Difference between efficient and responsive supply chain

Supply Chain: Sourcing

Supply chain Management Notes Unit III

Supply Chain Management Unit II notes

 

Hello, everyone. Today, I am discussing on 

Supply chain objectives.

 The main objective of any supply chain is to increase the value. 

 What is the value? 

Value is benefits divided by the cost. 

In such circumstances, marketers are having two options. Either increase benefits or decrease costs. 

What are the major benefits a firm can increase? 

1.       Have a proper order management.

 Indian Railway catering and tourism Corporation (IRCTC) Initially was asking its customers to come to the reservation counter and fill the form to book a ticket. Many customers were not having enough knowledge which train will come at what time and how many seats are available. Later, RCTC has adopted the agent model wherein it has appointed agents who can book tickets. Customers rather than going to the railway reservation counter started booking through the agent. However, the customer has to pay extra commission to the agent. Then IRCTC has begun their own websites.  Thereafter, a customer can book a ticket on the internet. However, a customer has to take the printouts and submit while traveling along with the address proof and ID proof. To reduce this hassle, IRCTC has created a mobile application wherein a customer can book the tickets now and show the SMS to the ticket collector. This is an example of how a company can increase benefits in order management. 

2.     Benefits can be increased through quicker delivery 

Amazon is having the two types of orders one general orders second is the prime orders. In the prime orders Amazon delivers the product within 24 hours from their fulfilment centres. For this Amazon charge premium but a customer gets the product on time.

3.     A company can have better information systems. 

Earlier when a customer books the Courier he was not sure when he will get the courier. Now, companies like professional courier give you the token number or a ticket number through which a customer can track their parcels and couriers and exactly you will come to know when the product will be delivered. 

4.    A good pricing and revenue Management Systems is another benefit.

India post earlier was delivering simple cover and cards but as the competition has grew from courier services, India post also came out with a speed post options for the same size of the card or a cover. For this, India post charges 30 rupees extra.

5.     Increase benefits from the supply chain coordination among members.

 Hindustan Unilever limited (HUL) a major company in FMCG in India have a stricter control on their C&F agents, wholesalers Distributors and retailers to see that products available at every retail store in India. 

In a second option to increase the value of a firm, one can

 decrease the cost. 

So a question is what a cost a firm can reduce. 

1.      Reduce order cost. 

For example, PVR earlier was asking the customer to come to the theatre and book tickets. Added to this, a customer who'd like to book tickets three four days in advance could not do it but now with websites like book my show one can book tickets well in advance. Like this, company like PVR, are reducing their order cost. 

2.    Reduce inventory.

I would like to take an example of a Spanish retailer Zara, known for their fashion merchandising. The company has an inventory turnover of 21days.  This is helping Zara to keep new fashion and reduce inventory.

3.     Decrease the cost of transportation. 

Cement and fertilizer companies were earlier sending their Goods via the truck but it was taking a lot of time to them then they have come out with a railway as an option, which is speedier and also reduces cost to them. 

4.    Reduce sourcing cost. 

General Electric the Pioneer in the call centres has shown the world how a firm can decrease costs. Today, Indian ITES sector depends on Outsourcing activities of American and European companies. Another example is bigbasket.com that sources their merchandise directly from farmers and can pass the cost benefit to customers. This is how forms are adding value in the supply chain. 

5.     Reduce manufacturing cost. 

Today in operation automation word robots and artificial intelligence are playing a significant role in reducing the manufacturing cost. 

The second objective of the supply chain is to 

increase the profitability or commonly known as supply chain Surplus.

 What's the profitability?

 It's the revenue minus the cost. Obviously, there are two questions that come to us are how do I increase the revenue and decrease the cost?

 We already discussed about how we can reduce the cost. Let me give examples of how one can 

increase the revenue. 

It can be increased in three ways. 

1.      Adding the new customers to the company 

Let me take an example of Infosys the company, every year recruit new customers and increase their revenue. 

2.    Increasing volume purchase of customers. 

Telecom companies earlier getting customers recharges worth Rsv20 and Rs 30.However, today customers are charging data packs of 149 199 and 249. This is how companies are increasing revenues. 

3.    In case of the differential pricing 

a company can think about high and low pricing based on the seasons, frequency of purchase, and delivery options.Flipkart, an ecommerce company from India has created their own Warehouse facility at Hosakote near to the Bangalore city. Another company more a subsidiary of aditya birla group has come out with their own private labels. These examples help the company to create the revenue and reduce the cost and increase the value of the firm.

 A firm can have other objectives also in a modern supply chain. There is an emphasis on bringing agility to supply chains. 

Let me take an example of a recent launch of Jiomart, an eCommerce platform of the Reliance. The company has not set any minimum order value. One can order 10 rupees or hundred rupees. Looking at the order level they plan for this scheduling and also the route planning. 

Now the question is how good a firm is to adapt to the demands and be 

agile? 

A company which is becoming agile is surviving the battle in this corporate jungle. 

Companies are improving their functions 

whether it is the storing or sorting or bulk-breaking or distributions. Let me take an example of Asian paints. Customers are demanding varieties of colours today. Therefore, Asian Paint supplies three basic colours to the dealer and also provides a machine that popularly known as colour World machine. Here, a dealer can mix   three basic colours and get whatever colour a customer wants. 

In a summary, what are the objectives of the supply chain?

1.      Enhance the value of the supply chain to increase the profitability. 

2.    Supply Chain  achieve this by increasing the revenue and decreasing the cost 

3.     create a supply chain assets for bring the agility to the supply chain 

4.    Improve functionalities of each stakeholder in the supply chain.

 

Factors influencing demand forecasting in supply chains

• Historical demand for the products of the company. 

• Sales and advertising effort of the company. 

• Current Indian economy and a particular state economy where the company operates. 

• Competitive environment. 

• Lead time of the product. 

Characteristics of supply chain forecasting in indian supply chains

The first characteristic is,

Forecasts have to include both expected value and forecast errors.

Let us take examples of paint companies X and Y and their forecast for the Vizag city. The company X forecasted 1.2 lakh litres and one 17.8 lakhs litres of paint per annum. The company Y forecasted 12 lakhs and 8 lakhs litres of paint per annum. Both companies have 10 lakh litres per annum as the average demand. However, the company X faces more uncertainty for getting better forecasts.  This uncertainty is popularly known as a forecast error.

Second forecasting characteristics is

The accuracy of the forecast is better for shorter duration.

Let me illustrate this with an Indian airline company, Indigo Airlines. Indigo Airlines keep updating their travel plans by getting weather forecasting Currently, Indigo Airlines is tied up with Indian Meteorological department for supplying the weather data This will help the company in the capacity expansion on a quarterly basis. The Ajatus software (https://www.ajatus.in/) that Indigo uses brought fruitful results to the company. It improved Fleet assignment and customized pricing on ancillaries such as leg rooms and meals

The artificial intelligence Used by Indigo Airlines enhanced their revenue. Indigo's forecasting included increasing aircraft seat availability and route planning.

Third characteristics of the forecasting is

aggregate forecasts are easier than Disaggregate forecasts.

Though, many companies have their forecasting system in place, When they transform their data with others in the supply chain  find forecast errors due to non collaboration This has made many companies  formulate their  block chain with  supply chain members. In this Block Chain, the data is integrated across the supply chain. That improves the quality of the data. The Ledger sharing and data security also improve the forecast across the block chain Similarly, the forecasting of per capita income of India is much easier than forecasting a Market Basket value of a customer coming to a retail store.

 Fourth characteristics of forecasting in supply chain is

Distortion in customer information effects company forecasting in the supply chain.

Retailers who are very close to the customers forecasts better But as one moved up in a supply chain to the distributor level, C&F level, manufacturers level and a supplier  level, the forecast error also increases This is commonly known as the bullwhip effect. After the implementation of CPFR and block chain technology in the supply chain, companies have experienced reduction in the forecast errors

 

The role of forecasting in Indian supply chain.

The role of forecasting in a supply chain 

All push processes performed in anticipation of a customer demand whereas for pull process manager must plan for inventory and capacity. For example, Tata Motors, the automobile manufacturer from India, order auto components In anticipation of customer orders The company also uses its plant capacity to keep inventory at factory as well as at retailers’ location. The ordering a component is a push process whereas manufacturing and utilizing the capacity is a pull process.  Now, MRF, supplier to the Tata Motors, also needs to forecast for its orders and capacity utilization. Thus each player is the supply chain forecast separately and that leads to mismatch in the forecasting. Hence modern Supply Chain management software and organizations consistently forecasting on using CPFR and block chain model. CPFR is collaborative planning forecasting and replenishment. 

Let me explain with another example of Godrej a consumer goods company. The company has begun a project called ' Sampark' distribution management system used for stock management billing for customer and report generation. For this project implementation, Godrej has roped in carrying it Forward agents(C&F) agents, and distributors. This has eliminated Multi-point documentation done earlier. Further it also helped in regular replenishment, reducing the inventory and the better forecasting. 

After the initial success of sampark, Godrej has launched two new projects called. Sahayoga and the sampoorna either. Godrej has helped the intermediaries to reduce their lead time, tracker orders and quick settlement of outstanding wherein sampark has implemented for retailers to track final customer orders.

Transportation in a supply chain

The role of transportation in a supply chain

Transportation is the back bone of every supply chain network. It facilitates the movement of goods from one destination to other destination starting from suppliers till customers. Further, the transportation is crucial for manufacturers and intermediaries as manufacturing facilities and customer locations may not be same. For instance, Hero Motocorp manufactures their bikes in Kolar plant India and their majority customers account from Mumbai, New Delhi, Bengaluru and Chennai. Thus, there's need for bikes transported from Kolar plant to metro cities. 

According to IBEF, today, companies spend 14.4℅ of the GDP on transportation that is much higher than developed countries 10%. However, Indian transportation industry contribute only 6.3% of the GDP with CAGR 15%.

5I's: Drivers of Indian transportation industry

• Interstate movement of goods and passengers. 
• Increase in disposable income. 
• Intensive growth of FMCG sector
• Incremental growth of export sector
• Investment by government and private enterprises

Modes of transportation

• Air
• Package carriers
• Truck
• Rail
• Water
• Pipeline
• Digital
• Intermodal. 

Performance characteristics:

Air

This is  a very expensive mode of transportation. However, it is a good mode of transportation for long distance shipment. This mode of transportation commonly used by goods those in small size yet expensive. Apart from this, air transportation used to meet quicker time scheduled shipments of the product. 

Package carriers

These are small transportation companies carrying couriers and packaging weighing up to 70 kgs. Maruti Parcel service, Safe Express, Gati etc are a few companies involved in package carrier business in India. 

Water

This is the ideal mode of transportation for bulk goods to be shipped to long distance. However, this mode suffers from customs and excise clearance, jettison, pirates, port clearance and container management. 

Rail

This mode is very popular in India for shipping oil and gas, cement, and bulk items. The railway network can carry goods for longer distance but it is time consuming. Till Indian Railways allowed private container and proper axle loading businesses were not using this mode regularly. Yet, this mode gave cost advantage to entrepreneurs due to the tarriff structure. 

Truck

This mode of transportation is good for door to door delivery. Added to this, it takes less time to reach destination. Apart from this, a customer can track their shipments. Contrary to above points, if transportation is having less than truck load ( LTL) it will take long time due to pick and drop of goods at multiple locations. To overcome from this business owners used cross docking, 3PL, 4Pl, and 5PL strategies. 

Intermodal

This type of transportation mode is used when one transportation mode is not possible or cost effective. For instance, A cement company in Gujarat wants to send their products to Ichalakaranji in Maharashtra. The company may use rail network till Kolhapur because of cost effectiveness but further it will use road network to drop products to a dealer in Ichalakaranji. Another example is Indian oil. This company procure crude oil from different countries through ship and use rail and road to reach the final consumer. The major hurdle this mode undergoes is information sharing at different points. This leads to delay in products distribution and ultimately a poor customer service. 

 

Transportation infrastructure and policies

Design options for a transportation network

Direct shipment network

Direct shipping with milk run

All shipments via central DC

Shipping via DC using milk run. 

Tailored network. 

Trade-offs in transportation design

Transportation and inventory cost trade-offs

1. Transportation mode selection. 

2. Aggregating inventory

Trade-offs between transportation costs and customer relationship. 

Tailored transportation

In this type of transportation, organizations use different networks and modes looking at customer and product characteristics.For Instance, Parry's that manufacture fertilizers and sugar have to desing their transportation network differently. Most fertilizer companies in India transport via Indian railway where as sugar 1 Kg pet bottles are transported using trucks. Parry's has to adjust transportation based on product characteristics.

Tailored transportation by customer density and distance

 

	Short distance	Medium distance	Long distance
High density	Private truck companies with milk run	Cross docking with milk runs	Cross docking with milk runs
Medium density	3PL carriers	Less than truckload carriers	Less than truckload carriers or package carriers.
Low density	Less than truckload carriers OR third party Milk runs.	Less than truckload carriers or package carriers.	Package carriers.

Tailored transportation by size of customers

Tailored transportation by product demand and value. 

 

	High Value	Low Value
High Demand	Safety inventory should be aggregated and cycle inventory has to be dis-aggregated. Cheaper mode of transportation should be used for cycle inventory whereas quick service transportation mode should be used for safety inventory.	All inventories must be dis-aggregated and companies must focus on cheaper mode of transportation for replenishment
Low Demand	Aggregate all inventories. On need basis an organization must adopt quick modes of transportation.	Aggregate only safety inventory and manufacture must use cheaper modes of transportation for cycle inventory replenishment.

The role of information technology in supply chain

Route planning

Route optimization had become an important tool to reduce the cost. To achieve this objective, transportation companies use information such as a customer location, shipment size, delivery time and the capacity of the transportation mode and optimize the ideal route.

Fleet utilization

Loading and unloading at multiple destinations is the major hurdle for transportation companies. Fleet utilization software will take into the consideration of size of container, size of delivery and sequence of delivery and synchronize all of them.

Global positioning system

GPS allows transportation companies to track and inform about products in real time to customers. This feature enhances customer satisfaction. Today, a customer gets notifications about shipment arrival and delivery information well in advance. These notifications also help transporters load and unload goods properly.

ERP: Enterprise resource Planning

RFID: Radio Frequency Identification Device.

Block chain

Risk management in transportation

Making transportation decisions in practice. 

1. Synergy of competition strategy and transportation strategy. 

2. Own transportation and outsourcing  transportation decision. 

3. Transportation technologies and productivity. 

4. Agile transportation network

The importance of supply chain decisions

1. The effective flow of goods and information

2. Replenishment of goods in a cost efficient manner. 

3. Sharing information with suppliers to reduce costs and increase the product availability. 

4. Close contact with customers to develop a better forecast. 

5. Real time customer service. 

6. Trade off between variety and inventory. 

7. Customized solutions to suppliers. 

The objective of a supply chain

• Creation of the value
• Every supply chain aspires to increase their value. This supply chain value is the difference between product worth and total supply chain cost. 
• Supply chain profitability or supply chain surplus. 

What is a supply chain?

A supply chain is a network of various stakeholders involved directly or indirectly in executing a customer order. 

The supply chain includes suppliers suppliers, suppliers, manufacturers, C&F agents, Wholesalers, stockists, distributors, agents, retailers, subretailers, brokers, peddlars and most Importantly customers. 

In a typical manufacturing organization, a supply chain functions include, new product development, operation, finance, distribution, and customer service. 

MDH masala - A business case study

Demand for Hyper local

Why the demand for hyperlocal delivery will continue post-Covid 

 Covid-19 has drastically changed consumer behaviour. With physical retail coming almost to a standstill over the past couple of months, there has been a surge in demand for hyperlocal delivery, specifically for essential goods, thanks to local businesses trying to serve customers in their areas. Praharsh Chandra, co-Founder and COO, Shadowfax, said that during the initial phase of the lockdown, the company saw the demand for hyperlocal delivery of essential category goods peak to almost 3-5 times of what they recorded pre-Covid. He added that they now see the demand coming from other categories too, including food deliveries. In many ways, the lockdown has brought a permanent shift in seller and buyer behaviour, that will continue post the lockdown as well, said Saahil Goel, co-founder of Shiprocket. Shiprocket launched the hyperlocal delivery pilot on its platform in early May and is planning to open it up for all its merchants over the course of the next 4-6 weeks. 

Increasing dependence 

“Covid-19 might well be the epochal moment, with consumers now starting to use it for literally every daily requirement,” said Krishna Khandelwal, Chief Business Officer, Locus, a business to business (B2B), software as a service (SaaS) platform that automates human decisions in the supply chain. “With the expected surge in volumes for e-commerce, the “Pick-Up” and “Drop Off” model will gain prominence. The local kirana stores will act as the new ‘warehouses/hubs’ for deliveries. E-commerce firms will deliver products to the kirana store, which will further do door-to-door delivery,” he added. From food to grocery, consumers are slowing growing to be dependent on hyperlocal deliveries. While on one hand, it has helped do away with long queues, on the other , it has also pushed the previously offline consumers to take to online shopping from the convenience of their homes. The fact that so many retail brands are launching their own hyperlocal delivery services speaks of the potential of this space to grow and become mainstream, said a spokesperson from Dunzo, which has also been seeing its average order value increase 4x times since April 2020. “Hyperlocal delivery will become a routine way of life, with more users adopting delivery platforms to transact. Depending on regulations and health and safety, people will be less likely to interact with the physical world, beyond their homes. With work from home also becoming a part of life, more users will leverage the convenience of home delivery,” the spokesperson added. The supply-side constraints have considerably eased over a period of time, and companies have now adjusted to the new normal, ensuring a better delivery experience, noted Locus’s Khandelwal. 

Convenience over cost 

While post-lockdown, hyperlocal delivery might expand beyond groceries and essentials, there are a few hiccups involved, such as predicting demand, availability of enough riders to meet it and the higher cost for doorstep delivery. But, with safety becoming a priority and people wanting to stay indoors for fear of contracting the virus, consumers might want to put convenience and safety over cost, said heads of these firms. “Historically, the cost factor and the availability of the right technology for efficient decision making have been the roadblocks for hyperlocal deliveries. But, the Covid-19 pandemic has made hyperlocal deliveries a necessity. Consumers might now be willing to pay for convenience,” said Locus’s Khandelwal. He added that the rapidly increasing hyperlocal delivery volumes might finally be able to justify the costs by using the right technology to bring in the necessary efficiency in the process. Fast adoption of technology by both customers and neighbourhood shops, the comfort of buying and selling at the click of the button, deep penetration of warehouses in most localities, quick transportation, easy availability of highly mobile delivery partners etc. are a few critical factors that will further drive the surge of hyperlocal delivery post-Covid in India, said Shadowfax’s Chandra. 

( Source: National, Science, Sports, World, Variety, & Education et al. (2020). Why the demand for hyperlocal delivery will continue post-Covid. @businessline. Retrieved 4 June 2020, from https://www.thehindubusinessline.com/economy/why-the-demand-for-hyperlocal-delivery-will-continue-post-covid/article31694345.ece)

Brooklyn Central- A supply chain Case study

Narendra Modiji Speech on Supply chain on 12/05/2020

In an address to the nation, Prime Minister Narendra Modi hinted at a continuation of the lockdown India has been under for several weeks but added that the coming phase would be “totally different" from the previous phases, the contours of which will be decided based on the suggestions given by states.

He also announced the long-awaited stimulus package of Rs20 trillion for businesses and workers to soften the devastating blow from the coronavirus lockdown that has pushed many companies to the brink of bankruptcy with revenues and cash flows disappearing overnight

Friends, a virus has destroyed the world. Crores of people around the world are facing a crisis. World all over is engaged in a battle to save precious lives. We have never seen or heard of such a crisis.This crisis is unthinkable as well as unprecedented for mankind.

However-getting exasperated, losing heart or getting shattered, is not acceptable to the mankind. We have to remain vigilant, closely monitor it, follow the rules of engagement in such a war, save ourselves and move ahead.Today, when the world is in crisis, we must strengthen our resolve. Our great resolve will help overcome this crisis.

Friends, we have been hearing since the last century that the 21st century belongs to India. We have seen how the world was before Corona and the global systems in detail. Even after the infliction of the Corona crisis, we are constantly watching the situation as it unfolds across the globe. When we look at these two periods from India's perspective, it seems that the 21st century is the century for India. This is not our dream, rather a responsibility for all of us.

But what should be its trajectory?

The state of the world today teaches us that a (AtmaNirbhar Bharat) "Self-reliant India" is the only path .It is said in our scriptures - EshahPanthahThat is - self-sufficient India.

Friends,

As a nation today we stand at a very crucial juncture. Such a big disaster is a signal for India,it has brought a message and an opportunity.I will share my perspective with an example. When the Corona crisis started, there was not a single PPE kit made in India. The N-95 masks were produced in small quantity in India. Today we are in a situation to produce 2 lakh PPE and 2 lakh N-95 masks daily. We were able to do this because India turned this crisis into an opportunity.

This vision of India - turning crisis into opportunity- is going to prove equally effective for our resolve of self-reliant India.

Friends,

Today the meaning of the word self-reliance has changed in the global scenario. The debate on Human Centric Globalization versus Economy Centralized Globalization is on. India's fundamental thinking provides a ray of hope to world. The culture and tradition of India speaks of self-reliance and the soul is VasudhaivaKutumbakam.

India does not advocate self-centric arrangements when it comes to self-reliance. India's self-reliance is ingrained in the happiness, cooperation and peace of the world.

This is the culture which believes in the welfare of the world, for all the living creatures and the one which considers the whole world as a family. Its premise is 'माता भूमिः पुत्रो अहम् पृथिव्यः' - the culture that considers the earth to be the mother. And when the Bharat Bhumi, becomes self-sufficient, it ensures the possibility of a prosperous world. India's progress has always been integral to the progress of the world.

India's goals and actions impact the global welfare. When India is free from open defecation,it has an impact on the image of the world. Be it TB, malnutrition, polio, India's campaigns have influenced the world.

International Solar Alliance is India's gift against Global Warming. The initiative of International Yoga Day is India's gift to relieve stress. Indian medicines have given a fresh lease of life to the people in different parts of the world.

These steps have brought laurels for India and it makes every Indian feel proud. The world is beginning to believe that India can do very well, so much good for the welfare of mankind can give.

The question is - how?

The answer to this question is – A Combined resolve of 130 crore citizens for a self-reliant India.

Friends,

We have a proud history of centuries. When India was prosperous, it was called the golden goose, it was prosperous, and then it always walked tall for the welfare of the world.

Then the times changed, the country was caught in the chains of slavery, we longed for development. Today, when India is making rapid strides in its progress, it is still committed to the goal of global welfare. Remember, the Y2K crisis at the beginning of this century. Technology experts from India pulled the world out of that crisis. Today we have the resources, we have the power, and we have the best talent in the world.

We will make the best products, will improve our quality further, make the supply chain more modern, we can do this and we will definitely do it.

Friends,

I had witnessed the Kutch earthquake. There was debris everywhere. Everything was destroyed. It seemed as if Kutch had fallen asleep wearing a sheet of death. In that situation no one could have imagined that the situation would ever change. However, Kutch stood up, Kutch started moving, Kutch moved. This is the grit and determination of weIndians.

If we are determined then we can reach our goals and no path will be difficult. And today there is a will and there is a way. That is to make India self-reliant. Our combined resolve is so strong that India can become self-sufficient.

Friends, this magnificent building of self-reliant India will stand on five Pillars.

First Pillar is Economy, an economy that brings Quantum Jump rather than Incremental change.

Second Pillar is Infrastructure, an infrastructure that became the identity of modern India.

Third Pillar is Our System. A system that is driven by technology which canfulfill the dreams of the 21st century; a system not based on the policy of the past century.

Fourth Pillar is Our Demography. Our Vibrant Demography is our strength in the world's largest democracy, our source of energy for self-reliant India.

The fifth pillar is Demand. The cycle of demand and supply chain in our economy, is the strength that needs to be harnessed to its full potential. In order to increase demand in the country and to meet this demand, every stake-holder in our supply chain needs to be empowered. We will strengthen our supply chain, our supply system built up with the smell of the soil and the sweat of our labourers.

Friends, amidst the Corona crisis, I am announcing today a special economic package with a new resolution. This economic package will serve as an important link in the 'AtmaNirbhar Bharat Abhiyan" (Self Reliant India Campaign)'.

Friends, in the recent past economic announcements made by the government related to the Corona crisis, which were the decisions of the Reserve Bank. The economic package that is being announced today, if added, comes to around Rs. 20 lakh crores. This package is about 10 percent of India's GDP. With this various sections of the country and those linked to economic system will get support and strength of 20 lakh crore rupees. This package will give a new impetus to the development journey of the country in 2020 and a new direction to the Self-reliant India campaign. In order to prove the resolve of a self-reliant India, Land, Labor, Liquidity and Laws all have been emphasized in this package.

This economic package is for our cottage industry, home industry, our small-scale industry, our MSME, which is a source of livelihood for millions of people, which is the strong foundation of our resolve for a self-reliant India. This economic package is for that labourer of the country, for the farmers of the country who are working day and night for the countrymen in every situation, every season. This economic package is for the middle class of our country, which pays taxes honestly and contributes to the development of the country. This economic package is for Indian industries, which are determined to give a boost to the economic potential of India. Starting tomorrow, over the next few days, the Finance Minister will give you detailed information about this economic package inspired by the 'Self-reliant India campaign'.

Friends, it is now imperative for the country to move forward with the commitment of Bold Reforms to create a self-reliant India. You have also experienced that as a result of the reforms over the past 6 years, today even in this time of crisis; India's systems have looked more efficient. Otherwise, who could have thought that the money sent by Government of India will reach directly in the pocket of the poor farmer! But it has happened. That also happened when all the government offices were closed; the means of transport were shut down.This was just a reform related to Janadhan-Aadhaar-Mobile-JAM's Trishakti, the effect of which we have just seen. Now the scope of the reforms has to be broadened, giving a new height. These reforms will be in the entire supply chain related to farming, so that the farmer is also empowered and will have minimal impact on agriculture in any other crisis like corona in future. These reforms will be for, rational tax system, simple and clear rules-of-law, good infrastructure, capable and competent human resources, and building strong financial system. These reforms will encourage business, attract investment and strengthen our resolve for Make in India.

Friends, self-reliance is possible only through inner strength and self-belief. Self-reliance also prepares the country for a tough competition in the global supply chain. And today it is the need of the hour that India should play a big role in the global supply chain. Realizing this, many provisions have also been made in the economic package. This will increase the efficiency of all our sectors and also ensure quality.

Friends, this crisis is so big, that the biggest systems have been shaken. However, under these circumstances, the country has also seen the resolve and restraint of our poor brothers and sisters, especially the street vendors, hawkers, labourers, those who are working in homes, they have done a lot of penance during this time, they have sacrificed a lot. Who would not have realized their absence? Now it is our duty to make them strong, to take some big steps for their financial requirements. Keeping this in mind, be it poor, labourers, migrant labourers, cattle rearers, be our fishermen, organized sector or unorganized sector, some important decisions will be announced in the economic package for every section.

Friends, the Corona crisis has also explained to us the importance of Local manufacturing, Local market and Local supply chain. In times of crisis, this Local has fulfilled our demand, this Local has saved us. Local is not just the need, it is our responsibility also. Time has taught us that we must make the Local as a mantra of our life. The Global Brands you feel today were sometimes also very local like this. But when people started using them, started promoting them, branding them, proud of them, they became Global from Local Products. Therefore, from today every Indian has to become vocal for their local, not only to buy local products, but also to promote them proudly. I am confident that our country can do this. Your efforts have increased my reverence for you every time. I recollect one thing with pride. When I requested you and the nation to buyKhadi and said it will be a great support to our handloom workers. Today, the demand and sales of both Khadi and handloom have reached record levels in a very short time. Not only that, you also made it a big brand. It was a very small effort, but the result was very good.

Friends, experts and scientists have pointed out that Corona will remain a part of our lives for a long time. But at the same time, we cannot allow this to happen that our lives will be confined only around the corona. We would wear masks, follow two yards distance and pursue our goals. Therefore, the fourth phase of lockdown, lockdown 4, will be completely redesigned, with new rules. Based on the suggestions we are getting from the states, information related to Lockdown 4 will also be given to you before 18 May. I am confident that by following the rules, we will fight Corona and move forward.

Friends, In our culture, it is said 'सर्वम् आत्म वशं सुखम्' i.e. what is in our control, is happiness. Self-reliance leads to happiness, satisfaction and empowerment. Our responsibility to make the 21st century, the century of India, will be fulfilled by the pledge of self-reliant India. This responsibility will only get energy from the life force of 130 crore citizens. This era of self-reliant India will be a new vow for every Indian as well as a new festival. Now we have to move forward with a new resolve and determination. When ethics are filled with duty, the culmination of diligence, the capital of skills, then who can stop India from becoming self-reliant? We can make India a self-reliant nation. We will make India self-reliant. With this resolve, with this belief, I wish you the very best.