Zp scm future_v2


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Zp scm future_v2

  1. 1. SUPPLY CHAINA FUTURE APPROACH……. Zubin Poonawalla CEO – GreenLogiNXT Pvt Ltd Copyright © 2011. All Rights Reserved
  2. 2. SCM ConceptWhen deciding a SCM plan, a company needs to consider warehousing, transportation,environmental conditions, cost to the business and potential profit.
  3. 3. Key Factors For Success Route & vehicle Optimization Customer service Inventory management Transportation Warehousing Technology Packaging Logistics providers
  4. 4. Demand driven Value Network Integrative Improvement System - can be defined as a standard system that simultaneously and interdependently drives operational improvement across all functions and processes Three key structural components  Maturity- and process-based transformation  Functional integration  Sustainability through a three-tier system
  5. 5. Integrative Improvement System Maturity- and process-based transformationTransferring process improvement ownership from technical experts to front-line teams requires structural reorganization around lateral processes. Functional integration The integrative approach is an organization primarily designed around processes, products, and customers, not functions. Sustainability through a three-tier system Sustainable improvement does not result from the mere application of improvement tools and processes for example Lean, Six Sigma, autonomous maintenance, one point lessons etc. Sustainable change requires a three-tier system – management principles, operating systems, and tools
  6. 6. Supply Chain Maturity Matrix
  7. 7. Inventory optimizationThe need to better control and optimize inventory levels across the network has never beengreater. A newer set of technology tools, generally referred to as Inventory Optimizationtechnology, are helping companies to gain competitive advantage, reduce costs, andincrease service levels through significantly enhanced inventory management
  8. 8. Inventory optimization Benefits • Reductions of 20-40% in inventories of finished goods, components and raw materials trough inventory parameter optimisation. • Increases of 5-10% in order fulfillment rates and on-time deliveries by network optimisation. • Reductions in planning effort as a result of the implementation of reliable, automated processes
  9. 9. Different Planning Needs The companies with effective Planning Process typically have well defined steps, responsibilities for each step and a monthly time table of when the PLANNING various steps are expected to be completed. Today it is well defined and connected with the help of sophisticated systems to define and analyze.
  10. 10. Talent ManagementAnalyst research has proven that organizations using talent management strategies andsolutions exhibit higher performance than their direct competitors and the market ingeneral. From Fortune 100 global enterprise recruiting and performance management tosmall and medium business e-recruiting, leading companies invest in talent managementto select the best person for each job because they know success is powered by the totaltalent quality of their workforce
  11. 11. Asset ManagementAsset Management helps in tracking each asset and what assetthe company owns, who is using them and in which department/location using wide range of handheld devises with bar-coding technology. This is also widely used by retail outlets tohelp maintain inventory.
  12. 12. Principles Of Asset Management Set a vision for how your utility will manage assets in the future; Understand best practices, to apply and to attain the vision; Define achievable strategies, projects and measures to guide you from where you are now to where you want to be in the future; Determine what business processes and technologies will be affected by adopting best practices; Optimize your organization for high efficiency. Identify how information systems can support your strategies and goals. Prioritize and sequence projects required to attain your program
  13. 13. Technology & Logistics Integrated technology, consulting and logistics solutions, are providing businesses with a comprehensive range of business solutions to all facets of the supply-chain pipeline; from procurement, order fulfillment, product Lifecycle management, end-to-end logistics and program management through to analysis and reporting. Besides technology also helps in labor management, route tracking, warehouse maintenance ,inventory ,transport management, customer & order management and demand planning
  14. 14. Technology & logistics
  15. 15. Technology & RouteOptimization Route Planning is a transport route optimization software for Logistics and BPO industry. Route Planning utilizes state of the art technology to help BPO companies optimize routes and generate huge cost savings and operational efficiency. Using a GIS based map of the city, Route Planning deploys proven proprietary algorithms to generate the most efficient routes, customized to your business needs. It provides optimum fleet utilization, efficient information flow, what-if analysis and detailed
  16. 16. Packaging & technology Despite a global recession, emphasis is on innovation in design, choice of materials, processing, and life cycle logistics. The future of packaging is in sustainability. Environmentally conscious decisions are being prevalent today and more and more importance given to it being environmentally friendly. Walmart continues to be on the forefront of sustainable packaging in the retail arena. Although the retail giant has achieved many of its environmental goals such as plastic bag reduction, it continues to be unable to eliminate PVC from private- label packaging. As sustainable packaging evolves, Walmart will continue to strive in achieving its PVC elimination goals. Many other large companies are following suit including Proctor & Gamble. Very recently, they announced plans to use sugarcane-derived plastic on selected packaging for its Pantene Pro-V, Covergirl and Max Factor brands to increase its sustainability credentials. The strategy by P&G is completely consumer-driven.
  17. 17. Transportation • The road freight segment in India is gradually evolving from being a pure transportation business to a complete, service-based, end-to- end logistics solutions industry. • Increase in competition and private investments happening getting more players • Many players have tied up with large clients, particularly in the automotive, pharmaceutical, and retail sector to provide complete supply chain solutions. • Large fleet operators have been looking at providing multi-model logistics solutions via a combination of rail and road network and exploring opportunities in this area through: (a) JVs / partners with container cargo movers (b) long-term rake hire contracts with the railways.
  18. 18. Transportation - ShippingThe skills on fleet management are centered in port operations,warehousing and cost effectiveness, but also on how to cope withincidents, thus realizing safe and environmental friendly operations
  19. 19. Transportation - Air RPK billions Source: World Market Forecast
  20. 20. Transportation - RailwaysThe importance of railways to port logistics creates a dependence of theports upon highly reliable railway service.i) Lower transportation costii) Higher reliabilityiii) Relatively safer and secureiv) Very environmentally friendlyv) Reduced accidents.The freight segment accounts for roughly two thirds of railway’srevenues.
  21. 21. Transportation -Emerging conceptsThe Companies in logistics for procurement, manufacturing, and sales,aiming to reduce CO2 emissions and costs. For example, the monthlytransportation volume of products and parts from China to Japan isenough to fill 400 40-foot containers. To the Americas and Europe,products and parts of a volume equivalent to 1,000 40-foot containersare shipped from China each month. Given these volumes, efficiencyimprovement in logistics is an important issue in promoting businesson a global scale.Importance is now given to cargo carrying efficiency through reviewingpackaging materials and mixed packing, modal shifts amongwarehouses, direct deliveries to customers, and by optimizingtransportation routes through the introduction of the milk run system.The aim is to reduce wastage related to packaging materials,transportation, space, trans-shipment, and storage.
  22. 22. WarehousingOne of the most important element ofsupply chain management iswarehousing. The proper storage andtracking of inventory ensures thatdelivery times are met and assetmanagement Services costs arereduced.Warehousing facilities are completelyequipped to handle all kinds of cargo.They are well guarded and spacious,provide complete safety of the goods.Keeping the goods intact andimpervious to any kind of damage.Outsourcing the warehouses hasbecome more and more competitive
  23. 23. Warehouse Management The selection of location of ware house has long term repercussions in reducing the operating cost and smooth running of operations The store layout are easy movement of material, good housekeeping, sufficient space for men and material handling equipment, and optimum utilization of available storage space. Depending upon the type of material to be stored in the warehouse, number of people involved in the handling operation, design the infrastructure and facilities of warehouse. Today letting out warehouses are building one has become lucrative business
  24. 24. SCM Future Segment customers based on the service needs Analysis can be used to segment customers based on "buying behaviors," and network models can be used to calculate the cost-to- serve of each segment under varying scenarios. Strategic sourcing analyses should be undertaken, followed by the installation of e- procurement software to sustain the savings identified, on an ongoing basis. Supply chain planning technology should be implemented - it is the critical link between supply chain strategy and supply chain operations.
  25. 25. 3 Party Logistics It has been found that 64 percent of the study’s respondents are using more 3PL-based services, with 42 percent of total logistics expenditures allocated for outsourcing and another 58 percent citing how they are reducing or consolidating their 3PL partners. Private investors are getting more and more involved and play a role in getting into all areas of logistics and thus affecting nature of the global economy continues to impact buyers of logistics services. Information technologies are a necessary element of 3PL expertise and are becoming a must with the 3PL providers. In recent years the gap has narrowed, with 93 percent viewing IT as a necessary element of 3PL expertise and 54 percent of shippers indicating they are satisfied with 3PL IT capabilities.
  26. 26. ecommerce The trend of outsourcing logistics solutions has led companies Internet based e-commerce outsourcing solutions. They have formed an alliance with all the players in the logistics sphere have global coverage. E-commerce already is substantially influencing business in Asia. More and more people are using it to get to the core of supply chain and minimize the time of response to the end customer and have real time inventory system
  27. 27. The Future Of Supply Chain The three A’S AGILE ADAPTABLE ALIGNED
  28. 28. Future of Supply Chain Market Sensitive - The company should be able to read and understand the demand in the market as well as being able to respond to it. Virtual Supply Chain-This is information-based. By using information technology applications, such as electronic data interchange (EDI), all parties through the supply chain have access to real and same demand information, and the data will not be distorted by being transferred from one stop to another, through the supply chain Process Integration - more companies outsource every functions, except their core competencies, these kind of integration and trust-based relationships become more crucial. Collaboration has become the key word Network –It is important to empower all the parties in the supply chain, and applying better relationship management, structure and co-ordination
  29. 29. Challenges Today The main challenges facing manufacturing companies, both now and increasingly in the future are:  increasing competition,  changing relationships with business stakeholders,  increasingly demanding customers  growth in new technology  global distribution of design and production  environmental legislation  political and economic factors. Manufacturing companies need to respond in the following ways:  be more responsive to changing markets  be more customer focused  be adaptable to new situations  form alliances and partnerships  manage the strategic supply chain  minimize the time-to-market of new products  utilize the developing technologies for global communication
  30. 30. Future of Supply Chain Business Performance Consulting:Business Performance Consulting services to continuously monitor and review the overall performance of the business operations, processes, and results against set standards and metrics. Assist customers to keep track of their long-term and short-term operational goals, both quantitatively and qualitatively.
  31. 31. Corporate Performance Management Key Methodologies Balanced Scorecard Six Sigma, EFQM EVA, Intangible Asset Management Activity based Costing / Management Benchmarking Key Technologies Point Solutions, CPM Suites Data Warehousing Business Intelligence Dashboards & Scorecards
  32. 32. Process Consulting Business Process Consulting services include BPR, Package Assessment and Remediation, CRM processes and Supply Chain processes.  Business Process Re-engineering (BPR) Services Business Process Re-engineering services focus on these areas and strive to achieve a radical improvement by using comprehensive process analysis and redesign techniques.  Assessment and Diagnostics  Transformation and Innovation Change Management is an integral part of this methodology.
  33. 33. Business Process Re-engineering Methodology
  34. 34. Drivers for Supply Chain Change
  35. 35. Key Measures for success A ‘transparent’ supply chain in which information is made visible across your organization, and to appropriate partners, to enable better planning and resource allocation Procurement sourcing strategies and systems that create lower acquisition costs Demand planning and sales-and-order processes for better forecasting, loading and delivery performance Lean strategies for asset and inventory optimization Supplier and customer relationship management strategies to sustain the trading network and improve purchase-to- payment management Green initiatives to ensure the cost effectiveness, regulatory compliance and corporate credibility of the supply network Risk management and contingency strategies to ensure that your supply network never lets you down
  36. 36. Cost of Logistics Today
  37. 37. THANK - YOU
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