Background

MSME Sector in India is prominent dimension of Indian economy. The sector contributes to more than third country’s GDP and close to 40% of overall exports, contributing to socio economic growth in the country. Despite its strategic importance, MSME sector are highly vulnerable to economic and business shocks. MSME business models are tugged between several counter forces – customers, suppliers, plant operations, banks and so on.

Special focus on MSME

• Considering the importance of MSMEs in the building national competitiveness, special focus is given for MSMEs for building their cost competitiveness.
• The short-listed companies are grouped through the representation of either CEO/CFO or both.
• TCM Intervention in MSMEs is enabled through cluster formation.
• Geographical clusters/ Sectoral clusters / Hybrid clusters are formed.

Concept

TCM Intervention in MSMEs has brought in the following benefits:

• Implementing structured cost management approaches
• Decision making support through structured reporting mechanism
• Enhanced cost consciousness and awareness across all levels of the organization
• Simulation and analysis of cost data

CII has an exposure to more than 300 companies - best business practices, tools and techniques and profit optimization methods. The benefits of TCM in MSME are improved procurement costs, efficient BOM, cost saving in plant operations and optimizing cost-to-serve customer.

The TCM model integrates internal efficiencies to cost structure improvement and connect to overall profitability improvement.