Secret to Productivity

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2023 for Indian Fashion Supply Chains

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The size of #GlobalFashionIndustry is almost the size of 6th or 7th largest economy of the world. China being the largest exporter while #europeanunion & #USA being the largest importers.  #IndianFashionSupplyChains with the levers available are shaping up for the #realignedglobalsupplychains in the #fashionretailindustry be it #apparels or #footwear . My understanding of the key Supply Chain issues for Indian Fashion Retail for 2023 look like, a. International customer demand - Inherent characteristic of the #FashionRetail #supplychain is long ordering cycles. While we are in August 2022, order books for global customers for Christmas and New Year shall be booked. A slowdown in developed economies (due to #higherinflation which may have resulted lowering demand) may have left excess #inventory at the retailers. These customers of Indian Retail industry Supply Chain will slow down their demand in the coming months & quarters. Due to the long lead times, Indian ...
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ABC analysis of USA’s trade deficits

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Supply Chain Professionals are working in a chaotic phase of global readjustment triggered by USA’s point of view anchored around trade deficits. For decades, Businesses in general& Supply Chains in particular have relied on ABC analysis to find priority for financial control. This short article is to decipher based on a Supply Chain this practice used. International Trade Centre data of USA trade deficits shows that USA has trade surplus with 118 countries USA has trade deficit with 99 countries. Of the 118 countries only 6 of the countries make up for 70% contribution to net trade deficit, China contributes 26 Mexico contributes 14% Vietnam contributes 9% Germany contributes 7% Canada contributes 7% Japan contributes 7% Of the total 97 HS codes only 4 contribute to 70% of the total net trade deficit Code ’85 (Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television ...) contributes 23% Code ’87 (Vehicles other than railway or tramway rolli...
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"Net Input Cost Inflation" in Supply Chain - An enhanced way to report Supply Chain inflation

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An unprecedented inflation in commodities has created an equally unprecedented situation for enterprises. In India, the WPI has consistently been in double digits over past 15 months or so & CPI has been in single digits, indicates that the enterprises have absorbed larger part of input cost inflation. Supply Chain teams, particularly the Sourcing / Procurement teams have experienced a phenomenon that most of the practitioners have never experienced within their working life - a pandemic followed by sudden spurt in demand followed by trade barriers followed by geopolitical conflicts and in all that an unforeseen material inflation. Post the first few months of pandemic, commodity prices have shot out of the roof, post the Ukraine - Russia conflict even Oil is up 60% or so, agricultural commodities in some case have doubled. During these challenging periods enterprises ability to pass on the input cost to its end consumer has been limited due a post pandemic recovery period. Now wit...
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