Competitiveness of Indian Manufacturing: Finding of the 2001 National Manufacturing Survey

In this paper we present findings of the second national survey on the competitiveness of Indian manufacturing. The paper develops hypotheses on the competitiveness of firms in the manufacturing sector and addresses some key questions on the characteristics of world class firms in India. We analyze the processes and practices that such firms have adopted to become world class. More important, we highlight firm level practices that are preventing Indian firms from becoming globally competitive. The findings point towards three distinct aspects of manufacturing management that define the capabilities of the firm, i.e., strategies related to dynamic control of shop floors, network linkages and innovation. It is found that firms that build distinctive technological and managerial capabilities in these domains are able to compete globally. The paper provides a comparison with manufacturing capabilities of competitors in China and draws lessons for organizing large scale manufacturing. It also provides an assessment of the changes that have happened in manufacturing priorities and strategies in India since our last survey that was conducted in 1997 and highlights the implications of these changes.

New Product Development and Product Supply Within a Network Setting: The Case of the Chilled Ready-Meal Industry in the UK

This paper analyses inter-organizational networks that link together firms operating in the food processing and distribution industry in the UK. In doing so, the paper draws on insights recently developed by Mark Casson that treat inter-firm networks as an institutional response to the changing costs and opportunities of information management. Detailed analysis of product innovation and supply chain management issues within the industry, exemplified by the growth of chilled ready-meals, leads to the identification of two distinct but complementary inter-firm networks: a network of control and a network of innovation. In each case, the study finds that the critical information is derived from the retailers’ interface with consumers and thus that these information-based networks are effectively controlled by the leading supermarket chains. The study’s conclusions are considered in relation to the recent findings of the Competition Commission following its investigation into grocery retailing in the UK

An investigation into Indian apparel and textile supply chain networks

The activities of the Indian clothing industry supplying Western markets have been investigated, with particular reference to identifying where improvements could be made to supply chain management. Focus group discussions, case studies and questionnaire analysis established that long lead-times in pre-production areas were of great concern. However Indian apparel manufacturers were found to be more cost conscious and rather less conscious about the value of time in pre-production areas. It was found that pre-production activities constituted 73% of total manufacturing lead time and have high positive correlation (0.96) with total manufacturing lead time. Preproduction activities in India mainly consist of prototype making and pre-production sample development; of which approval processes were found to have a high correlation (0.63) with pre-production. A significant (more than 50%) time of all activities consist of waiting time, which has positive influence on total lead time (0.86)

Responsiveness, the primary reason behind re-shoring manufacturing activities to the UK: an Indian industry perspective

Purpose: Due to today’s volatile business environment companies have started to establish a better understanding of the total risk/benefit-balance concerning manufacturing location decisions of their component supply. The focus is now much more on comprehensive and strategic supply chain issues rather than simply relying on piece part cost analysis. This has led to an emerging trend called re-shoring. The aim of this paper is to understand the primary motivation behind the re-shoring strategy in the UK and investigate the factors that influence this decision from Indian industries perspectives. Design/methodology/approach: The analysis of the paper is based on interviews conducted in the UK and India (State of Tamil Nadu) in various industries including automotive, industrial goods, textile, and marine. For this purpose an interview framework based on key enablers identified from the literature, being IT solutions, manufacturing equipment and human factors. This provided an assessment of the capability of the companies for being responsive to western demand. Findings: The findings indicate that re-shoring to the UK is the result of inadequacy in responsiveness and long production lead-times of the Indian suppliers. The outcome of this paper indicates that the top factors behind this inadequacy in responsiveness are logistics and transportation, electricity shortage, excessive paperwork and working attitude. Originality/value: This paper aims to fill the gap in the re-shoring literature by providing a clear picture behind the reason for re-shoring in the UK and identify the drivers behind this shortcoming in the component supply from India

Export networking challenges and opportunities for manufacturing firms from developing countries : the case of Eritrea

The studies in Netherlands and Ugandan footwear and textile export market have shown that no subcontracting and joint venture business opportunities were found. This is mainly because of three main factors. Firstly, there is no need for the importers in the Netherlands and Uganda to make risky investment on setting manufacturing facilities. There are manufacturers who are capable of producing a product according to the importer requirements. Then the point is how to get the reliable manufacturer who can accommodate the orders. Most of theimporters prefer to remain as wholesalers or retailers rather than diversifying to production. Secondly, the unstable political situations in developing countries make investment more risky. Finally, the wholesalers and retailers need to be flexible. Consequently, the case studies have shown that at present flexible supply contracting is becoming popular in the footwear and textile business. The findings show that only agents wholesalers and retailers are active in the Netherlands footwear and textile export market. The intermediaries in the Netherlands are well placed in the local target market, have considerable local market knowledge and crucial contacts with potential customers. Thus it is easier for the footwear and textile manufacturers in Eritrea to enter into the Netherlands footwear and textile export market through a vertical business network with wholesalers and retailers than bypassing them. However, to improve their product quality and expand their production capacity the Eritrean manufacturers need to establish a horizontal business network. The high uncertainty in the Ugandan export market due to the lack of trust in the marketing channel, and inefficient contract enforcing institutions precludes the footwear and textile manufacturers in Eritrea from appointing agents in Uganda. Moreover, wholesalers and retailers in Uganda often travel to markets where they can find different varieties of footwear and textiles from which they can choose. They buy limited volume of footwear and textiles from each design. As a result direct presence in the Ugandan market can help the Eritrean footwear and textile manufacturers to enlarge their sales by collecting orders even from the immediate customers. However, to enter to the Ugandan footwear and textile export markets through the aforementioned strategy, the footwear and textile manufacturers in Eritrea need to establish horizontal business networks relationships among themselves. The horizontal business network relationships among the manufacturers will help them to mobilise the financial and human resources needed to establish a sales outlet in Uganda. This thesis concludes establishing horizontal business network with fellow manufacturers and vertical business network with cotton and leather suppliers, and footwear and textile buyers in the Netherlands and Uganda are preconditions for the Eritrean manufacturers to penetrate to the international market. Moreover horizontal business sub-networks are necessary to improving product quality, expanding production capacity, and mobilizing resources. In view of this conclusion two types of horizontal business network organisations and three types of vertical business network relationships have been recommended to co-ordinate the entry to export markets. A distinction between a network organisation and a network relationship has been made. Organisations have their own administration and continuity is a major goal, while relationships are order based and have a relatively flexible status.

The Political Economy of Low-carbon Investments: Insights from the Wind and Solar Power Sectors in India

The primary motivation behind this research is the need to accelerate the supply of renewable energy because of the important role that it plays in mitigating climate change and in fostering sustainable development. Understanding past drivers for low-carbon investment can help us identify those for the future, and what could accelerate such investment. Investment in renewable energy can be modelled as a problem of technical asset allocation or optimisation at the firm or sectoral level, but is not entirely explained by this approach – the context in which actors are involved, their motivations and the wider systems in which they operate must also be taken into account. The interactions between actors may sometimes accelerate investment and sometimes prevent it; however, understanding the dynamics of these processes is crucial if we are to shape them. This study, which focuses on the wind and solar power sectors in India and China, aims to find and compare drivers for investment in renewable energy. Our point of entry for this piece of the study is that India is already seeing significant investment activity in renewable energy. During 2010/11, investment in renewables grew by 62 per cent to US$13bn (although it slowed drastically in 2011/12 to US$6.5bn). In 2010 the Indian government announced a National Solar Mission that aimed to add 20 gigawatts (GW) of solar power generation capacity by 2020; wind power capacity has grown steadily at a compound annual growth rate of 17.9 per cent since 2007 and now contributes more than 20GW, or just over 70 per cent, of total renewable energy capacity. Almost all of this is private investment. However, these levels will need to increase sharply in the coming years and decades if India is to reach China’s levels (who, in 2013, became the world leader with US$67bn invested in renewables) and make a greater contribution to the US$1tn needed.UK Department for International Developmen

An exploration of power asymmetry in the apparel industry in the UK and Turkey

This paper is designed to explore the concept of power asymmetry in apparel supply chains between large retailers and SME suppliers by focusing on the experiences of 20 SME apparel manufacturer suppliers in relationship with large retailers based in the UK and Turkey. This research presents a framework for examining how suppliers’ capabilities help them to overcome power asymmetry.Using an exploratory case methodology, the paper discusses the supply chains in which the SMEs operate, identifies the power asymmetry evident in these supply chains and how the capabilities of suppliers overcome power asymmetry in relationships. The empirical findings from the data collected in the UK and Turkey illustrate both production and technical capabilities affect power asymmetry but cause and effect is difficult to establish as these capabilities are fundamental to the relationship. Management capability is significant in a number of ways, exhibited by importance of managing relationships and mitigating the risks associated with these. Custom capabilities supported suppliers efficiently in their efforts of value delivery. The study makes a contribution to the work of the Industrial Marketing Purchasing (IMP) school and the interaction approach (e.g. Ford, Hakansson, & Johanson 1986; Hakansson, & Snehota, 1998; Gadde, & Hakansson, 2002). The capability framework demonstrated a new approach to explore the further dimensions of power asymmetry and understand approaches of mitigating asymmetry in dyadic relationships. In contrast to earlier work, the research extends to industry level, rather than that of the individual firm. The paper concludes by evaluating the application of capabilities by apparel suppliers and how they build inter-dependencies and position themselves in asymmetric relationships with retailers.N/