Topic: Managing Distribution Effectively For Supply Chain Excellence
Date: August 17, 2010
Speaker Profile :
Mr. Sarangi has 13 plus years of industry and management consulting experience, he has worked with corporate houses like Avalon consulting (formerly Business Consulting Group), IBM BCS and Wipro Consulting. He has been engaged in an advisory capacity with a many leading global and Indian companies across industry domains, namely, Automotive, Hi-Tech, FMCG, Port & Infrastructure, Steel, Healthcare, Media & Publishing and Plastics. His area of work has predominantly been around – Marketing & Sales Strategy, Business due diligence and Change Management, Post Merger Integration, Process Optimization and Performance Improvement. Some of the clients with whom he has been associated are – Toyota Motors, Unilevers, Johnson Diversy, Tata Steel, Ispat Group, Ciena Corporation (Nortel merger), Ashok Leyland, Anand Bazar Patrika Group, Ministry of Commerce Sultanate of Oman) and Club Car Inc.
He has a B.Tech degree (Industrial Engg.) from Govt. College of Engineering, Trivandrum, Kerala University and PGDM from XIM, Bhubaneswar.
The topic mainly focused on the challenges faced by companies in channel design and servicing to keep the inventory under control which in turn leads to efficient management of working capital and meeting customer lead time expectations. He explained through some case studies from his own consulting experience on problems faced by some Indian automotive majors and how the problems were addressed.
The basic fundamentals of SDM are, “what”, “where”, “when”, “why” & “whom”.
Two basic dimensions of SDM are:
Collaborative Planning & Collaborative Logistics
As he said, management must have the view of customer demand by means of technological collaboration & they must serve for the better. Only then the manufacturing process can run better and the supply of money to the departments is smooth. Management should also have a view of customer demand projection at certain places. Even in manufacturing, there is collaboration at each stage, and continuing through the Supply Chain.
In the present scenario, the customers are busy and have become more demanding. Hence there is a greater need for service customization and greater service coverage. There is a need of real time order configuration, which has already been used in the automobile industry. At the same time, there is also a need of optimally priced product/ service bundles.
The various components of supply chain are Plan, Source, Deliver, Stock & Sell, with each of them having few problem crises, like fragmented demand information causing problems in planning, multiple order fulfillment for sourcing, difficulty in monitoring shipment of stocks in the delivery process, inadequate managing of inventory in the stocking process and finally, multiple order entry in the selling process, creating bottlenecks in the smooth running of the whole system.
Two case studies on distribution were discussed, relating to automobile vertical. The first dealt with channel design for a new low end transportation product. It was concluded through field responses that the existing channel for high end products is not suitable for low end product hence separate channel catering to new target segment should be established. The second case dealt with channel servicing of automotive spare parts. The focus was on development of strategy for servicing low value, fast moving components. These proved to be very effective in providing them some practical knowledge about the topic.