Online published on 17 April, 2012.
The process of liberalization of the economy has forced Indian business to slowly but surely adopt best global practices. Fundamental among these practices is the deployment of the supply chain, not only as a logistics delivery mechanism, but more importantly, as a strategic part of business. The interest in supply chain management has increased steadily worldwide since the 1980s when companies began to see the benefits of collaborative relationships; the supply chain concept is still nascent in India. Many Indian companies have started to look at the competitive challenges by focusing on shop floor practices and the supply chain problems but not with the sophistication of the American and Japanese manufacturers. There is also a lack of enthusiasm and resilience among the managers and employees while initiating the supply chain management. Irrespective of the above mentioned facts, a few emerging Indian companies have matched with the best-run multi-national companies, successfully practicing world-class supply chain management. Sundaram Fasteners Ltd (SFL), a Chennai-based leading manufacturer of auto components, is one such company showcasing world-class supply chain and logistics practices. To manage the global supply chain successfully, companies have to primarily focus on five core areas, viz. use in-house design to control the manufacturing process, align operations with customers’ manufacturing schedule, concentrate on logistics management for time-bound deliveries, building strong relationship with customers, suppliers and workers, and finally apply total quality practices to ensure standards.
