Guide to Optimizing Supply Chain for the Indian Manufacturing Sector
India’s manufacturing industry contributes significantly to the country’s economy and is expected to continue growing in the coming years. India’s industrial exports hit an all-time high of USD 418 billion in FY22, an overall increase of more than 40% from USD 290 billion a year earlier, experts said. By 2030, India’s middle class is expected to account for the second-largest share of global consumption at 17%.
India’s gross domestic product (GDP) at current prices was USD 694.93 billion in the first quarter of FY22, according to preliminary estimates of gross domestic product for the first quarter of 2021-22. The manufacturing GVA at current prices was estimated at USD 77.47 billion in the third quarter of FY22 and has contributed around 16.3% to the nominal GVA during the past ten years. India has the potential to become a global manufacturing hub and by 2030, it can add more than USD 500 billion annually to the global economy.
The demand for industrial manufacturing products in India is driven by a growing economy, increasing infrastructure development, and rising demand from various end-use industries such as automotive, construction, and consumer goods. The industry includes both domestic and foreign companies, with foreign companies entering the market to capitalize on India’s large and growing consumer base.
Here are some reasons foreign companies are interested in India’s Industrial Manufacturing market:
India has a large and growing consumer base with a population of over 1.3 billion. This represents a significant opportunity for industrial manufacturing companies looking to expand their business.
Favorable Government Policies: The Indian government has implemented various policies to promote the growth of the industrial manufacturing sector, such as the Make in India initiative, which has attracted foreign investment.
Managing the supply chain in the Indian industrial manufacturing industry can be challenging, given the complexities involved in sourcing raw materials, managing suppliers, and ensuring the timely delivery of finished goods. Here are some tips for managing the supply chain effectively in the Indian industrial manufacturing industry
Develop Strong Supplier Relationships: Developing strong relationships with suppliers can help ensure the timely delivery of raw materials and components. Regular communication and collaboration with suppliers can help identify potential issues and resolve them quickly.
Inventory Optimization: Effective inventory management can help reduce costs and improve supply chain efficiency. Adopting lean manufacturing principles and just-in-time inventory management can help reduce waste and ensure sufficient inventory is available to meet demand.
Leveraging Technology: Investing in technology can help improve supply chain efficiencies in Indian manufacturing. Technologies such as automation, data analytics, and artificial intelligence can help streamline manufacturing processes, reduce waste, and improve supply chain visibility.
Streamline Distribution: Distribution is a critical aspect of the industrial manufacturing supply chain, and it is essential to streamline distribution networks to ensure the timely delivery of products to customers.
Focus on Quality: Quality is crucial in the industrial manufacturing industry, and it is essential to ensure that suppliers meet high-quality standards. Regular quality checks and audits can help identify potential issues and ensure suppliers deliver high-quality products.
By implementing these strategies, companies in the Indian industrial manufacturing industry can manage their supply chains effectively and position themselves for growth in the years ahead.
How Consulting Firms helps to Optimizing Supply Chain for the Indian Manufacturing Sector
Tecnova, an India entry and expansion management consulting firm, provides workable strategy solutions and implementation assistance to foreign companies.
Investing in technology can help improve the efficiency of the supply chain in the Indian automotive and OEM industry. To further optimize the supply chain, companies can also leverage consulting services such as Tecnova ‘s Supply Chain and Operations, which address complex issues and opportunities to grow and protect operations.
Tecnova offers a Supply Chain Reinvention Framework that includes advanced technologies like data analytics, blockchain, machine learning, robotics, and artificial intelligence to improve supply chain strategy, architecture, operational excellence, and resilience.
Additionally, Tecnova provides solutions such as the Supply Chain Intelligence Platform, Integrated Digital Planning, Supply-side Optimization, Smart Factory, and Digital Fulfillment to improve performance and efficiency in shopfloor operations and logistics.
Reference
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