Supply Chain goes Green

Recent surveys conducted by IBM has come out with the findings that executives are more concerned about cost control and cost reduction strategies s than environment issues like green house gas emission and Co2 emissions .

But for the pressures from the stake holders like consumers , government , Investor for more actions on these environment issues companies are now trying to synergize their cost reduction efforts to the environment issues .

Some of the area which can be used by executives get cost reduction as well as reduction in CO2 emissions are

• Transport and Supply

• Product life cycle management

• low emission manufacturing

• Shipment

• Packaging

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India is still a low manufacturing hub for Automobile sector

Recent declaration by Hyundai Motors that it is shutting off operations from it Chennai plant and is shifting its exports to some other location has other reasons rather than to do with manufacturing cost . Labour cost is still lowest in this reason even you compare it with China , Thailand ,Mexico and other low cost manufacturing countries . Availability of numerous ancillaries to automobile sector also makes India an attractive destinations for foreign car makers . Nano is an example so does other automobile manufacturers who putting up base or expanding their capacities .

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Proactive action to take on Economic down turn

Companies are facing trouble on account of dwindling sales and high cost of raw material. Its time for few basic cost reduction such as cutting down Inventory ,Reduce Overheads , Outsource or Co source , Focus on core and profitable business, Getting new market , Innovative and low cost marketing etc .

Here is a article which sums it all

High Energy cost has impacted Indian industry

Energy cost of manufaturing industry has grown up to an extent where industry is finding difficult to be competitive in global market . ASSOCHAM in its recent study has shown a gloomy picture of energy sector .

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Indian companies adopts cost reduction measures in economic slow down

With fall demand and high cost most of the Indian companies have vigorously adopted cost reduction strategies to save costs .

Aditya Birlas BPO operations in Canada has been reduced and BPO centres are being relocated to India . Aditya Birlas Copper mine in Australia are being closed for maintenance and repair

Tatas -Tata s have laid off number employees from Ford JLR s plant and design units and is now planning to get components from countries like India , China

Essar - Laid off workers from its Canadian mills

JSWS -- Jindals US units are to revived with lower fuel consumption and sourcing raw materials from low cost manufacturing countries


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US companies have gained from offshoring

A recent surveys shows that US companies have gained through offshoring their activities . Companies are offshoring activites like Design , Research and development services , Customer care etc .

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