Managing Supply Chain Risk by Becoming Demand Driven

Nilkamal Ltd – Some Of The Plants Nasik Silvassa

HOT OR COLD Hospitality ,Fishery, Medicine ---

Nilkamal’s Network Depots / Warehouses - 40 Distributors / Dealers - 1,600 Plus Retailers - 18,000 Plus

Challenges facing the modern enterprise Stock-outs Lost sales Inventory pile-ups Poor accountability across the ranks Markdowns and write-offs Poor capacity utilization Declining service levels and customer satisfaction Poor visibility across the supply chain

Demand Driven Supply Chains – The Holy Grail of Modern SCM

What is a “Demand Driven Supply Chain”? Is driven by signals from downstream node points (customers, dealers, retailers) Is a system comprising technology, people and process designed to sense and react to these signals

Why did we choose DDSC? Goals in mind choosing DDSC: Inventory turn improvement Optimize capacity utilization Improve sales persons efficiency To bring transparency as a system

Challenges in implementing a DDSC management philosophy? Lack of understanding and resulting resistance from internal stakeholders “I-Syndrome” across Sales, Production and Dispatch Functional Heads. Teething troubles with channel partners as the inventory levels readjust Uneasiness amongst production team as Productivity measures are replaced by Delivery performance measures

Overcoming the challenges Clear and coherent communication across levels and functions throughout the duration of the project Training of all key personnel and channel partners Aligning the different functions by setting up translatable targets aligned to organizational goals Quantifiable benefits of the project collated and shared with team starting early in the project to demonstrate quick wins

Driving the transition! Delivery performance (OTIF performance) dominates the daily lexicon of the team Management focus is leveraged appropriately through color coded dashboards to zero in on priorities instantly Inter-departmental friction is replaced by aligned action as measurements reflected actual customer service levels

People Driven Vs System Driven Eliminating human error from the demand assessment and fulfillment process Real-time flow of consumption data upstream from the consumption points Production systems triggered purely by market demand rather than unreliable forecasts

Managing the nuances Revaluating and adjusting the Buffers at different nodes dynamically to reflect evolving market behaviors Provisions for seasonality/promotions etc. to protect against extreme production shocks

Thank You!