Navigating India's Supply Chain Landscape: Insights for Manufacturing and Supply Chain Executives
As manufacturing and supply chain executives, understanding and leveraging India’s evolving supply chain ecosystem is paramount. This guide offers insights into making your supply chain more resilient through strategic partnerships in India, highlighting new incentives, key search strategies, and safeguarding intellectual property.
The current global economic landscape necessitates resilience in supply chains. For executives overseeing manufacturing and supply chain operations, India presents a vital opportunity. With market proximity and independence being key drivers, India’s political dynamics and the Modi government’s ‘Self-Reliant India’ policy offer compelling reasons to establish sustainable local supplier relationships, especially for long-term engagement in the subcontinent. Prioritizing short supply routes, tariff protection, and enhanced competitiveness are the primary objectives.
The process of identifying suppliers in India begins with a thorough screening of potential manufacturers. This is not a process that starts from scratch; existing lists from previous sourcing projects across various industries can be utilized for a quicker and more efficient search. Companies are empowered to act on behalf of their clients in India, ensuring seriousness and responsiveness from Indian suppliers, especially regarding quotations and negotiations. Confidentiality agreements are a standard prerequisite before any specification exchange.
Protecting intellectual property rights is a critical concern. To mitigate risks, only a few components of a complete product are inquired about with each supplier. This practice helps prevent the possibility of a local manufacturer replicating and distributing the complete product. The search process begins with defining target prices and criteria. Technical requirements like equipment quality, export experience, and capacity are key considerations. Soft factors such as interest and response behavior also play a significant role in evaluating suppliers.
Effective methods and industry expertise from Europe, combined with efficient implementation in India, are crucial. A comprehensive evaluation system helps narrow down a long list of potential suppliers to a shortlist. The subsequent steps involve deeper engagement, including prototype development and supplier audits, culminating in a contract with the most suitable supplier. The majority of the groundwork, such as research, communication, and coordination with Indian manufacturers, is handled by the Indian team, with a European experienced manager overseeing and coordinating the efforts.
Next Steps
To explore how these insights can be tailored to your company’s specific needs in the Indian market, we invite you to contact us. Our team is ready to assist you in navigating India’s supply chain landscape, ensuring a resilient and competitive edge for your business operations in India.