Supply chain management practices in Indian industry

Increasing uncertainty of supply networks, globalization of businesses, proliferation of product variety and shortening of product life cycles have forced Indian organizations to look beyond their four walls for collaboration with supply chain partners. With a gross domestic product (GDP) of over US$474.3 biilion, the Indian industry spends 14 percent of its GDP on logistics. Considering this scenario, it is necessary to study the supply chain practices being followed by the Indian industry and to suggest areas for improving the same. This paper is based on a joint survey, covering 156 organizations, carried out by Management Development Institute, Gurgaon and KPMG India. The paper primarily focuses on the status of four major supply chain dimensions. The paper recommends that the Indian industry should align supply chain strategy with business strategy, streamline processes for supply chain integration, form partnerships for minimizing inventory and focus on infrastructure and technology deployment to build a India-specific supply chain.