1. India Supply Chain Summit - Mumbai
20 May 2016
The Era of Bi Modal Logistics
 Emergence of CSCO
 Sharing Perception with CEO
 Global Scale / Agility / Innovation
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Presentedby----RamanKaul…

2.  Primarily there were two kinds of Material Movement, one was Bulk for Process Industry; other for inputs /
outputs of Manufacturing Unit.
 We will take up only Manufacturing Industries in this Presentation.
 Initially, Manufacturing and Consumption were local. With European Industrial Uplift some long distance
movement commenced.
 Perhaps, at this point of time the CEO performed as CSCO!!
Century ago
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3.  For input and output of a Manufacturing Unit, the movement turned out to be Global.
 When global movement, the CEO felt the Cost of movement is a large proportion, in some cases
even equivalent to the Cost of input.
 So the focus of CEO shifted to Cost Synergy and walks in “Transportation Manager, Materials
Manager, Freight Forwarder, etc.” There is no sign of CSCO!!
 These Managers were expected to control the Transportation Cost; perhaps 3 to 6% of the Product
Cost and a saving of 20% is 0.6 and 1.2% of the Product Cost; they delivered as told.
20 / 30 years ago
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4.  It was realized the Cost of movement of Cargo can be controlled. But disruption and inefficiencies of the
Supply Chain will cause greater damage (What is the cost of disruption when manufacturing unit idle for few
hours / days / weeks?)
 Well, then the CEO started thinking about “Material Manager, Purchase Manager, etc.” Still there is no sign
of CSCO!!! But, this is the beginning of acceptance of contribution and creativity of these Managers
Supply Disruption
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5.  We controlled Cost of Transportation; we worked on eliminating Supply Chain disruption;
thereafter a new factor emerged. When billion dollars’worth input or output material of a
manufacturing unit are not put to use right away, the manufacturing is an unviable. Then
came in JIT and equivalent concepts.
 The subject “Supply Chain” turned out to be complex, global in scale and encompassing
all functions within a Manufacturing Unit.
 Well, this is the time of emergence of Supply Chain Manager (SCM); but still a position of
CSCO is far away!!
Cost of Inventory
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6.  We covered 3 parameters till now; How about inefficiencies of movement of material
within the manufacturing unit?
 Production Planning / Industrial Engineers were given the task. But they focus is on
man / machines efficiency; not about movement of material.
 Then the Supply Chain Manager needs to transform himself to understand the
manufacturing process. This is the time for CSCO; the beginning of continual dialogue
between CEO and CSCO.
Production Line
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7. CEO and CMO / CHRO / COO / CSCO
 With IT in hand, the Supply Chain moved to order fulfilment, and Government
Compliance with respect to material movement as well.
 Now the CSCO is first among the equal; as next to CEO and the constant
companion to CEO; the perception of CEO and CSCO merges.
 But when the perception differs; perhaps, the right thing to do is to make CSCO
as CEO! Well, Apple has done it!!!
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8. Thereafter came the new Animal – e-commerce
 e-commerce IT Platform turned on head the way of consumption and the Conventional
Distribution model.
 Total e-commerce is primarily B to C, but still small percentage of conventional B to C trade. B
to B business is yet to emerge, is at infancy.
 What will be the role of CEO / CSCO in e-Commerce.as of now and in next decade?
 That is another story! ….for the next conference!!!
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9. ThankYou…