Scm India

SCM IN INDIA

Supply Chain Management encompasses every effort involved in producing and delivering a final product or service, from the supplier’s supplier to the customer’s customer. Supply Chain Management includes managing supply and demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory tracking, order entry and order management, distribution across all channels, and delivery to the customer.

The Supply Chain Council, U.S.A

The de-regulation of the Indian economy in the 1990s has attracted global players and gave birth to the new competitive environment. However, a distinctive characteristic of the Indian economic environment is the inadequacy of basic inputs normally required to support organized economic activity. The UPS Asia Business Monitor Survey, 2004 (Available at: http://www.etintelligence.com/ ) finds that besides the lack of government support, poor logistics infrastructure and poor supply chain efficiency are the major obstacles to competitiveness in India. The Indian infrastructure comprising roads, railways, airports, seaports, ICT and energy production is poorer as compared to many other countries. However, things are changing for the better at a fast pace. The Growth Competitiveness Index survey conducted by the Geneva-based World Economic Forum (WEF) for 2005-06 puts India at 50th position among 117 countries in its Global Competitiveness Report, five places up from previous years ranking of 55. (Available at: http:// /www.weforum.org/)

A few years ago, logistics and SCM were seen as necessary trouble in India; today they are seen as a matter of survival and competitive advantage. As companies look at logistics and SCM strategically, they turn to specialized service providers to cut out non-core activities from within. A rising focus on outsourcing is leading to a...