Some Observations Over Years In The Domain

  • Even admired Companies of Supply Chain in India  carry waste in excess of 5 -10%.  The reason for the same are multiple but some of the prominent reasons are as follows :-
    • Sub-optimal Procurement-Replenishment processes.
    • Inventory Management.
    • W/h Layout-
    • Design-network- Throughput -Distribution model.
    • Capacity utilization-MIS & fragmented focus.
  • Companies tend to truncate Supply Chain events under disparate leaderships with independent financial / business goals.
  • Creating silos with disparate Financial goals & losing sight of synergies / opportunities & the e2e Goal.
  • Especially true of large Companies with multiple verticals.
  • Silos are further broken up as separate business units of independent structures. These silos are then given independent and overlapping infra costs, process costs & accompanying Financial costs. Thus opportunities to create single infrastructural  backbones & shared corridors are lost and at the end SCM becomes a task – merely limited to managing :
    • Vendor pricing.
    • Vendor operations &
    • Vendor inefficiencies.
  • Supply chains will compete with Supply Chains, NOT ORGANISATIONS, anymore Supply Chains fundamentals today drive the following :-
    • Recognition.
    • Shareholder interest.
    • Customer value.
    • Profit & Market-share.

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