Is there a silver bullet to address Scope 3 emissions challenges?
Is there a silver bullet to address Scope 3 emissions challenges?
In an era of increased environmental awareness, the concept of Scope 3 emissions has gained significant traction. These emissions, though indirect, play a crucial role in a company’s environmental footprint. In this blog, we will understand Scope 3 emissions, explore why they demand attention, and discuss strategies for effectively addressing them. Let’s delve into the world of sustainable procurement .
Understanding Scope 3 Emissions
Scope 3 emissions represent the indirect greenhouse gas (GHG) emissions that occur outside an organization’s direct control but are associated with its activities. Unlike Scope 1 emissions (direct emissions from owned or controlled sources) and Scope 2 emissions (indirect emissions from purchased energy), Scope 3 emissions cover a broader spectrum. They include emissions generated throughout the supply chain, encompassing activities such as purchased goods and services, transportation and distribution, waste disposal, and business travel.
Why Scope 3 Emissions Matter?
Comprehensive Carbon Footprint: Scope 3 emissions provide a holistic view of a company’s environmental impact. They account for the majority of emissions in many industries, often exceeding Scope 1 and Scope 2 emissions combined. Addressing Scope 3 emissions is essential for organizations aiming to understand and reduce their overall carbon footprint effectively.
Supply Chain Resilience: Businesses cannot achieve sustainability goals in isolation. Suppliers and partners have a significant influence on environmental performance. By addressing Scope 3 emissions, organizations can foster collaboration with suppliers, promote sustainable practices, and build a resilient supply chain that aligns with their sustainability objectives.
Reputation and Stakeholder Expectations: In an era of increased transparency and consumer activism, companies are under growing pressure to demonstrate their commitment to environmental responsibility. Addressing Scope 3 emissions showcases a proactive approach to sustainability, enhancing brand reputation and meeting stakeholder expectations.
Are we doing enough?
There are enough examples to demonstrate that companies are taking proactive sustainable steps to control scope 3 emissions. Unilever and IKEA are prime examples of companies that have prioritized controlling Scope 3 emissions in their supply chains. Unilever has made sustainability a core focus, actively engaging with suppliers to reduce emissions and sourcing 100% of its agricultural raw materials sustainably. Through initiatives like the Sustainable Living Plan, Unilever aims to decouple growth from environmental impact while improving livelihoods. On the other hand, IKEA takes a comprehensive approach, focusing on sustainable sourcing, energy efficiency, and waste reduction. With ambitious goals of becoming climate positive by 2030, IKEA is committed to reducing its emissions and inspiring positive change throughout the industry. There are others like,Apple, Schneider Electric, Walmart etc. Who have taken proactive steps to address scope 3 challenges. Addressing Scope 3 emissions is crucial for organizations committed to sustainability and environmental stewardship. By understanding the scope of emissions beyond direct control, businesses can make informed decisions and implement strategies that drive significant positive change.
Digitising procurement – Your silver bullet
Digitizing procurement processes offers numerous opportunities to reduce Scope 3 emissions. It enhances supplier management, improves transparency, provides data-driven insights, facilitates collaboration, enables paperless processes, and supports lifecycle analysis. By leveraging digital technologies, organizations can drive sustainable procurement practices and contribute to meaningful emissions reductions throughout their supply chains. Zoglix – A Moglix company has been working with organization to help the digitize their procurement supply chain at rapid yet sustainable pace. Know how know how
How can Digitising procurement help?
Efficient Supplier Management: Digitization allows for streamlined supplier management processes, including onboarding, communication, and performance tracking. By centralizing supplier data and interactions, organizations can easily assess suppliers’ sustainability practices and evaluate their emissions performance. This information enables informed decision-making when selecting suppliers with lower environmental impacts, thus reducing Scope 3 emissions.
Enhanced Transparency: Digital procurement platforms can provide real-time visibility into the entire supply chain, enabling organizations to track and monitor key sustainability metrics. This transparency allows for better identification of emission hotspots, optimization of transportation routes, and identification of opportunities for improvement throughout the supply chain. It also facilitates collaboration with suppliers to share data and work together towards emission reduction goals.
Data-Driven Insights: Digitized procurement systems generate vast amounts of data, which can be leveraged to gain insights and identify opportunities for emissions reduction. Analyzing this data helps identify inefficiencies, optimize procurement processes, and make informed decisions that contribute to lower Scope 3 emissions. For example, data analysis can highlight areas where waste can be reduced, energy consumption can be optimized, or transportation routes can be consolidated.
Collaboration and Communication: Digital platforms enable seamless communication and collaboration with suppliers, allowing organizations to share sustainability goals, provide guidance, and collaborate on emission reduction initiatives. Real-time communication and data sharing foster a sense of shared responsibility and enable suppliers to align their practices with sustainability objectives, ultimately reducing Scope 3 emissions.
Paperless Processes: Digitization reduces the need for paper-based documentation, such as purchase orders, invoices, and contracts. By shifting to electronic documentation and automated processes, organizations can significantly reduce paper consumption and associated emissions from paper production, transportation, and waste disposal.
Lifecycle Analysis: Digital procurement systems can integrate with lifecycle analysis tools to assess the environmental impact of products or services throughout their lifecycle. This analysis helps identify opportunities for reducing emissions at each stage, from raw material extraction to end-of-life disposal. By considering environmental factors during procurement decision-making, organizations can choose suppliers and products with lower lifecycle emissions, thereby reducing Scope 3 emissions.
It’s time for businesses to acknowledge their role in shaping the environmental impact of their supply chains and take proactive steps to address Scope 3 emissions. By doing so, they not only contribute to a more sustainable planet but also gain a competitive advantage
Sustainable Sourcing 2.0: Reducing Scope 3 Emissions through Supplier Engagement
Sustainable Sourcing 2.0: Reducing Scope 3 Emissions through Supplier Engagement
Climate change is one of the most pressing issues facing humanity today, with the potential to impact every aspect of our lives and the natural world around us. As we continue to grapple with the effects of global warming, there is growing recognition of the need to take action to reduce greenhouse gas emissions and transition to a more sustainable and low-carbon economy. Decarbonization has emerged as a key strategy in this effort, encompassing a wide range of policies, technologies, and behavioural changes aimed at reducing our collective carbon footprint and mitigating the impacts of climate change.
Companies, particularly end-use industries like oil and gas, steel, cement, aluminium, and industrial gases, which account for about 80% of global greenhouse gas emissions, are making significant efforts to reduce their carbon footprint as the world moves towards achieving net-zero targets. In order to do this, many businesses are largely concentrating on reducing their scope 1 and scope 2 emissions, which are related to manufacturing and logistics and supply chains, respectively. Since these regions have seen a large reduction, some businesses are now focusing on scope 3 emissions, which include emissions from their suppliers. Companies can adopt a holistic strategy to meeting their carbon reduction targets and contributing to a more sustainable future by engaging with their suppliers to help them become zero carbon.
Measures taken by end-user industries
There are significant volumes of carbon dioxide emissions produced during the production and use of steel and cement, as well as during the extraction and processing of oil and gas. Energy-intensive aluminium production results in high greenhouse gas emissions. Strong greenhouse gases include industrial gases like methane and nitrogen, which are emitted during a number of industrial processes. Therefore, in order to meet decarbonization targets, these businesses are concentrating on reducing their carbon footprint using a number of strategies, like,
- Production techniques and resource transformation: Businesses can cut their carbon emissions by switching to more eco-friendly production techniques, utilising renewable energy sources, and utilising fewer fossil fuels in their daily operations. For instance, Vedanta Aluminium has committed to sourcing 380 MW of renewable energy to help control its emissions
- Utilising suppliers with high environmental, social, and governance (ESG) ratings can assist businesses in lowering their carbon footprint by ensuring that their suppliers are also pursuing decarbonization objectives. ExxonMobil, for instance, recently announced plans to achieve net-zero emissions by 2050 and invest $15 billion in new technologies to reduce emissions.
- Using electric fleets: Companies can reduce their carbon emissions by switching to electric fleets for logistics and transportation. This may eventually help with cost reductions
- Localization of supply chains: Businesses can lower their carbon emissions related to transportation by localising their supplier chains. This can be accomplished by using locally produced raw materials and completed items, as well as by collaborating with local vendors.
Challenges:
It is predicted that this global movement towards achieving net-zero emissions would require over $2 trillion in capital investments by 2050. Energy disruptions in recent times have also had a significant impact on the ability of countries to move towards their net-zero goals. For instance, in October 2022, Germany had to re-open five coal-powered plants to tackle energy shortages amid the ongoing Russia-Ukraine war.
Since scope 3 emissions make up more than 70% of the carbon footprint of large organisations, addressing them is essential to meeting net-zero ambitions. Companies’ limited ability to influence the supply chains of their suppliers presents a hurdle. It is vital that businesses develop sustainable procurement methods and reduce their carbon footprint in collaboration with their suppliers. Some of the ways procurement centres of excellence can support their companies’ decarbonization strategies include evaluating suppliers based on their ESG-related certifications and including decarbonization in supplier contracts. Digitising the supply chain to have a clear awareness of the tier 2 and tier 3 suppliers and their decarbonization initiatives is another method to have more visibility into it.
Suggestions and ways forward:
By collaborating with suppliers towards net-zero goals, procurement centres of excellence (CoE) can be crucial in developing a company’s decarbonization plan. This strategy can drastically cut overall emissions, especially those under scope 3.
In order to make sure that suppliers are working towards the same objectives, CoEs might include decarbonization in supplier evaluation and contracts when holding tenders. They might prioritise suppliers who have ESG-related certifications and use sustainable buying methods.
Moreover, digitising the supply chain can provide clear visibility into tier 2 and tier 3 suppliers and their decarbonization strategies. This approach can help CEOs identify and mitigate potential carbon emissions across the supply chain. Zoglix -a Moglix Company has been working with organisations to digitise their procurement and supply chain channels at a rapid yet sustainable pace.
The Circular Fashion Revolution: Textile Recycling and Ethical Sourcing in India
The Circular Fashion Revolution: Textile Recycling and Ethical Sourcing in India
Fashion is as poetic as time, like time – it changes, hence it has always been a dynamic industry that has the power to inspire and transform. From high-end couture to streetwear, fashion has the ability to express individuality and capture the spirit of the times. However, the negative impact of the industry cannot be ignored. The fast fashion business model has led to the production of garments at an unprecedented rate, resulting in significant amounts of textile waste and pollution. The fashion industry is responsible for 10% of global carbon emissions. Furthermore, the textile industry is the second-largest polluter of water globally, releasing approximately 20% of global wastewater. These figures highlight the urgent need for change in the fashion industry.
One of the key strategies that can work towards de-carbonising the industry is Recycling. Recycling, irrespective of the industry, can help reduce the amount of waste generated by the industry and conserve natural resources. By reusing materials and reducing the need for new ones, recycling can also contribute to efforts in the industry to reduce green house gas emissions. Recycling halves the value chain there by reducing the carbon footprint. In addition, recycling helps reduce water consumption in textile production, which is essential for promoting sustainability. By adopting recycling practices, textile companies can also reduce the amount of textile waste that ends up in landfills, thus reducing the environmental impact of the industry.
The textile recycling industry in India is made up of several small and medium-sized enterprises that enable the entire process of collection, sorting, processing, and recycling of textile waste. Textile waste are collected from various sources such as garment factories, textile mills, thrift shops, and households by these textile recycling units. Post collection, sorting takes place as per type, color etc. The recycling process involves shredding, cleaning, and carding the waste fibers to create yarn, which is then used to make new fabrics and products.
The textile recycling sector in India offers noteworthy economic and ecological advantages. It generates job prospects for numerous individuals, particularly those residing in rural regions, while also curbing the amount of textile waste that typically accumulates in landfills, consequently mitigating the environmental impact associated with the fashion industry.
The GOI has implemented measures to support textile recycling by providing incentives and subsidies to recycling facilities in recent times. This industry is anticipated to keep expanding and become a vital aspect of India’s drive towards sustainability. A noteworthy proportion of the recycled textiles and yarns manufactured in India are exported to foreign nations. Several Indian textile recycling facilities have earned a reputation as dependable providers of recycled textile resources to global markets such as the United States, European Union, and Southeast Asian countries.
These recycled textiles and yarns are in high demand in the global market, especially among eco-conscious fashion brands that are looking for sustainable alternatives to traditional textile production. The exported recycled textiles and yarns are often used to create new garments and other textile products, thus promoting a circular economy and reducing the amount of textile waste generated worldwide.
At Zoglix, we are committed to helping organizations to enable frictionless sourcing from India. Be it sourcing raw or finished textiles, Zoglix can help align the right supplier from India to support your sustainability goals. We understand the importance of reliable suppliers, which is why we have a certified, compliant network of +20,000 suppliers. Our extensive network of suppliers in India allows us to offer our clients a range of sustainable and cost-effective options for sourcing textiles from India. As India continues to emerge as a leader in textile recycling, we strive to be at the forefront of providing innovative and sustainable sourcing solutions for our clients across the globe.
Counterfeit Shoes No More: India’s Strict IP Laws and Recent Trademark Infringement Cases:
Counterfeit Shoes No More: India’s Strict IP Laws and Recent Trademark Infringement Cases:
The global footwear industry is rapidly growing, and is estimated to be worth $365 billion by 2027. As demand for footwear continues to increase, manufacturers are seeking out sourcing destinations that offer a combination of cost-effective manufacturing options, skilled labor, and strong intellectual property protection measures. One country that has emerged as a leader in all of these areas is India.
India is rapidly becoming a top sourcing destination for the footwear industry, thanks in part to its highly skilled workforce, cost-effective manufacturing options, and favorable government policies. However,in the past, concerns have been raised about the country’s ability to protect the intellectual property rights of manufacturers, particularly when it comes to counterfeiting and piracy. To address this perception policy makers have taken bold and significant steps to protect the intellectual property of manufacturers, making it a safe and attractive sourcing destination for the footwear industry.
India has a strong legal framework for intellectual property protection, with laws and regulations that govern trademarks, patents, and copyrights. The country has also established enforcement mechanisms that are available to manufacturers, including civil and criminal remedies, border enforcement measures, and cooperation with law enforcement agencies. According to the US Trade Representative’s 2021 Special 301 Report, India has made notable improvements in the protection and enforcement of intellectual property rights over the past year. India’s legal framework has been very strict and diligent in penalizing infringement cases. One very well know case in the area of trademark infringement is BATA INDIA and CHAWLA BOOT HOUSE case.
Bata India, which is a subsidiary of the global footwear company Bata, filed a lawsuit against Chawla Boot House in 2014 for selling counterfeit Bata shoes. Bata India claimed that Chawla Boot House was infringing on its trademark and copyright by selling shoes that were nearly identical to Bata’s own designs. In response, Chawla Boot House argued that it was not intentionally selling counterfeit shoes and that it had purchased the shoes from a third-party supplier. However, Bata India was able to provide evidence that the shoes sold by Chawla Boot House were counterfeit, including witness testimony and physical examination of the shoes. The court ruled in favor of Bata India and ordered Chawla Boot House to pay damages of INR 1.5 lakhs (approximately $2,000 USD) for trademark and copyright infringement. In addition, the court ordered the destruction of all counterfeit Bata shoes that were in the possession of Chawla Boot House.
In 2019, Nike won a case against a retailer in Delhi for selling counterfeit Nike shoes. The court ordered the retailer to pay damages of INR 3 lakhs (approximately $4,000 USD) and to cease all production and sale of counterfeit Nike products. Similarly, in 2021, Adidas won a case against two companies in Delhi for selling counterfeit Adidas shoes. The court ordered the companies to pay damages of INR 10 lakhs (approximately $13,000 USD) and to cease all production and sale of counterfeit Adidas products.
These cases demonstrate that not just the availability of infringement protection laws but also enforcement of those laws by the courts in India, have been stringent. However, counterfeiting is a recurring challenge, particularly in the retail and consumer goods sectors. Due enormous and diverse group of suppliers in India, the vetting process becomes complex and ambiguous. At Zoglix, we have been working with 20000+ suppliers that certified and compliant. We understand that maintaining the highest standards of quality and legal compliance is an ongoing process that requires continuous effort and attention. Our vetting process ensures clients are working with only with those suppliers who can provide high-quality products that meet the demands of its customers with absolute protection to their intellectual property right. This vetting process involves a thorough evaluation of a supplier’s manufacturing practices, quality control standards, and ethical and legal compliance. Contact us to better understand our supplier ecosystem
Kicks for the Planet: How Sneakers are Going Green
Kicks for the Planet: How Sneakers are Going Green
Sustainability is becoming increasingly important in the fashion industry, and the sneaker industry is no exception. Sneaker production has a significant environmental impact, from the sourcing of materials to manufacturing and distribution. However, many sneaker brands are taking steps to address sustainability issues in their production processes.
The Environmental Impact of Sneaker Production
Sneaker production has a significant environmental impact. The production of sneakers contributes 1.4% of global greenhouse gas emissions. To put that in perspective – aviation industry is responsible for the 1.9% of global green house gas emissions. However, the use of synthetic, fossil fuel-based materials and toxic glues make sneaker manufacturing energy-intensive and polluting. Moreover, the limited recycling of sneakers adds to the pollution in landfills. As athleisure trend continues, it is crucial for retailers to prioritize sustainability in the ever-growing sneaker market to reduce its impact on the environment.
Sustainable Sneaker – A growing trend
According to projections, the sustainable footwear industry is anticipated to achieve a market worth of $11.8 billion by 2027, registering a compound annual growth rate of 5.8% from 2020 to 2027. This trend is corroborated by Google data, which reveals a global surge in searches for “sustainable sneakers” over the last five years. The results reflect consumer expectations for greater accountability from retailers and a shift towards sustainable innovation, especially in the athletic shoe segment. Veja, Adidas, and Nike are the most popular brands for eco-friendly sneaker designs, placing them in direct competition in this sector
Sourcing from India for Sustainable Materials
India is a leading producer of sustainable materials used in the fashion industry. According to a 2018 report by the Textile Exchange, India is the largest producer of organic cotton in the world, with a 51% share of global production. Organic cotton is a sustainable material commonly used in sneaker production.
In addition, India has a growing bio-based materials industry, including pineapple leather and other plant-based alternatives to traditional leather. These materials are more sustainable and environmentally friendly than traditional leather, which is often produced using toxic chemicals and has a significant environmental impact.
Sourcing sustainable materials from India can also benefit local communities and economies. For instance, PUMA sources organic cotton from Indian farmers and works with them to promote sustainable farming practices. By supporting local communities and promoting sustainability, sneaker brands can make a positive impact on the environment and society.
Waste Reduction in Sneaker Production
Waste reduction is another important aspect of sustainable sneaker production. Circular design, closed-loop manufacturing, and recycling programs are just a few examples of waste reduction strategies being used by sneaker brands.
For instance, Adidas has introduced the Futurecraft Loop, a sneaker made entirely from recycled materials that can be returned to the company to be recycled into new sneakers. Nike has also launched a sneaker recycling program that turns old sneakers into new products.
Consumer Awareness and Responsibility
Consumer awareness and responsibility are crucial in promoting sustainable practices in the sneaker industry. Consumers can support sustainable sneaker production by buying from sustainable brands, repairing and reselling sneakers, and recycling old sneakers.
For instance, the resale market for sneakers is growing rapidly. According to a 2021 report by the resale platform StockX, the global sneaker resale market is projected to reach $30 billion by 2030. Buying and reselling sneakers promotes sustainability by extending the lifespan of products and reducing waste.
Future is brightest
The sneaker industry is taking steps to address sustainability issues, such as the use of sustainable materials and waste reduction. Sourcing sustainable materials from India can be particularly beneficial, as India is a leading producer of organic cotton and bio-based materials. By promoting sustainability and supporting local communities. When exploring sourcing from India its best to have a reliable partner who has deep rooted understanding of the Indian market. Moglix, has been working with 15000+ reliable and compliant Indian suppliers across multiple industries in the manufacturing and procurement landscape for almost a decade. Zoglix which is part of the Moglix group is dedicated towards developing an ecosystem of frictionless sourcing from India for procurement leaders in the USA. Know more.
From India to The USA: A Tale of sourcing from India and Overcoming Challenges
From India to The USA: A Tale of sourcing from India and Overcoming Challenges
Sourcing from India can be a complex and challenging process, full of potential pitfalls for businesses that are new to the country. In this blog post, we’ll explore some of the common challenges that businesses may face when importing goods to India, and provide some strategies for avoiding them.
Sourcing from India can be a complex and challenging process, full of potential pitfalls for businesses that are new to the country. In this blog post, we’ll explore some of the common challenges that businesses may face when sourcing from India, and provide helpful tips for avoiding them.
Let us tell you a story
Imagine a small business based in the USA that wants to grow and optimize its operations and cost by sourcing from India. The business has done some research and feels confident that it can handle the import process, but soon realizes that it’s not as straightforward as they thought.
Pitfall #1: Lack of Research
The first pitfall that the business encounters is a lack of research. They assumed that the regulations and requirements for sourcing from India would be similar to their home country, but they quickly discover that this is not the case. They did not fully understand the documentation required for customs clearance, the various import licenses they needed, and the fees and taxes they would have to pay.
- The Consequences
As a result of this pitfall, the business’s shipment was delayed at customs for several weeks, causing a loss of revenue and missed sales opportunities. They also incurred additional costs for storage and transportation while waiting for their goods to be released.
Pitfall #2: Misunderstanding Tariffs
The second pitfall that the business encountered was a misunderstanding of tariffs. They did not realize that the tariffs for sourcing from India were higher than they anticipated, and they did not factor these additional costs into their pricing strategy.
- The Consequences
As a result of this pitfall, the business’s profit margins were lower than expected, and they had to increase their prices to make up for the additional costs. This made their products less competitive, and they struggled to generate sales, which defeated their ultimate goal of healthy bottom-line.
Pitfall #3: Inadequate Communication with Suppliers
The third pitfall that the business encountered was inadequate communication with their suppliers. They assumed that their suppliers were familiar with the export regulations and requirements in the USA and did not provide them with clear instructions or support.
- The Consequences
As a result of this pitfall, the business’s suppliers did not provide the necessary documentation for customs clearance, which led to further delays and additional costs. The business also had to devote significant resources to resolving the issue and ensuring that their suppliers understood the legalities & processes
Learning from Mistakes
Despite these setbacks, the business learned valuable lessons from their mistakes and took steps to avoid similar pitfalls in the future. They realized the importance of a reliable partner like Zoglix, who has a physical presence in India and can develop and maintain supplier relationships for the business. Zoglix helped with comprehensive research and consulted with experts on India’s import regulations and requirements. They also established clear communication channels with business’s suppliers and provided them with the necessary support and guidance.
India Sourcing Advantages
While sourcing from India may come with its own set of challenges, it also has several advantages. For example, India is home to a vast network of manufacturers and suppliers, making it a prime location for sourcing goods. Additionally, labor costs in India are lower than in many other countries, which can result in cost savings for businesses.
In conclusion, sourcing from India can be a challenging process, but with the right strategies, resources, and partners, it can also be a highly rewarding and profitable experience. Finding the right sourcing partner is crucial to navigating the complexities of India’s manufacturing and supply chain landscape. A reliable and experienced partner can provide businesses with valuable insights, guidance, and support at every stage of the sourcing process, from identifying suppliers to negotiating prices to ensuring quality control and logistics. With the right sourcing partner by your side, sourcing from India can be a cakewalk.
Know more about Zoglix and learn why it’s your ideal partner to navigate the Indian sourcing and manufacturing ecosystem, ensuring frictionless sourcing from India.
Sourcing from India can be a complex and challenging process, full of potential pitfalls for businesses that are new to the country. In this blog post, we’ll explore some of the common challenges that businesses may face when importing goods to India, and provide some strategies for avoiding them.
Let us tell you a story
Imagine a small business based in the USA that wants to grow and optimize its operations and cost by sourcing from India. The business has done some research and feels confident that it can handle the import process, but soon realizes that it’s not as straightforward as they thought.
Pitfall #1: Lack of Research
The first pitfall that the business encounters is a lack of research. They assumed that the regulations and requirements for importing goods to India would be similar to those in their home country, but they quickly discover that this is not the case. They did not fully understand the documentation required for customs clearance, the various import licenses they needed, and the fees and taxes they would have to pay.
- The Consequences
As a result of this pitfall, the business’s shipment was delayed at customs for several weeks, causing a loss of revenue and missed sales opportunities. They also incurred additional costs for storage and transportation while waiting for their goods to be released.
Pitfall #2: Misunderstanding Tariffs
The second pitfall that the business encountered was a misunderstanding of tariffs. They did not realize that the tariffs for sourcing from India were higher than they anticipated, and they did not factor these additional costs into their pricing strategy.
- The Consequences
As a result of this pitfall, the business’s profit margins were lower than expected, and they had to increase their prices to make up for the additional costs. This made their products less competitive, and they struggled to generate sales, which defeated their ultimate goal of healthy bottom-line.
Pitfall #3: Inadequate Communication with Suppliers
The third pitfall that the business encountered was inadequate communication with their suppliers. They assumed that their suppliers were familiar with the import regulations and requirements for India and did not provide them with clear instructions or support.
- The Consequences
As a result of this pitfall, the business’s suppliers did not provide the necessary documentation for customs clearance, which led to further delays and additional costs. The business also had to devote significant resources to resolving the issue and ensuring that their suppliers understood the import process.
Learning from Mistakes
Despite these setbacks, the business learned valuable lessons from their mistakes and took steps to avoid similar pitfalls in the future. They realized the importance of a reliable partner like Zoglix, who has a physical presence in India and can develop and maintain supplier relationships for the business. Zoglix helped with comprehensive research and consulted with experts on India’s import regulations and requirements. They also established clear communication channels with business’s suppliers and provided them with the necessary support and guidance.
India Sourcing Advantages
While importing goods to India may come with its own set of challenges, it also has several advantages. For example, India is home to a vast network of manufacturers and suppliers, making it a prime location for sourcing goods. Additionally, labor costs in India are lower than in many other countries, which can result in cost savings for businesses.
In conclusion, sourcing from India can be a challenging process, but with the right strategies, resources, and partners, it can also be a highly rewarding and profitable experience. Finding the right sourcing partner is crucial to navigating the complexities of India’s manufacturing and supply chain landscape. A reliable and experienced partner can provide businesses with valuable insights, guidance, and support at every stage of the sourcing process, from identifying suppliers to negotiating prices to ensuring quality control and logistics. With the right sourcing partner by your side, sourcing from India can be a cakewalk.
Know more about Zoglix and learn why it’s your ideal partner to navigate the Indian sourcing and manufacturing ecosystem, ensuring frictionless sourcing from India.
Unwritten Rules: Breaking Down Stereotypes and overcoming hidden barriers
Unwritten Rules: Breaking Down Stereotypes and overcoming hidden barriers
For many years, procurement has been seen as a male-dominated field, there has been and to some extent there still are certain unwritten rules which propagate stereotypes and biases against women at workplace that have hindered their progress. However, in recent years, women have been breaking down these barriers and making significant strides in procurement.
Unwritten Rules – Stereotypes Facing Women in Procurement in the USA
Despite the progress made by women in procurement, they still face common stereotypes that hinder their progress. One common stereotype is that women are too emotional and are not able to handle the high-pressure environment of procurement. According to a survey by Deloitte, 46% of women in procurement have experienced gender bias in the workplace, with emotional stereotypes being one of the most common.
Another stereotype that women in procurement face is that they lack negotiation skills. However, research shows that women are just as effective as men in negotiation. A study by Columbia Business School found that women are actually better at negotiating than men in certain situations, such as when the other party is aggressive.
The impact of these stereotypes on women in procurement is significant. Women in procurement are often paid less than their male counterparts and are less likely to be promoted to leadership positions. According to the Institute for Women’s Policy Research, women in procurement earn only 77 cents for every dollar earned by men in the same role.
Overcoming Challenges: Progress Made by Women in Procurement
Despite these challenges, women in procurement have made significant progress over the years. According to the 2019 ISM Salary Survey, women in procurement in the USA earned an average salary of $100,000, compared to $95,000 in 2018. Women are also increasingly represented in leadership positions in procurement. A report by Supply Chain Dive found that the percentage of women in procurement leadership positions increased from 29% in 2018 to 33% in 2019.
Women in procurement have also been successful in breaking down stereotypes and defying expectations. For example, Bonnie Keith, President of the Institute for Supply Management – Silicon Valley, is a successful procurement professional with over 30 years of experience. She has been recognized as one of the most influential women in Silicon Valley and has won numerous awards for her contributions to the field.
The progress made by women in procurement can be attributed to a number of factors, including increased representation in the industry, mentorship and support networks, and the implementation of diversity initiatives. Companies that prioritize diversity and inclusion in their procurement teams are more likely to attract and retain talented women, leading to improved business outcomes.
Embracing Opportunities: Benefits of Diversity in Procurement
One of the key benefits of having women in procurement roles is the increased diversity of perspectives and experiences. This can lead to better decision-making, improved innovation, and increased profitability. According to a report by McKinsey & Company, companies in the top quartile for gender diversity are 21% more likely to experience above-average profitability than companies in the bottom quartile.
Diversity in procurement also leads to a more inclusive workplace culture, where all employees feel valued and supported. This can lead to increased employee engagement and retention. A study by Deloitte found that companies with inclusive cultures are six times more likely to be innovative and agile.
To embrace the opportunities for diversity in procurement, companies can implement a number of initiatives, such as mentorship programs, professional development opportunities, and networking events. These initiatives can help women in procurement overcome challenges and advance in their careers. Companies can also prioritize diversity in their procurement teams by setting diversity
International Women’s Day presents a valuable occasion to acknowledge and honor the endeavors of women over the years. The theme for this year, “Embrace Equity,” emphasizes the emphasis on advancing equality. Overall, the future of women in procurement is looking bright. While there is still work to be done to address stereotypes and create more opportunities for women, the trends and opportunities that are emerging suggest that the field is becoming more diverse and inclusive. With continued focus and effort, we can ensure that women have equal opportunities to excel in procurement and help to shape the future of the field.
Fabri-vorous sourcing from India: Feeding the Worlds textile needs from time immemorial
Fabri-vorous sourcing from India: Feeding the Worlds textile needs from time immemorial
For centuries, India has been home to one of the world’s largest and most historic textile industries, which has helped fuel the country’s economic growth. Today, textiles account for 10.62% of India’s total exports. With GOI’s monumental reform changes, the exports of textiles and apparel are expected to reach $100 bn in the next 5 years, with an annual growth rate of 11%. India has always been knows for skilled workforce and production of high-quality textiles, making it an attractive sourcing destination among many retailers, brands and manufacturers worldwide.
Textiles with a rich history
The textile industry in India is as diverse as the country itself, comprising various types of fabrics such as cotton, silk, jute, wool, synthetic fibres etc. Let’s take a closer look at some of these fabrics and their rich history.
Cotton
One of the most widely used fabric is Cotton. India has a long history of cotton production, with evidence of cotton cultivation dating back more than 5,000 years. India today is the world’s largest cotton producer, surpassing China. India accounts for nearly 23% – 25% of global cotton production. In 2021-22, India exported cotton to a total of 159 countries. Cotton is used to make a wide range of products, from clothing to bedding to household textiles like towels and tablecloths
Silk
India is one of the world’s largest producers of silk, with the country accounting for about 18% of global silk production. Silk industry in India dates back to more than 2000 years.The country produces four types of natural silks, i.e., Mulberry, Eri, Tasar, and Muga, which are used in making highly sought-after silk garments, fabrics, yarns, carpets, shawls, scarves, cushion covers, and accessories.
Jute
India is the world’s largest producer and exporter of jute, accounting for over 50% of global jute production. India’s history with jute dates back to 19th century. The first known jute mill in India was established in Rishra, West Bengal in 1855. In 2021-22, the export of jute from India stood at $507.62 mn.
India Sourcing: Challenges
The main challenges of sourcing from the country include finding right supplier who can manufacture at scale. Outdated processes & machinery is also another critical challenge that the Indian sourcing industry is facing. The textile industry also struggles with high credit costs and inconsistent quality standards. Navigating the logistics of sourcing from India is a challenging with the country’s vast size. However, partnering with a reliable sourcing partner having expertise in handling the supply chain in India can help mitigate these challenges.
India Sourcing: Advantages
Sourcing from India provides several advantages, such as cost-effectiveness due to low labor cost and skilled craftsmanship, due to rich history. Additionally, access to high-quality raw materials make it an attractive destination for businesses seeking to source or manufacture in India. Apart from the known advantages there some critical advantages that one should know of while sourcing textiles
- Communication – english is widely spoken in India, which makes it easier for businesses to communicate with their Indian counterparts.
- Diversified offerings – India is known for its diversity in raw materials and hence finished products, including textiles, handicrafts, and jewelry. Businesses can find a wide range of products in India, which can help them to diversify their product offerings.
- Domestic consumption – with a population of over 1.3 billion and counting, India has what we call domestic advantage, making it a significant market for businesses that want to expand their customer base. By sourcing from India, businesses will gain access to this large domestic market.
- Government boost – GOI has a comprehensive textile policy in place to ensure that the industry remains competitive and well-positioned in the international market. Schemes and reforms like Production Linked Incentive (PLI), the Make in India initiative, and the National Textile Policy have been game changing initiative that have supported export growth.
Navigating the India Sourcing ecosystem
The textile industry in India has had a rich heritage and is expected to have a promising future, presenting a unique business opportunity. As with any sourcing strategy, there are risks involved in sourcing from India. However, with a sound India sourcing strategy and reliable sourcing partner, sourcing from India can be rewarding .
Know more about Zoglix and learn why it’s your ideal partner to navigate the Indian sourcing and manufacturing ecosystem, ensuring frictionless sourcing from India.
Exploring the Cost Benefits of Sourcing from India
Exploring the Cost Benefits of Sourcing from India
The manufacturing landscape has shifted in recent years, with many companies looking to India as their go-to source for affordable, quality goods. Moreover, it aligns with the China+1 policy that many global giants are adopting to create contingencies for sourcing from China. In the rich tapestry of global sourcing, India stands out as a hub of diversity and opportunity and offers a bounty of sourcing opportunities, thanks to its teeming population.
The benefits of sourcing from India
Sourcing from India presents a multitude of cost-effective benefits for businesses across industries. When it comes to production, India offers a wide range of services and industries, from automotive and electronics to software, textiles, and more. Companies can benefit from lower overhead costs, such as taxes and duties, as well as lower production costs due to the availability of cost efficient, high quality ethically sourced raw materials. In addition, India has a strong infrastructure and government policies that provide incentives for businesses to set up operations in the country.
With a vast pool of skilled human capital, a favorable exchange rate, and a business-friendly government, India offers a win-win proposition for companies seeking to streamline their supply chain and maximize their bottom line. Whether leveraging India’s expertise in software development, pharmaceuticals, or textiles, businesses can unlock new opportunities for growth and profitability by tapping into the subcontinent’s wealth of resources. And with a rich cultural heritage and a long trade history, India offers a unique combination of tradition and innovation that is simply unrivaled. Cost-conscious companies find India an irresistible destination as its abundant, low-cost labor helps firms bolster their bottom lines.
In addition to the cost benefits, there are also other advantages to sourcing from India. For example, businesses that source from India benefit from the country’s geographical location in the center of the Asian-Pacific region. This can give businesses access to a large and diverse customer base, as well as an array of manufacturing and logistics services.
India is renowned for its quality of work. The country’s long history in the textile industry has resulted in world-renowned manufacturing techniques and quality assurance processes. This ensures that businesses can count on reliable and consistent results when sourcing from India.
The ultimate guide to sourcing from India
When it comes to sourcing from India, there are a few key strategies that can help ensure success:
Supplier Analysis: Understanding the supplier market comprehensively to mitigate any souring risks is imperative. So, it’s important to leverage strategic alliances to probe the supplier base and establish a solid foundation for the rest of the sourcing process. Evaluating the supplier’s true export prowess, expertise, and eagerness is equally necessary. It helps with aligning expectations and tackling possible discord. This critical step ensures the right supplier is effortlessly integrated into your supply chain in India.
Supplier Engagement: To build a strong and lasting relationship with Indian suppliers, it is important to approach the engagement with clarity, flexibility, and cultural sensitivity. This can be achieved through meaningful engagement and open communication. By adopting a flexible attitude and striving for a win-win scenario, you can ensure a smooth and fruitful partnership.
Supplier Relationship Management: To fully realize the cost-effective benefits, it is crucial to engage with suppliers collaboratively. Relationships with suppliers are seen as more than just commercial transactions and are built on goodwill. You must also remember that hierarchy and cultural traditions play a crucial role in supplier relationships in India, with festivals and holidays affecting business dealings. Hence, it is essential to be patient and agile as the pace of work in India can vary greatly.
Navigating India Sourcing landscapewith a reliable partner
A reliable partner can help you navigate the complexities of the Indian market, manage your supply chain and ensure frictionless sourcing from India. At Zoglix, we take a birds eye view to the challenges that business might face while sourcing from India and through our tech enabled end to end supply chain solution, create a seamless sourcing experience. Click here to learn more.
Challenges In Apparel & Fashion Industry Supply Chain
Challenges In Apparel & Fashion Industry Supply Chain
Despite the dampening effect of the pandemic on various industries, the apparel industry in India continues to thrive. Reports from the Ministry of Commerce and Industry revealed that in FY22, India’s apparel sector hit a record growth of 40.55% in its exports. The road ahead certainly looks bright for companies in this sector. But complications in supply chain sourcing need to be tackled in time to ensure they do not hamper the industry’s projected growth.
Here are 4 of the main challenges the Indian apparel industry faces today, and how they can be tackled.
Demand volatility
The rising popularity of fast fashion has led to dynamic demand from customers. This ever-changing shift in demand needs to be met by competent suppliers who can keep pace with evolving customer needs. Securing reliable suppliers who meet these criteria can be a major challenge for apparel companies.
Solution:
Extensive market research to shortlist the best suppliers who have a track record of prompt delivery can help.
Lack of supply chain sustainability and transparency
Transparency is crucial in the supply chain, and sustainability is fast becoming a necessary box to tick. Unfortunately, many suppliers in the apparel supply chain fail to communicate vital information about logistical delays on time. They may also use unsustainable supply chain practices without disclosing them.
Solution:
Apparel companies can choose to partner with suppliers who offer updates at every stage of the supply chain. They must also look into the sustainability of the logistics before choosing suppliers.
Shorter lead times
Lead times have increasingly become shorter because of reducing product cycles and the rising preference for fast fashion. This makes it tough for apparel companies to obtain delivery of their supplies in a timely manner.
Solution:
The solution to tackling shorter lead times is supply chain optimization. Companies need to choose suppliers with the resources to handle bulk orders swiftly and without any delay.
Missing or damaged shipment
While perishability may not be a big issue for the apparel industry, transportation issues can often plague its supply chain. As a result, shipments may go missing or products could reach the end user in a damaged condition, leading to a loss of credibility for the apparel company.
Solution:
Some of the causes of damaged shipments may be inevitable. But real-time monitoring of shipments can help companies take corrective measures in a timely manner.
Bridge the gaps in your supply chain today
If your business operates in the Indian apparel and fashion industry, you may be familiar with some or all of the challenges outlined above. Zoglix can help you close these gaps and make your supply chain more robust and efficient. Visit our website to know more.