What is supply chain management?

The planning and administration of acquisitions, conversion, and logistics management operations are all part of supply chain management. It also handles with the coordination of all parties (from suppliers to customers). It deals with demand management inside a corporation in this manner.

What steps can we take to identify and reduce waste in our supply chain strategy?

The first step is to examine existing processes and determine where waste is still an issue. You may, for example, compare the things you buy to your outcome to prevent expenditures. Talking to relevant managers or operators or solicit further feedback from customers or service suppliers.

What is a global supply chain?

Global supply chains are networks that cross continents and nations to source and distribute goods and services. The mobility of information and resources is one of the most important foundations.

Where do risks exist in supply chain management?

Internal risks (those under your control) and external risks (those that are beyond your control) coexist. In this regard, the following sorts of dangers are identified: Financial hazards Poor planning Regulations Environmental Socio-political Human behaviour

What is procurement in the supply chain?

One of the various branches of the supply chain is procurement. It serves as a structure for a firm to efficiently carry out all of its daily activities, monitoring the outcomes and assessing how the items that will be provided to the clients are made.

What factors contribute to the success of a supply chain?

A good supply chain must have three components: flexibility, data, and long-term planning. In this regard, some of the aspects that impact its correct operation are as follows: Maintain your adaptability. Trust data and technology Plan for the future Remember who is your end customer

What are the benefits of supply chain management?

In a nutshell, it facilitates and improves the movement of products, information, and commerce. Companies benefit from an optimised and efficient business, building better ties with partners and customers.

Why is supply chain planning so important?

Planning in the supply chain helps to simplify operations, enhance productivity, eliminate wasteful spending, and build stronger client relationships. Planning, when done effectively, may assist decrease costs associated with purchasing, manufacturing, inventory management, and transportation.

How can we gain a better understanding of our supply chain costs?

Data analysis is an excellent tool for anticipating and determining where we need to improve. For example, it assists us in optimising warehousing and storage, which is essential in a bigger supply chain strategy. This allows us to optimise space, decrease damage, reduce packing, and do a variety of other things.

What obstacles do organisations experience when attempting to improve SCM?

The supply chain is a difficult process in and of itself, and adding innovations is a problem for businesses. It's critical to move fast and to balance rising customer demand with competitive pricing. In this regard, procurement may also assist to determine whether parts of the supply chain are not competitive or to set more ambitious goals.

Government Incentives and Policies: How India Supports Outsourced Manufacturing

The demand to boost India’s manufacturing sector is on the rise. As the global manufacturing landscape shifts, India emerges as a promising destination for foreign companies to invest here because of the various incentives and government plans.

The Indian government has especially emphasised strategic policies and incentives to make this country the global manufacturing hub. Given ambitious programs like Make in India and a range of tax incentives, there is a very convincing environment for foreign businesses looking to establish manufacturing operations.

Let's discuss the government policies and their benefits that position India as a leading destination for outsourced manufacturing.

Indian Government’s Strategic Policies and Incentives

The Indian Government has, over the last few years, introduced numerous programs and policies to attract foreign companies to invest their money in India as the primary destination for investment. Good policies help increase growth and profits and enhance one's reputation.

Let's have a look at each of them briefly.

Make in India Initiative:
Launched in 2014, the 'Make in India' initiative is an all-inclusive programme announced by the Indian government to attract more foreign investments. The scheme's main objective was to encourage domestic and international companies' investment by establishing manufacturing units in the country for sectoral growth and employment creation purposes.
The initiative targets 25 essential sectors, such as automobiles, textiles, chemicals, pharmaceuticals, electronics, and renewable energy, to boost manufacturing's contribution to India's GDP, attract foreign direct investment (FDI), and improve the nation’s global competitiveness.
Production-Linked Incentive (PLI) Schemes:
PLI stands for Production Linked Incentive Scheme, which is an effective method by which India tries to attract foreign manufacturing companies. First initiated with regard to electronics production, the scheme has now widened into some significant sectors, including automobiles, pharmaceuticals, solar energy, and textiles.
The scheme offers incentives in terms of additional sales and in that manner, encourages companies to expand the scale of their Indian operations. For instance, under the PLI initiative, foreign electronics majors like Samsung and Foxconn have come to Indian shores. This effort supports the government's goal of decreasing import reliance and establishing a solid domestic manufacturing environment.
Special Economic Zones and Export Oriented Units:
Besides SEZs, India has also established Export-Oriented Units (EOUs) to offer the most favourable environment for export-oriented manufacturing. The advantages of SEZs include tax holidays and duty-free imports of goods, among other things, by offering single-window clearances to acquire easier approval and permits.
It is these areas that attract significant investments by multinational companies in the industries of IT, pharmaceuticals, and electronics. SEZs and EOUs promote export-oriented growth and efficient systems of companies that seek to minimise costs while maximising their spaces globally.
PM GatiShakti:
The PM GatiShakti program, launched on October 13, 2021, is designed to help achieve an Aatamnirbhar Bharat along with a US $5 trillion economy by 2025 with the development of multimodal and last-mile connectivity infrastructure. One of the significant needs of efficient transportation is addressed through the program, promoting holistic planning and coordination among 36 Ministries/Departments by integrating progress, thereby synchronising project implementation.
As such, PM GatiShakti improves logistics efficiency while bridging critical infrastructure gaps to be genuinely a 'whole of the government' initiative transforming India's infrastructure landscape.
Digital India and Infrastructure Development:
Digital India is one such initiative that would help improve manufacturing incentives by building a robust digital infrastructure across the country, fostering digital literacy, promoting internet access, and embracing new technologies to address all automation requirements of modern manufacturing.
The infrastructure development under the Indian government has significant stretches of roads, ports, and logistics facilities. The Sagarmela and the Bharatmala aim to improve connectivity and lower the cost of transport. Here, you can find some features that support large manufacturing operations, including improved connectivity and lower transport costs. This infrastructure focus is the key for foreign companies wanting to start integrated, effective supply chains in India.
Tax Reforms and Incentives:
The Indian Government offers several tax incentives to attract foreign companies further. Implementing Goods and Service Tax (GST) was the first step in India’s tax reforms, which took effect on 1 July 2017. As many as 36 States and Union Territories are now merged into a single common market by the Unified GST, thereby simplifying the nation's tax structure and reducing the cascading effects of multiple levies.
This has reduced the costs of productions, and thus, local manufacturers have been made to be more competitive. More than 200 products have seen a cut in the GST rate from 28 % to 18 %, which has brought about overall efficiency and productivity. The Goods & Services Tax Council, constituted just now, has further ensured that the whole process of GST has been undertaken without any hitch, creating a stable, business-friendly tax environment that has enhanced foreign direct investment.
Labour Reforms:
Foreign companies in India have always faced problems with the country's labour laws, which are complex. The current reforms have arranged this situation by integrating the regulations into four main labour codes: those regarding wages, industrial relations, social security, and occupational safety. These reforms are said to increase flexibility in employment practices, allowing companies to control their workforce, which also assists in easily reducing compliance challenges. Thus, India now offers a more business-friendly regulatory environment for global manufacturers.
Overall, we can see that the Indian government has taken bold steps to establish the country as a preferred destination for outsourced manufacturing. Its range of policies helps attract foreign companies and contribute towards their success.

Final Thoughts

With the support of the Indian Government to make India a favourable choice for both domestic and foreign companies, we can see how significantly its growth has emerged today.

Today, companies all over the world can do business easily, now that there are infrastructure and labour reforms set up to make improvements in their transactions with foreign investors.

As a result, India will become one of the world's fastest-growing manufacturing hubs, giving companies a competitive advantage and reduced cost of operation.

So, if you are looking for an Indian company that can help you with manufacturing and supply chains, don’t forget to contact the experts at Imre Drillings.