2025 was a stress test for Indian supply chains. Component shortages, logistics disruptions, and demand swings separated the prepared manufacturers from the reactive ones. We interviewed 15 manufacturing MSMEs who emerged stronger — here's what they did differently.
The resilience investments that paid off
The most resilient manufacturers had three things in common: dual-sourcing for their top 10 components by spend (not just single-source with a backup shortlist), buffer inventory policies based on category risk rather than uniform days-on-hand rules, and real-time supply chain visibility — even if basic — that gave them 2–3 weeks warning of emerging shortages.
The framework: supply chain risk tiers
Categorise every significant input into four risk tiers: (Tier 1) Critical, single-source, long lead-time — these require strategic safety stock and active supplier development. (Tier 2) Important, limited alternatives — dual source immediately. (Tier 3) Standard, multiple suppliers — optimise cost. (Tier 4) Commodity, abundant supply — minimum inventory, just-in-time. Most MSMEs discover they have been managing all categories the same way when they run this exercise.
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