I enjoyed the recent short article on five keys to supply chain success in India in Industry Week. Not only was it not another article about China, but it tackled the issue of manufacturing supply chains in India — instead of the usual focus on service opportunities (Call Center, IT, BPO, etc. outsourcing).
Noting that India’s economy, unlike many other economies, is continuing to expand (with 6.8% growth in 2008 and a projected growth of 5.5% in 2009), the article notes that there is significant opportunity due to increased demand — provided, of course, you can make your operations efficient. The article offered the following five strategies:
- Ensure a clear understanding of local principles, customs and barriers.
Knowing the limitations of India’s transportation infrastructure is critical in adjusting distribution strategies and having the flexibility to adapt to the varying restrictions and needs that exist within India. - Establish constant communication.
India’s communications infrastructure is still inadequate for [most] global companies doing business there. As a result, many large manufacturing companies are allowing their partners, vendors and dealers to have direct access to their internal supply chain management systems in order to increase visibility. - Develop comprehensive procedures and processes.
By synchronizing the multiple dynamics of demand planning and production planning, companies will have the ability to reduce over-stocks and stock-out situations. - Ensure the quality of input information.
Companies need to invest in collaboration, planning, forecasting and replenishment (CPFR) and sales & operations planning (S&OP) solutions, which provide a link between disparate information and allow companies to create plans based on actual demand data. - Identify and integrate the right professionals and insist on teamwork.
The scarcity of a skilled, knowledgeable and committed workforce is a challenge facing Indian companies.