Auto component supply chain: a path to global India

Abstract

Supply chain management works to bring the supplier, the distributor, and the customer into one cohesive process. The Supply Chain Council defined supply chain as ‘Supply Chain: The flow and transformation of raw materials into products from suppliers through production and distribution facilities to the ultimate consumer., and then Sunil Chopra and Meindl, (2001) have define Supply chain management as ‘Supply Chain Management involves the flows between and among stages in a supply chain to maximize total profitability.’ After 1950, supply chain management got a boost with the production and manufacturing sector getting highest attention. The inventory became the responsibility of the marketing, accounting and production areas. Order processing was part of accounting and sales. Supply chain management became one of the most powerful engines of business transformation. It is the one area where operational efficiency can be gained. It reduces organizations costs and enhances customer service. With the liberalization of world trade, globalization, and emergence of the new markets, many organizations have customers and competitions throughout the world, either directly or indirectly. Business communities are aware that global competitiveness is the key to the success of a business. Competitiveness is ability to produce, distribute and provide products and services for the open market in competition with others. The supply chain, a critical link between supplier, producer and customer is emerged now as an essential business process and a strategic lever, potential value contributor a differentiator for the success of any business. Supply chain management is the management of all internal and external processes or functions to satisfy a customer’s order (from raw materials through conversion and manufacture through logistics delivery.). Goods-either in raw form or processed, whole sale or retailed distribution, business or technology services, in everyday life- in the business or household- directly or indirectly supply chain is ubiquitously associated in expanding socio-economic development. Supply chain growth competitive performance and supporting strong growth impulse at micro as well as micro economic levels. Keeping the India vision at the core of the objective, the role of supply chain is to take up social economic challenges, improve competitive advantages, develop strategies, built capabilities, enhance value propositions, adapt right technology, collaborate with stakeholders and deliver environmentally sustainable outcomes with minimum resources.