– By Tanisha Saxena 

Posspole, a Bangalore-based high-tech manufacturing firm, is revolutionizing the industry with its innovative approach to integrating AI, IoT, and automation into production processes. By streamlining operations, reducing waste, and accelerating time-to-market, Posspole addresses critical challenges across sectors while fostering global collaboration through strategic partnerships. In this interview, Kiran Rudrappa, the visionary CEO and Co-Founder of Posspole shares insights on the role of local sourcing in driving sustainability, innovation, and economic growth.

Q1. How do you view local sourcing as more than just a cost-saving mechanism? Could it redefine the competitive edge of manufacturing in today’s globalized economy?

Local sourcing goes beyond being a cost-saving mechanism; it drives quality differentiation by ensuring better control over raw materials and production processes. It allows us to maintain close ties with suppliers, making them more accessible for addressing post-sales scenarios and fostering stronger relationships throughout the product lifecycle. 

This approach integrates seamlessly into the overall business strategy and helps us to achieve operational efficiency and consistent quality. Local sourcing even assists us in strengthening supply chain resilience and aligns with customer expectations, contributing to our objective of long-term business growth and achieving a competitive edge in a globalised economy.

Q2. How does integrating local sourcing into manufacturing ecosystems align with broader sustainability goals such as reducing carbon footprints and enhancing resource efficiency?

Local sourcing has a direct and positive impact on the environment. It helps us avoid transportation, long shipment durations, excessive packaging, and additional storage needs. Some products require cold storage when sent to another country, which consumes a huge amount of energy in the process. By manufacturing the same product locally, we can eliminate these processes, save considerable time, and reduce energy usage. In doing so, we also minimize the environmental impact, making local sourcing a more sustainable and efficient choice.

Q3. Local sourcing has the potential to invigorate regional economies. What trends have you observed regarding its impact on job creation and skill development in manufacturing hubs?

This approach can lead to the identification of local talent and open up a wide range of opportunities across various skill levels, fostering significant job creation. It’s not limited to blue-collar roles but extends to positions such as product designers, developers, testing, compliance, industrialization, quality controllers, quality assurance specialists, costing, finance professionals and many more. 

Moreover, each job created within the manufacturing sector has the potential to generate additional non-core jobs in related industries, creating a ripple effect that amplifies overall employment and stimulates economic growth. This holistic impact highlights the far-reaching benefits of local manufacturing in driving both workforce development and economic prosperity.

Q4. Local sourcing often requires balancing the need for consistent, high-quality inputs with the challenges of scaling production. How does Posspole navigate this balance?

Local sourcing is not just about availability; it requires balancing the need for consistent, high-quality products. Depending on the business,  and quality expected from the customer, we need to ensure that local sourcing maintains those standards. As long as the market demands it – whether high or low—must be fulfilled through local sourcing. For example, Apple products are manufactured in India, but they cannot compromise on their standards; they must meet the required quality, regardless of whether the materials are sourced locally or imported.

The challenge arises in localizing high-quality materials and components. To address this, we need to build a strong ecosystem around local sourcing—identification of reliable quality sources, domain/technical deep training, local material processing, process and methods design and development, testing methods,  and thoughtful planning and execution. Until local competency and infra are built, importing substitutes may be necessary. Once local sources achieve the necessary quality needs, we can transition to fully local sourcing. Furthermore, if the required machinery or technology isn’t available locally, it needs to be imported until local capabilities are built. 

The key is that we cannot compromise on quality—it must meet the business needs, regardless of whether the material is locally sourced or imported.

Q5. How does local sourcing enable manufacturers to incorporate culturally relevant materials, designs, or methods into advanced technological products?

Local sourcing allows the use of region-specific materials that are both culturally significant and environmentally adapted. For example, incorporating traditional textiles, eco-friendly fibres, or artisanal components into high-tech wearables or smart devices adds authenticity and appeal.

I recently came across an interesting technology from Japan that prints designs onto aluminium, which can then be used for exterior building decorations. This technology could be applied to Indian designs, resulting in something grand, elegant, colourful and truly unique exteriors for the global market. It would bring a blend of different cultural resonances, making it fascinating to see how such technologies can be utilized today. It would be exciting to witness how these innovations could transform the way we incorporate design into everyday usage.

Q6. In an era of Industry 4.0, how do advancements like AI, IoT, and blockchain enhance the traceability and efficiency of local sourcing strategies?

Industry 4.0 technologies such as AI, IoT, and blockchain are redefining the traceability and efficiency of local sourcing, especially in regions with stringent compliance and regulatory frameworks. These advancements go beyond mere optimization—they establish a foundation of transparency, sustainability, and resilience in supply chains. This includes, automated compliance monitoring, enhanced logistics management and guaranteed authenticity and accountability. Besides, these technologies can address challenges of vulnerabilities in local sourcing networks, build confidence in supplier relationships and align with global sourcing best practices. 

Q7. Transitioning from global to local sourcing is no small feat. What systemic challenges have you encountered, and how have you addressed them innovatively? What challenges have encountered and how has it also affected the model?

It’s really challenging. First, if the component has a global qualification or certification, it needs to be obtained locally as well. To make this happen, many relevant agencies need to get involved. The challenge lies in the availability of local test and lab agencies, agencies to choose from, their experience and credibility, how they test and certify the manufacturing process, what alternate materials to use, and who will ensure that the process is maintained, etc. 

Additionally, we need to figure out how quality is checked and how the products are made reachable to customers. Then, there’s the challenge of ensuring the reverse logistics of products/components from customers during post-sales scenarios. Posspole is addressing these challenges by building sector-specific manufacturing hubs equipped with advanced testing and certification facilities, creating a robust ecosystem of local talent through training programs and partnerships with academic institutions, leveraging Industry 4.0 technologies like AI, IoT, and blockchain to streamline processes, ensure quality, and enhance transparency.

Q8. What role do government policies and private-public partnerships play in fostering local sourcing? Are there key policy shifts that could accelerate adoption in the manufacturing sector?

Government policies and private-public partnerships play a critical role in fostering local sourcing by creating an ecosystem that supports domestic manufacturing while maintaining global competitiveness. For instance, higher import duties on select components can incentivize local production, making domestic sourcing more viable and attractive. Simultaneously, policies that ease the import of specific components for value addition in India can enhance the global competitiveness of Indian exports. This dual approach—encouraging local manufacturing while strategically leveraging imports—can accelerate the adoption of local sourcing across sectors.

To further catalyze this shift, governments can promote private-public partnerships by investing in infrastructure like product development, testing labs and manufacturing hubs, offering tax incentives for local suppliers, and supporting skill development initiatives. Policies that focus on reducing the time for approvals, providing R&D subsidies, and ensuring access to advanced technologies can significantly enhance the capabilities of domestic suppliers. Such coordinated efforts not only strengthen the local manufacturing ecosystem but also position India as a global leader in high-quality, value-added exports.

Q9. With consumers increasingly demanding sustainable and locally sourced products, how can manufacturers leverage local sourcing as part of their brand narrative?

As consumer demand for sustainability and locally sourced products grows, manufacturers can turn local sourcing into a powerful brand narrative. By emphasizing “Made in the Country” as a mark of national pride, they can tap into rising nationalism while showcasing their commitment to creating jobs and driving regional economic growth. Highlighting local sourcing also aligns with sustainability goals, appealing to eco-conscious consumers and reinforcing authenticity and transparency.

This shift allows brands to differentiate themselves by proudly marketing products as both environmentally responsible and regionally rooted, turning local sourcing into a compelling story of community impact, heritage, and trust.

Q10. What does the next decade hold for local sourcing in manufacturing? How does Posspole envision its role in shaping a more sustainable and resilient industrial ecosystem?

The next decade will witness a transformative shift toward self-reliance, with local sourcing at the heart of manufacturing strategies. Industries will increasingly focus on harnessing local talent, strengthening regional manufacturing capabilities, and stabilizing economies through local currency utilization. This evolution will not only drive economic resilience but also promote sustainability by minimizing environmental footprints and fostering community-driven growth. Local sourcing will emerge as a cornerstone for industries seeking to align profitability with responsibility.

Posspole envisions a pivotal role in shaping this future by building a sustainable and resilient industrial ecosystem. Rooted in environmental responsibility and ethical practices, Posspole commitment to local sourcing drives reduced environmental impact, empowered local economies, and streamlined, responsible processes. By integrating sustainability into product creation, manufacturing, and market access, Posspole aims to lead industries toward self-reliance and a global model of sustainable growth that benefits businesses, communities, and the planet.