India has emerged as an attractive
manufacturing sourcing destination in the past couple of years and has a lot to offer as the world’s fast-growing economy. The manufacturing sector in India is fast developing into an investment hub for many foreign players who have already shifted their sourcing to India and are benefitting from the same. But, before proceeding to more details, it is important to understand what manufacturing sourcing is and what a
manufacturing sourcing company do.
Manufacturing Sourcing – It refers to the concept of searching for a supplier that would help the client company in meeting its objective in terms of cost, quality and deadlines as well as performance. The sourcing consultant from a manufacturing sourcing company helps the client on both professional and personal levels which further helps in making the production stage much smoother. The primary advantage of the services provided by the consultant includes cost savings and improved efficiency. Some more benefits include:
1- An effective solution for finding the dealer channels because the consultants connect the client company with raw material vendors.
2- The consultants are well-versed in providing intelligent advice and guidance on whether the product should be procured locally or import.
The government has set up various organizations such as the India Industrial Land Bank (IILB), Industrial Park Rating System (IPRS), and soft launch of the National Single Window System (NSWS), National Infrastructure Pipeline (NIP), and the National Monetization Pipeline (NMP) to attract the foreign and domestic investments. Some more government initiatives such as Make In India, Atmanirbhar Bharat, Production Linked Incentive Scheme etc. also aim at developing local capabilities for sourcing.
India’s strengths and key advantages –
1- India’s manufacturing industry’s biggest strength is its cost-effectiveness. The labour cost in India is much lower in comparison to other competing nations.
2- Many countries from Europe and the USA are now setting up their business in India to lower their manufacturing and overall cost. And, lower costs directly mean a higher return on investment.
3- Domestic availability of raw materials like cotton, silk, jute, metal, wood, marble, bamboo, pharmaceutical ingredients, chemicals etc. This makes it easy and cost-effective for companies to source from India.
4- Advanced infrastructure and latest technologies.
5- Stable government and supportive policies.
6- A vast pool of talent comprising English speaking workforce and technical manpower.
7- The country offers definite advantages to industrial companies in research and development, engineering design prototyping, service, training and specialty testing, apart from manufacturing.
The sourcing companies, with their industrial expertise across functions like manufacturing, strategies, sourcing etc. help the client organizations in expanding their business operations. This competitive market demands a proper knowledge of what is to be done and when. Therefore, choosing the right manufacturing consultant and consulting service is an important step that needs to be taken carefully. Factors that need to be considered before hiring a manufacturing consultant are listed below:
1- Flexibility
2- In-depth knowledge and experience
3- Professionalism in business
4- Trouble shooting in procurement and supplies
5- Strong communication skills
6- Qualified and experienced workforce
Industry Experts is a business platform which not only provides manufacturing sourcing solutions but also helps in finding relevant manufacturer for contract manufacturing according to the business needs and facilitates companies desirous of setting up business in India with offshoring services.