what does " modes of procurement of raw material" mean
Answers
Answer:
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Explanation:
Equipment for Production
In order to guarantee that the products that are being produced are of high quality, it is important to ensure that the equipment being used is modern. If the equipment is found to be lacking, then there are several courses open to a company. Mainly:
Contact or, if lacking an office in India, have your partner contact, the National Small Industries Corporation Limited (NSIC). The NSIC is able to provide equipment to small industrial units on a long repayment basis, allowing a sourcing platform to acquire modern machinery without immediately having to pay the heavy price.
Import equipment from the parent company. Like any import, this option will require a company to go through the processes included in the regulations of the Foreign Trade (Development and Regulation) Act, but will bypass the cost involved in acquiring new equipment.
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Sourcing and Procurement from India: Production and Geographic Considerations
December 30, 2014 Posted by India BriefingReading Time: 4 minutes
DELHI – The raw materials and equipment that a sourcing platform in India uses will impact not only the quality of its goods, but also the total expenditure of the operation itself. These will therefore further inform a company’s decision on where to locate their sourcing platform.
Equipment for Production
In order to guarantee that the products that are being produced are of high quality, it is important to ensure that the equipment being used is modern. If the equipment is found to be lacking, then there are several courses open to a company. Mainly:
Contact or, if lacking an office in India, have your partner contact, the National Small Industries Corporation Limited (NSIC). The NSIC is able to provide equipment to small industrial units on a long repayment basis, allowing a sourcing platform to acquire modern machinery without immediately having to pay the heavy price.
Import equipment from the parent company. Like any import, this option will require a company to go through the processes included in the regulations of the Foreign Trade (Development and Regulation) Act, but will bypass the cost involved in acquiring new equipment.
Sourcing and Procurement from India: Establishing an Office on the Ground
Procurement of Raw Materials
In India, domestic procurement is the most common means of acquiring the necessary materials for production. India possesses an exceptionally diverse economy that encompasses traditional farming, modern agriculture, and a multitude of contemporary industries. Locating the desired materials domestically should therefore pose little trouble.
Ideally, a sourcing operation should be located in an area which enjoys favorable taxation (such as an SEZ), is well placed to acquire the raw materials needed for production, and is positioned in an area well suited for export (i.e. on the coast). Previously, this was a difficult balance to strike, but the new government’s emphasis on infrastructural investment means that procuring materials from other parts of India is becoming a lot easier. Below is a graph showing coastal SEZs that have strong infrastructure links to other parts of India.