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Profile - Ashok Sharma

Profile - Ashok Sharma. B Tech (IITDelhi), MBA, Faculty of Management Studies, Delhi University Attended Specialized/ Advanced Courses at -Wharton School, University of Pennsylvania, - -International Chamber of Commerce, Paris,

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Profile - Ashok Sharma

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  1. Profile - Ashok Sharma B Tech (IITDelhi), MBA, Faculty of Management Studies, Delhi University • Attended Specialized/ Advanced Courses at -Wharton School, University of Pennsylvania, - -International Chamber of Commerce, Paris, -American Management Association (AMA) • Corporate Experience: 35 Years as: - Dy Controller of Stores, Bombay Port Trust - Vice President, Blue Star Ltd - Director, Mather and Platt (India) Ltd - Chief Operating Officer, TechNova Imaging Systems - President, Pidilite Industries Ltd • President, Bombay Management Association • National President, Indian Institute of Materials Management • World President, International Federation of Purchasing and Materials Management • Presented with IIMM’s National Award by Mr Pranab Mukherji. Also presented with IIMM Life Time Achievement Award & IFPMM’s Garner Themoin Medal at the World Congress at Vienna.

  2. DISHA 2013Contemporary Global Practicesin Purchasing Management Mr Ashok SharmaB Tech, MBA, FIMA

  3. Contemporary Global Practices in Purchasing Management Purchasing- Operational Vs Strategic Reverse Marketing: PMR & Purchase Intelligence Green Purchasing Ethical Buying: SA 8000 & other standards

  4. Purchasing or Pure- chasing ?Tactical or Strategic ? Reactive or Proactive ?

  5. Strategic Procurement = Items above the zero line are profit center activities directly contributing to Operating margins PMR/ Reverse Marketing Spend Analysis/ Cost Reduction Strategic Sourcing Performance Metrics (Analytics) Supplier Relationship Management Supply Risk Management Budget ing/ Forecasting Zero Line Routine Ordering Items below the zero line are cost center activities adding nothing to profitability. Most products don’t go beyond Routine Ordering. Rush Orders Invoice Queries Expediting Antiquated Processes Change and Confirmation Orders

  6. 1. Reverse Marketing /PMR: What is Marketing ? What is MR ?Managements Too focused on Marketside/ Manufacturing Not on Supply side - Lately SCM

  7. Supply Chain- For many Companies- just a nomenclature change ? Information Materials and products A supply chain is the integration of sequentially-related firms’ inbound and outbound logistics, together with operations (manufacturing and service), and supporting information systems.

  8. Purchase Market Research: PMR Purchase Intelligence: Commodity Prices, Supplier news, Company news, Industry news & reports Reverse Marketing- The New Buyer – Seller Relationship MichielLeenders & David L Blenkhorn

  9. Marketing Market Research Market Intelligence CRM- Customer Relationship Mgt Know Your Customer (KYC) Customer Satisfaction Index/ Survey Key Account Mgt Reverse Marketing Pur Market Research Purchase Intelligence Supplier Relationship Mgt (SRM) Know Your Supplier (KYS): V- Meets/ Clinics Vendor Satisfaction Index/ Survey KSAM/ Performance - Potential Assessment Reverse Marketing’s New Terminology- Emphasizing the Supply Side

  10. 4-Rs = Re-duce, Re-use, Re-cycle , Recover / Re-store *Establish a waste Reduction Programme *Buy Recycled, Repairable materials *Buy energy efficient equipment/ materials *Reduce use of Plastics *Involve Vendors- Sustainability 2. Green Purchasing: Environmentally Preferable Purchasing (EPP) Is it environmentally sound policy/ product/ process ?

  11. Giving Back More Water Than We Take • Pepsi’s “Positive Water Balance” • Through - 1. Rain- Water Harvesting - 2. Community Watersheds - 3. Water Conservation in agriculture • Saved 836 million litres (independent audit) Visit www.tomorrowbetterthantoday .com

  12. Green Sourcing/ Greening the Suppliers-10- Point Checklist • Choose the suppliers using Environment Criteria. Rate them on 3-Cs (Commitment, Competence, Compliance.) Specify environmental requirements in POs • Involve Suppliers in design of new products- Design for Environment (DFE) • Reduce the purchase of items which are difficult to dispose off/ hazardous materials while purchasing. • Purchasing more amount of recycled/ reusable material/ which can be recycled or reused later Industrial Ecology: Waste of customer becomes input for you and your waste input for suppliers.

  13. Green Sourcing 5. Encouraging Suppliers to minimize packaging/ use more of biodegradable and returnable packaging. 6. Purchasing items which would promote Cleaner production. Eco Design, Eco Scan/indicators 7. Purchasing items that would minimize waste. 8. Supplier Environmental Awareness Programme (SEAP), Education & Mentoring 9. Involve suppliers to help set up an evaluation/ monitoring system/ Supplier Audits. 10. Encourage Small Green Acts (SGAs), Network, share and research information.

  14. Greening of Supply Chain • Disclose and label material composition • Reusable packaging, containers & shipping material. Label Plastic parts for reuse. • Careful analysis of material impacts prior to use in new products (Eco Scan) • Reclaim hazardous material • Environment audits of major suppliers/ carriers • “Cradle to Grave” life cycle analysis of materials used in design stage • Re-manufacture

  15. 3. Purchasing Ethics: Ethical Codes & SA-8000 : Internal & External Accountability

  16. International Ethical Organizations/ Standards • Institute for Global Ethics (IGE) conducts Ethical Fitness Seminars and Research & Surveys • International Ethical Standard: (SA 8000) Based on ILO Conventions: Global Supply Chains can be and should be subject to an independent objective assessment

  17. Accreditation Agencies:which issue SA 8000 Certificates • Social Accountability International (Council on Economic Priorities Accreditation Agency, CEPAA) • SGS-ICS: International Certification Services, in the USA • ITS (International Testing Service), US • BVQI (Bureau Veritas), in the UK • DNV (Det Norske Veritas) in Hongkong

  18. Purchasing Ethical Compliance

  19. SA 8000 • Is used to encourage and support non-compliant suppliers-rather than castigate them. • Improvement not disqualification is the preferred outcome. • SA 8000 is proving to be a robust and flexible tool of ethical management practice

  20. Walmart Film • If they have to follow Purchasing Ethics, we all will also have to do that sooner than later. • Thank You.

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