment that hinders innovation and adaptability [13]. The findings call for a systematic overhaul 
of training infrastructure. Establishing a tri-service Defense Logistics and SCM Training Academy, updating 
ICT infrastructure, and incentivizing the adoption of new technologies are essential steps forward [7] [11]. 
Ultimately, transforming logistics capabilities within the Indian defense sector will require not just tools and 
systems but a culture of continuous learning, openness to innovation, and institutional support for modernization 
[20] [21]. 

The descriptive analysis presented in Tables 1 and 2 offers insights into key areas of development within the 
Indian defense inventory management system. Table 1 indicates that inventory tracking is primarily managed 
through manual methods, with opportunities to enhance real-time visibility through digital solutions [10] [23]. 



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Patterns of both surplus inventory and limited availability of certain mission-oriented items suggest a potential 
alignment opportunity between forecasting approaches and operational requirements [3] [32]. The observed 
distinctions among service-specific practices, along with procedural diversity, highlight areas where 
coordination mechanisms can be further harmonized to support timely logistical responses [4] [19]. Table 2 
focuses on human capital and technological integration. It reflects evolving competencies among logistics 
personnel and points to possibilities for expanded training in digital inventory tools and data-driven practices 
[5] [17].  
 
Table 2. Descriptive Analytical Summary of Training and Technology Gaps in Defense Inventory Management [9] [11] 
[45] 

Theme Source Observed Issues Implications 
Recommended 

Action 

Skill Gaps in 
Logistics 
Personnel 

GS1 India Report; 
Bhattacharya 
(2015) 

Limited understanding 
of modern logistics 
tools; outdated training 
modules 

Inefficient inventory 
practices; errors in stock 
records and handling 

Revise training 
curriculum; 
conduct regular 
refresher courses in 
supply chain 
management 

Resistance to 
Technological 
Change 

Singh (2002) 
Military Sphere 
(2024) 

Staff reluctance to 
adopt automated 
inventory systems; fear 
of redundancy 

Slows down digital 
transformation; leads to 
underutilization of 
available tech 

Change 
management 
programs; 
incentives for early 
adopters 

Inadequate 
ICT 
Infrastructure 

MoD Annual 
Report (2023); 
IIM Bangalore 
SCM Research 

Lack of stable internet, 
hardware, and tech 
maintenance in forward 
locations 

Limits real-time 
inventory monitoring; 
high dependency on 
manual entries 

Invest in robust 
ICT infrastructure; 
use mobile-
compatible logistics 
platforms 

Lack of 
Centralized 
Training 
Institutions 

Defence 
Industries Report; 
Repswal (2021) 

Absence of a tri-service 
logistics training 
academy focused on 
modern SCM 

Non-uniform training 
standards; varying 
competence levels across 
services 

Establish Defense  
Logistics and SCM 
Training Academy 
with tri-service 
modules 

Limited 
Exposure to 
Civilian SCM 
Practices 

Total Military 
Insight (2024); 
Panday (2019) 

Military logistics 
personnel rarely 
collaborate with private 
sector SCM experts 

Missed learning 
opportunities; insular 
approach to inventory 
optimization 

Facilitate exchange 
programs with 
civilian SCM 
experts; joint 
workshops and 
seminars 

Limited 
Scenario-Based 
Training 

Army training 
manuals; Bhalla 
(2009) 

Training lacks 
simulated war-game 
scenarios for logistics 
disruptions 

Poor preparedness for 
crises or high-demand 
surge situations 

Incorporate 
scenario planning 
and simulation 
exercises into 
logistics training 

The current level of information and communication technology (ICT) infrastructure, along with decentralised 
training resources, presents opportunities for strategic enhancement [11], [27]. Additionally, while the defense 
logistics environment is distinct in its structure and purpose, there is scope to explore adaptive practices from 
other sectors where applicable [20] [25]. Overall, the observations suggest that a multi-dimensional approach - 
integrating digital platforms such as ERP and AI tools with skill development, structural alignment, and 
performance-oriented models - may contribute positively to enhancing operational effectiveness [10] [36]. 

5. Conclusions 

This study, grounded in secondary data analysis, provides a synthesized view of the evolving landscape of 
supply chain management in the Indian defense sector. The review highlights areas where existing logistics 
practices offer opportunities for further enhancement, particularly in inventory visibility, technological 
integration, and cross-agency coordination. While current systems are supported by established frameworks, 
there is considerable scope to strengthen responsiveness through the adoption of integrated digital tools such as 



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46 

ERP platforms and AI-based planning systems. The analysis also suggests that the effectiveness of such 
advancements would be further supported by initiatives aimed at capacity building, standardization of processes, 
and inter-service alignment. As defense logistics continues to adapt to contemporary operational demands, a 
structured focus on modernization, policy alignment, and skill development will be instrumental in fostering a 
more agile and efficient supply chain ecosystem.  

Declaration of competing interest: The authors declare that they have no known financial or non-financial 
competing interests in any material discussed in this paper. 

Funding information: No funding was received from any financial organization to conduct this research. 

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