Business & Entrepreneurship Journal

Challenges in Sourcing and Procurement during an Economic Downturn

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  • Abstract

    Indian automotive parts industry plays an important role in the automotive supply chains of major manufacturers around the world. Nearly all global auto manufacturers including Hyundai, GM, Ford, and Honda have established plants in India. After a decade of strong growth the industry suffered during 2008-2009 as a result of the global crisis. This case study analyzes Rane (Madras) Ltd., a leading parts maker in India, and illustrates the complexity in navigating the challenging current environment of severe price constraints and pressuring suppliers while working with them and supporting them for long-term growth.