REVOLUTIONIZE, INTEGRATE & INNOVATE
Scaling up the Supply Chain Ecosystem
8 June 2018, New Delhi
“In today’s world, managing the supply base is about strengthening relationships that can make or break your business.”
Technology now has substantial potential in sustaining any organization’s production on track, foreseeing and refitting inaccuracies, and adapting transformations that assure a top-quality product. Every link in the supply chain is easy to get examined now on real time basis and automated notification systems play an inevitable role in sending a single message to many players through a variety of media channels. All of this and more is possible today because of the disruption that technology and Artificial Intelligence has brought in the processes across industries.
We asked Krishan K. Batra, President & CEO- ISM India, who is also the esteemed Advisory Board Member and Speaker at The Economic Times Supply Chain Management & Logistics Summit 2018, about his views on technological development in the supply chain domain in India, especially when the developed countries like Singapore, US etc. are using AI, IoT to revolutionize their existing systems. He elucidated, “It is very well known that Supply Chain Management is an integral part of the businesses and customer experience. The ideal scenario will be one in which planning, order management, procurement, manufacturing, warehousing, inventory, and delivery all seamlessly work together to deliver unmatched customer service.”
“Presently, in many organizations, the above functions work in silos and thus lack transparency, integration in the supply chain. With increased competition and volatile demand, there is an urgent need to adopt technologies which could help the organizations to achieve Transparency, Elasticity and Increased Trust.”
Further to rejoin the criticality of the questions, he elaborated, “Over the last few years, I have seen a desire among many companies to transform the Supply Chain Management, to make it smart and/or intelligent which can also make some decisions. This calls for adopting technologies such Artificial Intelligence (AI), Internet of Things (IOT), Big Data, Blockchain etc. Paper-based supply chain documents are increasingly being replaced by Electronic Document Management.”
“To ensure the above transformation of SCM is in keeping with Industry 4.0, there is an urgent need to change the mindset and ensure integration of functions and get away from silos mentality. Digitization creates a disruption and requires companies to rethink the way they design their supply chain.”
Undoubtedly, when an organization has adequate supply chain and logistics system, its competitive advantage in the industry improves, allowing mitigation in the risks while buying raw materials, distributing or selling products/services. Moreover, evident in supply chain researches- the higher the level of integration with supplier and customer in the supply chain, the greater the potential benefits. Therefore, vendor management and supplier integration is an integral aspect to be taken well care of. We asked Mr. Batra, as a user of the supply chain system, what are the qualities that he looks for in vendors or suppliers before partnering with them, and the answer is thought-provoking for all supply chain practitioners.
“Maintaining supply chain operations, especially across the country and international borders can be a major challenge for organizations. Part of what makes supply chain continuity such a challenge is the reliance on and management of vendors. To begin with, there is a need to know, who are your critical, bottleneck, leverage and routine vendors. Choose vendor partners who offer a well-organized technology infrastructure providing transparency and ease of communication with strategic planning experience. A poor vendor cannot be successfully managed, no matter how much time you devote to the task. In contrast, the best vendor partner becomes a seamless part of your business, fuelling continual growth for your brand.”
Broadly following factors are considered when deciding on supplier partnerships-
He continued, stating, “The focus is on the relationship. In today’s world, managing the supply base is about strengthening relationships that can make or break your business. Earning your suppliers’ trust with honest communication, listening to their concerns and involving them in your processes ultimately makes them a vested partner in your business.”
“Expectations are changing. Procurement is expected to know where they are vulnerable and bolster their teams for success. Teams that put a greater emphasis on qualitative and quantitative supplier data analysis will be able to quickly and succinctly identify weak spots, risks, and opportunities in the global supply chain - improving the strategies and plans needed to manage the suppliers, and ultimately both businesses, for continued success.”
He also talked about the flagship initiative by ET Edge that’s scaling up the Supply Chain & Logistics Ecosystem across industries in India. He quoted, “As per my experience, The Economic Times Supply Chain Management & Logistics Summit is a platform for learning new concepts and networking. Everybody has different learning styles. Some are the visual learner, some auditory learners but Supply chain conferences are perfect for people to learn and gain new information about the field, regardless of their learning style.”
Indeed, we laud this initiative that strives to REVOLUTIONIZE, INTEGRATE & INNOVATE the Supply Chain & Logistics Systems. If you want to understand the potential of AI and IoT and master how potentially these game-changing developments, also its implications can enhance your business then don’t miss out on being a part of The Economic Times Supply Chain Management & Logistics Summit.
Reach out to the team at +91 8268002169 or show your interest directly through sending your details at: et-supplychain.com/#contact
There is no area of industry or society that technology is not upending. Yet this offers an opportunity for global businesses that can disrupt rather than getting disrupted. But how has this disruption impacted the Indian highway of supply chain management?
Supply chains can be easily invaded with complexity, involving compound processes to create a product or distribute it to end users. IoT comes to the rescue, bringing solutions that help connect all parties of the value chain to one ecosystem – suppliers, transporters and recipients, tracking movements of goods checking tax evasions, enhancing warehouse operational efficiencies, etc. “10 years back, technology enabled warehouses were very few, whereas in today's scenario most of the companies are having modern facilities with system driven putaway/picking/put to light etc,” opined Jagadeesh Kunchey, Vice President-Supply Chain &Logistics, ITC, in an exclusive interview with ET Edge. When asked what he thinks about technology development in the Indian supply chain landscape, especially when developed countries like Singapore, US etc. are using AI, IoT to revolutionize their existing systems, he stated- “I think we are not far behind. There has been lot of improvement in this area. Different industries are at different levels. In the case of transportation, tech enabled tracking/routing was not very common few years back whereas today routing coupled with mobility technologies are helping to improve turnaround of assets. While US/Singapore are early adopters of technology, we will catch up in a cost effective way.”
The supply chain & logistics industry is also heading into a new era of transparency through digitisation. Along these lines E-way bill, a newly launched initiative by the Govt., is here to bring not only transparency but also efficiency in the transport of goods across states in India.
“E-way bill will definitely help in cutting down the transit times and thereby inventory across the chain. In the long run this will help in reducing transportation costs as vehicles can make multiple trips. However, success hinges on how effectively the system works. There are some teething issues like site not working at times, errors coming while uploading data. The time taken for creating an e- way bill is also significant as the data needs to be prepared in a specific format.”
- Jagadeesh Kunchey, Advisory Member and speaker at The Economic Times Supply Chain & Logistics Management 2018.
The Supply Chain & Logistics Management Summit will not only delve into the Next-Gen in Supply Chain Digitization covering Artificial Intelligence, IoTs & Blockchain, but also focus on opportunities in Cold Chain & Warehousing and more!
Be a part of this exclusive platform and witness Shri Suresh Prabhu, Minister of Commerce & Industry and Civil Aviation of India as the honourable chief guest at SCM.