Developing a best-in-class cross-functional supply chain organization

Page 1

01 Developing a best-in-class cross-functional supply chain organization


Developing a best-in-class cross-functional supply chain organization

Developing a best-in-class crossfunctional supply chain organization Mr. Sebastian Thomas is a Senior VP Supply Chain at ZAFCO, Managing the Global supply chain at strategic level including various overseas logistics projects. ZAFCO FZCO is a leading global player in tire and battery distribution head quartered in Jebel Ali Free Zone. With more than 21 years in Dubai, Mr. Sebastian has been associated with some of the corporate giants like Seal-Land, P&G, Masterfoods, Philip Morris, BAT, Marks & Spencer, IKEA, TOYS R US, Ace Hardware etc supporting their end to end Supply chain management. During his close association with these blue chip organizations, Sebastian fine honed his supply chain and management skill which enabled him to bag the prestigious Supply Chain award ‘Logistics Manager of the Middle East” during SCATA award ceremony organized by ITP in 2007. Currently Mr. Sebastian is a key note speaker for supply chain conferences and a lead figure in regional supply chain associations. Today, Mr.Sebastian is sharing with Frederic Gomer, partner at B2G Consulting, his deep insights on the Challenges in Supply Chain Education for the GCC Region.

In a few words, please describe your company

The latest focus of the company is to invest

activity?

heavily into retail sector and planning to open

In 1993, Zafco started their operations in Dubai

65 retail outlets in GCC during the next couple

as a tire & battery distributor. Today, Zafco is

of year.

the uncontested leader in the region, and one

Could you please give an overview of the sup-

of the top companies worldwide in the sector,

ply chain at ZAFCO?

with more than 1 million tires in stock and op-

Supply chain is considered as an integral part

erations in more than 85 countries. ZAFCO de-

of our operation. At Zafco, the ‘end to end sup-

veloped own brand “ZEETEX” tires and batter-

ply chain’ covers Demand forecasting, procure-

ies which are distributed in various countries.

ment, customs brokerage, warehousing, inven-


Industry Insights Mr. Sebastian Thomas Senior VP Supply Chain

tory management and distribution. It is very

our customers’ expectation. The processes are

crucial for us to closely manage all the aspects

defined, accountability and timeframe are set

of supply chain management as this is one of

to ensure smooth delivery of performance at

the core areas where there is huge potential

various stages of end to end supply chain.

for cost efficiency.

Zafco supply chain can be treated as one of the

Considering the importance of supply chain,

best in this region. 100% of our local deliveries

Zafco management gives considerable focus in

are effectively done within 24 Hours across the

managing this core functional area with highly

U.A.E. Supply chain plays a vital role in:

experienced professionals. At Zafco, we claim

- Excellent service level and customer satisfac-

Supply Chain as one of our which

core

competency

supports

our

growth and helps towards

realising

our

“It is very crucial for us to closely manage all the aspects of supply chain management”

tion - Product availability - Cost efficiency - Continual service improvement

dream of ‘Going Global’ mantra. The world

- Delivery within 24 hours to all our UAE cus-

class facility equipped with most modern ware-

tomers

house equipments and most powerful Ware-

- Inventory management

house Management System along with our

- Measuring and controlling ageing inventory

highly talented and experienced professionals,

- Measuring and reporting stock days

enable us to exceed our customers’ expectation. We have taken all measures to ensure a

What was your biggest challenge in supply

perfect and performing supply chain division

chain at ZAFCO?

which is best in class. Zafco supply chain is sec-

When I joined Zafco in 2009, my mission was to re-engineer and design a suitable supply

ond to none and meets with and often exceeds


Developing a best-in-class cross-functional supply chain organization

Developing a best-in-class crossfunctional supply chain organization chain model to manage the global supply chain

communication between the external stake-

of ZAFCO more cost effectively. The company

holder. How effectively we manage the flow of

was planning for major expansion through

material and information throughout the sup-

wider global reach and diversification which

ply chain is crucial.

necessitated a strong supply chain depart-

My objective was then to break the silos be-

ment.

tween departments. I decided to establish

In the global competitive environment where

SOPs (Standard Operating Procedures) to de-

the company is evolving, the supply chain de-

fine the roles, responsibilities, tasks and time-

partments needed to reach a more profes-

frame of each cross functional departments

sional level, to provide higher

involved directly or indirectly

service level and to become a “My objective was then to in the management of the competitive advantage embed- break the silos between Supply Chain. This has enabled ded into the company’s DNA. the departments to share their departments” Company embarked upon mainformation and resolve their jor expansion drive and the volume increased

issues as a team and not as separate depart-

tremendously and also the geographical reach

ments during cross-functional meetings. In ad-

which itself created a challenge for supply

dition, the development of KPIs (key perform-

chain. Through re-structuring and hiring of

ance indicators) was very important to bring a

highly experienced professionals, and process

quantitative measure of the improvements. All

re-engineering we at Zafco supply chain made

these measures paved way for continuous im-

a big leap in capacity and service level.

provement in service level and customer satis-

The success of supply chain for a great extend

faction. As of today, the supply chain depart-

depends on how healthy is the interface be-

ment has been ranked as one of the “best per-

tween cross functional departments as well as

forming department in Zafco”.


Industry Insights Mr. Sebastian Thomas Senior VP Supply Chain

Regarding manpower in general and specifi-

ures the performance and identify the poten-

cally in Supply Chain Management, what are

tial talents who need to be retained in the or-

the challenges that you are currently facing?

ganization. The employee who meets with the predefined criteria, and who is capable of go-

The main issue that we are facing is that most

ing up to two levels, will be trained with the

of the people that we see during the recruit-

appropriate training, regardless of his current

ment processes have yet some experience and

function, position or department. Someone

exposure in supply chain management but do

who has been highly proficient in customer

not hold any degrees or recognized qualifica-

service, for example, could receive training in

tions in Supply Chain Man-

sales or marketing. Promo-

“We established a talent tion along with an above-the agement or Logistics. Another negative aspect is that retention program that -market package is also a key we rarely find true supply element in the talent retenmeasures the performance� chain professionals who are tion. The vacancies are comcapable of managing the end to end supply

municated internally before being advertised

chain. In more cases, their experience is only

outside.

limited to the logistics aspect of the supply

What are the skills the most lacking? How

chain, but do not cover the entire scope of this

does the Company overcome this challenge?

end-to-end discipline (from suppliers to customers).

There are four main areas where I have identified some clear areas of improvements:

How does ZAFCO manage to retain talents?

1. Demand forecasting

Any specific program? At Zafco, we estab-

In any trading organization, Procurement is a

lished a talent retention program that meas-

fundamental function which plays a predomi-


Developing a best-in-class cross-functional supply chain organization

Industry Insights Mr. Sebastian Thomas Senior VP Supply Chain

function in this part of the world. The supply chain and Logistics infrastructure

Having said that, Supply Chain management

plays a pivotal role in the economic develop-

should not be taught only in some avant-garde

ment of any country, which is not different in

universities but as early as at high school level.

GCC and therefore, we expect to have more focus towards professional courses and degree

As a fundamental discipline, SCM should be a

programs in Supply chain management and

mandatory course such as mathematics, phys-

Logistics.

ics or commerce in order to be aligned with the market demand for qualified supply chain

According to you, what is

professionals.

“Supply Chain professionals will I strongly recommend that supply chain workforce in continue having predominant it is high time for us to the region? introduce supply chain place in the organizations� and Logistics to students Supply chain managethe future outlook for the

ment and Logistics will continue to hold a very

at school level which will create interest

important place in GCC business arena. Supply

among them to pursue this for higher studies.

chain professional will continue having predominant place in the organizations. The im-

As Middle East is focusing on becoming a ma-

portance of supply chain management became

jor logistics hub in the world, it will be inevita-

very evident during economic recession; this in

ble that education in SCM becomes a top prior-

return caused the organizations to focus to-

ity.

wards this business discipline.



Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.