Supply Chain Fundamental Rethinking

ROTI stands for Return on Time Invested . I heard it from Mr. Uday Kotak. All courtesy for coining the term to him. I leverage on that term for Supply Chain application in the context of Trade Agreements. ------------- Data shows that Indian Enterprises have productivity much lesser than China or Vietnam or countries with whom India competes for global share of trade. Data like Labour cost % to GDP or measures like travel time, etc make the case very open that Indian industry has a higher cost to serve its customers. Indian Supply Chains were shielded from the impact of their lack of productivity due to government protecting them using levers at its disposal, predominantly Tariffs. With that shield used frequently, what it has done is it has built a high cost Supply Chain which is to large extent is not necessarily exposed to beyond border competition & is able to pass on the inefficiency to its customer. With BTA or FTA or even the Tariff war, it looks eminent that shield is ...

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...