What is supply chain management?

The planning and administration of acquisitions, conversion, and logistics management operations are all part of supply chain management. It also handles with the coordination of all parties (from suppliers to customers). It deals with demand management inside a corporation in this manner.

What steps can we take to identify and reduce waste in our supply chain strategy?

The first step is to examine existing processes and determine where waste is still an issue. You may, for example, compare the things you buy to your outcome to prevent expenditures. Talking to relevant managers or operators or solicit further feedback from customers or service suppliers.

What is a global supply chain?

Global supply chains are networks that cross continents and nations to source and distribute goods and services. The mobility of information and resources is one of the most important foundations.

Where do risks exist in supply chain management?

Internal risks (those under your control) and external risks (those that are beyond your control) coexist. In this regard, the following sorts of dangers are identified: Financial hazards Poor planning Regulations Environmental Socio-political Human behaviour

What is procurement in the supply chain?

One of the various branches of the supply chain is procurement. It serves as a structure for a firm to efficiently carry out all of its daily activities, monitoring the outcomes and assessing how the items that will be provided to the clients are made.

What factors contribute to the success of a supply chain?

A good supply chain must have three components: flexibility, data, and long-term planning. In this regard, some of the aspects that impact its correct operation are as follows: Maintain your adaptability. Trust data and technology Plan for the future Remember who is your end customer

What are the benefits of supply chain management?

In a nutshell, it facilitates and improves the movement of products, information, and commerce. Companies benefit from an optimised and efficient business, building better ties with partners and customers.

Why is supply chain planning so important?

Planning in the supply chain helps to simplify operations, enhance productivity, eliminate wasteful spending, and build stronger client relationships. Planning, when done effectively, may assist decrease costs associated with purchasing, manufacturing, inventory management, and transportation.

How can we gain a better understanding of our supply chain costs?

Data analysis is an excellent tool for anticipating and determining where we need to improve. For example, it assists us in optimising warehousing and storage, which is essential in a bigger supply chain strategy. This allows us to optimise space, decrease damage, reduce packing, and do a variety of other things.

What obstacles do organisations experience when attempting to improve SCM?

The supply chain is a difficult process in and of itself, and adding innovations is a problem for businesses. It's critical to move fast and to balance rising customer demand with competitive pricing. In this regard, procurement may also assist to determine whether parts of the supply chain are not competitive or to set more ambitious goals.

Environmental Sustainability in Outsourced Manufacturing: How India is Paving the Way

The manufacturing sector is a major driver of India’s gross domestic product (GDP) and plays a vital role in the country’s economic growth. It not only boosts production but also generates employment opportunities across both secondary and tertiary sectors, fueling overall development and economic resilience. India has become the preference of many big brands for Outsourced Manufacturing, which is undoubtedly a great deal.

On the other hand, this industry is also one of the contributors to carbon emissions in the country, which were recorded at 2.88 gigatons in 2021. In fact, the industry consumes huge amounts of energy and natural resources, thus generating some harmful waste for the environment.

But again, as India constantly takes steps to become a developed nation, we take responsibility as leaders and take steps that are good for humankind and nature.

This is why we continuously work to adopt sustainable outsourced manufacturing practices.

How India is Paving the Way

As the world grapples with the challenges of climate change and environmental degradation, industries are increasingly recognising the need to adopt sustainable practices. Among these the manufacturing sector, which plays a significant role in global resource consumption and waste generation. Sustainable manufacturing has emerged as a proactive approach to reducing the environmental impact of industrial activities while fostering economic growth. And here is how India is making efforts and following sustainable practices:

Indian Companies Harness Technology to Achieve Sustainability Goals:

Global research and innovations in new technology continuously strive to make the future better. To face the challenges today, integrating technology and data from the beginning will accelerate the march toward sustainability.

Technologies like Artificial Intelligence (AI), Machine Learning (ML), Industrial Internet of Things (IIoT), Cloud Computing, and Blockchain are transforming industries by enhancing efficiency and enabling technology-driven sustainable solutions.

For instance, Hindalco employs an innovative tool known as Internal Carbon Pricing (ICP) to manage carbon risks and opportunities. This mechanism helps in assessing and approving carbon-efficient projects and guiding investment decisions. By using ICP, Hindalco tracks the cost of carbon, ensuring its strategies align with future regulations, emission trading schemes (ETS), and carbon taxes. This proactive approach allows the company to make informed decisions about low-carbon growth initiatives and stay ahead of sustainability regulations.

Recycling & Circular Economy:

In India, no matter the big or small manufacturing unit, we believe in taking full advantage of the resources, which means the manufacturers are firm believers in a circular economy where things are made and consumed in a way that minimises our use of the world’s resources, cuts waste and reduces carbon emissions. Products are kept in use for as long as possible through repair, recycling, and redesign so that they can be used repeatedly.

Further, the recycling policy plays a huge role; let’s again understand with an example. Vehicle Scrappage Policy 2021: The main aim of this policy is to identify old, unfit, and polluting vehicles and scrap them.

However, one key takeaway from the vehicle scrappage scheme is the Increased availability of low-cost raw materials for the automotive, steel, and electronics industries.

Sustainability in Outsource Manufacturing in India

Sustainable Sourcing:

The Indian government plays a huge role in boosting businesses and has launched several initiatives to promote sustainability across industries. The PAT Scheme encourages energy efficiency by setting consumption targets and rewarding companies that surpass them with tradable Energy Savings Certificates. The NCAP focuses on reducing air pollution by advocating for cleaner production processes and raising awareness.

Additionally, GST incentives offer tax benefits for eco-friendly products and technologies, making sustainable solutions more affordable. The Green Manufacturing Initiative incentivises cleaner production with financial support and technology, driving resource-efficient practices. Finally, the NAPCC provides a framework centred on renewable energy and sustainable development, aligning with the nation’s long-term environmental goals.

Eco-friendly Packaging:

India is a diverse nation, which means it is home to a range of creative and innovative solutions, especially in the growing area of eco-friendly packaging. As pollution continues to be a major global issue, an increasing number of companies—large and small—are opting for more sustainable alternatives to conventional plastic packaging.

For example, entrepreneurs in villages are turning banana leaves and waste sugarcane into eco-friendly packaging materials, offering a biodegradable and renewable solution to plastic waste.

One inspiring company leading the way is Corugami, founded by Udit Bansal, Aditi Tandon, and Alisha Vasudev. Based near Pune, Corugami focuses on helping environmentally-conscious businesses adopt sustainable packaging solutions. Their plant utilises eco-friendly materials like jute, recycled paper, bamboo, and corrugated board to produce packaging that is both functional and environmentally responsible.

Case Study

India is home to several large manufacturers that are recognising the crucial need for sustainability in their production processes. One prime example of this commitment to a greener future is Tata Motors.

Tata Motors: Leading the Charge Towards Sustainability with Electric Vehicles

Tata Motors is one of the leading and reputed automobile companies in India. It plays a key role in reshaping the future of transportation in the context of ever-growing greenhouse gas emissions emanating from the transportation sector. The response comes to this challenge through an innovative and sustainable approach from Tata Motors. The company is investing heavily into electric vehicle technology and designs and manufactures cutting-edge electric cars promising a reduction in carbon footprint.

But their commitment doesn’t end with the vehicles themselves. Tata Motors is working on optimising every part of its manufacturing process to be more eco-friendly, aiming to significantly reduce emissions across its operations. By focusing on sustainability, Tata Motors is not only preparing for a future of clean mobility but also setting a benchmark for other manufacturers in India and globally.

Through bold investments in EV infrastructure and technology, Tata Motors is proving that sustainability isn’t just a goal—it’s the way forward for the automotive industry.

Bottom Line

Environmental Sustainability in Outsourced Manufacturing has become the common practice in India and that is the reason even Western countries are turning toward us for outsourced manufacturing.

And in this race to do best for humans, Refteck is not behind, offering sustainable services to their clients, whether it's procurement or manufacturing.

So, join hands with Refteck and do better for the planet together.