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    FACTOR AFFECTING THE GROWTH OF SUPPLY

    CHAIN MANAGEMENT IN INDIAN APPAREL

    INDUSTRY

    Minor Project

    Submitted By:AKHILESH KUMAR

    FMS - 0724

    2007

    DEPARTMENT OF FASHION MANAGEMENTSTUDIES

    NATIONAL INSTITUTE OF FASHION TECHNOLOGYGH-0 ROAD, NEAR INFO CITY,

    GANDHINAGAR 382007

    GUJARAT

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    ACKNOWLEDGEMENT

    In order to choose and carry out any research with a successful execution requires

    personal liking, interest, support, and most important guidance.

    I would like to take this opportunity to thank and I am highly indebted to my

    guide Dr. Benaya Bhushan Jena, course coordinator, PGFMS for his never-

    ending support and suggestions throughout the project, giving me direction and molding

    my minor project into final stage.

    I would like to mention the support,patience and help of my classmates, without

    which the execution of this project would have been difficult.

    Akhilesh kumar

    FMS 0724

    ACKNOWLEDGEMENT ............. .............. .............. .............. .............. ............... .............. ....... ...... ...... ...... ..2

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    INTRODUCTION ............. .............. .............. .............. ............... .............. .............. .............. ......... ..... ..... ..... ..3

    Chapter 1

    INTRODUCTION

    Supply Chain Management or SCM as its popularly known seems to have

    become the all important focal point for business success. It has gained enormous

    importance and continues to be a buzzword in the Industry as well as in the IT & the

    student community. Today, people are increasingly realizing that in the intensely

    competitive world, one has to keep the chain lean and responsive. Is it just something

    made popular by the consultants and a few people or is it really significant for the

    industry? And, what really does supply chain mean and why has it been in the limelight?

    Is it something new that was non-existent earlier or is it just another buzzword which will

    fade away giving way to something new. In my view, supply chain as a concept is

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    definitely here to stay and it implies a new way of looking at things by questioning the

    existing boundaries.

    Earlier one would take at supply chain in parts, i.e. marketing, manufacturing,

    purchase, distribution, transportation and so on. Each function had a different set of

    people working with a particular objective in their minds. This objective was not

    necessarily common across people and led to very little interaction across functions.

    People were encouraged to be experts in their own functions and this helped in achieving

    functional excellence. You could hear somebody say that company X excels in

    manufacturing where as company Y excels in distribution or purchasing. Being excellent

    in even one of these functions could give a company an edge over competition. However,

    a further improvement in any of these functions wilt no longer yields substantial business

    benefits. Therefore, a time has come to integrate all functions with a view to achieve

    overall excellence. Probably this is why supply chain has suddenly become an all-

    important arena where all the action is. Simultaneously, advances in technology have

    fuelled the growth of supply chain solutions

    WHAT EXACTLY IS SUPPLY CHAIN?

    There are various ways to look at supply chain. One can say that it starts from the raw

    material vendor and ends with the consumer; thus, it includes purchasing, marketing and

    even consumer buying the product. Therefore all the processes involved in the entire

    spectrum from demand generation to demand satisfaction can be called as supply chain

    management. Today, in some advanced companies supply chain extend right from the

    vendor procuring his raw material to the point of sale where the last sale of the product

    takes place. This implies that there is transparency and information flow in the entire

    chain resulting in appropriate action at each point. This action by each entity contributes

    to the smooth functioning of supply chain. In some companies supply chain could only be

    internal i.e. across the manufacturing facilities to company owned depots. One can

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    always choose a part of the supply chain that is most relevant and focus resources to

    achieve increased productivity. The benefits of supply chain could vary from

    organization to organization. Key benefits could be achieving higher channel partner

    satisfaction by reducing inventory, reducing inventory levels, reducing stock out

    situations by balancing inventory, reducing transportation, and storage and

    damage/expiry costs, meeting delivery lead times and achieving greater accuracy in the

    planning process through automation.

    Why is Supply Chain in the Limelight?

    This recent popularity of supply chain is a simple result of advances in technology

    and competition. In todays world barriers across countries have become almost invisible

    as far as trade and technology are concerned. Today, the industry is facing immense

    competition and also has access to the advanced world-class technology. This coupled

    with the sky-high expectations of the company stakeholders calls for a new way of doing

    old things. The emergence of the concept of supply chain is a result of this external

    pressure.

    Supply chain focus possible without technology

    The data that was available earlier say only say once in a month is available online today.

    And not only are that, all those complex calculations done using paper and pencil just a

    matter of seconds. One no longer needs to spend energy on getting and correcting data

    but correct information is available online as per requirements. Also, by just one click

    one can do calculations that would probably have taken say a day earlier. The results

    could also be far superior due to the sheer number of permutations that a human mind

    may not be able to comprehend and also eliminates possibility of human error at various

    instances. Also, the system facilitates usage of advanced planning or optimization

    algorithms to achieve a very high quality output.

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    However, this can be made possible only if one begins to appreciate the huge

    implications of a supply chain project and invites the change by working towards

    building a system that fulfills the organizational needs. Even though it may sound

    clinched, the concept of supply chain comes as a tool or rather a weapon to fight out all

    the inefficiencies and give real business benefits in measurable numbers. One can rise

    above the mundane activities as they can be easily left to the system and give a higher

    share of mind to more productive activities that include modeling and using the system

    inteiiioentiy to add value to the company.

    What does a Supply Chain journey imply?

    The above holistic perspective is extremely essential when any organization wants to

    move towards a supply chain approach. Supply chain is after all a way of thinking.... Just

    doing the same old things in a new way.

    However, having said the above, I would also like to add that supply chain is not as rosy

    or as simple as it appears. Supply chain implies everything right from re-looking at the

    organization structure to changing peoples mindsets across levels. It could also need anadvanced technology like an APO or an i2 but this in itself can help an organization only

    a small way. It also includes empowering people with new skills on aH fronts,

    technological inputs, analytical inputs etc. Various training sessions could be required

    along with change management inputs as this not only calls for learning, mastering and

    LIKING a new complex system but it also means changing attitudes for which beliefs

    need to be changed! Over the years, people have formed and arrived at a set way of

    working which is considered to be the best. Thus, working with a new system which is

    complex initially and which calls for new learning can face a lot of resistance. A tot of

    drive and commitment from the top management witi be required in the initial phase if

    the entire organization has to succeed on this supply chain journey. And believe me, it

    will not be easy at all... it will be really tough as one not only has to cope with the day to

    day business performance pressures but also the pressures of the new way of working.

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    Thus, till everyone becomes comfortable with this new way of working... the support wif!

    be required across ivies. Along with this, it could also call for a change in the Key

    Performance Indicators across the organization.

    A lot of questions may be raised about whether the system was required at all and also

    about the credibility of the system. These questions/doubts need to be addressed in order

    to ensure that a lot of positive energy is generated. It could also lead to some

    undercurrents that need to be managed tactfully. If issues are not managed well, this

    could shake the confidence of the entire organization in the system benefits and derail the

    supply chain journey.

    In order to avoid any jolts midway, a proper homework is absolutely essential on the

    functional as well as the people front. Once the organization has very thoroughly and

    logically decided on commencing a supply chain journey and achieved a true consensus

    within the organization, the likelihood of any stumbling blocks on the way is highly

    unlikely. The benefits as well as the steps should be clearly shared and agreed among all

    involved or impacted by the journey. This will give a strong foundation to the project that

    will go a long way in ensuring success. Needless to say, along with good homework,

    constant moral boosting and appropriate support at every step will be required.

    Chapter 2

    LITERATURE REVIEW

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    Supply chain management (SCM) is the process ofplanning, implementing, and

    controlling the operations of the supply chain as efficiently as possible. Supply Chain

    Management spans all movement and storage of raw materials, work-in-process

    inventory, and finished goods from point-of-origin to point-of-consumption. The term

    supply chain management was coined by consultant Keith Oliver, of strategy consulting

    firm Booz Allen Hamilton in 19821

    Supply chain management must address the following problems:

    Distribution Network Configuration: Number and location of suppliers,

    production facilities, distribution centers, warehouses and customers.

    Distribution Strategy: Centralized versus decentralized, direct shipment, Cross

    docking, pull or push strategies, third party logistics.

    Information: Integrate systems and processes through the supply chain to share

    valuable information, including demand signals, forecasts, inventory and

    transportation etc.

    Inventory Management: Quantity and location of inventory including raw

    materials, work-in-process and finished goods.

    Supply chain execution is managing and coordinating the movement of materials,information and funds across the supply chain. The flow is bi-directional.

    1COMPILED FROM MENTZER T, JOHN ;SUPPLY CHAIN MANAGEMENT

    http://en.wikipedia.org/wiki/Planninghttp://en.wikipedia.org/wiki/Controllinghttp://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/Raw_materialhttp://en.wikipedia.org/wiki/Consultanthttp://en.wikipedia.org/wiki/Booz_Allen_Hamiltonhttp://en.wikipedia.org/wiki/1982http://en.wikipedia.org/wiki/Strategyhttp://en.wikipedia.org/wiki/Cross_dockinghttp://en.wikipedia.org/wiki/Cross_dockinghttp://en.wikipedia.org/wiki/Logisticshttp://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Planninghttp://en.wikipedia.org/wiki/Controllinghttp://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/Raw_materialhttp://en.wikipedia.org/wiki/Consultanthttp://en.wikipedia.org/wiki/Booz_Allen_Hamiltonhttp://en.wikipedia.org/wiki/1982http://en.wikipedia.org/wiki/Strategyhttp://en.wikipedia.org/wiki/Cross_dockinghttp://en.wikipedia.org/wiki/Cross_dockinghttp://en.wikipedia.org/wiki/Logisticshttp://en.wikipedia.org/wiki/Inventory
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    Textile Manufacturing Retail

    Raw material

    FabricWoven

    Knitted

    Exporter andManufacturer

    MerchantExporter

    Sub -contractorOr job worker

    Direct exporter

    Indirect exporter

    Buying houses

    Buying office

    Importer

    Agent

    Supply chain management is a cross-functional approach to managing the movement of

    raw materials into an organization and the movement of finished goods out of the

    organization toward the end-consumer. As corporations strive to focus on core

    competencies and become more flexible, they have reduced their ownership of raw

    materials sources and distribution channels. These functions are increasingly being

    outsourced to other corporations that can perform the activities better or more cost

    effectively. The effect has been to increase the number of companies involved in

    satisfying consumer demand, while reducing management control of daily logistics

    operations. Less control and more supply chain partners led to the creation of supply

    chain management concepts. The purpose of supply chain management is to improve

    trust and collaboration among supply chain partners, thus improving inventory visibilityand improving inventory velocity

    Supply chain business process integration

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    Successful SCM requires a change from managing individual functions to integrating

    activities into key supply chain processes. An example scenario: the purchasing

    department places orders as requirements become appropriate. Marketing, responding to

    customer demand, communicates with several distributors and retailers, and attempts to

    satisfy this demand. Shared information between supply chain partners can only be fully

    leveraged throughprocess integration.

    Supply chain business process integration involves collaborative work between buyers

    and suppliers, joint product development, common systems and shared information.

    According to Lambert and Cooper (2000) operating an integrated supply chain requires

    continuous information flows, which in turn assist to achieve the best product flows.

    However, in many companies, management has reached the conclusion that optimizingthe product flows cannot be accomplished without implementing a process approach to

    the business. The key supply chain processes stated by Lambert (2004) are:

    Customer relationship management

    Customer service management

    Demand management

    Order fulfillment

    Manufacturing flow management

    Supplier relationship management

    Product development and commercialization

    Returns management

    One could suggest other key critical supply business processes combining these processes

    stated by Lambert such as:

    Customerservice management

    http://en.wikipedia.org/wiki/Process_integrationhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Service_managementhttp://en.wikipedia.org/wiki/Process_integrationhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Service_management
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    to transfer possible requirements more rapidly. Activities related to obtaining products

    and materials from outside suppliers. This requires performing resource planning, supply

    sourcing, negotiation, order placement, inbound transportation, storage and handling and

    quality assurance. Also, includes the responsibility to coordinate with suppliers in

    scheduling, supply continuity, hedging, and research to new sources or programmes.

    c) Product development and commercialization

    Here, customers and suppliers must be united into the product development process, thus

    to reduce time to market. As product life cycles shorten, the appropriate products must be

    developed and successfully launched in ever shorter time-schedules to remain

    competitive. According to Lambert and Cooper (2000), managers of the product

    development and commercialization process must: coordinate with customer relationship

    management to identify customer-articulated needs; select materials and suppliers in

    conjunction with procurement, and develop production technology in manufacturing flow

    to manufacture and integrate into the best supply chain flow for the product/market

    combination.

    d) Manufacturing flow management process

    The manufacturing process is produced and supplies products to the distribution channels

    based on past forecasts. Manufacturing processes must be flexible to respond to market

    changes, and must accommodate mass customization. Orders are processes operating on

    a just-in-time (JIT) basis in minimum lot sizes. Also, changes in the manufacturing flow

    process lead to shorter cycle times, meaning improved responsiveness and efficiency of

    demand to customers. Activities related to planning, scheduling and supporting

    manufacturing operations, such as work-in-process storage, handling, transportation, and

    time phasing of components, inventory at manufacturing sites and maximum flexibility in

    the coordination of geographic and final assemblies postponement of physical

    distribution operations.

    e) Physical distribution

    http://en.wikipedia.org/wiki/Quality_assurancehttp://en.wikipedia.org/wiki/Quality_assurance
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    This concerns movement of a finished product/service to customers. In physical

    distribution, the customer is the final destination of a marketing channel, and the

    availability of the product/service is a vital part of each channel participant's marketing

    effort. It is also through the physical distribution process that the time and space of

    customer service become an integral part of marketing, thus it links a marketing channel

    with its customers (e.g. links manufacturers, wholesalers, retailers).

    f) Outsourcing/partnerships

    This is not just outsourcing the procurement of materials and components, but also

    outsourcing of services that traditionally have been provided in-house. The logic of this

    trend is that the company will increasingly focus on those activities in the value chain

    where it has a distinctive advantage and everything else it will outsource. This movement

    has been particularly evident in logistics where the provision of transport, warehousing

    and inventory control is increasingly subcontracted to specialists or logistics partners.

    Also, to manage and control this network of partners and suppliers requires a blend of

    both central and local involvement. Hence, strategic decisions need to be taken centrally

    with the monitoring and control of supplier performance and day-to-day liaison with

    logistics partners being best managed at a local level.

    g) Performance measurement

    Experts found a strong relationship from the largest arcs of supplier and customer

    integration to market share and profitability. By taking advantage of supplier capabilities

    and emphasizing a long-term supply chain perspective in customer relationships can be

    both correlated with firm performance. As logistics competency becomes a more critical

    factor in creating and maintaining competitive advantage, logistics measurement becomes

    increasingly important because the difference between profitable and unprofitable

    operations becomes more narrow. A.T. Kearney Consultants (1985) noted that firms

    engaging in comprehensive performance measurement realized improvements in overall

    productivity. According to experts internal measures are generally collected and analyzed

    by the firm including

    http://en.wikipedia.org/wiki/Logisticshttp://en.wikipedia.org/wiki/Logistics
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    Cost

    Customer Service

    Productivity measures

    Asset measurement, and

    Quality.

    External performance measurement is examined through customer perception measures

    and "best practice" benchmarking, and includes 1) customer perception measurement,

    and 2) best practice benchmarking.

    Components of Supply Chain Management are 1. Standardisation 2. Postponement 3.

    Customisation

    PROBLEM DEFINITION

    Indias fashion supply chain management is performing below its

    actual potential.

    RESEARCH GAP

    Historically, the three fundamental stages of the supply chain, procurement, production and

    distribution, have been managed independently, buffered by large inventories. Increasing

    competitive pressures and market globalization are forcing firms to develop supply chains that can

    quickly respond to customer needs. To remain competitive, these firms must reduce operating costs

    http://en.wikipedia.org/wiki/Best_practicehttp://en.wikipedia.org/wiki/Best_practice
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    while continuously improving customer service. With recent advances in communications and

    information technology, we are still lacking behind the other countries, in this we would try to study

    the problem or factors affecting in managing the supply chain in India.

    OBJECTIVE OF STUDY

    The objective of the study is to trace out the various factors that are affecting the growth

    of fashion supply chain in Indian apparel industry. The supply chain of India apparel

    industry is greatly affected by various internal and external factors, such as high

    transportations cost, government policies and other factor which is affecting growth of

    SCM in India.

    RESEARCH METHODOLOGY

    The research strategy, or method, can be seen as the mental bridge between a

    problem raised and the empirical field of interest. The method chosen shall be suitable for

    dealing with the problem addressed, but it can also be argued that the problem of interest

    (the research question) directs the choice of method. In other words, the character of the

    problem influences the way the researcher approaches the empirical field to be studied.

    This chapter is, therefore, closely linked to chapter two, in which research gaps were

    identified and research objective were framed.

    There are two general ways to conduct research. The first way is to use induction, this

    means to begin with research and then conduct a theory. The other way is to use

    deduction, this implies to begin with a theory and then conduct Research. To use a

    deductive method is to follow the way of conformation. An existing theory determines

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    what information to collect and how to interpret that information, and finally how to

    relate the results to the existing theory. To use an inductive method implies to follow the

    way of discovery. The researcher can study an object without first establishing the study

    in existing theory. One risk with conducting inductive research is that the conclusions are

    based on an empirical material that could be specific for certain situations, certain people,

    and certain things

    The dynamics of supply chains are dependent on the following key issues:

    Dependable infrastructure and distribution of:

    a) Power

    b) Communication facilitiesc) Transportation by air, rail, road, inland waterways and shipping through high seas

    Levels of automation

    Macrolevel support from the government

    Access to sophisticated supply-chain capabilities

    Purchasing power of the customers

    Industrial climate of the country

    Availability of technology

    Quality of labour and management

    Security of systems and normal law and order situation

    Global outlook

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    Corruption-free environment

    Bureaucratic barriers and hassle-free systems and procedures

    Healthy and hygienic environment

    Customer satisfaction is the mantra of supply management

    Since the customers have multiple choices at their doorsteps, it has become all the more

    important to add value, cut costs, respond to sudden change in demand and enhance the

    value delivery to them to maintain ones market share.

    The customer will always look for an easy solution to his problems instead of a

    cumbersome process. The integration of supply chain with the customers will improve

    the logistics as well as create confidence in the customers about the after sales service

    and maintenance of the products as and when troubleshooting is needed.

    Supply-chain techniques have played a vital role in creating a competitive force for the

    marketability of products, by expanding the production base and market share.

    The companies of developing economies have realized that an efficient supply

    management is an effective tool to achieve corporate objectives.

    In order to create a successful customer-centric supply-chain cycle, the business

    enterprises must endeavour to synchronize their supply-chain planning whether it is 3PL,

    4PL and/or Managed Supply Chain Operations (MSCO) with the product development,

    procurement, materials, handling, transportation (inbound/outbound) and manufacturing.

    In view of the liberalization and globalization of developing economies, the supply-

    chain solutions face several challenges. Some of the developing nations, including India,

    may emerge as an important manufacturing hub in the near future for a number of

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    industries due to knowledge capital and strong technological and industrial capabilities in

    several sectors. The key factor for any developing country and particularly India would

    be the creation of dependable facilities for movement of goods and services for

    indigenous and international operations.

    Business enterprises are having frequent interfaces with their suppliers and customers to

    retain their business presence in the market due to a tough competitive environment.

    Business revolution has already taken place in China and today China is leading the

    developing nations in FMCG markets all over Europe and America. South Korea,

    Thailand, Taiwan, Malaysia and Indonesia are not far behind.

    By the way, China being the most populated nation in the world is converting the

    liability of overgrowth into an asset by providing good basic education with technical

    knowledge and putting a tight cap on the further growth of population whereas we in

    India are still struggling to evolve a consensus to control and regulate the supply chain of

    population and how to make the best use of our existing human resources.

    A safe and sound infrastructure is the foundation of an efficient and effective supply

    chain. All the big brains of India agree that India needs the big bucks to upgrade the

    existing infrastructure such as roads, rails, sea ports, airports energy and telecom

    networks to world standards to improve its image and economy.

    Dr Manmohan Singh, The Honble Prime Minister of India in his address to the New

    York stock exchange during his recent visit to the USA has stated that India may need

    approximate USD $150 billion for investment in infrastructure requirements. The civil

    aviation sector may need $45 billion, railways $10 billion, power and telecom sectors

    would be $75 billion and $25 billion respectively as a breakup of USD 150 billion.

    But mobilizing adequate resources for investment in the infrastructure sector is the need

    of the hour which will give agreat fillip to smoothen the supply chain constraints.

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    Since the commitment of the domestic private sector and foreign investors has not been

    very encouraging in the infrastructure sector, the Government has to step in with an

    innovative approach to boost the confidence of the investors. Out of a total of $23 billion

    of FDI that has flowed into the country in the last 13 years, only $7.66 billion has come

    for infrastructure sectors like power, telecommunication and transportation.

    Why the development of supply-chain infrastructure should be every developing

    nations top priority is because within the next 20 years half the worlds manufacturing

    exports could come from developing countries.

    As regards transportation for the movement and distribution of goods and services,

    which is the backbone of any supply-chain process the less said the better. Let us take the

    example of our own country in regard to the vision, planning investment and

    implementation and networking of various infrastructure systems.

    The MNCs are certainly exploring India as a great outsourcing hub for products and

    components for global markets. In order to attract foreign investors to set up a

    manufacturing business, the country must develop investor-friendly infrastructure.

    With power you can work 24 hours. But most of the developing economies are still

    struggling to provide adequate power to maintain the desired growth in the industrial and

    service sectors.

    Communication connects the five factors of production namely men, money, machines,

    materials and management facilitating the flow of information and knowledge, which is

    vital for a supply-chain success. In underdeveloped nations, it lacks the push from the

    government channels.

    The issues of timing, care and safety can often cause nightmares when small but high-

    value consignments of life-saving medical supplies, other highly perishable items and

    items with expiry date restrictions are not delivered in time either due to transportation

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    problems or improper handling and procedural delays at the port of clearance. As such

    the quality of infrastructure is important for such critical and time-bound deliveries. The

    logistics firms which offer supply-chain services for transportation, storage, distribution,

    packaging, temperature controlled storage facilities, tracking and service support cannot

    afford any goof-ups in such cases.

    The growth and progress of the economy of a nation is reflected by the number of air

    flights it operates in and out of the country. Air transportation is the leading mode of

    logistics for movement and transfer of sensitive and bulk cargo to and from India.

    There is hardly any airport of international standards for passengers and cargo handling

    in India. We are still debating and deliberating on the FDI cap for the development and

    improvement of our airports infrastructure.

    Due to sustained growth in air traffic, both domestic as well as international, since the

    1990s, there is virtual choking of all major airports in the country. Finding a parking lot

    for a night halt at Delhi or Mumbai which are the industrial hubs for the movement and

    distribution of air cargo is virtually impossible and airlines would soon be compelled to

    move out to nearby airports or wait endlessly.

    The cost-effectiveness of road transportation is washed away as soon as the rainy

    season begins. The upkeep and maintenance of infrastructure is far from satisfactory. It

    affects the bottom line of the business enterprises as well as the overall growth of the

    national economy. It is also an inhibiting factor for attracting the investment

    opportunities from foreign countries.

    As regards modernization and upgradation of the existing network of Indian Railways,

    expansion of capacity on key routes to handle additional freight and passenger traffic,

    addressing safety concerns, etc., it is said that it is time for a surgery for Indian Railways.

    Despite being an eco-friendly, cost-effective and fuel-efficient mode, the inland water

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    transport system carries only 0.17 per cent of the total inland cargo in the organized

    sector.

    With regard to sea transportation of imports and exports, in the 15 November edition of

    India Today under the Business and Economy feature there is a pathetic report on the

    clogged ports about the abysmal infrastructure and surging traffic which cripples Indias

    container trade gateway at JNPT and exporters losing crores of rupees due to bottlenecks

    in the movement of export cargo. A garment exporter airlifted a shipment to the US at the

    cost of Rs 30 lakh which was more than the value of the consignment in order to retain

    his customer.

    We have segmented attempts to improve particular modes of transport without realizing

    the impact of such efforts on other modes. Instead we need an integrated approach of the

    transport infrastructure which will minimize energy use and emissions while maximizing

    competitiveness of the domestic industry with a paradigm shift in the supply-chain

    process.

    A practical approach is required to manage the flow of goods, services and information

    from various sources based on the physical and financial resources available with each

    developing country to manage the show.

    In order to achieve a sustained superior performance in the supply-chain process, a

    developing country must strive and evolve an appropriate strategy and execution plans

    keeping in view the internal capabilities and understand the fundamental needs of the

    business organizations, which will ultimately give an impetus to their sales, revenues and

    profits.

    With rapid economic growth in the manufacturing as well service sectors as foreseen

    for the future, people cannot be denied the fruits of prosperity due to inadequate

    resources to support and improve the fundamentals of supply-chain infrastructure.

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    The administration responsible for the allocation of resources must listen to the signals

    of the emerging demands of the industry to accord priority to the supply-chain systems

    which can facilitate the growth of business and commerce.

    It is not due to dearth of resources but lack of willpower, poor administration, corrupt

    systems, self in the forefront and the interest of nation on the back, which leads to failure

    of purpose.

    Besides the competition on cost, quality and value addition, today the one with the best

    supply chain will walk away with the customers.

    Ultimately it will be the vision of the nation and its leadership at the macrolevel and its

    style of functioning coupled with the leadership of business organizations and the cultural

    ethos of the employees which will make a difference between the have and have-not

    markets.

    SCOPE AND NATURE OF STUDY

    Nature:

    Research is elaborated to understand the present state of Indian supply chain, competition

    which India is facing in the global market & relatively less growth of the Indian textile

    industry in the market as compared to other countries

    Scope:

    This research will help to find out the lacunae in the present supply system of Indian

    textile and apparel industry, and will help in implementing the corrective measures which

    will strengthen the Indias position in the global market.

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    HYPOTHESIS

    Government Policy and regulation affects Indias supply chain management.

    Perceived quality affects Indias supply chain management.

    Infrastructural issues affect Indias competitiveness in supply chain.

    REFERENCES

    1. Supply chain management by John T. Mentzer

    2. www.iima.com

    3. Fashion Buying and Merchandising by Sidney Packard

    Textile Retail

    Raw material

    FabricWoven

    Knitted

    Exporter and

    Manufacturer

    Merchant

    Exporter

    Sub-contractor

    Or job worker

    Direct exporter

    Indirect exporter

    Buying houses

    Buying office

    Importer

    Agent

    http://www.iima.com/http://www.iima.com/