The COVID-19 lockdown disrupted India’s agri-equipment sector, leading to supply shortages, labour issues, and fluctuating demand. While demand rebounded post-lockdown, supply-side issues persisted due to supplier working capital strains, reduced capacity, and logistical bottlenecks. Problem: Supply disruptions, labour shortages, and erratic demand recovery led to stockouts and production inefficiencies, worsening inventory mismatches across the distribution chain. Solution: Implement a pull-based approach by holding centralised inventory, buffering components, and assigning replenishment priorities. This approach, combined with supplier support, can stabilise the supply chain. Benefits: Enhanced stock availability, reduced lead times, improved capacity utilisation, and a resilient, competitive supply chain adaptable to post-pandemic demand fluctuations.

Key Takeaways

Post-lockdown, India's agri-equipment sector faced demand surges but grappled with severe supply and operational challenges. This adversity presented an opportunity for agri-equipment companies to make strategic adjustments in their supply chain and make it more resilient.

Revving up the agri-equipment business

<h4>Revving up the agri-equipment business</h4>

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Discover how Vector Consulting Group's strategies revived agri-equipment demand post-COVID, overcoming supply chain challenges effectively.

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