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SCM Optimization By Leveraging Technology

SCM Optimization By Leveraging Technology. Aroon Mehta for IIMM-Pune. Agenda. SCM Concepts SCM Road Map SCM Technology SCM innovations SCM Illustrations SCM Open session. SCM-> ALL ABOUT LEVERAGE .

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SCM Optimization By Leveraging Technology

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  1. SCMOptimization By Leveraging Technology Aroon Mehta for IIMM-Pune

  2. Agenda. SCM Concepts SCM Road Map SCM Technology SCM innovations SCM Illustrations SCM Open session

  3. SCM-> ALL ABOUT LEVERAGE. Consider how to turn an aircraft. Aircrafts are steered through the use of a system of ailerons on the wings and the rudder at the tail of the aircraft. In comparison to the aircraft, the ailerons and the rudder are very small; however, leverage allows them to turn the large aircraft. In other words, putting the right combination of a little leverage on the right places allows incredible PERFORMANCE SCM’S FOUNDATION IS ON THIS SIMPLE BASE.

  4. SCM’S Foundation Layer To Deliver & Optimize your company’s Services, Products, Communications, Support , Partnering Integrating .

  5. RECAP . 4 C SCM Formula. C Customer C Competition C Cost C Connect

  6. .What is a Supply Chain ? Supply chains are linkages of partially discrete, yet interdependent entities-processes that collectively transform raw materials into finished products. Supply chains connect the functions of inbound activities (such as purchasing) with outbound activities (such as logistics and “place” activities). Highly Customer Centric

  7. Formal Definition- SCM A supply chain is a “network of facilities and activities that performs the functions of product development, procurement of material from suppliers, the movement of materials between facilities, the manufacturing of Products , the distribution of finished goods to customers, and after-marketsupport for sustainment ” Highly Customer Centric

  8. .SCM- KEY UNTILITIES/DP’S PLACE TIME DELIVERY

  9. SCM’S GOALS • Reduce cost • Improve ROA • Enhance visibility • Build actionable competencies. • Backend Iintegration • MICRO & MACRO Transperancy • Simplify the supply chain Source: Global Supply Chain Associates (GSCA) 1999

  10. A typical SupplyChain Driven Organization • A supply chain organization is a relatively enduring interfirm cooperative that uses resources from all participants to accomplish shared and independent goals of its members.

  11. WHYVALUE CHAININ SCM. The term value chain means that at each stage of the ORDER-TO-DELIVERY SYSTEM, value is added to the product or service, for customer centric norms.

  12. SCM NW Theory Actor Bonds Resource Ties Activity Links

  13. CompetitiveAdvantage Firm Strategy, Structure, and Rivalry . Factor Endowments Demand Conditions Related and Supporting Industries Source: Porter 1990

  14. Primary SCM KRA’s • Primary activities are the SIX basic functions needed to physically produce a product or service, deliver and market it to buyers, and support it after the sale. • Inbound logistics • Outbound logistics • Support function. • Technology leverage. • Monitoring infrastructure • QOHR.

  15. Support Function • Support Activities provide inputs or infrastructure in support of primary activities. These supporting activities stretch • Across the entire value chain of SCM • impact each primary activity. • MOST IGNORED AREA IN SCM. • Leveraging IT For total value chain- a MUST

  16. . CONCEPT # 1. STARTUP DRIVER Challenge the Legacy & STATUS QUO as an Organization & not as an Individual

  17. . CONCEPT # 2. Creation of a virtual Organization with, Vendors, Customers, Employees as a partnering entities in a truly transparent Mode, at all levels of operations, both in Strategy & Implementation.

  18. . CONCEPT # 3 Transparent workflow cycle. Database driven. Escalation triggers Tracking metrics Redundancy removal. Lean SCM/SCP

  19. . CONCEPT # 04 SCM dependency is heavy on Real Time integrated backend systems and organization’s transperency & Requires State of the Art Technology & it’s fullest implementation.

  20. Competencies Needed for Efficient SCM Source: Michigan State University (1995)

  21. SCM‘S IMPACT DRIVERS • Cut Cost Drivers • Reduce Downtime • Compliance no compromise • People restructuring • MENTORING & MONITORING • Spares/Logistics thru system’s • Communication • SCM revamp & IT (Real time)

  22. Leveraging IT • SCM’S Technology Map

  23. IT-BACKBONE Enterprise Portal CRM SCM ERP WITH 100 % SPREAD B2B RFID BAR CODING Leveraging IT

  24. Re Strategizing/Reinovating TECH PATH People Technology Processes CHALLENGES Enterprise Portal B2B ERP eCOM SCM BASIC--- INNOVATION MODEL

  25. THE REAL/LIVE SCM@INDIA. KEY Excellence/Innovation in SCM ITC e-choupal GE-SCM MODEL TVS Logistics SAP OSS LG IIMs Program’s thru DTH satellites

  26. SCM CHALLENGES SCM targets thru innovation • Reaching to customers • Innovating to exceed customer expectations • Adding layer of operating convenience • Affordable COST • Enhancing product/services value • Has a Mass level effect • Models involving customers/vendors/Partners employees - WIN WIN FOR ALL STAKE HOLDERS

  27. SCM- faq’s • Manufacturing Strategy: • How many plants do I need? • Where should each plant be located? • What products should each make? • What process technologies should each have and how much of each process is needed? • What part of the world should each plant serve? Source: Global Supply Chain Associates (GSCA) 1999

  28. Scm-FAQ’S • Supply Base Design / Vendor Consolidation: • How do I simultaneously perform supplier selection for all the parts in the same commodity group? • How many suppliers is best and which suppliers should send which parts to which plants? • Am I missing opportunities by sourcing one part at a time? • Outsourcing: • What parts of my supply chain should I keep "in-house" and what parts to outsource? • What if a third party has a higher variable cost but a lower fixed cost than in-house production?

  29. Supply Chain Structure Before Reorganization Source: Global Supply Chain Associates (GSCA) 1999

  30. Supply Chain Structure After Reorganization Source: Global Supply Chain Associates (GSCA) 1999

  31. THE REAL/LIVE SCM@INDIA. All SCM’s across all industries/verticals Start with Customers & End with Customers.

  32. TAKE PRIDE AS AN INDIAN The BEST INDIAN SCM IN TRUE ACTION WITH NO TECHNOLOGY IS TOTALLY INTENT & DELIVERY CENTRIC

  33. SCM AT IT’S BEST :THE DABBAWALA TIFFINS Inspiring SCM BY OUR OWN DABBAWALA @ MUMBAI. ‘ Customer Ahead of Everything Else ‘. NO TECHNOLOGY ... NO AUTOMATION... NO RFID.. NO BARCODE. JUST PURE UNDILUTED INTENT WITH COMMITTMENT.

  34. Reccomendation “Intent will drive technology & SCM Innovation & technology will never drive the Intent at any cost. Hence build innovative intent to drive SCM at large “. Best Wishes Aroon Mehta. Head- IT Serum Institute of India Pune.

  35. Thanks to the IIMM Executive Committee Wishing all the IIM members the very best to attempt with a + intent , all your Innovative Initiative in SCM Aroon Mehta aroonmehta2@gmail.com

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