1. SCM Optimization 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. Products, Communications, Support , Partnering Integrating
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. Highly Customer Centric
. 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. Highly Customer Centric
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-market support 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 Supply Chain 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. The term value chain means that at each stage of the
WHY VALUE CHAIN IN 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. Competitive Advantage
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. STARTUP DRIVER Challenge the Legacy & STATUS QUO as an Organization
. CONCEPT # 1.
STARTUP DRIVER
Challenge the Legacy
&
STATUS QUO
as an
Organization
not as an Individual

17. Creation of a virtual Organization with,
. 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. Transparent workflow cycle. Database driven. Escalation triggers
. CONCEPT # 3
Transparent workflow cycle.
Database driven.
Escalation triggers
Tracking metrics
Redundancy removal.
Lean SCM/SCP

19. State of the Art Technology & it’s fullest implementation.
. 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
Positioning
The selection of strategic and structural approaches to guide global operations
Integration
The establishment of what to do and how to do it creatively
Agility
The achievement and retention of global competitiveness and global customer success
QOHR
A MUST. Before SCM INITIATIVE.
Measurement
The internal and external monitoring of global operations
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. Leveraging IT IT-BACKBONE Enterprise Portal CRM SCM ERP WITH
100 % SPREAD
B2B
RFID
BAR CODING
Leveraging IT

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

25. KEY Excellence/Innovation in SCM
THE REAL/LIVE
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: Outsourcing:
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. All SCM’s across all industries/verticals
THE REAL/LIVE
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. ‘ Customer Ahead of Everything Else ‘.
SCM AT IT’S BEST : THE DABBAWALA TIFFINS
Inspiring SCM BY OUR OWN 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. IIMM Executive Committee
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