Empowering the REPTECH Business in India: Leveraging the Right to Repair Policy to build Repair Industry (REPTECH: Blog#3)
INTRODUCTION:
In the expansive realm of India's repair industry, the implementation of the Right to Repair Policy brings forth transformative possibilities. Businesses, ranging from local repair shops to large-scale enterprises, are set to experience a significant shift due to the far-reaching impact of this policy.
REVENUE AND EMPLOYMENT POTENTIAL:
According to data sourced from MAIT, the total revenue potential stands at USD 20 Billion. Moreover, over the next five years, this policy has the potential to create employment opportunities for 15 Lakh people, making it a pivotal economic driver.
ADVANTAGES AND CHALLENGES OF HARNESSING THE REPAIR BUSINESS IN INDIA:
Cost Arbitrage: India boasts a remarkable cost advantage of approximately 25% in comparison to competing countries like China and Southeast Asian nations such as Malaysia. This affordability extends to repairs and auxiliary services like calibration and testing.
Trustworthiness: Post the challenges posed by Covid-19, India has emerged as a trusted destination for leading Original Equipment Manufacturers (OEMs) in the semiconductor industry in general.
“Building trust in the long term is a far-sighted investment, often outweighing the allure of saving costs in the short term : Ajai Chowdhry”
Talent Pool: India possesses an extensive network of academic institutes collaborating with OEMs. These institutions provide comprehensive training and certifications to technicians, ensuring a skilled workforce.
Challenges in Import and Export: A significant impediment faced by the repair industry revolves around the export and import of spare parts. The inherent delays in customs procedures lead to a prolonged export duration of approximately three days, while imports take around seven days. This starkly contrasts with benchmark countries like Hungary, where the turnaround time is merely one hour for both export and import processes.
BUSINESS DYNAMICS AND TRAINING INITIATIVES:
Large-Scale Enterprises: Major corporations engaged in repair services can optimize their operations by embracing repair-friendly designs. This enhancement increases efficiency, reduces costs, and allows for the provision of comprehensive repair solutions, thereby bolstering customer trust and loyalty.
Small-Scale Repair Enterprises: The Right to Repair Policy opens new horizons for local repair shops, enabling them to cater to the diverse repair needs of their communities. This not only stimulates local employment but also fosters a culture of self-reliance and sustainability.
Training of Technicians: With the policy in place, there is a growing demand for skilled technicians. Flourishing training institutes and vocational programs offer specialized knowledge, bridging the existing skill gap and ensuring a competent workforce for the repair market. Blog#4 shall discuss the Training in detail.
IMPORTANCE OF A COLLABORATIVE ECOSYSTEM:
Collaboration with Manufacturers: Transparent communication channels between repair businesses and manufacturers are pivotal. Such collaborations facilitate the swift supply of spare parts. Manufacturers, in turn, play a crucial role in ensuring the availability of genuine components, fostering a symbiotic relationship that benefits both parties.
“Collaboration coupled with transparency acts as a powerful engine, propelling enterprises toward unprecedented success: Ajai Chowdhry “
Government Support: The government plays a pivotal role in nurturing this ecosystem. Offering incentives for local production, streamlining customs procedures, and providing financial support for technician training programs are crucial steps. The flexibility of policy frameworks is paramount, adapting to the evolving needs of the repair industry. Moreover, the government can enhance its support by establishing Special Economic Repair Zones. Providing Productivity Linked Incentives for this business and subsidized tax tariffs, akin to the support extended to the software industry decades ago, can significantly expedite the growth of the repair sector.
Leveraging Block chain Technology to Revolutionize Spare Parts Management: A Paradigm Shift in Efficiency and Security
In the fast-paced world of industries, the efficient management of spare parts is crucial. Traditional supply chain systems often face challenges, such as delayed turnaround times, lack of transparency, and vulnerability to errors. However, with the advent of block chain technology, a revolutionary transformation is underway. Block chain, the decentralized and secure digital ledger, offers a myriad of advantages that can significantly enhance spare parts management processes.
Reduced Turn Around Time:
Real-time Transparency: Block chain provides real-time visibility into the entire supply chain. Every stakeholder involved, from manufacturers to suppliers and consumers, can access a unified, immutable ledger. This transparency ensures everyone is on the same page, reducing communication gaps and enabling faster decision-making processes.
Smart Contracts: Smart contracts, self-executing contracts with the terms of the agreement between buyer and seller being directly written into code, automate various tasks. In the context of spare parts management, smart contracts can automatically trigger orders for spares as soon as the inventory reaches a predefined threshold. This automation minimizes delays in procurement, reducing turnaround time significantly.
Enhanced Traceability: Every transaction or movement of spare parts is recorded on the block chain. This traceability feature allows businesses to pinpoint the exact location of spare parts in the supply chain. In case of recalls or quality issues, identifying affected products becomes immediate, enabling faster responses and preventing widespread issues.
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Other Inherent Advantages:
Increased Security: Block chain employs advanced cryptographic techniques to secure data. Once a block is added to the chain, it is almost impossible to alter the information within it. This immutability ensures the integrity and authenticity of spare parts data, reducing the risks of counterfeiting and fraud.
Cost-efficiency: By automating several manual processes, blockchain reduces the operational costs associated with spare parts management. Smart contracts eliminate the need for intermediaries, ensuring direct transactions between parties involved, thereby saving costs and time.
Decentralization: Traditional supply chain systems are centralized, relying on a single point of control. Block chain, being decentralized, distributes the control across all participants. This not only fosters trust but also eliminates the dependency on a single entity, making the system more robust and resilient.
Improved Customer Satisfaction: With reduced turnaround times, accurate tracking, and increased security against counterfeit parts, customers experience enhanced satisfaction. Products are repaired or serviced swiftly, leading to improved customer trust and brand loyalty.
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CONCLUSION:
The Right to Repair Policy stands poised to revolutionize India's repair industry. By addressing challenges in import/export, enhancing technician training, and fostering collaboration within the ecosystem, businesses can thrive. This policy not only empowers entrepreneurs but also strengthens the foundation of a self-sufficient, resilient, and innovative repair economy in India. Together, these efforts pave the way for a future where India's repair industry stands as a global leader.
Block chain technology is not just a buzzword; it’s a transformative force that is reshaping various industries. In the realm of spare parts management, its potential to reduce turnaround time, enhance security, and offer numerous inherent advantages is nothing short of revolutionary. Embracing block chain is not just a step towards modernization; it’s a leap into a future where efficiency, transparency, and customer satisfaction reign supreme.
?Acknowledgement:
Ms. Nidhi Khare
Dr. Ajai Chowdhry
Mr. Sanjeev Kakar
Mr. Seshachalam P
Mr. Pradeep Bhargava
Mr. Kamal Kumar
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