Global supply chains with local logistics: A case study of Ford India

Abstract

The interest in Indian markets and economy has increased significantly in the recent years, across the globe. Since the liberalization in early 90’s, most Indian industries have been opened up to global competition and multinational companies (MNCs) have made entries into many of these industries with varying levels of activities. Some industries such as the automotive, pharmaceuticals and consumer electronics have attracted more MNCs than others like textiles, retail and leather goods etc. for a variety of reasons. Automotive sector, a sector of intense competition and pioneer of best practices, has attracted most global players into India and subsequently grew into a significant contributor to the Indian GDP. Putting the initial fears of takeover by MNCs to rest, many indigenous companies have established themselves as competitive players in various segments of automotive industry, such as two/three wheeler segments, passenger and commercial vehicle segments and auto component sectors. MNC players also have tried to integrate local suppliers and customers into their businesses and operations to enjoy the host country advantages like the low-cost resources, highly skilled manpower and lucrative markets.