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SUMPURA - Firm overview SUMPURA - Firm overview Presentation Transcript

  • Overview of Consulting Services© 2011, SUMPURA Inc. Proprietary and Confidential Jun, 2011
  • We deliver strategic change for operational excellence and peak business results Our Firm We are a management consultancy focused on delivering Peak Performance Strategy™ to manufacturing & distribution businesses in the industrial and consumer sectors since 2003. We specialize in strategic consulting for supply chain operations to improve peak performance of product design, direct/indirect sourcing, planning, logistics and aftermarket service. We have consultants in USA, China and India. Everyone in our firm is client-focused, right from the senior-most partners to the junior-most analysts. Our name, SUMPURA(in Sanskrit), stands for Integrity & Thoroughness. Our Expertise Some of Our Clients Business Complexity Rationalization (BCR) BCR • Complexity modeling, portfolio analysis (products, processes, markets) • Simplify product, pricing and processes by customers and markets Customer Service Design (CSD) CSD • Customer surveys & benchmarking to define gaps in Customer service • Benchmarking, opportunity assessment of supply, logistics, inventory • Warehouse, transportation, reverse logistics, parts sourcing, customer svc Supply Chain Performance Optimization (SCPO) SCPO • Network design and inventory optimization for distributed order fulfillment • Supply chain process (Sales & Operations Planning, supply chain visibility) • Purchasing cost reduction of direct and indirect materials (sourcing study) Organizational Performance Improvement (OPI) OPI • Mission, vision & values development for individual/organizational success • Performance management practices supporting a high performance culture • Individual / team coaching for immediate and long-term bottom-line results www.SUMPURA.com© 2009-2011, SUMPURA Inc. Proprietary and Confidential 1
  • Most companies can optimize profitability by actively optimizing their supply chain processes and managing complexity in their business and supply chains Determine Right Optimize Supply Chain Improve Organization’s levels of Business Process and Design to Customer Complexity deliver Complexity Responsiveness Operational Excellence Approaches • Rationalize Product & • Optimize Network Design • Customer and Market services portfolio • Global Strategic Sourcing response monitoring • Offering Optimization • Sales & Ops Planning • Integrated Performance • Product lifecycles • Aftermarket Service Design measurement & metrics Our Service Offerings Business Complexity Customer Service Supply Performance Org Performance Rationalization (BCR) Design (CSD) Optimization (SCPO) Improvement (OPI)© 2009-2011, SUMPURA Inc. Proprietary and Confidential 2
  • Sanjeev Maddila, Managing Partner Background Selected Relevant Experience Sanjeev has over 18 years of hands-on business consulting Recommended a cross BU transportation function in the experience with managing all aspects of complex supply EMEA region for a large industrial OEM to save $25MM in chain transformations and systems implementations. He inbound transportation costs of premium & non-premium specializes in serving industrial equipment clients with their freight and warehousing; investing < $1MM over 5 years aftermarket business improvement. Worked on post merger integration of a $1B RV business Prior to starting SUMPURA, Sanjeev was a partner in for a $12B truck & engine OEM, standup the supply chain Deloitte Consultings Supply Chain Management practice to successfully restart production in 100 days, realigning and led the Planning and Optimization groups. He was an supply base between the 2 businesses and re-platform associate partner at Accenture where he spent more than 10 drivetrains across RV and Truck businesses. years in supply chain practice. Before starting his consulting Evaluated case for merging parts distribution operations of career, Sanjeev taught computer science at Northwestern 2 business units of an $13B industrial OEM, built a University. detailed business case showing savings of $140MM (NPV) which resulted in the formation of a global Sanjeev is actively involved w/ the Indian Institute of integrated aftermarket division to serve all business units. Technology alumni organization and founded the India Development Institute, a think tank focused on developing Market/Customer research for aftermarket division of a India’s energy sector. He has also worked with CityYear- large industrial OEM to understand gaps in current Chicago, a not-for-profit focused on K-12 literacy in Chicago. operations vs. competitors & customer expectations Developed a business case for 5-yr global work plans. Defined a new sourcing approach for 50,000 low-volume service parts after classifying them and developing unique Industry Experience strategies using global sources, niche suppliers, alternate Automotive Manufacturing manufacturing processes, lifetime inventory buys etc. Industrial Equipment OEM Conducted complexity rationalization for a largest truck- Airlines & Cargo Healthcare/Medical Devices engine manufacturer demonstrating 5-7% cost reduction Consumer Products Mfg Petro-Chemicals by de-proliferating products and market options Designed and implemented one-of-a-kind operational Education planning and commercial decision support process for a leading North-American railroad, using mathematical PhD, Computer Engineering – Univ. of Illinois, Urbana, IL models to run their entire inter-modal business, including demand forecasting, network planning, car scheduling. MS, Comp Science – The Johns Hopkins University, MD Developed a revenue management strategy for the cargo BS, Comp Sc – Indian Institute of Technology, Kanpur, India division of a major airline; business case w/financial levers© 2009-2011, SUMPURA Inc. Proprietary and Confidential 3
  • Jay Abraham, Partner Background Selected Relevant Experience Jay is a partner with SUMPURA. He has extensive Evaluated case of merging service parts distribution experience in telecommunications, financial services, operations of 2 business units of an $14B industrial technology, marketing & large-scale transformation projects. OEM, built a detailed business case showing savings of $140MM (NPV) Prior to joining SUMPURA, Jay was an executive partner of Led financial evaluation of a major technology marchFIRSTs Central Strategy Group. Before marchFIRST, outsourcing contract for a global financial services Jay was a strategy consulting partner in the Mitchell provider. Negotiations with the outsourcing provider led Madison Group, and a Director of New Ventures Marketing to savings greater than $1 billion over the seven-year for Ameritech Small Business Services. Earlier, he held a period. variety of line management positions at Raytheon and in the Led restructuring of the Network Operations and US Navy Submarine Service. Procurement at a leading telecommunications provider. Activities included cost analysis on technical construction as well as aggressive sourcing in network Jay graduated from The Johns Hopkins University with a BA commodities. Project achieved annual savings of over in Physics and took courses in Nuclear Engineering from $60 million. Massachusetts Institute of Technology. He later got his MBA at Columbia University in Marketing and Management Created an Internet acquisition strategy for a of Information, Communications & Media. Competitive Local Exchange Carrier (CLEC) that led to the creation of an acquisition and servicing web site integrated into the clients back-end provisioning systems. Site provides client the ability to rapidly Industry Experience increase their customer base without a corresponding increase in their operations and customer service staff. Telecommunications Defense Transformation of a national retailer aimed at capturing Financial Services Manufacturing the opportunity inherent in relationship marketing to a Retail household. Realigned service delivery, product design, analytic infrastructure and organizational skills to meet aggressive target of doubling income over four years. Education Development of retail distribution strategy for major money center bank which enabled the bank to MBA – Columbia Business School, New York, NY restructure its delivery cost and realign its branch Grad Study – Massachusetts Institute of Tech, Boston, MA resources against its most profitable customers while BA – The Johns Hopkins University, Baltimore, MD using sophisticated database marketing techniques to target less profitable customers.© 2009-2011, SUMPURA Inc. Proprietary and Confidential 4
  • George Karavattuveetil, Partner Background Selected Relevant Experience George has over 20 years of Human Resource consulting Helped the founder of a financial software company and operational experience, including education and successfully transition from overall ownership to experience in technology and organizational psychology. specific leadership responsibilities after sale to large He actively influences organizational change, developing & multi-national entity. implementing innovative strategies in support of workforce Coached executive vice president of a major packaging engagement. company, using 360 degree data and situational He also consults with individuals and businesses in the analysis, to maintain a motivated workforce and areas of systems and human performance to impact continued high performance in the midst of a corporate organizational success. He coaches executives to greater sales process. levels of success by helping to analyze situations and Designed and delivered a two-part applications focused identify realistic improvement opportunities, aligning workshop, addressing trust and its impact on individual individual contributions to organizational goals and providing and organizational effectiveness in a mid-sized critical performance related feedback. hospital. George graduated from Illinois Institute of Technology with a Coached a retail operations executive to higher levels BS in Psychology/Electrical & Computer Engineering. He of success, improving quality of communications and continued his formal education at University of Tulsa with a performance related feedback. MA in Industrial/Organizational Psychology focusing on Worked with the executive team of a start-up internet- Entrepreneurship and High Performance Cultures. based company to identify critical leadership characteristics and provide corresponding individual and team coaching. Industry Experience Facilitated team development activity and assisted Healthcare Technology major insurance company vice-presidents improve Retail Manufacturing coaching skill sets and leadership behaviors for success. Education Finance/Insurance Created and facilitated training sessions, including behaviorally-based expectations, to address issues of Education respect between union employees and management of a major healthcare institution. MA – University of Tulsa, Tulsa, OK Assisted the Dean of a prominent law school implement BS – Illinois Institute of Technology, Chicago, IL a high-performance culture change, including development of a performance management system and coaching of key organizational leaders.© 2009-2011, SUMPURA Inc. Proprietary and Confidential 5
  • Dennis Teo, Partner Background Selected Relevant Experience Dennis has over 15 years of experience across Automotive, Developed Supply chain operations reference (SCOR) Hi-Tech to Agribusiness industries in the US, Singapore, model to align supply chain processes, policies, roles Thailand and China. He is based in Shanghai and fluent in and responsibilities as well as advanced planning English and Mandarin. competencies to support strategic capabilities in balance scorecard. Annual benefits of 7MM RMB Prior to joining SUMPURA, Dennis was General Manager of projected from the improvements identified. GITI Tire’s Supply chain & Distribution, he led optimization of GITI’s entire supply chain and domestic distribution Raised domestic customers’ order fill-rate from 75% to center network. Before that he was part of BearingPoint and 90% by consolidating fragmented network of 40 stock Deloitte’s supply chain practices. depots down to 15 Regional distribution centers and re- designing the network distribution replenishment In 2008, he was nominated for China Supply Chain planning (DRP) process. Inventory ‘Risk Pooling’ from Council’s Best Supply Chain Award for his work in re- re-designed distribution network drove overall network engineering GITI Tire’s supply chain network. He has led inventory down by 30% (one-time savings of 103.1mil many supply chain operations and strategy projects dealing RMB) whilst concurrently slashed warehouse stock with process re-engineering and advanced planning from 30 to 18 days. systems implementation. His expertise includes Balanced Scorecard, S&OP, distribution network analysis, warehouse Developed an business strategy encompassing operations, stock replenishment and order-to-delivery Logistics and Distribution, Branding and Marketing, process optimization. Product Innovation and Strategic Partnerships in the food and agribusiness value chain leading to estimated . benefits of 11 million USD. Industry Experience Researched market attractiveness of China, Japan, Singapore and Hong Kong for the export of Thai fresh Automotive Hi-Technology fruits. Oversaw consumer research and product testing Agribusiness Manufacturing at destination markets to identify market segments and consumer preferences supporting the development of competitive positioning and differentiation tactics. Assessed the entire fruits value chain and channel Education structure through field interviews and secondary research to identify core issues and benchmark MBA & MS Indus. Engg. – Univ of Michigan, Ann Arbor, MI capability maturity profile. Developed SWOT BS, Mechanical Engineering, National University, Singapore competitive assessment, strategy articulation maps and business scenarios to envision future state design.© 2009-2011, SUMPURA Inc. Proprietary and Confidential 6
  • BCR CSD SCPO OPI Designed global inbound planning and logistics network for a large OEM CASE STUDY Client Objectives Client’s Objective To design a new inbound logistics network to optimize transportation and material costs by leveraging cross- business unit synergies to support growth in sourcing from low-cost countries (LCC) Our Role Analyzed end-to-end supply chains of seven BUs that sourced from all around the globe using all transport modes, determined potential cost savings considering expected sourcing shifting to LCC over the next 5 yrs. Developed a business case w/ 5 yr. savings projection. Results Achieved - Implemented a cross-BU transport management Control Tower role function resulting in >20% cost savings by increased • Alert Supply chain about utilization, reduced transport rates, mode shifting, delays in shipping, efficient routing, shorten lead times etc. transport, export, risk of inventory • Confirmation of orders - Created a central team to monitor and manage use of shipments, ASN, B/L expedited air and premium freight, streamlined rate negotiations with strategic vendors, achieved $5MM savings per year in EMEA Supplier role Plant role • Pack and ship to plant • Responsible for supplier requirements orders based on demand - Installed supply chain “control towers” to enhance • Confirm shipping instruction plan / Inventory supply chain visibility and reduce inventories by • Send to consolidation center • Pull from warehouse (SMI shortening lead times and lead time variability with all required documents or non-SMI) Adjust plan based on latest demand© 2009-2011, SUMPURA Inc. Proprietary and Confidential 7
  • BCR CSD SCPO OPI Developed a purchasing strategy for low volume parts using niche players CASE STUDY Client Objectives Client’s Objective Low volume service parts (LVSP) are critical for customer service excellence but pose significant challenges for Service Parts organizations and are ~50 part clusters reflected as under utilized assets, lots of customer complaints, long and unpredictable lead times Our Role Assessed current approaches to sourcing and 50 to managing low volume service parts; develop strategies 100,000 to streamline purchasing and inventory control, so as SKUs to improve parts availability (not required to reduce cost). Results Achieved - Built a LVSP core team w/ dedicated leader Option Approach - Built better tools to improve ongoing management of low volume service parts Leverage current top suppliers and S1 use existing sourcing team to source - Aggressively obsoleted parts or re-engineered parts Develop niche suppliers and use w/ common designs & materials S2 existing teams to determine sourcing - Strategically invested in building and managing Low S3 Buy “life-time” supply of parts or hold Volume Parts inventory inventory, to cut supply lead times S4 Use authorized “will-fit” (or Reman, - Developed a new breed of “niche” suppliers suited for 3rd parties) as alternate supplier low volume service parts© 2009-2011, SUMPURA Inc. Proprietary and Confidential 8
  • BCR CSD SCPO OPI Improved parts availability and logistics costs for an aftermarket business CASE STUDY Client Objectives Client’s Objective Desired to assess existing logistics capabilities at 25 of its largest parts distribution facilities for their system, process and infrastructure capabilities to determine consolidation and improvement initiatives Our Role Created a logistics capability assessment template for use by client’s global logistics team. It consisted of about 200 queries along w/ data collection templates performance metrics about service, inventory, kitting Results Achieved Survey identified that ~ 70% of their customers rated them to be as good as their competitor (i.e., ~30% believed at least one of competitors was better). Client also learned about their customers preferences (high first pass fill rate, shorter time to 100% fill, better shipment accuracy, both parts and information, and more accurate promised date for deliveries). They Identified five major operational gaps and developed plans to close these gaps - Distribution network optimization - Strategic inventory investments - Customer order management - Supplier lead time reduction - Customer Relationship management© 2009-2011, SUMPURA Inc. Proprietary and Confidential 9
  • BCR CSD SCPO OPI Redesigned global distribution network using network optimization studies CASE STUDY Client Objectives Given a significant shift in their product sourcing from Asia (India and China) to the rest of the world (NA and Europe), they needed to select “best” inbound network Our Role Built a network model and Identified 7 different scenarios with 1 or 2 regional PDCs in 4 countries. Evaluated each scenarios using a modelling tool quantitatively. Assessed qualitative comparison of 4 countries India, China, UAE and Singapore Results Achieved Delivered savings of $10MM (5 yr. DCF) in transport and inventory costs, while improving service. New network changes were implemented 18 months later with new regional consolidation points in India and China, while deemphasizing Singapore location. Discounted cash flow analysis of all options and made the final recommendation to build a new warehouse in China within SEZ and to upgrade the Singapore facility© 2009-2011, SUMPURA Inc. Proprietary and Confidential 10
  • BCR CSD SCPO OPI Shortened supply lead times and variability to reduce supply chain inventory CASE STUDY Client Objectives UK based client needed to evaluate the merits of a Supplier Managed Inventory vs. ex-works model by considering tradeoff between piece price, inventory and transportation costs. Our Role Evaluated various total cost scenarios using a comprehensive cost model to demonstrate how shortening transport lead times & variability would reduce supply chain inventory Results Achieved Identified cost savings worth $20MM (5 yr. DCF) in transportation and inventory costs, while improving supply reliability. Increased impetus to source from Low Cost countries (China, India, Brazil, .) • Lower OEM cycle stock (frequent deliveries) • Reduce safety stock (lower transit variability) • Reduce pipeline/in transit stock (shorter transit) • Reduce supplier safety stock • Less expedited shipping© 2009-2011, SUMPURA Inc. Proprietary and Confidential 11
  • BCR CSD SCPO OPI Reduced inventory by 20% while improving customer service CASE STUDY Client Objectives Client’s Optimize total supply chain cost taking a holistic view SUPPLY CHAIN MODEL of the supply chain to use best trade-offs between Vendor 1 procurement, transportation and inventory carrying costs. OEM DC’s RDC’s Dealers Vendor 2 Our Role Developed an inventory planning model using a multi- Price Bracket echelon optimization logic, recommended inventory “Cost” targets were then simulated using current the inventory planning system to validate our results. Inventory Holding Results Achieved Cost - Calculated target stocking level for each part number at each location in a multi-echelon system using stochastic optimization techniques to reduce on-hand inventory Shipping / Handling Cost - Determined optimal order quantities taking into consideration all purchasing related costs to optimize transportation and procurement costs Purchasing/order - Optimized across functional departments to minimize Cost total cost not local, departmental cost components - Reduced supply chain cost components, standardizing inventory management and distribution policies© 2009-2011, SUMPURA Inc. Proprietary and Confidential 12
  • BCR CSD SCPO OPI Helped an OEM assess integration of all their aftermarket parts & logistics CASE STUDY Client Objectives Client’s Objective Client has 5 major BUs, all of which had their own Horizontal Integration aftermarket parts & service division, resulting in One face to the customer for all BUs, supports duplicate facilities, inconsistent performance and 10% growth in shipment volumes by leveraging assets (PDCs, systems, people) multiple retail channels. Their goal was to build a business case for integrating all aftermarket as one between suppliers and OEM people) More synchronous flows Leverage assets (PDCs, systems, Vertical Integration Our Role Our Built a detailed business case to evaluate integration of aftermarket distribution across the company. Also, BU 1 built an implementation plan for series of business BU 2 BU 3 BU 4 BU 5 integration roles. N.A. International Results Achieved Based on robust business case, client implemented an Regional Regional “Integrated Aftermarket” business model, which gives DCs DCs - A more competitive cost structure for an improved customer facing ability - Provide optimal governance and business model - Tangible benefits on Working Capital, Investment Capital in terms of NPV - Improved Service Levels - faster delivery times, increased fill rates, etc. - Market share or pricing opportunity from improved service level and delivery capabilities - Cross-selling opportunities between Business units for joint customers (e.g. custom kits for engine servicing, etc.)© 2009-2011, SUMPURA Inc. Proprietary and Confidential 13
  • BCR CSD SCPO OPI Improved operations by complexity reduction and supply chain redesign CASE STUDY Client Objectives Client’s Objective Heavy equipment manufacturing client wanted to Logistics Postponement or Pooling: evaluate profitability of their entire product portfolio “Delaying product allocation decision in the distribution channel” from a supply chain point of view to increase margins They wanted to reduce overall complexity in order to Relocating the point at which allocation occurs can leverage reduce overall supply chain costs . larger pools of inventory to fulfill demand Completion Assembly Our Role O Post Developed a “cost of complexity” model to evaluate Product Form Postponement: their product and supply chain structures to determine “Delaying product differentiation point later in the supply chain cost per product configuration, options packages, by completing product configuration in multiple stages” customers and service offering. Helped to identify potential improvements by rationalization. Adding majority of value and manufacture cycle time without committing to final configurations, reconfigure or complete Results Achieved configuration rapidly in response to actual customer demand. Implemented logistics and form postponement which improved forecast accuracy and reduce total finished goods inventory while increase fill rates. Complexity Reduction: Rationalization “Rationalize product and process variations to improve business Complexity Delayed product differentiation (form postponement) Business flexibility, customer satisfaction and business margins.” led to replacing FGI w/ components inventory which was cheaper and enabled greater product variety that De-proliferate product options and configurations, streamline could be supplied w/ shorter lead times process to reduce total cost and shorten lead times. Alter evaluation methods for new product (& process) introduction They also simplified their product portfolio and sales to restrict complexity. process by removing unnecessary offerings/options which helped to improve predictability of customer deliveries and increased operational flexibility in the event of business downturns© 2009-2011, SUMPURA Inc. Proprietary and Confidential 14
  • BCR CSD SCPO OPI Redesigned Sales & Operations Planning (S&OP) to improve customer service CASE STUDY Client Objectives Client’s Objective Implement Sales & Operations Planning (S&OP) process in 10 BUs of a global petrochemical company, and enabling technology to achieve improved supply chain performance, improved customer service, and significant supply chain cost reductions. Our Role O Developed redesigned S&OP business processes and (SCOT) organizational design, developed inventory target setting tool (COBRA), specification for integration with ERP system. Worked with 5 BUs (Polypropylene, Paramins, Polyethylene, `, Butyl) Results Achieved Implemented S&OP process yielding annual operating cost reductions in excess of $12M and a working capital reductions of $40M. The project had a 173% DCF. Redesigned supply chain processes delivered - Demand Management (improved forecast accuracy) - Supply/Demand Balancing (3 to 24 month horizon) - Inventory Target Setting (used mathematical models) - Production & Supply Scheduling – to maintain near- term (1-4 month) schedules for raw material planning - Supply Chain Performance Measurement to track key performance metrics to assess and improve S&OP.© 2009-2011, SUMPURA Inc. Proprietary and Confidential 15