In the last 100 years, the Handloom industry one of the ancient industries of India has faced a lot of changes in the form of mechanization, fibres used, refined methods of manufacturing and designing etc. It has been estimated as the second largest industry in India in terms of providing employment to the rural mass and its contribution to GDP.

Due to brutal competition from other sectors, handloom has lost much of its significance and market share, has become almost unreal in most countries. However, India and some other Asian countries such as Srilanka, Bangladesh, Thailand, and Cambodia are still maintaining its legacy as an employment provider in rural areas.

By giving life to this down-falling industry, India can improve its chances of global supply of handloom articles which are very specific to India and make up a huge footprint in global market.

In order to meet the changed competitive conditions due to globalization and liberalization of the economy, there is an urgent need for upgrading the technology levels currently prevailing in the weaving segment. This calls for the preparation and implementation of proper action plan in which all the stake-holders i.e., the government, the weavers and the other interest groups get fully involved. In order to prepare an effective perspective plan, an attempt has been made to understand the supply chain problems of Handloom sector, so that solutions may be given.

SCM and Its Importance

Supply chain management (SCM) is the process of planning, implementing and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible. It encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. Successful SCM requires a change from managing individual functions to integrating activities into key supply chain processes.

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About the Author

The author is Lecturer for MBA Dept. in Paavai College of Engineering, Pachal, Namakkal.