Abstract

Worldwide, interest in supply chain management has increased steadily since the 1980s when companies began to see the benefits of collaborative relationships. The supply chain concept is still nascent in India. However the need for the same, at this stage, is more than ever before because of the challenges unleashed on the competitiveness of the Indian industry by deregulation and globalization. An essential first step in the process is to assess the current supply chain capability. The article is based on a recently concluded extensive research carried out jointly by Management Development Institute. Gurgaon anf KPMG India, the first of its kind in the country, to gauge the current state of supply chain management in the Indian industry. The research concludes that a beginning has been made and large number of Indian organizations today are realizing the importance of developing and implementing a comprehensive supply chain strategy – and then linking that strategy to deliver bottom line results. Key Words: Supply Chain Management, Competitiveness. Order Fulfillment. Manufacturing Strategy, Inventory Management, Information Technology.

Introduction 

Over the past three decades, customer expectations have risen by leaps and bounds (Nebel et. al., 2000). Customers continue to become more sophisticated and interested in innovative products and customized services. They are becoming more unpredictable in their wants and needs. At the same time, they continue to expect and demand more ‘value’ from brands. In their bid to satisfy the customer’s fancy, businesses are vying with one another to service the customers with their product and service offerings. Heightened competition has given customers tremendous freedom of choice – a freedom they have been increasingly willing to exercise. Thus, to achieve sustainable advantage in this competitive scenario, it is imperative for businesses to service the needs of their customers excellently across any and all loucli points.

India’s Competitiveness:

As per the year 1999 reports by both Geneva-based World Economic Forums (WEF). Global Competitiveness Report (GCR) and the Laussan. Switzerland-based International Institute for Management Development (IMD), World Competitiveness Yearbook (WCY). India still continues to remain firmly stuck near the bottom of the list in the company of virtually unknown and failing economies. India has been ranked 52 by the GCR out of 59 countries and 39 by WCY out of a universe of 47 countries. This enviable image is despite the fact that India, the fifth largest country in terms of Gross National Product (GNP) and Purchasing Power Parity (PPP) (World Bank, 1999), constitutes one of the fastest growing market in the world and is also counted among the richest in regard to cheap skilled labor, scientific and technological resources, and entrepreneurial talents.

Exhibit 1: International Comparison of Customer Orientation