Supply Chain – A Competitive Edge - Anil Shipley (Bajaj Electricals Ltd.)
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The generic problems faced by every organization is complexity, changing minds of the customers, innacurate future forecast, slow suppliers and absenteeism of the employees. Find solutions for all the problems by adapting the AAA - A Supply Chain Rule.
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Supply Chain – A Competitive Edge - Anil Shipley (Bajaj Electricals Ltd.)
- 1. Supply Chain – A Competitive Edge Anil Shipley EVP & Head – Supply Chain Bajaj Electricals Ltd.
- 2. Generic Problems Complexity – Huge variables Customers change their mind all the time The forecast is NEVER accurate Suppliers are slow & unreliable Absenteeism, quality, downtime
- 3. Realities
- 4. The AAA – A Supply Chain Availability Aligned Agile Adaptable
- 5. Agility Respond to short-term changes in demand or supply quickly; handle external disruptions smoothly Flow of Information with suppliers & customers Collaborative Relationship with suppliers Design for postponement Inventory Buffers Contingency plans
- 6. Adaptability Adjust supply chain’s design to meet structural shifts in markets; modify supply network to strategies, products, and technologies. Constant search for new supply base & markets. Track economic changes Evaluate needs of the end customer, not just intermediate customer Flexible product designs. Flexible production Benchmarking on product life cycles
- 7. Alignment Align the interest of all the firms in the supply chain Exchange of information & knowledge with vendors & customers Equally share risks, cost & gains of improvement initiatives Partnership approach with vendors Sharing of resources
- 8. Achieving Strategic Fit Responsiveness Spectrum Responsive SC Efficient SC Certain Demand Implied Uncertain Spectrum Uncertain Demand Zone of Strategic FIT
- 9. The TOC way 1 2 3 System 1 System 2 Which system is more complex?? 3 1 2 4 5 78 6
- 10. Five Focus Steps Identify the System’s Constraint Decide how to Exploit the System Constraint Subordinate the rest of the system to the above decisions Elevate the System Constraint Go back to step 1
- 11. Buffer Management Buffer management is a control mechanism technique The objective of buffer management is to check whether the due-dates or availability are threatened Another objective is to validate whether the buffers used are about right, adequately protecting the system performance The kernel of the idea behind buffer management is to monitor the cases when the protection mechanism is nearly exhausted!
- 12. Replenishing what is sold If we have 100% availability at the branches and replenish what is sold we can maintain availability at the distributors To have 100% availability at our branches. We need 100% availability at RDC’s and the central warehouse CWH RDC’s Branches This can be possible only if the central warehouses has 100% availability i.e. material is available for the daily supplies to the branches. Distributors SUPPLIER Avg LT : 6 days Avg LT: 6 days Avg LT : 2 days Avg LT : 1 days
- 13. Set up End Markets Planning Vendors Vendor management RM Suppliers CentralizedPlanning&SourcingLogistics Vendors CWHRDCBranchCustomer BU Sales teams Planning & vendor management (incl. costing) (centralized) Vendors Logistics & warehousing (BSS) – WH, CFA, Freight