Addressing modern supply chain challenges requires a multi-faceted approach to enhance flexibility and efficiency. By adopting agile principles such as cross-functional teamwork, iterative planning, and continuous improvement, businesses can better navigate disruptions and meet market demands. Strategically aligning resources involves a comprehensive analysis of competitive and technological environments. Focussing on high-profit market segments and refining offerings to meet their specific needs are critical for achieving advantage in the business. Importantly, benchmarking innovation practices through structured methodologies helps organisations stay competitive. Investing in technology-driven solutions and advanced communication platforms is essential for improving collaboration and transparency. Leveraging digital tools such as predictive analytics, AI, and IoT enhances resilience and responsiveness to disruptions. Ultimately, the execution of strategic plans will bear fruit when combined with advanced technologies to ensure a resilient and efficient supply chain capable of adapting to evolving market conditions. At Omega Seiki Mobility (OSM), Manuj Malhotra, Vice President–Strategic Sourcing and Supply Chain, highlights that they are employing benchmarking approaches to support continuous improvement and adaptation. By integrating these practices with cutting-edge technologies and strategic planning, OSM is committed to maintaining a robust and agile supply chain that meets dynamic market demands and drives long-term success. OSM boasts five decades of manufacturing expertise, originating from the Anglian Omega Group. The group includes Omega Bright Steel, OBSC, OBSC Perfection, Yashdeep, Anglian Infra, Aditi Power, and ADM. Since its inception in 1971, the Anglian Omega Group has been involved in various sectors, including steel, auto components, cold chain logistics, and warehousing. With manufacturing facilities spread across India and global offices, the group generates over US$150 million in revenue and maintains a 10 per cent EBITDA. Rooted in automotive manufacturing, the company transitioned to electric vehicle production in 2018. OSM operates four manufacturing facilities across India, located in Faridabad and Pune. The company’s dealer network spans over 180 locations, and more than 7,000 satisfied users benefit from its products daily. The growing demand for affordable transportation, concerns about fuel efficiency, and last-mile logistics needs in emerging economies, along with the shift toward electric and hybrid vehicles driven by stricter emission regulations and government incentives, are key factors shaping the company’s trajectory. Building a Flexible Supply Chain One of the primary challenges is the insufficient number of charging stations, especially in rural areas. This leads to “range anxiety”, where individuals worry about running out of power without access to charging facilities. To address such challenges, agile supply chain methodologies are crucial. These methodologies focus on flexibility, responsiveness, and collaboration. By adopting agile principles like cross-functional teamwork, iterative planning, and continuous improvement, businesses can streamline their supply chain processes and quickly adapt to changes in demand or disruptions. Aligning Distinct Capabilities with New Novel Approaches An innovative strategy directs how resources are allocated to achieve business objectives related to innovation, value delivery, and competitive advantage. This strategy should begin with a comprehensive analysis of the business’s competitive and technological environment, including an evaluation of external challenges and opportunities. To effectively target and position your offerings, focus on market segments that promise the highest profitability. Ensure that your product or service meets the specific needs of these segments. Identifying and prioritising your most profitable customers and clearly defining your target market are crucial steps in this process. A well-rounded strategy also involves a market penetration approach, which aims to increase market share for existing products or services within current markets. This can be achieved through enhanced marketing efforts, better customer engagement, and refining product offerings to align more closely with market demands. Unique and Innovative Strategies Enabling Service Abilities Investing in technology solutions that support collaboration, such as unified procurement platforms, is one of our key strategies for enhancing supply chain efficiency. These platforms enable seamless data sharing across departments and facilitate real-time collaboration on sourcing, procurement, and payment processes. By integrating advanced communication technologies, organisations can achieve a higher level of coordination and transparency, which are essential for effective supply chain management. Effective supply chain collaboration depends on the strategic use of modern communication tools that enable real-time information sharing. These tools allow for better coordination and faster decision making, crucial for managing complex supply chains. Advanced communication technologies foster trust and transparency among partners, which are vital for maintaining strong relationships and addressing potential disruptions proactively. To improve supplier collaboration, organisations should focus on fostering open communication and establishing clear expectations. Regular information sharing, providing timely feedback, and addressing issues or concerns promptly are essential practices. By maintaining open lines of communication, organisations can ensure that all parties are aligned with the supply chain goals and can swiftly resolve any challenges that arise. Enabling Straightforward Value Generation Today, e-commerce has become a crucial component in modern supply chain management, offering platforms for seamless online ordering, payment processing, shipment tracking, and inventory management. This integration enhances the speed of order fulfilment and improves product visibility, making it easier for customers to locate and purchase products. Suppliers play a foundational role in the supply chain, providing the raw materials, components, and services essential for producing goods. Their reliability and the quality of their service are pivotal, as they directly influence the efficiency and effectiveness of the entire supply chain. Effective management of supplier relationships is therefore critical for maintaining a smooth and responsive supply chain. To optimise supply chain operations, it is important to facilitate collaboration and information sharing with suppliers. Sharing key supply chain information, such as order forecasts and inventory levels, fosters transparency and helps in better planning, reducing the risk of disruptions. Automation further enhances efficiency by streamlining requisition and purchase order creation, integrating payment processes, and minimising errors. This not only improves workflow but also boosts accuracy in order processing. Ensuring Technological Prowess in a Rapidly Evolving System Digital tools significantly enhance the resilience of supply chains by enabling companies to respond swiftly and effectively to disruptions. Technologies such as predictive analytics, Artificial Intelligence (AI) and Machine Learning (ML), the Internet of Things (IoT), Cloud Computing, and Advanced Robotics and Automation play a crucial role in this process. Predictive analytics allows businesses to foresee potential issues and develop proactive mitigation strategies. AI and ML algorithms can analyse vast amounts of data to identify patterns and predict disruptions before they occur. The IoT provides real-time visibility into supply chain operations, improving tracking and monitoring. Cloud Computing ensures scalability and flexibility in managing data and applications, while Advanced Robotics and Automation streamline operations and increase efficiency. Harnessing Innovation Benchmarking Innovation benchmarking offers numerous benefits, including evaluating your current innovation performance, identifying strengths and weaknesses, and learning from the best practices and mistakes of others. This process enables you to set both realistic and ambitious innovation goals and monitor progress effectively. Key sources of benchmarking data include industry reports, surveys, databases, publications, websites, associations, consultants, and direct interactions with other organisations. These sources provide valuable insights into industry standards and emerging trends. At OSM, we employ an eight-step approach to ensure effective benchmarking. This structured methodology helps keep our organisation aligned with its innovation objectives and enhances our ability to remain competitive and responsive to industry changes. Logistics—Essential to Strategy Logistics activities within a business organisation aim to meet customer demands by addressing time and location challenges, as well as optimising service cost and quality based on customers’ needs and purchasing power. To enhance supply chain efficiency, adopting logistics innovations, such as technology-driven third-party logistics (3PL) solutions, is essential. These advanced logistics management systems streamline warehousing, delivery, returns management, and procurement, significantly improving operational efficiency. By leveraging such innovations, organisations can better align their logistics capabilities with market demands and achieve a competitive edge in their supply chain operations. Warehousing Management to Alleviate the Bottom-Line Techniques such as 5S (Sort, Straighten, Shine, Standardise, and Sustain) and Just-in-Time (JIT) inventory management are effective in reducing lead times, enhancing order processing efficiency, and optimising supply chain operations. Standardising picking and packing procedures is crucial for minimising errors and reducing processing times. Additionally, comprehensive inventory management strategies should include stock classification, inventory control techniques, safety stock management, cycle counting, and warehouse space optimisation. Effective layout design and storage techniques are also essential for improving overall efficiency and maintaining a well-organised supply chain. By implementing these practices, organisations can streamline their operations, reduce costs, and better meet customer demands. New Frontiers pivotal to Evolution Advanced technologies are revolutionising the supply chain landscape. Emerging capabilities in generative AI, data analytics, automation, machine learning, the Internet of Things (IoT), blockchain, and other innovations are driving the evolution of ‘smart’ supply chains, setting new standards for efficiency and agility. At OSM, we are in the early stages of integrating these advanced technologies into our operations. We are adopting a Digital Work Management (DWM) approach to systematically incorporate these tools and ensure effective implementation. Through structured reviews and continuous evaluation, we are committed to embracing these innovations fully, aiming to transform our supply chain practices and maintain a competitive edge in the rapidly evolving market. “Adaptive” – tomorrow’s Supply Chain in one word Effective communication and exceptional customer service are crucial skills for success in supply chain management. Strong communication abilities facilitate successful negotiations with suppliers and stakeholders, while professional and courteous interactions build trust and foster long-term relationships with customers. To excel in supply chain management, it is essential to combine these skills with perseverance and a strong work ethic. Success requires not only generating innovative ideas but also executing them effectively. It is important to maintain integrity and patience throughout the process. While having a vision is important, the ability to implement and execute plans is what ultimately determines success in the dynamic field of supply chain management.

PepsiCo: A Global Food and Beverage Leader PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Purchase, New York. Its business spans all aspects of the food and beverage market, overseeing manufacturing, distribution, and marketing. Formed in 1965 by the merger of Pepsi-Cola Company and Frito-Lay, Inc., PepsiCo has grown from its original Pepsi Cola product to a diverse range of brands. Major acquisitions include Tropicana Products in 1998, Quaker Oats (adding Gatorade) in 2001, and Pioneer Foods in 2020 for $1.7 billion. PepsiCo is a global leader in the food and beverage industry, with a portfolio that includes household brands like Pepsi, Mountain Dew, Gatorade, Lay’s, and Doritos. Operating in over 200 countries and territories, PepsiCo’s diverse product mix and international presence ensure a strong competitive stance. Its broad portfolio caters to varied consumer needs, from lifestyle drinks to favorite snacks, and benefits from cross-functional promotional opportunities. The extensive global distribution network leverages economies of scale and best practices across regions. In 2023, PepsiCo’s supply chain was consistently ranked among the top 10 in the FMCG sector. Resilient Supply Chains in the F&B Sector Geographically, the growing markets of Asia and the Middle East have faced the challenges of unstable political environments, war-torn economies, and devaluing currencies, putting today’s brands under immense pressure to remain profitable. We live in a VUCA world (Volatile, Uncertain, Complex, and Ambiguous), where a brand’s success is often judged by its profitability. The cost and availability of crucial ingredients have become significant challenges, complicating the delivery of quality products consumers’ demand. The F&B sector is evolving, driven by changing consumer preferences, technological advancements, and environmental concerns. Trends include the rise of convenience foods, a focus on health and wellness, demand for sustainable and ethically sourced products, and the increasing influence of technology. Today’s supply chains must demonstrate cost leadership through sustainable processes and innovations like upcycling food waste, which reduces costs and minimizes environmental impact. Sustainable packaging remains a priority, and achieving net zero status, especially given the industry’s significant water usage, is now critical. Supply chains must become antifragile, effectively managing VUCA with resilience. Embracing uncertainties, designing robust supply chains, and executing flawlessly are essential. Educating all supply chain stakeholders on managing uncertainty is crucial for success. Advancing Sustainable Supply Chains Innovation and benchmarking form the bedrock of our supply chain processes. Our supply chains continuously learn and improve through internal and external references, incorporating cross-sector learnings at an unprecedented pace. Innovations span every facet of the supply chain, not just products. Sustainable manufacturing practices, including plant electrification, heat recovery, low-energy alternatives, advanced water reclamation, and reduction and reuse technologies, are being rapidly adopted globally. Digitizing tasks enables effective daily operations, building towards a paperless, smart, and digital manufacturing environment. Next-gen process controls, like digital twins for optimizing equipment performance, are implemented across factories worldwide. Significant strides are being made in sustainable logistics, with an increasing fleet of company-owned trucks using alternative fuels like CNG or electric vehicles. Third-party logistics providers are selected based on the net impact of their transportation activities. Initiatives such as using recycled packaging, converting potato slurry into biogas to power machinery, and other sustainability efforts are standardizing processes and enhancing product sustainability. Transforming Logistics for Efficiency and Customer Delight Logistics plays a crucial role in supply chain management, enhancing efficiency throughout the process. Its primary objective is to deliver products to customers on time, with the right quality and cost. Through strategic partnerships with suppliers, shippers, and warehouses, and integrating these services via automated systems such as WMS (Warehouse Management Systems) and TMS (Transport Management Systems), logistics operations are streamlined, reducing overhead costs and improving delivery speed. This enhances customer satisfaction, measurable through Fill Rate and On-Time In-Full KPIs, while optimizing costs. Efficient planning of warehousing and transportation activities is essential to reducing order fulfillment times. Implementing WMS improves Warehouse Turnaround Time (TAT) from order receipt to dispatch, while TMS optimizes transport planning, identifying cost-effective carrier routes and maximizing truck utilization. This transformation positions logistics as a value creator, delivering stakeholder value and customer satisfaction. Strategic Partnerships Logistics Service Providers (LSPs) play a crucial role in creating overall value within logistics. Shared visions and aligned goals from the outset foster a collaborative environment that benefits both parties. The choice of warehousing and transportation models depends heavily on political-economic dynamics, cost factors, and the supplier landscape. For LSPs, delivering orders at the lowest cost and highest efficiency is paramount, ranging from 3PL models to long-term leased, company-operated warehouses. In the fastmoving consumer goods segment, customer service is a primary KPI for success, requiring technologydriven logistics to ensure timely order fulfillment. Establishing a long-term shared vision with LSPs forms the foundation for achieving overall success. We collaborate with a wide range of Logistics Service Providers (LSPs) across various regions. Our selection process emphasizes key criteria: 3PLs must prioritize customer satisfaction and maintain high service levels. A robust, well-documented, and repeatable process is fundamental to success. Safety is paramount, and a strong safety record is essential in our LSP partnerships. Digitization is increasingly vital, with 3PLs expected to adopt technology like Warehouse Management Systems (WMS) to enhance process efficiency in their operations. Technology-centric teams within 3PLs align with our organizational goals. Flexible business agreements that accommodate seasonal and market fluctuations rely on the financial stability of our partners, a critical evaluation criterion. Lastly, a proven track record and positive industry reputation ensure the long-term viability of our LSP relationships. Warehousing Strategy Our warehousing strategy is built on the following pillars: a. Efficient Warehouse Design: We optimize labor-intensive operations by making informed decisions about warehouse layout, based on inventory demands and seasonal fluctuations. Effective slotting of goods ensures smooth material flow, minimizing nonvalue-added travel. Affordable automation further streamlines material handling, enhancing efficiency. b. Outsourcing: We strategically outsource non-critical warehouses to realize financial and operational benefits while maintaining control. We ensure these warehouses meet our standards for capability and technology, supporting our commitment to yearon-year cost efficiency. c. Technology Integration: Implementing Warehouse Management Systems (WMS) enables real-time decision-making and enhances operational visibility, driving performance management through KPI monitoring. d. Labor Optimization: Leveraging digital solutions, we optimize resource allocation for each warehouse activity. Flexible labor arrangements, including long-term contracts, help achieve efficiency metrics such as cases handled per man-hour. Driving Agility through Supply Chain Digitization and Mitigating Procurement Risks In today’s volatile, uncertain, complex, and ambiguous (VUCA) world, effective demand forecasting is crucial for building an anti-fragile supply chain. Leveraging Point of Sales (POS) data and AI/ML forecasting models enhances forecast accuracy, particularly for high-priority SKUs (A/B Class). This approach integrates real-time signals into forecasting discussions, improving sales performance and overall revenue. Revenue management strategies, driven by POS data, enable granular pricing policies down to the distributor level. This approach boosts sales productivity, increases market share, and facilitates efficient supply planning, thereby optimizing capital employed in inventory. Supply chain digitization plays a pivotal role in creating an agile and responsive supply chain. By digitizing procurement, planning, transportation, and warehousing, companies can swiftly adapt to market changes and customer demands through rapid prototyping and iterative improvements. To mitigate risks in procurement, robust strategies include building strong supplier relationships and implementing risk management protocols. Measures such as dual sourcing, inventory buffering, and exploring alternative sourcing options help mitigate disruptions. Strategic use of futures contracts for key raw materials like oils directly impacts the bottom line, ensuring stability amid uncertainties. Control Tower Approach A supply chain control tower, encompassing all functions from procurement to sales, is crucial for seamless coordination across stakeholders. Built on digital stacks for each function, it consolidates inputs into actionable insights. The control tower analyzes causal events, devises mitigation plans, and conducts scenario analyses to support decision-making. By integrating data from multiple sources, performing prescriptive and descriptive analytics, it serves as a collaborative tool to enhance visibility, optimize operations, mitigate risks, and drive continuous improvement throughout the supply chain network. Enhancing Demand Planning Precision Consumer expectations have surged post-COVID, fueled by the rise of E-commerce and quick commerce. Today’s consumers demand fresher, high-quality products delivered in less than a day. We’ve enhanced our demand planning strategy on two fronts: improving data granularity and increasing data refresh frequency. Forecasting algorithms now operate at a granular level, from Distributor-Parent SKU for Traditional Trade to PIN Code-Parent SKU for E-commerce, allowing tailored treatment across trade channels. This precision, coupled with optimized inventory management, enables faster product delivery. We’ve moved beyond monthly forecasts to weekly updates, integrating AI/ML-based demand sensing models for real-time adjustments. These tactics align replenishment strategies with evolving customer preferences.

PepsiCo: A Global Food and Beverage Leader PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Purchase, New York. Its business spans all aspects of the food and beverage market, overseeing manufacturing, distribution, and marketing. Formed in 1965 by the merger of Pepsi-Cola Company and Frito-Lay, Inc., PepsiCo has grown from its original Pepsi Cola product to a diverse range of brands. Major acquisitions include Tropicana Products in 1998, Quaker Oats (adding Gatorade) in 2001, and Pioneer Foods in 2020 for $1.7 billion. PepsiCo is a global leader in the food and beverage industry, with a portfolio that includes household brands like Pepsi, Mountain Dew, Gatorade, Lay’s, and Doritos. Operating in over 200 countries and territories, PepsiCo’s diverse product mix and international presence ensure a strong competitive stance. Its broad portfolio caters to varied consumer needs, from lifestyle drinks to favorite snacks, and benefits from cross-functional promotional opportunities. The extensive global distribution network leverages economies of scale and best practices across regions. In 2023, PepsiCo’s supply chain was consistently ranked among the top 10 in the FMCG sector. Resilient Supply Chains in the F&B Sector Geographically, the growing markets of Asia and the Middle East have faced the challenges of unstable political environments, war-torn economies, and devaluing currencies, putting today’s brands under immense pressure to remain profitable. We live in a VUCA world (Volatile, Uncertain, Complex, and Ambiguous), where a brand’s success is often judged by its profitability. The cost and availability of crucial ingredients have become significant challenges, complicating the delivery of quality products consumers’ demand. The F&B sector is evolving, driven by changing consumer preferences, technological advancements, and environmental concerns. Trends include the rise of convenience foods, a focus on health and wellness, demand for sustainable and ethically sourced products, and the increasing influence of technology. Today’s supply chains must demonstrate cost leadership through sustainable processes and innovations like upcycling food waste, which reduces costs and minimizes environmental impact. Sustainable packaging remains a priority, and achieving net zero status, especially given the industry’s significant water usage, is now critical. Supply chains must become antifragile, effectively managing VUCA with resilience. Embracing uncertainties, designing robust supply chains, and executing flawlessly are essential. Educating all supply chain stakeholders on managing uncertainty is crucial for success. Advancing Sustainable Supply Chains Innovation and benchmarking form the bedrock of our supply chain processes. Our supply chains continuously learn and improve through internal and external references, incorporating cross-sector learnings at an unprecedented pace. Innovations span every facet of the supply chain, not just products. Sustainable manufacturing practices, including plant electrification, heat recovery, low-energy alternatives, advanced water reclamation, and reduction and reuse technologies, are being rapidly adopted globally. Digitizing tasks enables effective daily operations, building towards a paperless, smart, and digital manufacturing environment. Next-gen process controls, like digital twins for optimizing equipment performance, are implemented across factories worldwide. Significant strides are being made in sustainable logistics, with an increasing fleet of company-owned trucks using alternative fuels like CNG or electric vehicles. Third-party logistics providers are selected based on the net impact of their transportation activities. Initiatives such as using recycled packaging, converting potato slurry into biogas to power machinery, and other sustainability efforts are standardizing processes and enhancing product sustainability. Transforming Logistics for Efficiency and Customer Delight Logistics plays a crucial role in supply chain management, enhancing efficiency throughout the process. Its primary objective is to deliver products to customers on time, with the right quality and cost. Through strategic partnerships with suppliers, shippers, and warehouses, and integrating these services via automated systems such as WMS (Warehouse Management Systems) and TMS (Transport Management Systems), logistics operations are streamlined, reducing overhead costs and improving delivery speed. This enhances customer satisfaction, measurable through Fill Rate and On-Time In-Full KPIs, while optimizing costs. Efficient planning of warehousing and transportation activities is essential to reducing order fulfillment times. Implementing WMS improves Warehouse Turnaround Time (TAT) from order receipt to dispatch, while TMS optimizes transport planning, identifying cost-effective carrier routes and maximizing truck utilization. This transformation positions logistics as a value creator, delivering stakeholder value and customer satisfaction. Strategic Partnerships Logistics Service Providers (LSPs) play a crucial role in creating overall value within logistics. Shared visions and aligned goals from the outset foster a collaborative environment that benefits both parties. The choice of warehousing and transportation models depends heavily on political-economic dynamics, cost factors, and the supplier landscape. For LSPs, delivering orders at the lowest cost and highest efficiency is paramount, ranging from 3PL models to long-term leased, company-operated warehouses. In the fastmoving consumer goods segment, customer service is a primary KPI for success, requiring technologydriven logistics to ensure timely order fulfillment. Establishing a long-term shared vision with LSPs forms the foundation for achieving overall success. We collaborate with a wide range of Logistics Service Providers (LSPs) across various regions. Our selection process emphasizes key criteria: 3PLs must prioritize customer satisfaction and maintain high service levels. A robust, well-documented, and repeatable process is fundamental to success. Safety is paramount, and a strong safety record is essential in our LSP partnerships. Digitization is increasingly vital, with 3PLs expected to adopt technology like Warehouse Management Systems (WMS) to enhance process efficiency in their operations. Technology-centric teams within 3PLs align with our organizational goals. Flexible business agreements that accommodate seasonal and market fluctuations rely on the financial stability of our partners, a critical evaluation criterion. Lastly, a proven track record and positive industry reputation ensure the long-term viability of our LSP relationships. Warehousing Strategy Our warehousing strategy is built on the following pillars: a. Efficient Warehouse Design: We optimize labor-intensive operations by making informed decisions about warehouse layout, based on inventory demands and seasonal fluctuations. Effective slotting of goods ensures smooth material flow, minimizing nonvalue-added travel. Affordable automation further streamlines material handling, enhancing efficiency. b. Outsourcing: We strategically outsource non-critical warehouses to realize financial and operational benefits while maintaining control. We ensure these warehouses meet our standards for capability and technology, supporting our commitment to yearon-year cost efficiency. c. Technology Integration: Implementing Warehouse Management Systems (WMS) enables real-time decision-making and enhances operational visibility, driving performance management through KPI monitoring. d. Labor Optimization: Leveraging digital solutions, we optimize resource allocation for each warehouse activity. Flexible labor arrangements, including long-term contracts, help achieve efficiency metrics such as cases handled per man-hour. Driving Agility through Supply Chain Digitization and Mitigating Procurement Risks In today’s volatile, uncertain, complex, and ambiguous (VUCA) world, effective demand forecasting is crucial for building an anti-fragile supply chain. Leveraging Point of Sales (POS) data and AI/ML forecasting models enhances forecast accuracy, particularly for high-priority SKUs (A/B Class). This approach integrates real-time signals into forecasting discussions, improving sales performance and overall revenue. Revenue management strategies, driven by POS data, enable granular pricing policies down to the distributor level. This approach boosts sales productivity, increases market share, and facilitates efficient supply planning, thereby optimizing capital employed in inventory. Supply chain digitization plays a pivotal role in creating an agile and responsive supply chain. By digitizing procurement, planning, transportation, and warehousing, companies can swiftly adapt to market changes and customer demands through rapid prototyping and iterative improvements. To mitigate risks in procurement, robust strategies include building strong supplier relationships and implementing risk management protocols. Measures such as dual sourcing, inventory buffering, and exploring alternative sourcing options help mitigate disruptions. Strategic use of futures contracts for key raw materials like oils directly impacts the bottom line, ensuring stability amid uncertainties. Control Tower Approach A supply chain control tower, encompassing all functions from procurement to sales, is crucial for seamless coordination across stakeholders. Built on digital stacks for each function, it consolidates inputs into actionable insights. The control tower analyzes causal events, devises mitigation plans, and conducts scenario analyses to support decision-making. By integrating data from multiple sources, performing prescriptive and descriptive analytics, it serves as a collaborative tool to enhance visibility, optimize operations, mitigate risks, and drive continuous improvement throughout the supply chain network. Enhancing Demand Planning Precision Consumer expectations have surged post-COVID, fueled by the rise of E-commerce and quick commerce. Today’s consumers demand fresher, high-quality products delivered in less than a day. We’ve enhanced our demand planning strategy on two fronts: improving data granularity and increasing data refresh frequency. Forecasting algorithms now operate at a granular level, from Distributor-Parent SKU for Traditional Trade to PIN Code-Parent SKU for E-commerce, allowing tailored treatment across trade channels. This precision, coupled with optimized inventory management, enables faster product delivery. We’ve moved beyond monthly forecasts to weekly updates, integrating AI/ML-based demand sensing models for real-time adjustments. These tactics align replenishment strategies with evolving customer preferences.

At most companies, the supply chain is shrouded in mystery, despite its importance to every group within the organization. Buyers charged with ordering parts have imperfect information, approaches, and tools, often resulting in shortages, excess inventory, and late customer deliveries. For industrials, these problems are especially severe. While no forecast will ever be entirely accurate, companies can improve their predictions and achieve greater flexibility by following the segment, stock, and plan (SSP) approach to part segmentation, stocking, and planning. Importantly, we know, with diversity comes opportunity. Different types of suppliers bring different things to the table: the more diverse your supplier base, the more diverse the range of ideas and solutions you’ll get. In recent years, the term ‘supplier diversity’ has become industry-speak for inclusive procurement as ‘a proactive activity undertaken by contracting authorities to ensure that all relevant potential suppliers have the fair and equal opportunity to compete for business within their supply chains’. With supply-chain challenges becoming more intense each year, and with the demand for configured-to-order products increasing, high-mix, low-volume industrials should lead the way in implementation. Excerpts from Lokesh Sharma, President- Commercial Operations at Optimus Pharma’s recent interaction with Upamanyu Borah. Current market position Optimus was founded as a custom synthesis laboratory in 2004. In 2006, we established our intermediate facility and started commercial production of advanced Intermediates for various APIs. In 2014, we Acquired Optrix Laboratories and expanded capacities of manufacturing Intermediates and APIs. By 2016, we obtained regulatory approvals such as USFDA, EUGMP, WHO (GENEVA), Mexico’s COFEPRIS, KFDA, PMDA, etc. Post that, we expanded operations into finished dosages and began supplying formulations to large pharmaceutical companies. From the year 2020, Optimus started marketing its own formulations across various categories and was the second company to get approval for marketing Favipiravir (Brand: Favicovid) to domestic and overseas market. COVID-19 and the supply chain COVID-19 posed as a challenge for us not only in terms of procurement and sourcing of raw materials but also dispatches for domestic and overseas exports. However, belonging to the essential services category, backed by an efficient SCM model allowed us to mitigate the challenges faced by parties in the value chain. Adapting flexibly To ensure better preparedness, we maintain safety stock to meet any eventuality not only at our warehouse but also with other partners. We’ve built a flexible supply chain where our supplier base is diversified and alternative routes are researched on. We also utilise technology that uses ML for demand planning, supply planning, as well as cash flow modelling. Strategic initiatives for better supply of products To help us gain better control over the supply process, we entered into SLAs with our vendors and logistic partners to utilise their digital capabilities like live tracking, big data analytics, etc. This helped us in deploying transparency in sourcing, inventory status, demand projection, and also build and maintain strong buyer-supplier relationship. Creating value ERP systems such as SAP are utilised for live monitoring of complete supply chain management which is an end-to-end process starting from planning to dispatch, where we monitor various stages that include inventory, stock statements at our various warehouses, raising timely requisition and purchase orders to vendors of raw materials. These include suppliers of excipients, packaging material, and capital equipment. ERP is also used to fetch financial reports related to sourcing and supply of products, logistic partners tracking on logistic SLA v/s actual. So we are creating and monitoring a complete vendor scoring process by utilising Advanced Information Technology Services (AITS) to strength our supply chain management processes. Approaches to establishing coordination SLAs with suppliers and transporters allow us to define readiness of products at vendor’s end, lead time, etc. SLAs also become an excellent way to collect data that can be a feedback loop into decision making processes. Overall, risk management during pandemic=smooth coordination=SLA. In case of any crisis, this will alarm us well in advance for any implication which can be corrected timely before its goes out of hand. SLA and vendor scoring for both our suppliers and service providers (logistic partners) is important so as to share the regular feedback with them, through meetings, on where we stand in terms of the SLA and how we are further going to improve to avoid any implication in the entire line of the supply chain. Logistics—Essential to Strategy Logistics is the heart of our operations. We consider it critical as it helps us maintain the complex network relationship between our different business units and trading partners and timely delivery of products to retailers, etc. Regular meetings are conducted with our logistics partners to understand ways to optimise route of transportation and find its alternatives (railways, sea, air, etc.) and minimise lead times. At the same time, we enter into agreement considering specific SLA with logistic partners and keep on sharing data with them about scoring against SLA v/s actual for continuous improvement. Outsourcing of logistics We have a set of dedicated and reputed logistic partners for domestic and overseas supply. These partners include GATI, SafeXpress, TCI-SCS, DHL, Maersk, etc. We choose our logistic partners basis their expertise in handling and transportation and technology to manage backend operations, depending on the size of their fleet comparing our production capacity, strong network of domestic routes and overseas, 24x7 support, RIFD live tracking abilities, ability to figure out alternatives in case of any breakdown, so on and so forth. Agreements with logistics service providers (LSPs) are renewed based on regular performance review. Selection through an integrated multicriteria approach Our main modes of transport include roadways and railways. Alternative modes include sea route, air cargo, and express courier services. To understand and utilise alternative routes, our team discusses the criteria with LSPs and agents, and the same are in compliance with the SLAs. We have a policy in place considering which mode or route we need to select for our shipment, based on the urgency or the lead time requirement of the manufacturing plant. The supply chain team will accordingly take the call and opt for the desired service from the logistics partner. Also, every shipment is accompanied with proper documentation for timely supply of product. Warehousing techniques We have a full proof warehouse strategy in place in line with cGMP and regulatory requirements. Each product we source is being stored in the warehouse in line with the storage requirement of the product. Some products can be stored in ambient temperature while some are cold chain products and accordingly storage condition is miniated in warehouse. This also applies for the finished products as well as with our logistic partners during transport. As already mentioned, we have an ERP in system in place that directs us on which column and which rack a product is stored along with the complete details of the batch number, manufacturing and expiry. As such, we have an end-to-end control which gives us all the visibility in terms of inventory and shelf life of the product, along with full control of what FIFO system should follow while issuing material to plant. Guiding backend performance Entering into SLAs with expert logistics partners have allowed us to evaluate and find less expensive transportation modes, avoid logistic disruptions, monitor and minimise lead times, reduce safety stock, and optimise inventory levels. Our logistics partners have always ensured 24x7 backend support, helping us to live-track movement of each and every general to critical products. Trends that are reshaping the future Advent of digital capabilities like AI, ML, big data and advanced analytics, RFID and GPS tracking, benefit supply chain and logistics managers immensely by allowing greater control on the process, costs associated and scenario planning, thereby helping mitigate supply chain disruptions and enabling the flow of robust SCM practices.

We’ve seen many instances of pharma companies quickly retooling manufacturing to start producing products that are in high demand. This ability to repurpose capacity provides a model for business agility going forward. End-to-end visibility across production and supply is essential. This includes real-time production monitoring systems and advanced planning and scheduling tools in manufacturing, as well as the ability to track and trace product – from materials to final product – as it passes along the supply chain. This requires an enterprise platform that connects the company with its suppliers, customers and partners to enable the real-time flow of information and transactions to create flexibility and robustness. However, accelerating product innovation and manufacturing requires more than identifying capacity; it also requires engineering, design, production, and distribution of resources. Overall, it is vital for patients to receive the medications they need without having to deal with stress or roadblocks along the way. Although the pharmaceutical supply chain face various challenges, companies like Mankind Pharma are taking the necessary steps to ensure a smooth process from manufacturing of products to delivery to patients. Excerpts from a recent interactionof Upamanyu Borah with Bharat Bhushan Rathi, Head of Logistics atone of India’s leading pharma company. Genesis and Market Position Mankind is the fastest growing pharmaceutical company from more than a decade and listed among top pharma companies in the Indian Formulation Market. In its 26 years of journey, since its inception, promoters (Juneja Brothers—R C Juneja and Rajeev Juneja) attached themselves to the market and customers, critically realising the need to provide solutions—filling the vacuum—by offering good quality pharma and medicinal products at affordable rates in a developing market like India, which is now the world’s third largest. The company’s approach reflects in its mission statement which states “to be able to provide cost-effective, innovation based on superior quality pharmaceutical products across the globe that improves the lives of the patients.” Racing towards a turnover of USD 1 Billion, Mankind’s success is attributed to the out-of-box thinking capabilities and strategies of its experienced management team and field force. COVID-19 and The Supply Chain This one-of-a-kind crisis that takes over countries and economies once in a century is so unanticipated. No one is aware or can prepare themselves for such a disruption. But, a company’s strength can be rightly judged in such abnormal situations when the need to evaluate market position and resiliency of operations is being adequately put to test. Mankind Pharma stands rock solid with the character of “Go Getter”—striving to diminish the gap between demand and supply in a volatile market. Our organisational behaviour to serve Mankind speaks volumes about our tireless commitment to quality that has earned the trust of our valued customers. Adaptability and Flexibility With each day passing, we are improving our system. It’s an on-going process. During and after the pandemic, we implemented the CONTROL TOWER system—a decentralised mechanism for each critical process objective to debottleneck show stopper processes. We implemented and embedded enhanced capability into the ERP system to make it robust, reliable, and efficient and help meet increased demand for personalisation and improve a broad range of business processes. There was also a focus on making systems ON LINE (i.e. minimum human intervention). To challenge current supply chain processes, we designed a WEB so that any vibration in the network can be cached immediately and action is taken with no time lag. Strategic Initiatives for Better Supply of Products We completely revamped our processes. In fact, process upgradation programmes are still going. Generally, in the case of pharma companies, there is a unidirectional feeding flow {Production > Depot > POS (CFA)}. But, since the pandemic have no demand pattern and we have peaks in different time across different regions, we developed a system where product can be moved from nearby POS (CFAs) if there is any non-catered demand. Significantly, this solution helped us in Linear Distribution of Inventory. During the pandemic, when companies were struggling to distribute their products in the market, we were in a comfortable situation, ensuring availability of our products even in remote areas. Mapping and Integrating Value We are not 100% done with improvements but certainly we come a long way in last 2 years. We are using so many IT solutions — almost in each function which is not only enabling us to achieve desirable results but also decreasing human efforts in doing repetitive/non-value added works. I believe, these are the footsteps towards creating a RESILIENT and FUTURISTIC supply chain. Establishing Coordination At present, we are connected with an ERP systems solution designed internally. Disruptions like the COVID pandemic didn’t affect much because we have integrated system which not only depends on the manpower but on processes that converge at one platform making it easy for us to control operations and not exhibit holistic decision making to achieve the desired result. Meeting the sense of Supply and Demand We work on throughput efficiency a lot (i.e. when there is a sudden jump in demand, we can cater without lag/delay/backlog. This is most importantly because we have designed the system on Theory of Constraints (TOC)—the scientific approach to improvement that helps us to identify the most important limiting factor (i.e., constraint) that stands in the way of achieving a goal and then systematically improving that constraint until it is no longer the limiting factor. Logistics—Essential to Strategy There is no question on whether logistics (Storing and Distribution) is the backbone of any company—with robust operations of distribution to capture market, backed by motivated and skilled sales teams. Planning, Distribution, Transportation and Warehousing are all part of logistics operations and they need to be in sync to maintain efficiency at all steps. I believe all decision-based work controlled by a company and all transactional (repeated) must be outsourced to experts to support value-focussed thinking for improving business and operations. Quantifying Logistics Services Whenever we are finalising any LSP, apart from commercials, we validate his capabilities (i.e. how his strengths can be useful for the company) and not only that, we also see and review testimonials of the service provider’s present customers (in some cases, we also discuss and consult with them). However, as a useful rule of thumb, we keep a back up of and for everything and anything required to support the continuity of logistics and delivery of products. Yes, it comes with cost but for all critical operations we have this policy. Guiding Backend Performance We are driving activities on Indicators (I mean KPIs) and their online monitoring (not post facto after a month), any deviation is corrected immediately. Not only that, we also have authority matrix which makes this even more agile, because decisions are taken quickly and enable fast execution. Trends that are Reshaping the Future Going forward, I believe Direct to Customer (D2C) will be a buzzword (i.e. anything and everything at doorsteps or Direct Selling which makes even the entire logistics network more complex. Direct-to-consumer marketing puts the control of the buying process back into the hands of the manufacturers. The company is responsible for creating a superior product, marketing it to their target audience, delivering the product or service to their customers and establishing a relationship with them. The end customer is probably not aware of the steps their product takes on its journey from warehouse to delivery. Now that next-day delivery is arguably the standard in retail as a whole, customers may not even realize how much D2C has disrupted the landscape. Additionally, success factor of a company depends on BIG DATA usage (i.e. how companies can use AI to predict demand in a region). To make this happen, fast information flow (Real-Time) and expedited decision making is required at each step of the supply chain. Most critically, any sector, regardless of Pharma, although it’s a highly governed/regulated market), will have to strengthen its customer feedback mechanism. Lastly, on a softer note, at the moment, there is high deficiency of skilled people in the industry, so to all youngsters I say ‘You have a bright future’. ALL THE BEST!!

The connected fulfilment network should be deployed along with an agile road map to enable quick testing and learning of different node types that include capabilities in various locations rather than the traditional approach that initiates only when all node types and capabilities are fully developed. Building these required capabilities should also be planned in modular sequence. Regardless of how the omnichannel distribution network looks, it is important to stay flexible and adjust to any road map changes, such as an increase in customer requirements or new logistics service offerings—for example, delivery solutions for fast- and last-mile delivery. Testing, learning, and adjusting quickly should be the credo. Shonik Goyal, Head of Distribution and International Supply Chain at Bajaj Consumer Care informs Ritika Arora Bhola, that supply chain needs to be readjusted based on changing market conditions, and players should pursue an agile approach that enables them to adjust quickly to changing trends, options, and customer expectations. These principles, Goyal says, has helped Bajaj Consumer Care determine the approach to building the network and ecosystem of the future. Market position Bajaj Consumer Care, part of the Bajaj Group of Companies, is one of India’s well-known beauty brands. Our flagship product Bajaj Almond Drops Hair Oil is a leading name in the hair oil segment. We also own the Nomarks ayurvedic skin safe formulation product. Bajaj Consumer Care has a strong presence across the domestic market. We have a range of products catering to a variety of consumer needs made with a blend of traditional practice and modern science. Our hair products reach at least 1 in every 5 Indian household. Bajaj Consumer Care’s product range, best-in-class distribution strategies, smarter visibility in retail, and an amazing sales force drive our brand reputation. COVID-19 and supply chain operations The COVID-19 pandemic has increased uncertainty to a level never seen before in supply chains. Demand patterns are all over the place, supply lines are disrupted, lead times are uncertain, and nobody is quite sure when and how things will change going forward. Today, supply chain planning is more like supply chain prognosticating. Online commerce has exploded, and consumer habits won’t change once the pandemic subsides. That is already putting huge pressure on last-mile delivery. Secondly, demand has become more erratic as consumer buying pattern has undergone a lot of changes during the pandemic as they are shifting to larger packs so that they do not have to visit the marketplace repeatedly. Moreover, consumers have become choosy in terms of buying value-based products. Value has become a bigger virtue than cost. Need for flexibility Over the last five years, we have worked extensively on designing a flexible supply chain. Our manufacturing footprint has undergone a drastic change and has far better spread out, giving us much more flexibility in terms of service. Our distribution network has also undergone a remarkable consolidation in line with our growing manufacturing footprint. It is far more flexible and responsible to the dynamic customer behaviour and erratic demand patterns of the current environment.Strategic initiatives for better supply of products Five years back, we primarily had a heavy manufacturing set up in the North of India. Over time, we analysed customer demand patterns and accordingly upgraded our manufacturing footprint and developed manufacturing set up in Guwahati to cater to the Northeast and East India. We also developed another factory at Vadodara to cater to West, South and Central zones. This strategy has given us a remarkable cost benefit in primary freight as well as inventory optimisation, since lead times have been reduced by more than 30 per cent for East, South and Central distribution hubs. Also, we have onboarded best-in-class third-party logistics (3PL) service providers to cater to the factor of last-mile delivery—from distribution hubs to customers. Creating value Information flow is the backbone of customer service. Today, each and every customer needs information about the delivery of the order placed by them. First things first, we started leveraging simple Smartphone apps like Whatsapp to provide information flow about stocks, dispatches and deliveries on a common platform. Later, we started using SMS App to keep our customer regularly informed about billing, dispatch, vehicle details, transit locations and delivery dates. This has ensured better customer satisfaction as well as increased order flows for better planning and stock availability. Establishing coordination After the lockdown announcement at the time of pandemic onset in March 2020, we communicated effectively with all suppliers, transporters and cross functional departments, especially sales so that no panic sets in the system. Secondly, we released partial payments to our suppliers and transporters so that there is no shortage of funds to manage the crisis situation. Also, real-time data was critical for in transit stocks and at plants. We ensured that depot and distributor inventories were consistently flashed to all stakeholders. We utilised technology through SAP and communicated on the stock coverage to all stakeholders. We kept a close watch on the communications from Ministry of Home Affairs (MHA). We constantly checked the status with local administration and kept our teams motivated. We leveraged and utilised Whatsapp groups to stay connected and ensure proper information flow through the entire logistics chain including the suppliers, and mainly drivers who were often stranded midway without food and shelter. We even maintained constant contact with our distributors and retailers to give them the comfort that ‘we care and we are in this together’. Outsourcing of logistics All our transportation needs are outsourced. We sign contracts with logistics service providers (LSPs) based on location and load factors. And we have agreed to specific turnaround time (TAT) for each location. In general, our LSPs are trustworthy, customer- and cost-centric, service-oriented, innovative and technologically advanced, owns GPS-enabled fleet, and has the experience to operate across diversified sectors and expertise to reach out to pan-India locations. Warehousing strategies We have undergone warehouse consolidation and reduced number of distribution centres pan-India. After an analysis of customer demand patterns, freight cost and lead times for customer service and undertaken closure of small distribution centres (DCs) and gone for bigger hubs to cater to larger customer base through modern-day logistics services. We are present in all major warehousing hubs. Since rentals are at a premium, we continue to look for options to utilise vertical warehousing space to be future-ready for high growth years. Guiding performance We keep on conducting data analysis for evaluating changing customer behaviour, DC delivery efficacy, overall logistics cost, etc. We maintain regular connection with service providers and customers for constant overview on the matters that matter to the business and partner network. We keep benchmarking within the network and keep exploring opportunities for milk run, clubbing of loads and product delivery processes (PDPs) so that overall efficiencies with respect to cost and lead time optimisation keep getting implemented on ground

Responsiveness is what drives continuous innovation in products and continuous change in the ways we organise businesses and serve customers. Even within supply chains that emphasise responsiveness, there are segments of those supply chains that should focus on efficiency. Efficiency is critical wherever there are high volumes of predictable products moving between facilities. For example, segments of supply chains that connect factories with warehouses or distribution centres should be as efficient as possible. They should use the most efficient transportation modes and delivery schedules, and those facilities should automate their operations as much as possible. Companies have to dynamically respond to these forces and adjust to the new parameters through the judicious use of Information Technology. Farooqi Shaukat Ali, Director- Warehouse & Inland Logistics, Allanasons explains to Upamanyu Borah how IT is being leveraged to provide competitive edge in products and services at lower costs by the company, and that this continues to transform over time as customer preferences, market conditions, and business models change, however operations always remain steadfast to focus on efficiency and responsiveness amid evolving scenarios. Genesis and operations In 1865, with a vision and mission to put India on the global agro industries map Brand Allana was born. The conglomerate, with dedication over the years, has become a renowned leader in agro exports— spices, coffee, bakery ingredients, edible oil and premium ice-cream, amongst others. Decades of experience—technology implementation and engineering innovations—today has helped Allana to maintain a robust supply chain system in place. Catering to complex supply chain needs of sourcing, manufacturing, storage, internal transfers, exports and distribution, team Allana has gained immense expertise whilst managing a cost-efficient supply chain. To complement and nurture India’s agro growth, in year 2014, Allana started to provide services to dairy, poultry, seafood, fruits and perishables, along with addressing temperature-controlled logistics and distribution requirements of the pharma industry as well. Time is the essence of every action and Allana values customer’s time and trust, as it engages quickly and efficiently to offer the right service levels. The company has seen consistent growth in customer base while retaining customers near 100%, which is a benchmark in itself. The brand Allana built with passion to serve customers is instilled in the minds of each employee. Non comparable standards and service levels have showcased our popularity in 3PL vertical in short span of time. COVID-19 and tackling disruptions We at Allana create processes and procedures like a tank that can withstand the impact of a natural hazard. An asset base of 100+ refrigerated trucks and 66,000+ metric tonnes of cold storage space with most modern logistics and distribution practices make us no vulnerable to disruptive circumstances. The dynamic nature of the group quickly re-adjusts to overcome and sustain through tough times with ease. New awareness and supply chain programs are continuously developed to foster incorporation of the lessons learned from disasters and the findings from social research into mitigation practice. To be effective, mitigation requires a multidisciplinary team; each discipline has a role and contribution to make. Close communication and coordination among suppliers, distributors, and stakeholders increase the likelihood of effective mitigation programs that are implemented. Flexibility in times of supply chain uncertainty Allana is hard in its approach of sustaining a quality supply chain. We are flexible to adapt newer systems and practices. When a company is resilient, unexpected is overturned to make it an opportunity. Great opportunities don't come every day – and we at Allana recognise and seize them with every chance we get. Each of such opportunity and experience is cemented well to our overall functioning and operational structure. Similarly, every crisis contains the seeds of opportunity and we have already recognised those and doing the needful. Strategic innovation In a dynamic world, an adjustive approach to actions makes us flexible to fulfil needs of our customers, both internal and external. Experience being the strength and expertise acquired through systematic learning, our strategy is therefore always to lean towards customer feedback. Customer feedback enables us to build techniques and tactics that help to provide quality services at optimised spends. Simply put, it’s about understanding the way the business interacts with customers and how we provide them with a consistent experience whenever and wherever they need it. We analyse and study customer-related data based on customers’ previous interactions with our company. For example, we can get a good understanding of our customers by evaluating general requests, product quotes and support enquiries. This data can then be used to create highly targeted products to match customers’ individual preferences, which results in a more personalised experience. Procedures  to optimise SCM To accommodate the new, modern-day customer, any business needs to think digital first. Companies need a plan that not only outlines which technologies need to be adopted but also protection from digital disruption. That’s why understanding your core systems and processes to identify opportunities are critical before harnessing the potential of digital transformation. Information technology seamlessly integrates and drives our robust SCM practices. With excellent network of strategically located plants and offices, our IT excellence shapes our operations by capturing key data nodes, measures critical control points, and provides analytics in making decisive decisions across SCM. Our unique approach is in integrating multiple data sources to a single data base—which deliver Management Information Systems (MIS) insights. We review, redo and keep developing IT solutions. Delivering the right service to the right customer at the right time puts us on a spot where we are well-placed to take advantage of the digital transformation opportunity. Today, personalised experiences are what our customers have come to expect. Ensuring smooth interplay While we are customer focussed, we are vendor friendly too. What we see today is a pandemic crisis, however there had been many instances in the past when we have faced economic crisis. Consultative decision making is a habit that we at Allana uphold and which our suppliers, transporters and vendors acknowledge and reciprocate as well with the passion to work alongside. Conversely, as we model balanced decision-making that uses both cognition and intuition, we help to grow our staff with deep awareness helping them become receptive and capable with the ability to frame well-balanced responses. Our IT systems are built in a fashion where transparency of required data is available at the hit of a key. Inter-departmental coordination and brainstorming is frequent, encouraging healthy competitiveness within the team as well with vendors. We don’t feel a need to pull in the opinions or perspectives of our counterparts. We’d rather together weigh the pros and cons, make a choice, and then loop partners in. Warehouse and distribution planning strategies We deploy three planning levels— Strategy, Tactic, and Operations, and this distinguish us from others. Our engineering team innovates and our technology partners integrate them. Custom improvements over decades in areas of maintaining speed, accuracy and integrity of stock put us on a top slot of good warehousing practices. ‘One size does not fit all’ — and this is something we understand well. We ensure we maintain a service that uncovers and analyses untapped possibilities within the warehouse. Strategically, we are aligned with other business verticals to ensure near 100 per cent occupancy of our cold storage areas. More the occupancy, lesser the energy cost. Complementary business verticals have also been strategically identified and included.

In an environment of accelerating change — in which long-term partnerships and joint ventures must be built on mutual trust, in which employees must be committed to provide superior service and drive ongoing innovation, in which customers have access to more and more information — a course of pragmatic idealism and value creation is not only possible, it is increasingly the only viable approach. Cost plus pricing can work in the right situation, but it’s important to understand that typical business scenarios don’t lend themselves to success with this model. Sanjay Kumar, HOD- Logistics, Haier Appliances India believes in focussing on quality and branding as the means to increasing revenues and solidifying a customer base, which may be a company’s surest path to long-term prosperity. Excerpts from his interaction with Upamanyu Borah. At the outset In the last 4 years, Haier went aggressive with the right products of superior quality. The company carefully identified and chose its consumers and their needs and accordingly planned its strategy along with product development and sales and marketing agenda. It took extra care in order to define how the market will be segmented and product positioned, priced, and promoted. This worked and put Haier among top 5 brands in India. Now, the target is to reach top 3, and we are sanguine of success. COVID-19 and wining factors We have accepted the new normal and are back to the productivity.Needless to say, COVID-19 impacted everyone in the industry; sales were lost for almost 2 months. Less work and decreased order for trucks created panic, but it also brought along opportunities because Haier assured business to the transporters and we did not experience acute shortage. Although with limited manpower, we planned two shift operations within warehouses and ensured we did not miss a single order.Like every other competitor, though we suffered loss on expense due to the pandemic effect, but we realised milestones too. We stood parallel to the benchmark of 99.99 per cent inventory accuracy, 99 per cent secondary dispatches within TAT and technological advancement with the roll out of business intelligence in transportation logistics. Fostering resilient learnings Within logistics department, continuous two months training program on motivation, delegation, productivity, time management and organisational principles created a new lot of highly inspired human resources. We ensured everyone at every level was appropriately delegated in order to take basic decisions at their level instead of awaiting directions from the top. It proved to be a new learning and we created leaders at every level inthe hierarchy. Being flexibile We do have flexibility within our system. All practices and SOPs are driven by flexibility. Of course, no one could tackle a disruption like COVID all of a sudden, but flexible DNA of the system could adopt the new normal. Within hierarchy, delegation of authority is ensured so that all managers can take decisions looking at the situation. This helped and still continues to. The strategic fit is must For any supply chain, it’s a challenge to create a strategic fit with the organisation’s overall strategy. We just cannot copy strategies from competitors and paste it. It will not work. Every supply chain manager needs to carefully understand the– competitive, product, and sales and marketing strategies of the organsiation. Based on that, it has to determine the nature of material procurement, transportation of materials, manufacturing of product or creation of services, distribution of products, and so on and so forth. To achieve strategic fit between two extremes– efficient and responsive supply chain and managing implied demand uncertainty, we have developed our capability in terms of resources, standards, policy, and SOPs. Adapting to technology Information flow is most important within and across the supply chain. In the last 3 years, our thrust on technology has increased. We work on SAP. Along with this, to address various other issues, we have developed many small programs like OMS, TMS, WMS, BMS and BI to create a sustainable supply chain. Establishing coordination First of all, based on functions, the logistics department structure is divided into 4 parts– Import logistics, Primary logistics, Secondary logistics, and Platform. All functions have structured meeting calendars with related suppliers and transporters. These are highly target-oriented functions and have their own standards to negotiate and meet demands. During the crisis, we were in constant touch with all service partners through video conferencing and other means in order to keep supplier-buyer relationship intact. Significance of logistics Haier is a sales-oriented company that requires strong support functions like Logistics, Finance, After-Sales Service, Strategy, HR, Legal and Audit. Among all, logistics is the most important function that actually fulfils and delivers the dreams of sales. Logistics looks after inventory and demand planning, Import and primary dispatches, warehousing, 3PLs and Secondary dispatches. Besides that, budgeting and cost control, long-term strategy making, system implementation, training and development, business process re-engineering, GAP analysis, project management, vendor and employee performance evaluation, and team building are associated aspects. Everything is controlled internally except warehouses that are managed by third-party logistics firms. We have 38 warehouses across the country and 90 per cent are managed by 3PLs. We have certain criteria before we put any logistics service provider on board. The selection standards are customised as per our requirement. Alternative modes and routes We rely only surface mode and for that we have our own parameters like transport search program, selection standard, evaluation standard. Warehousing tactics Warehouse space cost is one of the biggest components of logistics cost and it is quite important to control this. Since it is of fixed nature, a little dip in sales turnover will increase logistics cost. First of all, we freeze space in totality for the year. Based on ‘Days of Inventory’, dimensions and stacking norms for each product line, we arrive at total space required by each branch for the year. Basis space requirement, we search warehouses. For searching or sourcing, we have our own standards for the facility. If a warehouse building is meeting our standards, we finalise. There is an in-house team working on the same. We don’t hire external agencies to execute this task. Year 2021 will see remarkable change in strategy as we are targeting one fourth of our dispatches directly from the factory to dealers and distributors in order to reduce space and associated cost. Guiding performance We have monthly evaluation system at each level that is related to incentive. The evaluation criteria is connected with cost, efficiency, and services. This system acts as check and balance to ensure logistics efficiency. Besides that, we have our own quality functions within the logistics department, which has more than 20 check points of its own for each hierarchical level, assessed through monthly audit and necessary corrections. The bright side of the new normal One important change that we are already witnessing is the reduction in footfalls at showrooms/dealerships due to the pandemic crisis. Consumers are resorting to online shopping. Consumer durable companies will have to pay more attention to online business. Change in approach towards demand forecasting is expected. Building an effective people strategy As we strive to overcome the global pandemic and an economic recession, the character of leaders will matter as much as their competence. New version of leadership will be a competitive advantage. This new version of leadership will share power, put the needs of employees first and help them evolve and perform as best as possible. We witnessed the threats getting converted to opportunities within our organiation. We never felt so near to each other while sitting at workplace as we are witnessing now. We don’t consider those two months of April and May as living in exile but times of rigorous training that completely changed our mindset and prepared us to bounce back successfully. Foreseeing tomorrow Year 2021 is going to be a big challenge with respect to cost, efficiency and services. Prioritising value creation over price management will be the key for winners. Agility, flexibility, integration, transparency, and alignment will dominate the competition. We are all set with the plan of approximately 2 lakh vehicles (big and small), minimum space increase, technological support like live GPS vehicle tracking system, billing management system (BMS), advance business intelligence and LR automation (first time in the industry).

OEMs and suppliers from all tiers are rethinking the supply chain model, from sourcing of raw materials to production of finished products to delivery of finished goods and everything in between. A proactive approach is critical, especially in these fluid situations. Companies have little choice but to pivot meaningfully and strategic planning is the key to survival. Increased attention to the status of inventory at the supplier location, supplier production schedules, and status of supplier shipments will provide early warning of shortages and allow upper tier suppliers to respond accordingly. Companies that are electronically connected to key direct suppliers and have real-time data on the inbound flow of products and materials can move quickly to implement programs to access data and enhance management and decision making capabilities. Om Vijayvargiya, Head – SCM & Logistics, Schaeffler India, informs Upamanyu Borah, on how their plans have included rigorous restructuring strategies, while also including developing solutions for their partners, and how forecasts and analytics have enabled to perform on contracts or other obligations. Genesis and operations Schaeffler is a German group known for high-precision components, system and bearing solutions. As a leading global supplier to the automotive and industrial sectors, along with innovative technologies, products and services for CO2 efficient drives, electric mobility, Industry 4.0 and renewable energies, Schaeffler has been driving forward ground-breaking inventions and developments in the fields of motion and mobility for over 70 years. For over five decades, Schaeffler has had a strong presence in India with four plants and eight sales offices. Its three major product brands- FAG, INA and LuK are well represented in India. The manufacturing plant in Vadodara of Gujarat produces a vast range of ball bearings, cylindrical roller bearings, spherical roller bearings and wheel bearings, sold under the brand name of FAG. The other plant in Vadodara at Savli produces next generation deep groove ball bearings and large size roller bearings, also sold under FAG. Schaeffler’s third state-of-the-art plant, located at Talegaon near Pune manufactures steel cages, pulleys, cam rollers, bushes, plastic cages and a wide range of precision engine components, sold under the brand name of INA. Its fourth manufacturing location is based out of Hosur, which manufactures clutch systems and dual mass flywheels for passenger cars, light commercial vehicles, heavy commercial vehicles and tractors, and are sold under the brand of LuK. In October 2019, Schaeffler merged its three entities to form one strong ‘Schaeffler India’ and consolidated the business among the largest industrial and automotive components and systems manufacturer in the country. COVID-19 and tackling disruptions Imports and exports constitute large parts of our supply chain, and the pandemic impacted the complete chain across the board. We observed significant delay in the clearance of imported cargo during lockdown period in India as an impact of COVID-19. Shipments accumulated at the port (from March last week to May first week) and its clearance posed to be the biggest challenge. CFSs were fully occupied and destuffing of new container was a challenge. Searching our cargo, loaded either as FCL or LCL, at the time of clearance was not easy. To overcome the prevailing challenges, we created a task force within our organisation along with CHAs and local transporters and gained control over the situation within a month’s time. Flexibility in times of supply chain uncertainty There was some level of flexibility in the supply chain in the pre-COVID period. But no one has imagined this extraordinary scale of disruption in the supply chain. Actions have already started from our side to revisit risk management policies and systems once again, and then update planning. While discussing new contracts for 2021 with our various business partners- freight forwarders, CHAs, 3PL service providers, domestic transporters, etc. who are involved in managing our supply chain, we are emphasising on mitigation strategies to minimise or eliminate threats that may arise from similar future situations. We are working with them to add agility and transparency in overall operations so that the supply chain bears minimum impact. These revised processes have become critical and we are making them part of our regular practice. We are also restructuring the distribution network to exploit network effect to achieve dominance, time to market, and maintain the desired service levels for customers. We are Consolidating and Distribution Centres (CDCs) at strategic business locations in India with the plan to keep the inventory close to the customer and deliver on shortest lead time. Apart from this, we are working on various other logistic projects comprising key elements with advanced capabilities to improve efficiencies around track and trace and monitoring systems. More focus on digitalising our existing manual processes in the supply chain to add transparency and improve supplies of our product. Hands off: tech at work Digitalisation is enabling our business to build end-to-end supply chain solutions which will help us to avoid bottlenecks in the supply chain. Interestingly, real-time or near real-time information is the key of success in supply chain management. We are focussing on increasing track and trace of our consignment under transport management system. Globally, Schaeffler has deployed advanced technology solutions to get information about imported consignments. It provides information on shipments from the point an invoice is generated at the origin plant to the goods receipt note at the receiving plant. Our teams are also working to automate the invoice and billing verification process using AI and ML, etc. Building virtual relationships Managing its massive global supply network is a tall task, so Schaeffler set out to automate business processes via EDI technologies and utilising tools to connect suppliers and transporters with its own systems and helping efficiently transfer information without added complexity. At present, few domestic suppliers are connected with our system, but we are soon going to add more of them. This will enable smooth data transfer from suppliers end to the Schaeffler SAP system, enabling real-time information on supplies and product shipments. Establishing coordination Schaeffler India caters to both automotive and industrial sector customers. On-time and in-full delivery is our goal. In order to meet customer requirements, the management puts a lot of focus for continuous improvement in logistics operations. Rejigging and redrawing the network for optimisation, digitalising key operational aspects, and adding the processes for agility and adaptability are part of our ongoing efforts towards order management strategy. It grants broader visibility over the movement of our materials from manufacturing sites to customer’s location, helping in smooth and reliable distribution solution. Major operational activities are with our value chain partners, starting from transporters, freight forwarders, warehouse operators and customs clearing agents. Schaeffler team is involved with the network partners to improve their services continually. We track the monthly KPIs and conduct ‘Quarterly Business Review” (QBR) with our service providers. Significance of logistics Most of our inbound and outbound supply chain activities are outsourced and managed by experts in the sector. In fact, the percentage of outsourcing of our activities has increased in the last three years. Our logistic partners are involved in transportation, CDC operations, freight forwarding, customs clearance, etc. We expect our partners to be agile, driven by modern day technology capabilities, offering cost-effective services, although consistently out performing all others in its class. Indian automotive market is quite volatile. Besides, in the current pandemic situation, agility in business processes would be considered the most important determinant of a service provider. Digitalisation is the key to making process faster and error-free. In this situation, we prefer partners who are tech savvy and provide maximum solutions based on data and smart solutions. In order to establish long-term business relationship, it is important for any supplier to demonstrate consistent performance over time. Over and above, supplier should always be cost-effective to achieve our logistics cost targets. Warehouse and distribution planning strategies Schaeffler India revised its warehousing strategy few years back and decided to restructure the entire storage and distribution network. The merger of three legal entities of Schaeffler India and GST regime also helped us to streamline and implement this plan. We defined the actions based on both warehousing and transportation to get the maximum advantage out of it. As per this strategy, we planned to close our many small warehouses and open the consolidated distribution centres in four directions of India. These locations were selected based on their reach to our end customer and approach to plants. The freight networks were reworked keeping in focus the continual improvement and inventories close to customers. Building systems efficiency It is very much necessary to have an internal logistics team to work on continual improvement of key supply chain function. This team has different verticals like warehousing, transportation, logistic, etc. to watch out for. The job of this team is to improvise the existing performance and work on new topics. Currently, we are more focussed towards digitalisation and attaining SCM 4.0. We have very strong support from the Schaeffler regional team in Singapore and team from global head quarters in Germany. All teams are well aligned, and new processes are implemented simultaneously at all places. For many upcoming solutions, India is in the pilot phase. Innovative approach to logistics management E-commerce companies have created the benchmark in track and trace. But similar kind of tracking and tracing is still not available for industrial goods movement. I personally wish to see this change in the coming days. Any kind of track and trace should be one click away. This will make the life of a logistic manager much easier. Another big trend is consolidation. Consolidation is not a new thing in logistics; transportation companies have been consolidating supply material in their own traditional ways since many decades. They hold the material for longer periods at their origin hub, and despatch after 2-3 days waiting period. When I say consolidation, I mean utilising technology to consolidate the material without any waiting period. Many startups are already working in this direction, but there is still room for improvement. I believe this will bring a big change in the coming years. Logistics processes generates lots of data every day. But there was no utilisation of this data to further improvise or work on ways to simplify the same. AI has emerged as a key trend and enabler in the logistics ecosystem to utilise this data and improve processes.

Pepperfry has enhanced consumer experience manifold by building curated home furniture and décor marketplace, ensuring highest levels of quality control and providing a robust post-transaction experience through last-mile delivery and installation services. Satish Chandra Mishra, AVP and Head- Supply Chain, Pepperfry informs Upamanyu Borah about the company’s market leading position, which is a combination of innovation and rapid expansion of its logistics infrastructure, packaging, fulfilment and transportation capabilities to meet the growing business demands. Outset of operations Over a period of seven and a half years, Pepperfry has established itself as a leader in the online home and furniture segment by building special competencies to serve the Indian market and bridge existing gaps in the segment. In 2014, Pepperfry pioneered the omnichannel model by launching its first experiential studio in Mumbai. Today, the company operates 65 such studios across 24 cities in India, which are built on the solid bedrock of an unparalleled supply chain infrastructure. These studios allow Pepperfry to interact with consumers through multiple touch points. Leveraging the understanding of Indian consumers in the segment, Pepperfry introduced ten dynamic house brands, each of which can be distinguished on the basis of their design philosophy and price points, therefore democratising the furniture market. To elevate customer experience further, and cement its position in the market, the company built its own logistics network becoming the first-of-its-kinds in the online furniture segment. Overcoming barriers to distribution Initially, a robust logistics framework continued to be a challenge for Pepperfry. The company relied on third party vendors to ship its products, as the logistics infrastructure in India for large item delivery was significantly under-developed and shipping bulky items such as furniture was either prohibitively expensive or took too long. The company also faced challenges like lack of earnestness on the part of vendors to go beyond stipulated practices to deliver to the doorstep of consumers. Pepperfry therefore constructed a proprietary hub and spoke large item distribution model that significantly reduced per unit shipping costs, increased scale and operating efficiencies and achieved unprecedented service levels at negligible damage rates. Leading innovations Pepperfry has introduced various innovative techniques like blanket deliveries that are environment friendly and ensures zero damages as these blankets can be re-used saving carbon footprints. Besides, specialised product handling techniques such as staircase trolleys for delivery of products to highrise apartment, shoulder dollies to lift products easily and tool boxes to enable open packaging, are practiced. Pepperfry has replaced wooden crates with honeycomb boxes and corrugated boxes with higher specifications, which have helped to reduce delivery timelines, save cost and improve customer experience. In addition, Pepperfry has introduced angle board framing, styrene fitments for fragile glassware, and pizza box packs for furnishings. The company has also deployed a proprietary tool to track, update and execute deliveries alongside a customised warehouse management system (WMS) at fulfilment centers to handle multi-box parent child complexity. Vehicle tracking and maintenance tool for in-house vehicles and the last-mile mobile application for real time delivery updates are other technological features in use in operations. To stay healthy, every aspect of a business needs feedback loops. Pepperfry’s feedback loop data monitoring and processing systems gets triggered basis certain conditions and raises appropriate alerts, enabling the company to take pre-emptive measures to ensure seamless services. Building relationships So far, Pepperfry has collaborated with over 10,000 suppliers, 3,000 artisans, and 3,000 suppliers across sourcing hubs. Pepperfry’s supply chain team works closely with merchants on the movement of the products from the warehouse to the customer’s doorstep. Today, leading brands across the furniture and home industry sell their products on Pepperfry. The seller support team warrants onboarding suppliers to ensure they understand the quality standards and protocols set up by Pepperfry. To celebrate the burgeoning partnership, Pepperfry felicitates its suppliers at the Annual Merchant Conference. The conference forms a key part of Pepperfry’s endeavour to recognise the efforts of suppliers who have been imperative in helping the company build a differentiated catalogue of more than 1,00,000 products. With above, the company works with the best logistics partners in the industry and has built a robust Key Performance Indicator (KPI) driven incentive program for them through which there is provision for structured periodic reviews. For customers, Pepperfry provides assembly and installation support through a team of more than 250+ carpenters across major towns and cities. Logistics and SCM Pepperfry is the first online furniture marketplace to build its own logistics network - Pepcart, which has helped in not only rationalising time and costs but also overcome sectoral challenges that existed erstwhile. For efficient management of its vast network and product portfolio, the company has built a proprietary large item distribution logistics model. Pepperfry commenced the origin to hub shipment process through contracted trucking arrangements in April 2013, and since then the company has significantly reduced per unit costs with increasing scale and operating efficiencies. Pepperfry has assigned service officers within Pepperfry’s delivery team who look after special requirements like scheduling of delivery basis customer request, change of address, route planning basis heat map with zoning logic, carpenter scheduling along with delivery, timely delivery status updates through SMS and ensuring loading of products using vehicle partition to improve vehicle utilisation and reduce damages in transit. The executives are liable to draft/login a planning sheet and incorporate the same in the route planning algorithm. Today, Pepperfry runs India’s largest big-box supply chain in the country. The company’s specialised large item delivery fleet of more than 350 vehicles operating from 19 hubs across the country serves customers in 500+ cities. Flexibility Pepperfry’s customers are always wellinformed about their order; this is done at various stages of the customer interaction cycle. The process starts from cataloguing and continues into sharing expected delivery timelines, post-purchase tracking of product location through unique tracking URL and regular Email and SMS communication from the delivery team for assembly. In case of a cancelled order or a delayed delivery, information is promptly shared through Email or SMS. If an unresolved complaint is raised (through various channels), the customer service team contacts the customer within the defined timelines and ensures closure within servicelevel agreement (SLA). Pepperfry’s focus is on non-repeatability, which is accomplished by undertaking thorough follow-ups with the concerned customer until any pertaining issue has been resolved. Additionally, Pepperfry has a ‘track your order feature’ where every customer can track the product in the delivery cycle and is well-informed about the expected date of delivery. It also incorporates real-time calculation of delivery timelines that has a 98 per cent hit-rate of the promised timeline. Success rate formula The big-box logistics model has benefitted the company significantly across verticals. The key factors that have resulted in a seamless customer service are significant reduction in timelines, minimum cancellations due to damages in transit, reduction in shipping costs and lower attrition of logistics staff. Other key differentiators such as 100 per cent open delivery, blanket deliveries, auto scheduling of deliveries among others have been highly appreciated by customers. Pepperfry has successfully implemented ‘WE CARE’ program across blue-collar employees where each letter has a meaning associated with customer ethos in mind and stands for World-Class Service- Consistent, Accurate, Responsive and Empathetic. Pepperfry tracks NPS as a key indicator to customer satisfaction. The NPS for the organisation stands at 65+ for over last three years. Social media is another yardstick where Pepperfry is in the top percentile in E-commerce with highest social media applauds and cleans Facebook and Twitter walls. Pepperfry takes pride in having the highest repeat order customers of 50 per cent in the industry. Certifications and Standards Pepperfry recently received the International Organisation for Standardisation (ISO) certification for its 285,000 sq ft Mumbai fulfilment centre. This makes Pepperfry’s warehouse the first in India to be ISO certified with three critical certifications and the only one in the furniture and home segment in the country to attain this accreditation. The company’s warehouse in Padgha of Bhiwandi spanning across 285,000 sq ft and one of India’s largest furniture warehouses built with stateof-the-art automation and material handling capabilities including G+7 racking systems, battery operated trucks and multi-storey fetching reach trucks, received certification for ISO 9001:2015 (QMS- Quality Management System), ISO 14001:2015 (EMS- Environment Management System) and ISO 45001:2015 (OHSAS- Occupation Health Safety and Assessment Series). The ISO 9001:2015 certifies the high emphasis on quality and operating efficiency of Pepperfry fulfilment centres.

The focus of the supply chain management function has shifted to advanced planning processes, such as analytical demand planning or integrated sales and operations planning (S&OP), which have become established business processes in many companies, while operational logistics has often been outsourced to third-party or LSPs. Anil Kumar Mishra, National Logistics Head, South Asia, pladis Global explains Upamanyu Borah the opportunity that value chains have to reach the next horizon of operational effectiveness, to leverage emerging business models, and to transform the company into a digital supply chain. Genesis and business overview pladis is one of the fastest growing global snacking companies, based in the UK. Formed in 2016, the company is the proud steward of over 300 years of family baking and confectionery experience, and home much loved brand McVitie’s. The expertise of the conmpany’s 17,000 global workforce spans 34 factories in 13 countries across Europe, the Middle East, Africa, the United States and Asia Pacific, and is founded on collaboration, agility and resilience. Within two years of operations, plaids emerged as one of the fastest growing companies in the FMCG sector, with annual revenues in 2017 of £3.5 billion. The company expanded into new markets and used its global footprint to grow its brands and products in new and innovative ways – and now pladis has the potential to reach more than 4 billion people around the world. Supply chain practices Firstly, at pladis, we focus on advance planning for crafting a reliable and efficient supply chain to meet the timelines of internal and external customer demands, production, and other aspects of logistics such as freight forwarding, custom clearances and documentation process. Secondly, use of reliable transporter and suppliers in the long-term for a win-win situation. Besides, pladis focusses on speed, keeps pace with rapid digitalisation and maintains fill rate above its safety stockto balance the inventory along the economic order quantity, with catering to the entire CSD/CPC market pan-India. Warehouse and distribution plan strategies Improved production logistics solutions are major drivers of productivity development. In the FMCG industry, warehouses play a key role in the integrated logistics strategy and its building and maintaining good relationships betweensupply chain partners. Companies must accomplish the following objectives, regardless of the material being stored:  Consolidation to optimise freight on long and short haulage Setting up internal benchmarks which further reduce our cost per order or hold the cost in line as volumes increases Performance measurement or Key Performance Indicators (KPIs) Developing flexible, scalable storage racking layouts Outsourcing warehouse operations with third-party Logistics (3PL) or Carrying and Forwarding Agent (CFA) Reducing number of handling to avoid damage Training the CFA team on regular basis Standard Operating Procedures (SOPs) for warehouse and inventory management Using the right Material Handling Equipment (MHE) in accordance with Personal Protective Equipment (PPE) Using of Enterprise Resource Planning (ERP) software Fostering relationships Development is the next stage in supply chain management. It involves building a strong relationship with suppliers of the raw materials needed in making the product the company delivers. This phase involves not only identifying reliable suppliers but also planning methods for shipping, delivery, and payment, including:  Use of technology and a close watch on the ongoing and upcoming activities Advanced planning and clear requirements Close coordination and communication Tech-based live Management Information Systems (MIS) Expectations for LSPs Shipper’s expectation of a Logistics Service Provider (LSP) operating in the segment is most likely the daily operational effectiveness and efficiency against the contract, which too often is based mainly on price. Less clear are the expectations by clients for a more multi-dimensional approach to the contract, such as the capability to effectively manage the client’s variables in demand and supply, including manmade and natural emergencies. However, LSPs need to be proactive in understanding the need of clients and should be flexible and tech-savvy, well-informed, innovative and compli ant, especially in the FMCG industry. Besides, warehouse hygiene and safety should always be a priority for any warehouse service provider. Additional examples of challenges to growth for LSPs in the Goods Movement Services segment are: Achieving what was originally promised to win the contract Improving the satisfaction level for provided IT services Demonstrating ongoing projects that reduce costs and/or improve service Addressing the threat that elements of the process, or the whole process could be overtaken by a different technology or a disrupter start-up The closer a services business is to the ultimate consumer, the more likely this could occur Selling the capability to be entrusted with more responsibility Tech-enabled procurement: Scope Digital procurement which has huge scope in India and increasing adoption of advanced technologies are expected to drive market growth. Its potential further lies in: Government’s support for digitalisation Introduction of e-procurement, or electronic transmission of data Just in Time (JIT) and Vendor Managed Inventory (VMI) Supplier collaboration and innovation Strategic alignment and posture Capabilities and culture Centralised, Decentralised & Hybrid Sourcing Structures Category management and execution Challenges in technology adoption The below listed areas portray an interrelated dynamic – emerging technologies and digital transformation place greater pressure on existing IT infrastructure and cause companies to explore alternative delivery models (e.g. through third-party arrangements), while giving rise to new cybersecurity and privacy risks – all of which require an evolution in the skillset of IT auditors. IT security and privacy/cyber security Infrastructure management Emerging technology and infrastructure changes – transformation, innovation, disruption Any new system or technology that is adopted by your company will require some form of training in order for your employees and staff to use it. Regulatory compliance Budgets and controlling costs Cloud computing/virtualisation Catch up to industry trends The business world moves faster than ever these days, and with the rapid advancements in technology, it can feellike a constant struggle to keep up. But there’s a difference between barely keeping pace with your competitors andbeing so far behind that you’re completely left in the dust. Heeding to the below will be the best way to catch up: Customer focus Cost optimisation Agile distribution Profitable business ideas Digitalisation and interconnection of products and services, business models, and value chains Identifying megatrends We expect that the supply chain of the future will undergo a major transformation process. At the end of this process, supply chains will act ‘on their own’ with the ability to self-regulate and take appropriate actions, and as a result, will impact strategy, organisation, business results and more. I predict few factors will converge as we move toward this transformation: Lean-Green-Digital Supply Chain Speed to the market /customer Product Quality on shelf Leveraging distribution network for making it a profitable business specially in the cold chain Forecast accuracy Ageing stock which impact bottom line of the company GOYA– know your customer, know your business, relentlessly raise the standard, alignment /collaboration, take ownership and lead in area Performance measurement to know the status Inventory management and regular monitoring of the progress through Management Information Systems (MIS) for business discussion Next-gen supply chain Technologies like robotics and automation, Internet-of-Things (IoT) Artificial Intelligence (AI), predictive analytics,Blockchain, and innovations in the field of driverless vehicles and drones, has a big role to play in the next-gen manufacturing supply chain. Besides, companies will increasingly focus on making their supply chain more agile and lean, green and digital with real-time visibility into the goods and tracking of assets across the supply chain. Today, sustainability is fast becoming a key conversation starter in unlocking greater efficiency and cost savings in the supply chain. Cost savings, efficiencies and higher profits are still a key driver for businesses and have become recognised as one of the major drivers of sustainable supply chain changes. Other practices would include: Optimising inventory andfocussing on ageing stock Shifting focus from B2B to B2B2C 3D printing for faster and cheaper production