How OEMs Can Minimize Manufacturing Risks with Strategic Partnership

In an exclusive interaction with Thiruamuthan, Correspondent at Industry Outlook, Satendra Singh, CEO of Syrma SGS Technology Limited, discusses how OEMs are strengthening supply chains by forming strategic partnerships, diversifying sourcing, localizing production, and adopting technologies like AI and blockchain to reduce risks, manage volatility, and ensure resilience in a globally interconnected manufacturing ecosystem. Satendra Singh, a global business leader with over 30 years of expertise in operations, strategy, and supply chain, is acclaimed for driving manufacturing excellence, leading greenfield projects, and shaping resilient, technology-driven ecosystems across international markets.

With India’s supply chain evolving, how are OEMs forming strategic alliances to secure raw materials and ensure uninterrupted production amid global disruptions?

In the current, ever-evolving world order, OEMs are embracing a more responsive and future-proof supply chain strategy. Domestic as well as international strategic partnerships have become vital to source internationally and decrease geographical dependence on a specific location or region. We are committed to building long-term relationships with suppliers to procure strategic components, as well as inducting local components into our value chain.

We’re seeing increased collaboration with semiconductor manufacturers, logistics providers, and tier-2 suppliers to build integrated networks that offer greater agility. It is not just about procurement—it’s about co-innovation, shared forecasting and capacity planning to ensure uninterrupted manufacturing. The emphasis is now on transparency, traceability, and technology-led visibility across the supply chain.

Despite ‘Make in India’ efforts, why do OEMs still face geopolitical sourcing risks, and how can strategic partnerships help mitigate these challenges?

'Make in India' has greatly fortified domestic manufacturing infrastructure, but inherently electronics value chain is global in nature – it is said that the raw material crosses as many as 60 borders before the final electronics product is made. Thus geopolitical risks present a very tangible challenge.

To mitigate this, strategic partnerships are key. For example, at Syrma SGS, we’ve adopted a multi-sourcing strategy and built long-term alliances with suppliers across different regions. This geographical diversification reduces single-point dependencies and enhances our ability to pivot quickly when disruptions occur. In our recently concluded Syrma SGS Supplier Forum 2025, I shared the importance of strategic partnerships, need to be open, collaborative and resilient; and supplier community wholeheartedly welcomed this approach.

We’re working closely with partners to localize production wherever feasible, including through joint ventures and technology transfers. By aligning our growth with the government’s vision of self-reliance and by nurturing resilient supplier ecosystems, we’re better positioned to absorb external shocks and maintain business continuity.

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With rising commodity prices and supply chain volatility, how are OEMs structuring risk-sharing agreements with suppliers to stabilize costs and ensure production continuity?

The volatility in commodity prices has compelled OEMs to redefine their classic supplier relationships. For Syrma SGS, collaboration is the cornerstone. Instead of transactional engagements, we’re co-creating procurement strategies, aligning on risk thresholds, and jointly investing in supply continuity. This shift towards mutual accountability is not just a buffer against market uncertainty—it’s a competitive advantage in today’s manufacturing landscape.

As Industry 4.0 adoption accelerates, how will AI-driven supplier collaboration and blockchain-based contracts redefine OEM risk management strategies by 2030?

In the near future, we anticipate a fundamental shift in how OEMs approach risk management—moving from reactive frameworks to predictive, automated, and trust-based ecosystems powered by AI and blockchain.

AI-driven supplier collaboration will unlock real-time insights, enabling proactive risk identification, dynamic reallocation of resources, and smarter inventory planning. This means fewer surprises, faster responses, and better alignment between supply and demand across complex, global networks.

Blockchain will add a layer of security and transparency that traditional contracts simply can't match. With smart contracts, every transaction—right from procurement to delivery—can be time-stamped, verified, and executed automatically based on pre-set conditions. This not only minimizes human error but also builds trust across the supply chain.