The spread of coronavirus (COVID-19) has challenged everyone, irrespective of how strong economies are you from. Similarly, Coronavirus has cited a challenge in front of Supply Chain Management team, especially for procurement of material from China. Until now, we have been seeing a trade war between US and China. India and US.
Time is Now
Now, the time has provided India with an opportunity to strengthen its manufacturing, in order to complete the pending orders, which China was supposed to complete earlier. Now, India is seen as one of the main alternative to broken supply chain due to spread of Coronavirus in China. China has reported highest number of deaths 1900 (approx.) and it has affected as many as 90,000 people only in China.
Due to this global outbreak of Coronavirus, many vessels are being diverted and there has been obvious delay in meeting the requirements. India export is also observing the rise of 1.7% compared to its last year records.
Many vessels were transhipped to avoid issues and getting contaminated from spread of the coronavirus in the region. Even shipments from India got diverted via Malaysia, which were earlier plan to follow another normal sea route. This injected delay in arriving the materials to the end customer.
Although, major economies has been seen fighting all these years, but the outbreak of coronavirus has shown these economies the mirror, that they cannot handle at their own the demand in their home as well. So, including India, USA and other strong economies has to strengthen their manufacturing first and then only they will be in better position to compete with China. As China will come out of this issue shortly.
Pharmaceutical sector is also seeing the rise in demand for general use medicine. I learnt all through my career that never have single vendor for big requirements, as if he fails, then your project will sink soon. So, divide the bigger package requirements among two or three vendors. This is proving correct, as world has been found dependent over China for long time and China’s competitive prices has killed the local manufacturing markets in other countries completely. So, this taught us the one more lesson that never only see the price and decide the ordering but be sensitive at the same time to keep your local industry alive.
Not only there is need to improve the manufacturing capacity, but also to develop the local manpower, so that there is less need and dependence on the expats coming to India for contributing in the India growth story. So, Modi government has to allow the Foreign Direct Investment with riders, which would become helpful for nations qualified manpower and more opportunity and less dependence on global supply chain hubs like China.