A case in point, he notes, is a large electronics manufacturing services company that modeled its Indian operations after the massive, sprawling locations it had in other parts of the world. Because the facilities are temperature- and humidity-controlled, they require enormous power, increasing operating costs. The company wasn’t as successful as local competitors, who operated more frugally and in smaller spaces. “A condensed layout may not be the most elegant, but it’s more affordable,” Datta explains. STRATEGY AND TACTICS . Similarly, organizations need to decide on the blend of local and global management that will be most effective. Local leadership should best know how to navigate India’s culture and government to accomplish business objectives, says Soumyadeep Ganguly, a partner in the Delhi of ce of McKinsey, who leads the rm’s work in manufacturing and supply chain management in India. At the same time, most organizations need some global checks and balances. A growing number of companies use India as a sourcing location, Ganguly notes. For instance, manufacturers of auto components, including for the two- and three-wheeled vehicles common in some Asian countries, have begun exporting from India. For other companies, it makes sense to look at India as a manufacturing hub that supplies both the domestic market and global demand. Many generic drug manufacturers have made India their home, too. Although it’s not as established, there’s also growing interest in India for the semiconductor value chain, as well as for engineering research and development. A thoughtful operating model is also essential for success in India, Ganguly adds. Companies need to decide the approach that makes the most sense for their business: Set up a green eld operation on their own, engage in a strategic partnership, or undertake an acquisition? Companies that persist in navigating the challenges can gain a competitive edge. For instance, the talent base in India enables Bristlecone to drive continuous innovation and deliver cutting-edge solutions. Managing operations across time zones is also a strength. “With teams working around the clock, we can ensure 24/7 execution, faster decision-making, and real-time problem-solving, ultimately creating more resilient supply chains,” Chew says. Ultimately, companies must be willing to take a long-term approach to making a supply chain in India pay off. “India is not a geography that works well in the short term,” Ganguly says. “Look at India as a long- term bet.”
Latte Logistics: Sourcing Coee From India Paul John Indian Caeine Company, headquartered in Tampa, Florida, specializes in unique coee varieties sourced directly from India’s Coorg and Chikkamagaluru regions. Founder Shonali Paul ( pictured ), who grew up in that area, has established personal connections with local farmers and traders, granting her access to a diverse selection of coee beans. “Having control over this part of our supply chain allows us to explore various avenues and secure the finest coee beans from southern India,” she explains. After harvesting, Indian exporters prepare the
beans and handle essential documentation, including certificates of origin, pest clearance certificates, and shipping documents, facilitating their import into the United States. A significant challenge
is identifying exporters that have U.S. Food and
Drug Administration facility registrations, a crucial requirement for importing goods into the country, Paul notes. Upon arrival in the United States, Paul John Caeine manages the necessary paperwork for customs clearance, after which the coee is stored in a temperature-controlled facility until distribution. Shipping delays can extend for several weeks, necessitating adept inventory management to ensure consistent supply. Drawing from her experiences, Paul advises partnering with
firms experienced in the target export country, as they are likely familiar with the required documentation. She also recommends evaluating multiple suppliers to compare rates and ensure optimal quality and pricing. Currently, Paul
John Caeine’s products are available throughout the United States and in select southern Indian states. Paul plans to expand further within India and into other countries. “India is a vast, rich country with endless possibilities for businesses,” she says.
32 Inbound Logistics • March 2025
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