Monday , July 22 2019
Menu
PP Graph

Challenging Times for Supply Chain Professionals in India

Guest Blogger: Naveen RawatNavreen

Job Title: Manager – Strategic Sourcing and Supply Chain

Where do you reside: Gurgaon, India

LinkedIn profile: http://www.linkedin.com/profile/view?id=15942239&trk=spm_pic

A quote about Procurement:

In order to remain ahead in procurement you should always have the right amount of data and information with you.

Brief Introduction:

A results driven Strategic Sourcing / Supply Chain Professional, with 9 years of demonstrated results and experience covering domestic & global sourcing, Strategic Sourcing, Product / Vendor Development, Cost Negotiation, Project Management and Procurement. I have worked with consumer durable major LG Electronics for two years and auto major General Motors India for two years and is currently working with Maruti Suzuki India Limited as Manager Strategic Sourcing and Supply Chain. I have the ability to identify, develop and implement initiatives for reducing cost and managing targets. I also have the ability to manage cross functional teams to drive common goal/s.

 

Indian Automobile Industry is going through its one of the worst time in last several years. The study of passenger car sale data (both domestic as well as export) reveals a story of stagnant growth. In 2009-10, India was hailed as breakthrough nation in terms of car sales with growth reaching increase of 27% in YOY term. However things started to look worrisome in 2011-12 and now things have turned to worse in 2013-14 with sales declining for the first time in last 7 yrs1,2,3.

PP Graph

The flat or fluctuating sales have led to a big problem not only at vehicle manufacturer end but also at the suppliers end. With opening of trade barriers in 1991 by Indian Government, Indian automobile market has now been home to almost every top brand in the world. The story of double digit growth and arrival of global OEMs led to a spurt in growth of Indian Auto Suppliers in recent years. Many suppliers who were earlier just dependent on main players like Maruti Suzuki and Tata Motors have now started investing capacities for OEMS like GM, Ford, VW and Toyota. However with overall reducing growth in Indian Automobile industry and abysmal sale record of global OEMs in India, these suppliers are left with huge utilized capacities and stagnant growth.

In this vicious circle of flat or fluctuating sales, the role of supply chain professional becomes equally challenging as the pressure to reduce cost becomes more important than ever. Also keeping the suppliers interested and probably ready for next phase of growth becomes very hard.

Probably these two aspects will remain dominant topic of discussion for supply chain professionals in India for next few years as India (for last few years) has been on cusp of exponential growth but has failed to maintain the momentum in recent years.

Maybe the recent political changes in India (appointment of growth oriented Narendra Modi led BJP Government) and huge untapped potential of India (only 11 cars per 1000 persons, as per world bank data 4) will propel Indian Automobile industry to higher growth trajectory and create an exciting arena for Supply Chain professionals to manage growth with right quality, right delivery and right cost.

Sources/References:

  1. www.siamindia.com
  2. http://118.67.250.203//scripts/domestic-sales-trend.aspx
  3. http://118.67.250.203//scripts/export-trend.aspx
  4. http://data.worldbank.org/indicator/IS.VEH.PCAR.P3

One comment

  1. Interesting facts about Indian car segment.

Leave a Reply

Your email address will not be published. Required fields are marked *