This document discusses innovations in supply chain management through a case study of Barloworld Logistics. It outlines 12 key innovations that have changed supply chain management: 1) containers and cranes, 2) pallets and forklifts, 3) racking systems and VNA, 4) barcoding and RFID, 5) production lines and lean, 6) computer and web technology, 7) mobile and communication, 8) DRP and ERP, 9) DTS and TMS, 10) inventory and demand planning, 11) inventory optimization, and 12) supply chain design and network modeling. These innovations have improved efficiency, reduced costs and lead times, improved availability, customer satisfaction, and return on investment. The document

1. Presented By,
A.Pradeep Samuel
CB.EN.P2MFG15016
Amrita School of Engineering
Coimbatore
Innovation in Supply Chain
Management – Case Study:
Barloworld Logistics
ME 709: Logistics and Supply Chain Management

2. An efficient supply chain is vital for businesses to
deliver their products to the consumers who
want or need them. As the global marketplace
continues to evolve, supply chain managers must
think more innovatively and proactively to
balance product flow and costs throughout a
product’s life cycle.
Objective

3. Innovation
• Innovation is the development of new customer value
through solutions that meet new needs, unarticulated needs,
or old customer and market needs in new ways.
• This is accomplished through different or more effective
products, processes, services, technologies, or ideas that are
readily available to markets, governments, and society.
• Innovation is not equal to Invention or Improvement.
• In short “doing things differently”

4. Supply Chain Management
• Supply chain management spans all movement and storage of
raw materials, work-in-process inventory, and finished goods
from point of origin to point of consumption.
• Another definition is provided by the APICS (American
Production and Inventory Control Society) Dictionary when it
defines SCM as the "design, planning, execution, control, and
monitoring of supply chain activities with the objective of
creating net value, building a competitive infrastructure,
leveraging worldwide logistics, synchronizing supply with
demand and measuring performance globally."

5. A typical supply chain model

6. Innovations that changed
Supply Chain Management

7. #1. Container & Cranes
The box that changed the world
• It gave the world an unit to
ship
• Standardized the size and
capacity
• Set tariffs across a distance
• Defined the capacity of ships
• Road transport and trucking
• Helped warehousing to
measure and build capacity.
• Helped manufacturer and
traders in making and ordering
decisions.

8. • Movement made easy
• Storage made easy
• Counting made easy
• Stock taking made
easy
• Air Freight made easy
#2. Pallets & Forklifts
Movement of goods made easy

9. • Systematic storage
• Stock taking became easy
• Segregation of Fast
Moving vs slow moving
goods
• Facilitated unique location
• More capacity
#3. Racking system and VNA
Storage of goods made easy

10. • Stock replenishment
• Tracking
• Intelligence building
• Real-time data
• Facilitated planning
#4. Barcoding & RFID
Tracking and data collection

11. • Improved efficiency
• Reduced the lead time
• Reduced the cost
• Simplified production
and also principles were
applied across the
supply chain
#5. Production line and LEAN
Productivity and process management

12. • Computer facilitated the
computation of complex
formulas and large amount of
data
• Facilitated analysis and
trends
• Web enabled data sharing
• Real-time data analysis
• Conversion of data
#6. Computer & Web technology
The power of computation and connecting

13. • Real time data capturing
• Simplification of process
• Shorter processes
• Enabling data conversion
• Facilitates quick analysis
• Speed in response
• Less paperwork
#7. Mobile & Communication
The speed of communication

14. • Streamlining processes
• Quick access to information
• Best business practices
• Improved efficiency
• Improved customer
satisfaction
• Improved on-time delivery
• Reduced inventory costs
• Better planning, tracking
and forecasting
#8. DRP & ERP
Distribution and Resource planning

15. #9 DTS & TMS
Dedicated Transport and management
• Improved financing, cash-
flow
• Increase visibility
• Reliability
• Route mapping and
optimisation
• Optimisation of resources
• Integration

16. • Reduce excess inventory
• Improve cash flow
• Forecast demand
• Reduce gut feel risks
• Improve availability
• Improve customer satisfaction
• Better return on investment
#10. Inventory & Demand planning
Reduce costs and improve availability

17. • Deal with greater levels of
complexity
• Manage longer lead times and
uncertain supply
• Deal with bigger production
runs and supply constraints
• Different modes of transport
• Network optimisation
#11. Inventory Optimisation
Creating a strategic advantage

18. • Global supply chain network
modelling with mapping,
locations and road network
databases for any combination
of countries in the world.
• Reach your full supply chain
planning potential
• Carbon Footprint mapping
#12. Supply Chain design and network
modelling
End to end supply chain solutions

19. • Supplier demand planning
• Manufacturer demand planning
• Wholesaler / distributor Inventory planning
• Retailer Inventory planning
• Consumer Value / Price
All these major points are connected with one or the other forms of
transportation.
• Production planning, ERP
• Demand Planning, Distribution planning, network modeling, Inventory
optimisation
• Warehousing and Distribution
• Air Freight, Sea Freight, Sea Air, Road, Rail, multimodal
Areas for innovation

20. The future of Supply Chain
Technology
We as a supply chain industry haven’t used the available
technology to the full extent.
Collaboration
• The supply of goods moves from one network to another
network therefore collaboration amongst these networks is very
important. i.e. Suppliers and their suppliers, customers and their
customers (if applicable).
• Collaboration with government bodies, regional legal and tax
compliance, association and international norms and regulations
are some of the areas also calls for the collaboration.
Planning and Strategic alignment
• Improve Customers performance
• From suppliers order point to customers demand point

21. • Drag reduction 35-43%
• Fuel saving 7-10%
• Monthly saving is AED
4250
• Carbon reduction 14
Tons in 6 months
The Green Trailer

22. Thank You