Innovation in Supply Chain Management

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Nov 5, 2013 (3 years and 9 months ago)

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Innovation in Supply Chain Management

Sanjay More

Barloworld Logistics, Dubai

26 September, 2012

Contents


Definitions


Current trends


Innovations in supply chain


Cutting edge solutions


Matching it to your business

Innovation


Innovation

is the development of
new customer value
through
solutions
that meet new needs
,
unarticulated needs
, or old
customer and
market needs in new ways
.


This
is accomplished through different or more effective
products
,
processes
,
services
,
technologies
, or
ideas

that are
readily available to
markets
,
governments
, and
society
.



Innovation is not equal to
Invention

or
Improvement
.



In short “
doing things differently


Source: Wikipedia

Supply Chain Management


Supply chain management spans all movement and storage of
raw
materials
, work
-
in
-
process inventory, and finished goods from point of
origin to point of consumption
.



Another definition is provided by the APICS Dictionary when it defines
SCM as the "
design
,
planning
,
execution
,
control
, and
monitoring

of
supply chain activities with the objective of
creating net value
,
building
a competitive infrastructure,

leveraging worldwide logistics
,
synchronizing

supply with demand and
measuring

performance
globally."



Source: Wikipedia

A typical supply chain model

Innovations that changed Supply Chain Management

#1. Container & Cranes

The box that changed the world





It gave the world an unit to ship


Standardized the size and capacity


Set tariffs across a distance


Defined the capacity of ships


Road transport and trucking


Helped warehousing to measure
and build capacity.


Helped manufacturer and traders in
making and ordering decisions.

Innovations that changed Supply Chain Management

#2. Pallets & Forklifts

Movement of goods made easy





Movement made easy


Storage made easy


Counting made easy


Stock taking made easy


Air Freight made easy

Innovations that changed Supply Chain Management

#3. Racking system and VNA

Storage of goods made easy





Systematic storage


Stock taking became easy


Segregation of Fast Moving
vs

slow moving goods


Facilitated unique location


More capacity

Innovations that changed Supply Chain Management

#4. Barcoding & RFID

Tracking and data collection





Stock replenishment


Tracking


Intelligence building


Real
-
time data


Facilitated planning


Innovations that changed Supply Chain Management

#5. Production line and LEAN

Productivity and process management





Improved efficiency


Reduced the lead time


Reduced the cost


Simplified production and also
principles were applied across the
supply chain



Innovations that changed Supply Chain Management

#6. Computer & Web technology

The power of computation and connecting





Computer facilitated the
computation of complex formulas
and large amount of data


Facilitated analysis and trends


Web enabled data sharing


Real
-
time data analysis


Conversion of data

Innovations that changed Supply Chain Management

#7. Mobile & Communication

The speed of communication





Real time data capturing


Simplification of process


Shorter processes


Enabling data conversion


Facilitates quick analysis


Speed in response


Less paperwork

Innovations that changed Supply Chain Management

#8. DRP & ERP

Distribution and Resource planning





Streamlining processes


Quick access to information


Best
business practices


Improved
efficiency


Improved customer satisfaction


Improved
on
-
time
delivery


Reduced
inventory costs


Better
planning, tracking and
forecasting

Innovations that changed Supply Chain Management

#
9

DTS & TMS

Dedicated Transport and management





Improved
financing,
cash
-
flow


Increase visibility


Reliability


Route mapping and
optimisation


Optimisation

of resources


Integration

Innovations that changed Supply Chain Management

#10. Inventory & Demand planning

Reduce costs and improve availability





Reduce excess inventory


Improve cash flow


Forecast demand


Reduce gut feel risks


Improve availability


Improve customer satisfaction


Better return on investment

Innovations that changed Supply Chain Management

#11. Inventory
Optimisation

Creating a strategic advantage





Deal
with greater levels of
complexity


Manage longer
lead times and
uncertain
supply


Deal with bigger production runs
and supply
constraints


Different
modes of
transport


Network
optimisation

Innovations that changed Supply Chain Management

#12. Supply Chain design and
network
modelling

End to end supply chain solutions





Global
supply chain network
modelling

with mapping, locations
and road network databases for
any combination of countries in the
world
.


Reach
your full supply chain
planning
potential


Carbon Footprint mapping

Areas for innovation


Supplier



demand planning


Manufacturer



demand planning


Wholesaler / distributor


Inventory planning


Retailer



Inventory planning


Consumer



Value / Price



All these major points are connected with one or the other forms of
transportation.


Production planning, ERP


Production Planning Demand Planning, Distribution planning, network
modeling, Inventory
optimisation
,


Warehousing and Distribution


Air Freight, Sea Freight, Sea Air, Road, Rail, multimodal

The future of Supply Chain

Technology


We as a supply chain industry haven’t used the available technology to the full extent.


Collaboration


The supply of goods moves from one network to another network therefore collaboration
amongst these networks is very important. i.e. Suppliers and their suppliers, customers and
their customers (if applicable).


Collaboration with government bodies, regional legal and tax compliance, association and
international norms and regulations are some of the areas also calls for the collaboration.


Planning and Strategic alignment


Improve Customers performance


From suppliers order point to customers demand point


Dell Computer’s direct
-
sales model for business clients


Drag reduction 35
-
43%


Fuel saving 7
-
10%


Monthly saving

AED 4250


Carbon reduction 14
Tons in 6 months


The Green Trailer

Link to Barloworld Logistics case studies

thinking

outside

the box

Thank you