Study of emerging issues in supply risk management in India

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Supply chain

India is becoming a global manufacturing hub. Increasing demand in domestic and international markets is opening a new world of opportunities for the Indian Industry. Increasing competition, due to globalization is making inevitable for the Indian industries to provide cost effective quality output with stringent delivery schedules. Issues in supply of inferior quality, delayed supply, unwarranted cost escalation, etc. would adversely impact the credibility and business potential of the Indian industry. Amongst many difficulties faced by Indian manufacturers, supply chain disruption management is a major issue, which can result in large tangible and non-tangible losses.

This study describes the supply risk management related problems faced by Indian firms and the mitigation practices followed by them based on a survey result. The study reveals that the causes for supply disruptions exist not only at the supplier’s side but also lie at the Indian firms. The firms seem to lack accurate forecasting abilities, sufficient supplier management programs, effective communication with suppliers, etc. On suppliers’ side, the issues relate to suppliers’ technological deficiencies, quality of the output, lack of competent staff and their retention, disciplined approach to production, etc

This study also suggests certain measures to mitigate these causes for reducing supply risk disruptions in the areas of better coordination, disciplined approach, increased commitment levels, employee engagement, etc. which can help the Indian firms and suppliers to improve their operations and reduce supply disruptions.

Dr. Manisha Ketkar

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