The strength of the supply chain largely depends upon the strength of the associated suppliers to the organization. Development of the associates is a direct method to improve original equipment manufacturers or buying organizations’ development. Supplier development is associated with many desirable outcomes like cost reduction, time to market, reduced cycle time, improved quality of the product, manufacturing flexibility and knowledge exchange between business partners. Manufacturing sector plays a vital role in the economy of every country for value creation, contribution to the GDP, boosts foreign exchange reserves, employment generation and poverty reduction. This calls for a special focus on manufacturing sector and so as on manufacturing outsourcing value chain. The role of small scale suppliers (SSI) are substantial in providing the competitive edge to the manufacturing organizations. So it is advisable to keep the SSI suppliers’ growth, development and satisfaction high in order to meet the desired operational flexibility, competitive advantage, time to market, increased market share and improved profit by the large scale organizations. Lot of research activities carried out in reference to the supplier development (SD) from buying firm’s perspective. Supplier development models, theoretical frameworks, barriers of SD explored only from the buying organizations view point. Very little research carried out on SD from selling organization point of view and that too in discrete manufacturing sector, it is not witnessed even one. This book is trying to explore the attributes which are affecting directly or indirectly the development of small scale manufacturing sectors to support the overall value chain.
Table of Contents
Section – I Introduction
1.1 Introduction
1.2 Relevance of the book
1.3 Objectives of the book
1.4 What is inside the book
1.5 Expected contributions from the study
1.6 Conclusion
Section – II Research So Far
2.1 Introduction
2.2 Studies Abroad (Section A)
2.3 Studies in India (Section A)
2.4 Summary of Findings (Section A)
2.5 Studies Abroad (Section B)
2.6 Studies in India (Section B)
2.7 Summary of Findings (Section B)
2.8 Gap in the Literature
Section – III Supplier Development Barriers from Discrete manufacturing perspective
3.1 Introduction
3.2 Discrete manufacturing industry in brief
3.3 Process of discrete manufacturing industry
3.4 Position of Supplier development in SCM
3.5 Background of supplier development
3.6 Definition of supplier development
3.7 Categories of Supplier development
3.8 Benefits, Risks & Barriers
3.9 Supplier development processes
3.10 Proposed Supplier Development Model
3.11 Supplier development barrier pyramid
3.12 Conclusion
Section – IV Overview of Indian Small Scale Manufacturing Industries and Insights to its Development Barriers
4.1 Introduction
4.2 Overview of small scale sector
4.3 Classification of SSI
4.4 Role of Government in developing SSI
4.5 Relevance of SSI
4.6 Major benefits of SSI
4.7 Challenges of SSI units
4.8 Linkage between barriers
4.9 Conclusion
Section – V Case Study – “Determinants of Small Scale Development Barriers”
5.1 Introduction
5.2 Test of data reliability
5.3 Test of sample adequacy
5.4 Test of data normalcy
5.5 Test of hypotheses
5.6 Factors determining development barriers of small scale industries
5.7 Ranking of supplier development barriers of SSI through RIDIT
5.8 Conclusion
Section – VI Summary of Major Findings and Suggestions
6.1 Introduction
6.2 Major findings
6.2.1 Findings in general
6.2.2 Findings with respect to Objectives
6.2.3 Findings with respect to Hypotheses
6.3 Managerial implications and Suggestions
6.4 Conclusion
Further Studies
Objectives and Core Themes
The book aims to identify and analyze the barriers hindering the development of small-scale manufacturing suppliers within the Indian discrete manufacturing sector, with the goal of establishing a framework for sustainable supplier-buyer relationships.
- Exploration of supplier development (SD) barriers and critical success factors.
- Analysis of the unique challenges faced by Indian small-scale industrial units.
- Empirical investigation of factors determining development barriers via case studies and statistical analysis.
- Tracing the linkages between general supplier development barriers and specific small-scale sector issues.
- Providing managerial suggestions for government and industry stakeholders to strengthen the supply chain.
Extract from the Book
3.2 Discrete Manufacturing Industry in Brief
Way of manufacturing in discrete manufacturing industry is completely different from continuous and repetitive manufacturing set-ups. Discrete manufacturing industry expects a lot of special attention from product awareness, process knowhow, materials and technology management perspective. Product is manufactured based on the specific technical requirement from client and their consultant and almost all products are different from each other. The technical factors differs within the segments with the same machine capacity / performance criteria so as the manufacturing process also. But having so many variations the manufacturing firms have to meet the predefined target with a targeted cost line. A typical discrete manufacturing process is composed of multiple sub-processes which call for different set of process or skill. It is often characterized by individual or unit production style. Usually low volume and high complexity is observed in discrete manufacturing sectors. Success of the manufacturing industry largely depends upon the responsiveness of the shop towards change (Mohanty & Gahan, 2013). Each change of equipment / part of equipment and process demands a change in set-up, tool and tackles, skill level of the operator, level of planning, selection and health of appropriate machine. Each of the attribute needs to be addressed and monitored carefully to get the desired output.
Summary of Chapters
Section – I Introduction: Outlines the book's scope, current Indian economic context, research objectives, and the significance of the small-scale sector for large manufacturing organizations.
Section – II Research So Far: Reviews literature from 1981 to 2016 regarding supplier development barriers and the specific challenges faced by small-scale suppliers both in India and internationally.
Section – III Supplier Development Barriers from Discrete manufacturing perspective: Examines the discrete manufacturing process, theoretical frameworks for supplier development, and identifies specific barriers within this industrial context.
Section – IV Overview of Indian Small Scale Manufacturing Industries and Insights to its Development Barriers: Provides an overview of the Indian small-scale sector, its classification, the role of government, and a detailed analysis of operational and financial challenges.
Section – V Case Study – “Determinants of Small Scale Development Barriers”: Details the empirical research methodology, including data reliability tests, hypothesis testing, factor analysis, and the ranking of barriers using the RIDIT technique.
Section – VI Summary of Major Findings and Suggestions: Synthesizes the empirical results and offers strategic recommendations for entrepreneurs, large buyers, and government bodies to improve the small-scale sector.
Keywords
Supplier Development, Small Scale Industries (SSI), Discrete Manufacturing, Supply Chain Management, Operational Barriers, Infrastructure Hindrances, Financial Obstacles, RIDIT Analysis, Factor Analysis, Competitiveness, Industrial Growth, Supplier Relationship Management, Indian Economy, MSME, Barriers to Development
Frequently Asked Questions
What is the primary focus of this work?
The work focuses on identifying and analyzing the development barriers faced by small-scale manufacturing suppliers, particularly in the Indian discrete manufacturing industry.
What are the central themes of the research?
The central themes include supplier development (SD) strategies, the influence of macro-economic and social factors on small businesses, and the structural challenges inherent in the small-scale manufacturing sector.
What is the main research question or objective?
The core objective is to explore the barriers to supplier development, determine the principal factors influencing these barriers through empirical case studies, and provide actionable suggestions for improvement.
Which scientific methodology is applied in the study?
The study employs a mixed-methods approach, combining an extensive literature review with primary data collection via questionnaires. Statistical tools such as Cronbach’s alpha, factor analysis, and RIDIT analysis are used to validate and rank the identified barriers.
What topics does the main body address?
The main body covers a comprehensive literature review, theoretical frameworks for supplier development, an overview of the Indian small-scale sector, detailed statistical analysis of barriers, and managerial implications.
Which keywords best characterize the work?
The most important keywords include Supplier Development, Small Scale Industries (SSI), Discrete Manufacturing, Supply Chain Management, and Operational Barriers.
How does this study contribute to the existing literature?
It fills a research gap by shifting the perspective of supplier development from the buyer's viewpoint to the supplier's viewpoint, specifically within the under-researched Indian discrete manufacturing sector.
What is the significance of the "RIDIT analysis" mentioned in the book?
The RIDIT analysis is used as a specific statistical technique to rank the development barriers, providing a clear prioritization of which obstacles are most critical to the survival and growth of small-scale suppliers.
- Quote paper
- Dr. Manoj Kumar Mohanty (Author), Prof. Dr. Padmabati Gahan (Author), 2019, Barriers of Supplier Development. Listening to the Voices of Small Scale Manufacturing Suppliers, Munich, GRIN Verlag, https://www.grin.com/document/490216
