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October 25, 2018


Today I visited the JCB manufacturing plant in derbyshire. It was a good visit and there was a lot to take away from the day. Learnings and knowledge vary from person to person. A very interesting observation today was how most of the manufacturing units in the world rely on Just-in-time inventory for their processes. It is said that it reduces the inventory cost as well as helps to build continuous relationship with the supplier. Also, it helps to maintain the quality of the inventory as less goods are on the shop floor. It is an interesting observation because of the way our manufacturing sector works. All the people believe in ordering in bulk because it increases the bargaining power of the manufacturer. No one has ever thought about the benefits of just-in-time. The supply chain is unorganised back home. The reliance on the supplier of raw material to deliver goods on time is too less. So most of the small scale industries look at ordering in bulk and producing in bulk and capturing the market.

The bulk production helps me link a new concept about push and pull marketing. When you are producing large amount of units and trying to sell you are just pushing the products into the market. It results into over-production. On the other hand pull marketing is about pulling in the orders. This is what JCB follows. It is a more organic way, it helps to cover up the problems of bulk production. Most of the firms in urorganised sector believe in mass production, the more you produce the higher the profits. We do rely on orders that's for sure, but most of the firms just keep on pushing the products into the market. This kind of thinking hampers the circulation of goods in the market, resulting in overproduction. One reason for that is the products are mostly homogeneous , so there is no differentiation, no basis for an organisation to set themselves apart. The way forward would be to set a differentiation for the product, maybe set yourselves apart. Branding can be a possible option. But what are the possible ways we can look upto? Is product differntiation the only problem or there are various other problems that hamper the growth of the manufacturing industries back home? What are the possible things that we can learn from the other economies? I don't know the answers yet but one thing that I am sure of is that , it is a journey that requires a lot of passion and dedication.

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  • Good post Saurabh. I agree that sustainable success in any field cannot be achieved through a quick … by Paul Roberts on this entry
  • Thank you for your thoughts Paul. Critically analysing the point, most of the business have short te… by Saurabh Kukreja on this entry
  • Lots of thoughts here Saurabh. Picking up on your last point, perhaps the starting point is to consi… by Paul Roberts on this entry

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