Effective supply chain management is the key to succeed in the corporate scenario. A especially in the present economic situation. Every sector including manufacturing, automobile, services etc. Customer wants quality in both the product and the services at a reasonable price, at the right time and the right place. Today in most sectors, the concept of brand monopoly is history so it's important for almost all brands to keep up their game. It's not just the product quality alone but the delivery and after-sale services are equally important
Few more facts:
Expectations of quality products are increasing day by day. The market is customer driven and is no longer supplier driven.
The increases in Due importance to technology and automation resulted in systems being followed in a focused manner in organizations.
Quality products are available at reasonable prices. Nowadays organizations are allocating more budgets and customers investing time in Research & development activities and there are dynamic changes taking place in the market.
Customer wants new products with better features at lower price, and according to their expectations in their footstep. Â Hence the transport, logistics, and supply chain management Just in time concept are important parameters.
And therefore in manufacturing organizations by following Just In Time concept where the supplier knows what material required by the manufacturer at which location, and accordingly
supplier can access inventory, can deliver good quality products at required location, at right time eliminating the various processes such as Inward / Raw material handling / receipts / duplication of material handling etc. This resulted in cost reduction by manufacturers.
However, in the context, supplier must be in a position to have appropriate inventory, good infrastructure facilities / warehousing facilities for storage of different products in all weather conditions etc.
While doing so, few organizations might face difficulty to follow Just in time concept such as:
All the above factors act as barriers in improving the efficiency of supply chain management process.
In spite of all Odds, there are some organizations that are taking the initiative and allocating required resources such as space, material handling process, increasing their supplier base & ancillaries to set up their manufacturing process, through following successful concepts like “Just in Time.
By taking care of the obvious obstacles in the so-called dependent supply chain, availing present facilities offered by Govt. & other sectors ensuring good supply chain management system is however, always possible. Classic example of it is Mumbai Dabbawala Association which is essentially involved in the distribution of almost 2 lakh dabbas with 99.99999% accuracy. Sheer hard work and self-confidence which has led to their commendable and performance which most MNC are unable to achieve and is acknowledged globally. This association could achieve effective supply chain management and did overcome the bottleneck in the logistics process.
In the modern world, systems can be further improved if every manufacturer takes initiative & determined for his commitment towards customer requirements by making tailor made arrangements to suit the requirements of respective organization.
By taking their customers and suppliers in confidence by promptly delivering the products following innovative and creative methods by eliminating odd factors and reducing present systems-related problems that are beyond control till the time scenario improves… will certainly ensure the overcoming of the bottleneck for Indian start-ups.
Prof. Dr. Sanjay B. Chordiya
Founder President & Chairman
IN THE SPOTLIGHT TAGS: INDIA, PROF. DR. SANJAY B. CHORDIYA, PUNE, SUPPLY CHAIN MANAGEMENT, SURYADATTA GROUP OF INSTITUTES