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Levers to Improve Economic Performance
This section provides a brief look at some levers that help boost economic performance. We will be examining some of these points, especially those related to supply chain, further on in this report.
Although it is imperative to maintain lean costs to boost economic performance in the current market scenario, what is oft forgotten is the need to maintain lean cash. By this we mean:
Cash tied to inventory: by improving service levels through delivery and turns
Improve working capital flows: this will help unlock the potential of this one-time cash
Rationalize the operational CAPEX: this can help in reduction and postponement of CAPEX expenditures
Under the maintenance of lean costs we need to look into the following key areas:
Departmental costs: optimize the all division costs; be it HR, Legal,
Finance, Public Relations and so on
IT: find new ways of automating processes and reducing manual human interventions
Supply chain: companies might want to outsource non-core activities and stop reverse logistic processes like returns, damages etc
Service levels: reduce extra service costs like warranty
Product development: improve productivity & efficiency with focus on lowest costs
Manufacturing: adopt lean measures
Reduce indirect procurement: such as travel & healthcare
Organization streamlining: reduce management layers and improve span of controls
Facts About India & its Supply Chain
India's diverse economy ranges from traditional village farming, modern agriculture, handicrafts, to a wide range of modern industries, and a multitude of services. Services, however, form the major source of economic growth, accounting for more than half of India's output with less than one third of its labour force.
About 60% of the work force is still in agriculture, leading the government to focus on
Last Updated On:7/30/2010 11:12:31 AM
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