Coming Together to Make Our Supply Chains Competitive

One of the most absorbing books that I have read in recent times is “Getting Competitive, A Practitioner’s Guide for India” by Shri R . C Bhargava, Chairman, Maruti Suzuki India Limited. The case-study based approach of the book provides a clear mandate for making our supply chain competitive. I agree with Shri R . C Bhargava, that the competitiveness of our supply chain is critical to taking Indian manufacturing to the world now and creating the post-pandemic future. A key point that Mr. Bhargava has rightly observed from his experience at Maruti Suzuki Limited is that achieving supply chain excellence always requires collaboration and coordination among all stakeholders in the ecosystem. For Indian manufacturers to scale success, we need to create new models of supply chain collaboration that enable win-win situations for both large enterprises and MSMEs. 

As Bhargava has pointed out, for world-class product manufacturers to invest in the idea of Indian manufacturing, we need to make sure that OEMs, component manufacturers, and suppliers in the MSME sector are on the same page when it comes to achieving cost efficiency, quality, performance, and reliability. It is only through a renewed sense of partnership among all these stakeholders, right through to those in the last tier in the supply chain that we can collaborate and connect to the mission of making India self-reliant. This calls for reforming the investment caps defining the scope of component manufacturing MSMEs to trigger greater capital expenditure in the expansion of their plant size and capacity. Expanding the plant capacity of MSMEs can enable economies of scale, reduce operating costs, and improve component quality and therefore create ripple effects by making procurement more cost-efficient for large OEMs.

The ideas of supply chain collaboration and partnership are integral to the “technology-first” approach we follow at Moglix. During this transient phase of the COVID19 pandemic, our technology-first approach has allowed us to stay connected to our supplier networks and has ensured just-in-time onsite delivery of industrial supplies to keep the supply chain up and running for our customers. 

The COVID19 pandemic has visibly shaken the foundations of global manufacturing and created an opportunity for India to partner in this global supply chain transformation. We are optimistic about taking Indian manufacturing to the world through our technology-driven approach to B2B commerce and supply chain.