Information Technology - A Key Driver of SCM KUNDAN CHAUHAN Head Supply Chain Operations GATI KWE About Gati Ltd. End-to-end customized supply chain solutions in India Integrated logistics solution provider Express Distribution - Surface, Air & Rail 3PL/Warehousing e-Commerce Logistics E - Fulfillment Services Cold Chain Solutions Freight Forwarding & Customs Clearance Trading and IOR (Buy/ Sell capabilities) Delivering ~ 7 Million Packages a Month Ahead in Reach Key Differentiator for Gati PRESENCE IN INDIA Wide and deep network supported by robust infrastructure and IT solutions 5000+ Young Work Force Deliveries to 18000 pin codes 540 Offices including 18 large hubs 4500 + Trucks on Road 24X7 Call Centre 1600+ Daily routes 1200 eCom Fleet Size 220+ Reefer Trucks 3 Mn+ 3PL/ WH Capacity including efulfillment centers SCM – New Trends ● Demand Planning ● Globalization - The business landscape is rapidly becoming more global because of the improvements in communications ● Increased Competition and Price Pressures ● Shortened & More Complex Product Life Cycles ● Collaboration Between Stakeholders in the Extended Supply Chain ● Outsourcing SCM Globalization – Challenges ● ● ● ● ● ● ● Where should facilities be located? How many facilities should I have, and what capabilities should they have? What kind of capacity should they have? Whose manufacturing and distribution orbit should they source? Which contract packers or contract manufacturers should I use? What products and services should they handle? How can I achieve operations synergies through integrating acquisitions? SCM Globalization – Challenges ● ● ● ● ● Distribution Network Configuration Distribution Strategy: Including questions of operating control (centralized, decentralized or shared); Delivery scheme (e.g., direct shipment, pool point shipping, Cross docking, Direct Store Delivery (DSD) Replenishment strategy (e.g., pull, push or hybrid); and Transportation control (e.g., owner operated, private carrier, common carrier, contract carrier, or third party logistics (3PL)). Role of IT in Current Challenging World ● Network and Inventory Optimization ● Product Lifecycle Management ● Sales and Operations Planning ● Manufacturing Optimization ● Logistics Optimization ● Procurement ● Business Intelligence IT Solutions in Supply Chain ● - ● - - - RFID Unique identification of specific object-when items are produced, in what quantity & their expiry dates Software Agents Buyer Agents (shopping bots-retrieve info on goods & services from internet) Monitoring & Surveillance Agents (keep track) User Agents (take action on behalf-checking mails, alerts on imp mails, sorting according to user’s order of preference) - Data Mining Agents (finding trends & patterns) ● Decision Support Systems (DSS) ● Web Services IT Solutions in Supply Chain ● Electronic Commerce - E-Tailing - E-procurement & - E-Auctions ● Electronic Supply Chains - Virtual Supply Chains - EDI based or Internet based - - Links trading partners to allow them to buy, sell & move products, services & cash Advantages of Collaborative Planning, Forecasting & Replenishment (CPFR), Vendor Managed Inventory (VMI), Efficient & Quick Customer Response Latest IT Developments in SCM ● Supply Chain Digitization - Monitoring Inventory - Managing Warehouse Stock - Optimizing Fleet Routes - Reduce Dead Mileage ● Artificial Intelligence - Gesture Recognition in procurement process - Autonomous vehicles (self-driven cars) - Use of robotics to assist workers with repetitive & physically challenging tasks Latest IT Developments in SCM ● Wearable Devices - Fast & accurate collection of inventory data - - Keeping live tracking of manufactured, stored & distributed products Monitoring vital signs to prevent health problems such as exhaustion, heart attacks, etc. among warehouse workers ● Use of SaaS in the supply chain - Safety & security in usage - - Convenience of using service on pay-per-use basis Avoiding high fixed costs of continuous system maintenance, upgrades & infra related costs Technology Key differentiator for Gati IT solutions that are tailor made for high control as well as ease for customers GEMS: In house ERP developed through 200 man-years experience Capability to gear up as per business volumes Cross-Channel order fulfillment platform for today’s dynamic supply networks. Coordinated, customized fulfillment processes. Real time temperature logs and tracking of reefer trucks Ensures optimum temperature during carriage of temperature sensitive goods Real time data updates through mobile tablets Ensures reduction of time lag in updating package details Real time tracking and monitoring of warehouses through OCC (Operations Control Centre) Ensures safety of customers’ packages Vehicular Tracking System: Real time tracking of cargo vehicles’ movement Ensures on time delivery of packages to customers Established Relationships 7 of the top 10 Auto companies including Top 7 electronic companies including 5 of the top 7 Pharma companies including 3 of the top 5 FMCG companies including All e-commerce Platforms including Major Cold-Chain Clientele Centralized Distribution Model To Conclude……….. ● ● ● ● IT as an enabler in SCM. Current use of IT tools such as EDI, ERP, Bar Coding, Inventory Management, Transportation & Warehousing Management, RFID, Software Agents, DSS, Electronic commerce, Web Services & Electronic Supply Chains. Emerging new tools such as Supply Chain Digitization & extensive use of AI, use of wearable devices & SaaS in supply chain will help towards improving processes & accuracy in planning & execution. Also, Stronger Collaboration in Supply chain & Risk Mgmt & making Supply chain resilient is the key to success for an efficient & effective supply chain process. THANK YOU
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