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Glimpses of FORSE in 2019-20

“LIFE ISN’T A MATTER OF MILESTONES, BUT OF MOMENTS” – Rose Kennedy


Chairperson’s Note

With a view to aid practitioners and learners in the vast field of operations and interface areas, FORSE - the committee of enthusiasts has been making efforts to bring new and emerging concepts and topics for the readers. MOMENTUM is an outcome of these efforts. I am sure the present issue will kindle your thoughts and further your knowledge in the field of Operations and Supply Chain. Congratulations to the team for their efforts in bringing out this issue. Happy Reading !

Dr. Pramod Shetty Faculty In-charge - FORSE Area Chairperson (Operations) KJ SIMSR, Mumbai

Momentum | June’ 20 Edition, Vol. XII


Editors’ Note

Dear Readers, “Knowledge is power. Knowledge shared is power multiplied..” – Robert Noyce We are delighted to bring to you the June edition of Momentum. Through this quarterly magazine, we don’t only share knowledge but also provide platform to share your knowledge as we believe that knowledge is power. In the past editions we have seen the articles on supply chain in environment of industry 4.0, sustainability in supply chains and many more. To make the supply chain effective and efficient, application of statistics, data analysing and other techniques are essential. With this thought we present you this edition with a theme - “Supply Chain Analytics”. We at FORSE, believe in continuous learning and improvement as it helps in constant expansion of skills. This cultural philosophy also reflects in our magazine. The structure of our magazine is such that it will give you detailed insights of the theme and add value to you. Our magazine has various enriching sections such as Recent Trends, Overview, Various Articles, Start-ups Stories, Brain Teasers and many more engaging activities done by FORSE. This time we have also initiated new section Corporate Insights, to get corporate perspective of the theme from industry experts. The articles that are included in this edition provide good insights into various topics related to Supply chain Analytics like Big data Analytics, Importance of analytics in post pandemic era, Digital supply chain and various enlightening articles. Last but not the least, we would like to thank everyone who has contributed to the magazine and wish for enthusiastic participation in the future as well. We hope you have a great experience reading this edition of Momentum. We also hope that we could provide a platform through this magazine to share and gain knowledge leaving you with a richer knowledge base to cherish and apply in various aspects of your career.

Happy Learning, Team Momentum

Momentum | June’ 20 Edition, Vol. XII


FORSEians’ Note

Dear Readers, We at FORSE (Forum of Operations Research & Supply Chain Enthusiasts), since our inception have been striving for excellence & building business acumen of students in SIMSR by not only organising simulation events, case study competition, international conference, magazines but also by executing campaigns, posts through social media handles thereby utilising the digital media space to communicate the very fabric of supply chain, operations strategy and logistics with all the operations enthusiasts across different geographies. MOMENTUM our quarterly magazine is an attempt to bring forward enlightening topics and concepts in the field of operations, supply chain and logistics to our readers. It contains articles based on different themes in each issue. Since its inception, Momentum has covered many topics under various themes including but not limited to , Rise of Service Operations in India, SCM & Logistics in E-commerce, Supply chain in 21st Century, Scope of Operations across different Industries & Business Functions, Industry 4.0 , Sustainability in Logistics and Supply Chain and many more. These days relying on traditional supply chain systems is becoming increasingly difficult especially since global trade has been restricted, coronavirus spread is on rapid increase and economy is on a slowdown. Technology is our go to solution in terms of leveraging the volatile market information and to tackle supply chain disruptions. More companies are using supply chain analytics to understand demand and capacity planning, inventory management and cost optimization. Hence, the importance of supply chain analytics is evident. Through the June 2020 Edition of Momentum which revolves around the theme “Supply Chain Analytics”, we strive to enhance the knowledge of our readers on various aspects of Supply Chain Analytics ranging from Application of Big Data Analytics, Digital supply chain, Importance of analytics in the post pandemic situation, and Statistics and classification of Supply Chain Analytics. On behalf of the FORSE Momentum Team, who has worked meticulously to bring this issue to you, we hope that the magazine gives you great insights and aggrandize your knowledge bank. Stay tuned for upcoming issues with more interesting themes. Keep Learning! Harin Gada Convener

Aashay Badani Co-convener

Momentum | June’ 20 Edition, Vol. XII

Srishti Mall Co-convener

Payal Golui GSCM President


Index

Overview of Supply Chain Analytics Page 1

Recent Trends in Supply Chain Analytics Page 3

Corporate Insights Page 5

Application of Big Data Analytics in Supply Chain Page 7

Resilient SCM- A New Normal Page 11

Supply Chain 4.0: The Digital Innovation Page 14 Analytics and Digitalization: Emerging Trends in Modern Supply Chain Page 19

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Benefits of Supply Chain Analytics in FMCG Industry Post Covid-19 Page 23

Statistics in Supply Chain and Classification of Supply Chain Analytics Page 26

A New World for Supply Chain Analytics: Post Pandemic View Page 29

Start-ups in Supply Chain Analytics Page 32

What’s New in FORSE at SIMSR? Page 35

What’s Exciting in FORSE at SIMSR? Page 37

Article Writing Experience: March 2020 Annual Edition Page 40 Brain Teasers

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Overview of Supply chain Analytics

Analytics constitute the ability to make

enterprise-wide business.

data-driven decisions, based on a summary of relevant, trusted data, often using visualization in the form of graphs, charts and other means. Supply chains generate massive amounts of data. Supply chain analytics helps to understand this data — uncovering patterns and generating insights.

Cognitively enabled. The AI platform collates, coordinates and takes decisions and actions across the chain. Supply Chains have mostly now become automated and is enabled with selflearning. Comprehensive. Analytics capabilities must be aligned with data in real time. Insights will be comprehensive and fast. Doldrums is unacceptable in the supply chain of the future.

Supply chain analytics is also the premise for applying cognitive technologies, such as artificial intelligence (AI), to the supply chain process. It can automatically filter through large amounts of data to help an organization improve forecasting, identify inefficiencies, respond better to customer requirements, facilitate innovation and apply breakthrough ideas. The Thinking Supply Chain by IDC’s Simon Ellis talks about the five “Cs” of the effective supply chain analytics of the future. Connected. Accessing unorganised data from social media, organised data from the Internet of Things (IoT) and more traditional data sets obtainable through traditional ERP and B2B integration tools.

Why Supply Chain Analytics? The growing importance of analytics and planning to overcome the supply chain challenges that executives encounter on a daily basis cannot be overlooked. Business Analytics has developed over the past decades and is offering decision support for critical, tactical and strategic supply chain activities. Insights from these activities are helping companies control their costs and also optimize their supply chains.

Collaborative. Enhancing collaboration with suppliers increasingly means the use of cloud-based commerce networks to enable multi-enterprise collaboration and engagement. Cyber-aware. The supply chain must strengthen its systems from cyberintrusions and hacks, which should be an

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What can analytics do to overcome the challenges faced by supply chain executives? Improve supply chain visibility Globalization has created so many suppliers, production units and distribution sites. While business growth opportunities are becoming strong, complex supply chains are created that needs to be monitored closely. Increasing supply chain efficiency begins with improving basic metrics that provides data for performance improvement initiatives and visibility of supply chain activities. Applying advanced analytics-based "control metrics" can monitor critical events and KPI’s across multiple touch points.

intelligence include: Materials : Analytical tools can improve visibility at the true total cost of product components rather than at price only. By placing comprehensive information at the fingertips of supply chain managers, organizations can reduce material purchases through improvements in supply chain practices and better price negotiation results. Logistics: Floating demand models and an expanding base of suppliers and logistics partners have pushed companies to rethink their Logistics Network strategy. They can achieve strong ROI improvements through analytics-based planning activities such as route optimization, load planning, fleet sizing and transportation cost reconciliation.

Manage volatility by managing demand and inventory With globalization and increasing variance of products, demand volatility has increased significantly and permanently, making demand and inventory management a major challenge. Industries require generations of daily or real-time forecasting to run on the market. Advanced analytics can be applied to anticipate demand, predict and monitor supply, replenishment policies and plan the inventory flow of goods and services more accurately.

Sourcing : As companies expand into new volatile markets with diversified product portfolios, managing a multitude of suppliers around the world becomes challenging. Supply chain analytics can play a key role in improving supply chain performance by improving supply chain visibility, managing volatility and reducing cost fluctuations. Supply chain, for any industry is a long and a very complex thing, it is also considered backbone of any company as a company’s cost structure and profitability is highly dominated by it. Therefore it becomes a great place to implement analytics and analytical tools so that the company keeps improving, gain operational optimization and stays in the competition with an edge with others.

Control cost fluctuations by optimizing sourcing and logistics functions Supply chain costs make up a significant portion of business costs and supply chain executives face a challenge in managing these costs. Key areas where costs can be controlled with analytics-based Momentum | June’ 20 Edition, Vol. XII

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Overview of Supply Chain Analytics


Recent Trends in Supply Chain Analytics

Immersive Experience: Augmented Reality and Virtual Reality is the new future for Supply chain as it helps organization in to speed up and make the required changes in real time which helps it save not only time but also costs that may have otherwise incurred due to failures.

Increasing

Globalization, cut-throat competition, and pricing pressures have led to organizations to the path of integrating Analytics with Supply Chain to increase efficiency, optimize its operations and thereby increasing productivity and reducing costs. Some of the recent trends and changes in the technologies that are helping the companies to shape their future are as follows:

Advanced Predictive Analytics: Using technology involves dealing with vast amounts of data. And this is where Predictive Analytics saves the company and the tools can actually be used to forecast, predict and thus take precautionary measures rather than waiting for failure to occur and suffer losses. Predictive Analytics is used in the smallest to the most advanced operations in the Supply Chain. Now, lets have a look upon some of the major fields in Supply Chain Management, where data analytics is being aggressively incorporated:

Artificial Intelligence: AI helps in supporting the vision of the company of an automated supply chain which will reduce human errors and save their time. AI can help the organizations in Demand Forecasting, Production Planning, Predictive Maintenance and Optimizing replacement.

Sentiment Analysis in Marketing Sentiment Analysis refers to extracting the words or phrases of a sentence that convey a positive or negative emotion towards something. With the advent of technologies like Artificial Intelligence and Machine Learning, sentiment analysis has become a growing trend, especially with reference to a new product development. Earlier techniques of product testing, using sample target customers has been becoming obsolete, due the amount of rework and time involved.

Digital Supply Chain Twin: A digital twin is a replica of an entity or system that helps the organization to view the process overview. It provides the organization with a digital representation of the entire supply chain system that is in place in the organization. It comprises of the all the elements from products, markets, warehouses, distribution system to the end consumers. Momentum | June’ 20 Edition, Vol. XII

Sentiment Analysis for a product under development requires huge amount of 3


data sets obtained from customer feedbacks and ratings, online surveys, blogs and news feeds, call center records, etc. Collection and availability of this amount of data has been made possible, due to the emerging popularity and increasing customer involvement in social media. The customer sentiments, when refined and analysed using Natural Language Processing tools and techniques, provide interesting and relevant insights about customer demands and reaction towards any product or process.

seasonality and cyclicity of such claims. The sole focus of this is to reduce the costs involved in such claims and prior & early detection of product defects, so as to increase profits and maintain customer trust. Warranty Analysis identifies systematic error patterns which helps in reducing failures, plan and stock inventory of spare parts and improve terms and conditions for customers, manufacturers and suppliers. It also helps to plan warranty reserve funds for future fiscal years by predicting costs of warranty claims.

With continuous advancement in technologies like Artificial Intelligence and NLP, performing Sentiment Analysis via analysing visuals and voices will soon become feasible and this will help to understand deeper and real emotions of customers.

Route Optimization Prescriptive analytics leverages machine learning to take predictive analytics to the next level, suggesting decision options that can mitigate future risk, at the time business decisions are being made. Many businesses in the logistics space, create a map of the yard or warehouse. Then, route optimization algorithm uses these mapping data to create optimal pick-andpack routes inside yard/warehouse for the forklift and the pickers. Depending upon different item types, quantities, and locations, the algorithm from the logic built in and from past experience will direct route loading equipment or human operators to the nearest pickup location. The vehicle route planning ensures that your equipment doesn’t get overloaded by weight or overwhelmed in any other capacity. In addition to all these businesses are now monitoring driver habits, and can tell when drivers are delayed in traffic. So it can then be decided if drivers require more training, and how breakages can be reduced.

Warranty Analysis in Warehouse Operations Warranty Analysis refers to analysing various aspects related to warranty claims of products, made by customers when a product performance is affected due to non-performance or failure of one or more of its parts. These aspects include the warranty costs to be assigned, based on different product designs and locations or environment of product usage, claim types, number of claims, etc. Huge samples of data for the same is collected using various sources like Internet of Things sensing, historical product usage data, customer demographics. And then warranty analysis is performed using Predictive Analysis and Error Forecasting techniques that help to understand Momentum | June’ 20 Edition, Vol. XII

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Recent Trends in Supply Chain Analytics


Corporate Insights This section presents the views on our theme by industry experts. This edition we have Sriram Balasubramanian, alumni of KJ SIM, to share his insights on Supply Chain Analytics. He is a supply chain professional with 23+ years of diverse experience across manufacturing and consulting industries in India, USA, Europe and South Asia.

Tell us about your professional journey till now. After SIMSR, I started my career with GSK Pharmaceuticals as Management trainee (Day 1 Campus recruitment). After around 3 years of rich experience, got a change to work with cutting edge Supply Chain technology platforms in various roles including setting up the Centre of Supply Chain excellence at Siemens at their Munich office. I had exciting opportunities to work with esteemed companies like PwC, Tata Global Beverages, Kansai Nerolac, BASF to name a few. These experiences have provided me wonderful opportunities to learn and enrich my knowledge of Supply Chain Management and lead transformation journeys across industries.

Has Supply Chain Analytics changed the way people look or do the business? It has transformed the way people look at business. The visualization possibilities and ability to conduct quick simulations help the Supply Chain planners to make well-thought out decisions, helping organizations improve their productivity and profitability. With being too much dependent on data, is Cyber Security a threat? If yes, what are the measures a company can take to ensure safety. While there is a risk on use of technology, suitable mitigation elements can minimize this. It is a fine balance between being aware/responsible and paranoid of using data and Cloud based technologies since they offer immense opportunities to the organization to collect and manage data for maximum impact. There are robust mechanisms to mitigate possible Cyber security threats to safeguard the organization. To summarize, the benefits of using data responsibly and with safeguards far outweigh the risks and pitfalls.

How would you define Supply Chain Analytics? Tools and mechanisms to convert data into meaningful information for the enterprise, using data structures to enrich and empower the Supply Chain professional to make impactful decisions based on rationale and facts. Why Supply Chain Analytics is important today? Identifies data collection points smartly to provide insightful information in a easy to understand medium to help Supply Chain planners take effective decisions to galvanize enterprise operations.

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There is lot of data available in unorganized sector related to supply chain. How can we tap this data for Supply Chain Analytics and what is it's significance? Data collection devices have now become simple and inexpensive, enabling enormous possibilities to structure mechanisms to capture relevant data at source and utilizing them for the organization's benefit. Analytics provides insights and data-based decision intelligence supplementing the stakeholders of the unorganized sector take bold and intuitive decisions at significantly lower total costs.

of working hands-on in functional roles. Without a relevant functional experience, a career in Analytics would be a short term but dangerous view-point. There is immense value in doing an Operations job to appreciate the true value and potential use of insightful analytics to make an impact. Will there be any shift towards usage of Supply Chain Analytics because of COVID19? Supply Chain Analytics has been trending for sometime now. Digitalization initiatives will possibly get strengthened as we start operations after the COVID 19 lockdown. I see a lot of use for Analytics in running what-if scenarios to arrive at sound business decision making.

What are the various fields about which a student can learn as a basic thing for Supply Chain Analytics? Conceptual understanding on latest technologies AI, IOT, Machine learning are must-have skills. Digitalization is the new normal. Any student or professional needs to be keep himself up-to-date with the latest technology and trends to remain relevant in this industry.

Anything Important you would like to share with us about the Supply Chain Analytics in general not covered in questions. Supply Chain Analytics is a trend and a welcome technology trend. However, it is at best an enabler for the Supply Chain professional and is neither a panacea nor a magic box for justifying blatant/rampant digitalization without foresight and thought processes. Analytics used in conjunction with functional expertise and insights will enrich the life of Supply Chain Professionals and speed-up their learning curve exponentially.

What is the overall future scope and opportunities in the Supply Chain Analytics? There are innumerable prospects and opportunities for pursuing a career in Supply Chain Analytics. However, to build true insights, this needs to be build on top of the irreplaceable hardcore experience

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Corporate Insights


Applications of Big Data Analytics in Supply Chain - Utsav Bhandula T A PAI Management Institute, Manipal visibility, responsiveness and identify and mitigate risks.

Supply

chains are growing complex. Customers are looking for high service levels and customization while organizations are looking to optimize the key elements in the supply chain to minimize costs and maximize value. In the era of globalization, organizations aspire to target new customer segments around the world further increasing complexity. Such comprehensive and elaborate supply chains create massive amounts of data that has all the characteristics of Big Data. According to Gartner (2012), Big Data is defined as ‘‘high-volume, high-velocity and/or high-variety information assets that demand cost-effective, innovative forms of information processing that enables enhanced insight, decision making, and process automation.’’

Big Data Analytics is superior to traditional form of analytics as it uses existing data as well as data that is beyond what is stored in the organization’s ERP – Enterprise Resource Planning and SCM – Supply Chain Management software. It uses a variety of powerful statistical tools such as Hadoop, R, Tableau etc. on these expanded data sets to discover far out insights for smarter decision-making. Big Data utilizes various sources of data, throughout the supply chain, which can be classified as structured, semi-structured and unstructured data as per the following

Ivan Varela Rozados and Benny Tjahjono, Big Data Analytics in Supply Chain Management: Trends and Related Research, 6th International Conference on Operations and Supply Chain Management, Bali (2014).

Source: towardsdatascience.com

Big Data Analytics can transform this large amount of data into insights using Descriptive, Predictive, Prescriptive and Diagnostic techniques. It can enable supply chains to improve efficiency,

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The outermost oval (Other data) shows the various external data sources that Big Data Analytics can use to optimize supply chains.

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Key Elements of an End to End Supply Chain

accurate demand prediction. Amazon has recently patented an innovative technology they call “Anticipatory Shipping” – which is a system of shipping products to customers even before they have placed an order! Amazon looks at several data points from the vast amount of consumer data they have collected to predict consumer purchase decisions. Even before the customer has placed an order, the product is already downstream in the supply chain. The product can then reach the customer faster, increasing customer satisfaction. Big Data Analytics allows organizations to sense this ‘pseudo’ demand.

Source: Author

Some Applications of Big Data Analytics in Supply Chain Sales And Inventory Planning And Forecasting Sales and Inventory Planning and Forecasting has been traditionally the most data-driven process in the supply chain. It mainly uses data from ERP system and forecasting techniques to anticipate demand fluctuations and products are manufactured accordingly. Big Data Analytics can streamline the planning and forecasting processes by providing visibility and insights from real-time data generated through the supply chain. For several years, supply chain managers have been trying to accurately forecast demand. Big Data Analytics uses past demand trends along with several data points at each element of the supply chain to predict future demand patterns. Using a much larger and voluminous data set, predictive analysis leads to a far more

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Source: storybydata.com

Sourcing Big Data Analytics can help organizations to evaluate supplier performance. Utilizing data of past performance of supplier, historical and current market pricing and risk assessments, the decision of awarding a new contract to a supplier can be taken in a data-driven manner. Big Data Analytics takes into account various datasets such as SCM transactions data and supplier financial performance. Organizations can also evaluate shipping routes and freight charges data to optimize sourcing.

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Applications of Big Data Analytics in Supply Chain


Manufacturing Internet of Things (IOT) devices and multiple sensors data can be used to evaluate the real-time condition of critical plant machinery. By making sense of the vast amounts of data generated from these devices, machine and plant Preventive Maintenance can be scheduled minimizing machine breakdowns and supply disruptions. This also leads to better Capex investments decisions.

transportation-related activities.

non-value-added

Transportation Logistics companies can use Big Data Analytics using live GPS for location tracking, weather and dynamic traffic density data to optimize routing of deliveries. Logistics giant UPS has developed ORION – On-Road Integrated Optimization and Navigation, which is a route optimization software that optimizes daily route for drivers. It does so by analyzing data streams that include past route performance, traffic data, pickup times, etc. It then informs the driver of the shortest delivery route to opt for. Using this software UPS expects to reduce operating costs by $300-400 million per year, 10 million gallons of fuel and 100,000 metric tons in CO2 emissions.

Source: mnubo.com/blog/iot-machine-learning/

Energy-intensive operation runs can be scheduled by taking leverage of fluctuating electricity prices to minimize production costs. Warehousing Warehouses are plagued with problems of shelf space optimization and redundant forklift movements. Big Data Analytics can use data of pallet load dimensions to optimize shelf space in the warehouse. As a result, a layout is created that minimizes movement of pallets to intermediate locations and streamlines product flow.

Point-of-Sale Brick and mortar stores create huge chunks of data. Customer ratings, demographics, purchase frequency, purchase history, buying basket information are some of the several data streams generated by customer interaction. As per a report, Walmart creates a whopping 2500 terabytes of unstructured data every hour! Big Data Analytics can provide valuable insights using this data.

Analyzing product demand patterns, predictive analytics can be used to store “hot-products” at optimal locations closer to loading docks, minimizing

Organizations can have real-time awareness of demand fluctuations and minimize Bull-Whip effect upstream in the supply chain.

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Applications of Big Data Analytics in Supply Chain


Analyzing customer market buying baskets, the organization can learn which particular products consumers are purchasing together.

regarding supply chain strategy. Big Data is the catalyst that organizations need to transform their supply chains. However, there are few challenges that organizations face while adopting Big Data Analytics. Shortage of professionals skilled in Big Data techniques, resources required to collect disparate data streams onto a single usable platform and data storage remain hurdles that need to be crossed before there is wider adoption and implementation.

Product placement in shelves can be optimized by analyzing consumer movement patterns within stores captured through video cameras. Data from weight sensors installed in shelves can indicate low inventory levels and autoreplenishment orders to suppliers can be automated using Big Data Analytics.

Data collection is not enough, meaningful insights have to be drawn. If this can be achieved, organizations can attain the next frontier of efficiency, competitive advantage and value creation.

Challenges & Way Forward As per SCM World (2016), Big Data Analytics was termed as being the most disruptive and important technology

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Applications of Big Data Analytics in Supply Chain


Resilient SCM - A new Normal - Shweta Sachdeva & Baibhav Kumar Singh Indian Institute of Management (IIM), Visakhapatnam various BFSI giants, going forward this should be core of upcoming generation of various Supply Chains. A careful study using relevant analytical models in place can indeed bring out astonishing out comes such as a Global Giant would have been thinking that for them their most significant risk is because of a Primary OEM of a Core part of Product but on further analysis they might find out that highest vulnerability comes from a miniscule firm of a key component that might hardly be of 5 cents.

The

onset of Covid-19 across major economies in the world has exposed a lot of fragilities and put the Global as well as Local Supply chain systems at higher risk. One of the major attributes in this regard is the lack of interest and investment of resources put into Data Analytics and AI, and reluctance to move from established methods of Off-shore manufacturing by the Global giants. However, alarm bells are ringing at an all time high now when the chunk of supplies of essentials as well as non-essentials are laying unused, yet to be shipped in the inventories.

Technical advancements such as IOT, Machine Learning , Deep learning do have a significant contribution to make in strengthening of future supply chains through lean innovations and development of System and Process specific models of analysis. However, these can’t solely be enough to remove all vulnerabilities and inefficiencies which have come into picture in current course of Pandemic. Firms also need to strategically decentralise and diversify their procurement techniques and redesign supply chains so that they’re able to source product from multiple locations, depending on where a disruption occurs. One important aspect which need to be relooked into is supply-chain mapping,

Risk mitigation is one of the key aspects in which usage of analytics by Global manufacturing giants is a must once the life returns to new Normal. Properly designed inventory models as well Production processes developed on key data attributes from past would help the firms achieve a striking balance between being resilient and being efficient. Efficiently built models for stress testing of supply chains should be orchestrated to bring into light the unseen and ignored flaws and corrective action must be taken. Well drawn of resemblance of such Stress tests can be found during the post analysis of 2008 Banking crisis, undertaken by

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failing to do so would leave firms reeling without any proper contingency and recovery plans.

ML models to figure out available logistics capacity and collaborate for efficient utilisation of Freight capacity. Based on inputs from Data and Analysis team, make extensive arrangements for Pre-Booking Air / Rail travel of goods.

Certain key attributes of a Supply Chain System where analytics has a larger role to play are: Creation of a Transparent view of multilevel Supply Chain: This step would include a careful assessment of critical parts of Operations, developing a model to analyse Bill Of Materials and related catalogue components to identify and assign properly curated risk index to each and every component involved. Then segregating components of high risk to further mapping these to a diversified set of onward suppliers.

Cash and Capital in Hand: We should run Stress tests against the Financial statements of various suppliers to understand who is in dire need of cash and also to know when would Supply issues start.

Computing a subtly realistic demand based on Real Time Inputs: Firms and Organizations should carefully analyse whether signals of demand signals generated by their customers are realistic and also factor in all risk and factors of uncertainty associated with them . The group assigned with tasks of Demand Planning must use Analytical tools at their disposal and the outcomes should reflect in Integrated Sales and Operations Planning Process. Develop IOT and ML based tools to estimate available inventory: Inclusion of after sales stock as a buffer to keep Production running should be a key approach various firms must inculcate into their practices.

We should strive to lay focus on acclimatizing our Supply chain with Digitization. Through constructing and promoting a Single data source, a digitized supply chain would enhance the firm’s capabilities to predict risk, leading to better visibility and coordination among various aspects of our supply chain, and simultaneously catering to problems that

Need to find and segregate supply chain capabilities: Develop carefully analysed

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Resilient SCM - A new Normal


may rise from complexity while trying to achieve product growth.

reaction by developing self learning models which taken into consideration all of these aspects. The Larger Tankers of Supply Chains with applied Artificial Intelligence should reminisce of Speed Boats. There is an unsaid need for automating monitoring of not just supplier risks but also regulatory changes to consumer demands and buying patterns. Firms need to devise a properly sourced Information cascade which is pro active in approach when it comes to suggesting insights.

Figure shows the commonality in capacities of Potential suppliers devised from clustering through digital enablement. Much focus should be given towards Supply Chain risk management. In the recent downturn of Geopolitical events, such as Brexit, Economic Depression of 2009 are examples of certain non-natural economic events which expose Global Supply Chains to the zenith of risks, One of McKinsey’s report suggests that, Brexit and continuous impositions of new Tariffs and sanctions have raised input costs to by as high as 15 percent.

This Information cascade must be properly linked between the Supply Chain Risk Management Team and other Legal and Marketing cohorts of the firm. At the end, We would like to say that there is a dire need for Analytical indulgence to monitor disruption causing trends as well as increased transparency between multitier supply chains through databases and models continuously working on Supplier’s locations, their financial reports and other related activities. Also, the transformation cannot simply afford to be a linear one in nature, it needs to be a properly curated iterative transformation.

These Union exits must be carefully followed by firms having International trade and material flows. As these sanctions can impact the lead times due to delays because of Border restrictions, delays due to documents formalisations cause of increased rules and may adversely lead to pile up on inventory at both ends. The core idea is to become more agile so as to send across a faster

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Resilient SCM - A new Normal


Supply chain 4.0: The Digital Innovation - Diksha Modi Kanoria College, Jaipur Digitized Supply Chains (DSC)

First

came the mechanization through water and steam power, then mass production and assembly lines using electricity, then computerization and informatics controllers for accelerated automation.... so, what comes next? The fourth era, Industry 4.0, challenged our ideas about what it means to be a human. This new horizon is changing the way we live, work and connect. Industry 4.0 embraces numerous technologies and associated paradigms such as artificial intelligence (AI), the internet of things (IoT), autonomous vehicles, Interoperability, Smart Factory, Big data, robotics, quantum computing and the like to create a bedrock for analytics and enables a conversion between the physical and virtual sphere; transforming traditional supply chains into dynamic, insightful, scalable and nimble value webs.

Digital supply chain model

A Digital Supply Chain is a dynamic, value driven network that leverages new approaches with technology and analytics to create new forms of revenue and business value, through excellent liaison of digital hardware, software, and networks to support and synchronize interaction between organizations by making services more valuable, accessible and feasible with congruous, agile and effective outcomes.

A long road to industry 4.0- Digitization in every aspect of business Source: Pwc insights

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How do Digital Supply Chain Network operate? Digital Supply Networks build a “digital thread” across physical and digital channels, connecting data, goods, and services in potent ways:

Traditional vs Digital Supply Chains Linear supply chains are transforming into Complex, dynamic and connected value webs.

Digitization realigns traditional supply chain networks Source: Deloitte analysis

Process

Comparison between Traditional and Digitized supply chains

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Supply chain 4.0 The Digital Innovation


The Key Benefits: Raising Supply Chain performance When businesses embrace the scope and possibilities of the DSN, the supply chain management becomes more: Faster - Industry 4.0 in supply chain process has evolved diverse digital enablers such as machine learning, internet of things, data analytics to speed up the delivery time, manage inventories, and improve insights and decision making across the logistics network.

Sustainable - Advanced risk prediction tools are pioneer in making the current supply chains more transparent and sustainable through ethical risk monitoring and transformative technology. AI is dramatically improving disaster management, reducing air pollution, conserving natural resources, smart water management thus turning businesses greener. By knitting sustainability into the fabric of digital supply chain network, businesses can attain a competitive advantage.

Amazon acquired the automation and robotics company Kiva in 2012 which automates order picking and packing processes uses several emerging technologies like language perception, power management, depth sensing systems and object recognition. Amazon also filed a patent for an Anticipatory shipping method designed to initiate shipment of products even before the order is placed through Predictive analysis using insights on previous orders and product searches. The products will reach the customers faster, thus improving consumer satisfaction. These tools not only slash down on warehouse and fulfilment costs, but also optimize the supply chain models to operate efficiently and quickly. The company has also espoused Unmanned aerial vehicles (UAV) and drones as well, launching Amazon Prime Air.

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McDonald’s is targeting a 36 percent reduction in the greenhouse gas emissions from their restaurants and offices worldwide by 2030. In the U.A.E., the burger giant collaborated with a biodiesel company Neutral Fuels to recycle cooking oil waste to power a fleet of biodiesel delivery trucks. It was the first restaurant chain to commit to science-based targets. McDonald’s has been working with others in the industry to find the best ideas for sustainability in beef. Across the globe, McDonald’s is working with local members of their supply chain to ensure that natural resources are managed responsibly.

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Supply chain 4.0 The Digital Innovation


Flexible - Systems like Real time capacity feedback from machines allow a flexible response to the dynamic demand and supply forces. DSN improves the inter connectedness which in turn transforms the rigid production lines into flexible manufacturing value webs– making it feasible to shift from mass production to mass customization.

infrastructure or restructure manufacturing or logistics network. With the use of analytics, Business can identify customer needs and in real time push the product through its supply chain to the customer in record time. Appropriate predictive and prescriptive analytics applied to Digital Twin creates end to end visibility in sync with the real world supply chain. Pfizer, one of the largest pharmaceutical companies in the world began an initiative called Highly Orchestrated Supply Network Initiative (HOSuN) which aims at achieving "Complete Visibility into the status of products at all time" by leveraging cloud technology and internet of things to collect data from both within the Pfizer ecosystem and external environment. This system creates a real-time virtual map of its supply chain allowing the participants to track each supply input and product across its complex value web and promptly respond to interruptions thus generating significant cost savings.

Additive layer manufacturing at Airbus The prototype Airbus A350 XWB contains more than 1000 3D printed flight parts. These lighter parts while Maintaining strength, reduce the overall aircraft weight. This drops the fuel consumption, thus cutting operational costs and lowering carbon monoxide emissions. These parts increase the supply chain flexibility with the potential to build, maintain, repair, and operation on site and on demand.

Security - Blockchain can synchronize data and transactions at every leg of a supply chain. It builds a decentralized system making the records accessible to everyone but visible to only a few through dynamic read/write permission levels.

Visibility - Digitization ensures total supply chain visibility. Using predictive analysis, businesses can respond to supply chain problems with greater efficiency. Control towers enhance demand forecasting ,capacity modelling and provide insights into opportunities to streamline the Momentum | June’ 20 Edition, Vol. XII

Innovative supply chain security technologies based on Blockchain are instrumental in improving security, traceability, transparency, and accountability. 17

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Conclusion “Adaptability is about the powerful difference between adapting to cope and adapting to win.” -Max McKeown In the age of customer satisfaction, only modern supply chain ecosystems would thrive. Supply chain is the mission critical in this digital age and all companies need to re-evaluate their supply chains to ensure that they are fit for the future.

FDA to make Drug supply chain more secure The US food and drug launched a new project in which various stakeholders in the supply chain can pilot using innovative and emerging technologies for enhanced tracing and verification of prescription drugs in the U.S. and respond rapidly when illegitimate products are detected. This new system based on blockchain can enhance drug supply chain security by preventing counterfeit drugs from entering the supply chain.

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Analytics & Digitalisation – Emerging Trends In Modern Supply Chain - Amit Jha Prin. L. N. Welingkar Institute of Management Education and Research can be incorporated as well as leveraged to improve the performance as well resilience of the supply webs.

Modern supply Chains or webs to be called in true context have emerged as a melting pot of ideas pertaining to gap identification, product development, marketing, operations, distribution, finance and consumer service & thus touching upon the various tangents of business and thus requires wider perspective with broadened horizons. It has become the backbone of firm and now the two firms compete not only on the level of offerings and strategy but even on supply chain front. So, the supply chain must support competitive strategy of the respective firm. The supply chains of today suffer from economic uncertainty, change in the pattern of buying behavior, dynamic product life cycle & add to it un precedented events such as the most recent COVID-19 pandemic which have not disrupted the supply chain but turned it upside down. Thus, the field of analytics

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To set the context the use of analytics in the supply chain has always been there but the scope and scale has evolved & now it has taken the role of enabler for competitive advantage. Supply chain decision making works on three level -strategic, tactical and executional in concordance to the competitive strategy of the firm, it not only includes the movement of goods but also the movement of information and funds in both the direction. Today’s supply networks face challenges like lack of synchronization between planning and execution due to the lack of real time data available which leads to poor flexibility in the network and distribution footprint at the time of market volatility and production line imbalance and cost fluctuations. Way out of these challenges are to move into smarter logistics in order to improve supply chain visibility, proper demand forecasting, Managing volatility through efficient inventory management & by optimising sourcing and logistics services. But existing supply chains are large & monolithic. So, in order to make them more adaptive, agile & adaptable a confluence of various disrupting technologies aided with analytics techniques is required which would make them ultra-efficient and hyper connected.

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Industries are investing heavily in these nuevo spaces in order to create and maintain zone of strategic fit which is nothing maintain an economic balance on responsiveness – Efficiency spectrum by pulling the required control levers on real time insights rather than educated guesses. In case of FMCG goods having high degree of perishability conventional solution to this distribution dilemma meant means smaller distribution system length & thus low no. of intermediaries. But it is just like picking a low hanging fruit. Global supply networks winners have completely changed the way at looking at business prospects by changing the basic ecosystem with customer centric distribution models, data driven insights and state of the art technologies to improve end to end supply chain visibility The role of analytics has found its way to all the elements of the supply chain. Firstly, it can be used from the development stage by better data acquisition & management to improve

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product design by value engineering thus proving better product portfolio. Coming to planning of resources & execution part analytics tools such as such as spend analytics & invoice and contract analytics can be used to manage demand & supply risks, replenishment strategy, predictive maintenance, production scheduling & SKU’s rationalization. Thus, reducing lead time & better asset management efficiency. Various domains in which modern networks have taken a quantum leap is the last mile connectivity. Most of the earlier supply chain in early years of 21st century was restricted to back office but now omni channel businesses have come into existence as nowadays it’s not only about great product or service but also deliver a great customer experience. See and purchase business channel is being slowly replaced by click and collect channel. Customer’s choice personalization of what where & who has

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Analytics & Digitalisation Emerging Trends In Modern Supply Chain


implication on supply chain landscape. Significant amount of upskill is observed in the sector. Business processes not any more a neat linear process but omni channel product and processes have emerged. Bricks and mortar stores won’t disappear but major growth would be in omnichannel businesses. A recent study highlighted that 38% supply chain decision makers believe that it improves the bottom line of the firm while 81 % believe that their supply chain is no longer fit for purpose. Leading players have embedded omni channel mechanism into the heart of corporate strategy & digitalization can add wonders to it by making it more resilient and smarter.

avoiding the bull whip effect leading to excess inventory and stocks out. Apart from this it can also help to improve network resilience which in turn depends u upon how bottlenecks and lead times are affected by disruptions such as demand shifts, capacity reduction & communication failures and what capabilities exist for swift rectification of these disruptions. The node that is both critical and vulnerable is a major source of risk and an opportunity to build resilience. Resilience in the supply chain can be increased by adopting measures such as interchangeability which could be further aided by Plant, Product & Part standardization

Digitalization of these chains leverages new approaches with technology and analytics to create new form of revenue and business value. With the help of these technologies’ crude data can be safely stored, easily accessed & dynamically analyzed to gain new insights in order to drive right decisions.

Another domain of analytics such as predictive analytics can help us to minimise problem of stock out & bull whip effect which can eat into the profits of our supply chain. To quote a recent example during the COVID-19 crisis in USA when the front-end retailers witnessed a shrinkage of 12 % in revenue. the shrinkage in revenue of tier -1 or tier-2 suppliers in China fell by 40 % which could

This can minimize our forecasting error

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Analytics & Digitalisation Emerging Trends In Modern Supply Chain


simply act as a death blow to these small manufacturing suppliers. Even though it was a black swan event , A deferred demand trap along with supply and demand shock loom over our head in which the use of predictive analytics & real time data can help us to minimise problem of stock out & bull whip effect which can eat into the profits of our supply chain.

boils down to efficiency, agility and resilience which in turn open infinite possibilities. Even though many of the disruptive technologies are still incipient but as par their growth trajectory is concerned sky is the limit and there are no two ways about it. The process is challenging but the rewards are tremendous & for those who fail to change will eventually perish on this perilous pursuit more so correct in today’s times.

To conclude we see that every strategy

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Analytics & Digitalisation Emerging Trends In Modern Supply Chain


Benefits of Supply Chain Analytics in FMCG Industry post-Covid-19 - Bhargava Kumaraguru IIM Visakhapatnam Volatile market scenario? Abnormal or uncertain?

capacity. New age supply chain analytics is slowly replacing the traditional supply and demand management, and yet the gaps in production supply & market demand loom large. This pandemic situation has given us a chance to bridge this gap by adding much-needed counter security measures to this supply chain analysis. Digital supply networks (DSNs) help organizations help end-to-end visibility, collaboration, agility & optimization.

The spread of COVID-19 & the associated lock down has increased the demand for FMCG products putting a strain on FMCG supply chain. This pandemic has disrupted the supply chain operations by making previous demand forecasts ineffective. COVID-19 is hitting supply chain efficiency of FMCG companies alike as most of them operate with fewer resources available to supply and tackle increased demand. This phenomenon is the result of having the industry norm of planning for just four weeks of stock in the supply chain, and the chain will cut off when the inventory doesn’t get replenished within this period. The current closure on the economy is shattering things that stood across the time when we write this new chapter in supply chain risk management using SCA.

Typically, the FMCG supply chain has Suppliers, Warehouses, Operations & Retail outlets assuming the value chain roles of Sourcing, Manufacturing, Distribution & Logistics, respectively. Constructs like Network design, Capacity planning, Production planning & Inventory management help the supply chain operations work in tandem. All these activities are crucial to improve forecasting, identify inefficiencies, respond better to customer needs, drive innovation and pursue breakthrough ideas. Supply chain analytics – a saviour in disguise? Extensive use cases of supply chain analytics can be a surge in demand for hand sanitizers & companies like Dabur and Godrej shifted their production lines to meet the demand of essentials like hand sanitizers, hand wash etc. SCA can improve assessing & predicting such shocks when the first news of COVID-19 news broke in kerala. Some of the

Supply Chain Analytics in FMCG

Traditional supply chain analytics predicts the demand using data points gathered from the market; in this case, our end customer is our primary source. These demand points, along with market trends and changing preferences, were considered while managing the level of inventory and the optimal production

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Digital Supply Networks

techniques are listed below,

ensures prompt delivery to customers. Understanding the supplier and reviewing them will help us understand our critical suppliers and their alternate sources, and even their inventory status, increasing transparency on multi-tier supply chains.

Smart demand sensing combines the data from past orders with the real-time market analysis with sales reports ranking the products & their customer base. As in the current scenario, when we have only less capacity, prioritizing could help us cater to customers based on their needs real-time, a game-changer in market research and analytics. Assess realistic final-customer demand & respond to or contain shortage-buying behaviour of customers. These analyses help us understand current and projected capacity levels in both workforce and materials.

Freight network analysis - elevates the functioning of logistics which helps in allocating optimum level in consignment shipping. The lockdown situation has put considerable restrictions in the logistics front, and only 1:25 vehicles can be on roads placing a lot of pressure to deliver with reduced logistic resources. Identifying secure logistics capacity and flexibility on the mode of transportation will help overcome limits on roads & maintain lower inventory costs. Consolidating products for better tracking helps in combining products based on their usage and availability. Essential goods can be segregated & prioritized based on consumption & usage, which in turn gives the capability to meet demands that occur in different regions. Consolidation also helps in sanitizing the products and helps to keep track of them

Smart Demand Sensing

Production plan optimization – helps in hitting the ideal production capacity & schedule, estimating Inventory capacity needed along the supply chain to keep the production running & which in turn Momentum | June’ 20 Edition, Vol. XII

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Benefits of Supply Chain Analytics in FMCG Industry post-Covid-19


Illustration of Supply Chain Analytics

using GPS, RFID chips. These will help us to understand the vulnerability caused to workforce and customers.

shocks. Advanced technologies which would be at the delivering end of the supply chain are IoT (Internet of Things), AI (Artificial Intelligence) will elevate the process further. Whether it is COVID-19, trade war, regulatory changes, sudden spikes in demand, organizations that deploy SCA in sync with the techniques as mentioned earlier will be ready to deal with the unexpected.

Stress testing of the supply chain – enables us to understand & mitigate future disruptions using predictive analytics. Through these analyses, we can maintain optimal net working capital to avoid supply chains showing financial impact. Prescriptive analytics helps organizations solve problems and collaborate with logistic partners reducing time & effort in mitigating disruptions for maximum business value. In the future, there could be newer distribution channels focusing on direct consumer route.

Hoping to get out of this situation, unhurt is not a wise approach. Instead, we will take this time and strategize to manage the risk better. Contingencies occur for any business at any point in time. All the points listed above will be useful in the post-COVID-19 world. What we need is a proper decision making with supporting evidence. Optimizing production capacity & distribution capacity through the discussed techniques and take using sanitization and disease protection systems like PPE kits and engaging with communication teams to share infectionrisk levels and work-from-home options.

Focus on supply chain cost reduction, optimal asset utilization and reduced buffers has removed the flexibility to absorb disruptions to supply chain. Fortunately, supply chain analytics techniques are emerging that dramatically improve visibility across supply chains which enhance the ability to resist supply

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Benefits of Supply Chain Analytics in FMCG Industry post-Covid-19


Statistics in Supply Chain and Classification of Supply Chain Analytics - Shardul Dudhane K. J. Somaiya Institute of Management Studies and Research Statistics in Supply Chain: Inventory in warehouse: This measure gives the quantity of product available at a particular warehouse that can be used to fulfill orders from customers.

I was doing my summer internship with the largest Indian IT national distributor. I had returned from the lunch break and was back to my working desk when I bumped into the CEO of the company. We started discussing about my experience and learning in the internship. During the conversation I asked him, “What makes this company so successful?” He replied, “The business we are into deals with a lot of product lines and managing those products requires competent product managers and exemplary decision making.” Indeed he was right. Managing more than 20 different vendors/principle companies and over 600 stock keeping units (SKUs) was a herculean task for a company with only 500 employees. He added, “This kind of business is built on long term relationships and trust. Trust that comes from reliability in the supply chain network and effective system processes that enables it.”

Inventory in transit: This measure gives the quantity of product that has been ordered but has not yet been recorded in warehouse inventory. Together warehouse and transit inventory is checked to find out exact quantity of product available with the company. Inventory returned as damaged goods or missing items: When company receives shipment from vendor, the vendor is notified about damaged goods or missing items before in warding into warehouse. This number is used to maintain quality control of vendor supplies.

Now I had understood what was critical to success. But all this was at a macro level. I was curious to understand the micro level details. When I interacted with Business Managers, I understood what empowered them, Data Analytics. Data and facts are nothing when you cannot interpret them and this company had given them the necessary tools to take appropriate decisions. This is where I learnt how statistics in supply chain analytics are crucial.

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Reordering level and minimum inventory requirements: Business loses money and reputation when product becomes out of stock and company cannot deliver the product in specific time. This may allow competitor firm to use cross-billing against company’s customer and loss of exclusivity power in a particular geography or customer. Dead Stock: This is the most important measure for a

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business manager and his performance is critically examined against this measure. Dead stock is the stock lying idle for long periods of time and leads to a phenomenon called ‘Stock Ageing’. Such stock leads to unnecessary holding costs of inventory and consumes space that could be used for fast moving stock. Therefore it is essential to maintain inventory turnover ratio for all the SKUs.

will lead to loss in sales. It is important to analyze their sales data and inventory levels regularly to support them in their supply chain. Types of order and customer: There are different types of orders from customers. One basic classification is B2B and B2C customer. B2C customers are regular customers which generally buy in low quantities whereas B2B customers are corporates or institutions which buy in bulk and want customized products. Supplying B2B products requires time for customization and manufacturing for the vendor and hence the delivery time changes accordingly. Other factors like type of delivery like Ex-Warehouse, Freight on Board, Cost Insurance Freight and Door Delivery orders have their own implications on the cost and the delivery time of the shipment.

Estimated time of delivery: This measure gives the time required for the product to be moved from one channel partner to another. It is very important measure from customer’s point of view and may lead to competitive advantage for the company. Extensions in product delivery date may lead to loss of confidence in company. Margin on inventory: This measure is important from profit point of view. The product manager should be able to maintain a prerequisite average profit margin across the SKUs he is handling without losing sales

These may not be purely supply chain based statistics but a mixture of sales, financial and operational statistics give a much clear way for presenting a clear picture and aid in decision making using Enterprise Resource Planning (ERP) and Business Intelligence (BI) software.

Historical sales of SKU: This measure is coherent with dead stock. If sale of certain SKU is reducing over a period of time then it is high time to replace the SKU with another one as soon as possible.

Classification of Supply Chain Analytics: There are 4 major types of supply chain analytics which are depicted in the diagram below:

Current demand from off-takers: Downstream partners in a supply chain are very important for achieving success. If they are unable to stock out to their customers, then they will be hesitant to purchase more from the company which Momentum | June’ 20 Edition, Vol. XII

Descriptive Analytics: Descriptive analytics describes the events/activities that occurred in the past. One such example is the seasonal variation in shipment completion times. It 27

Statistics in Supply Chain and Classification of Supply Chain Analytics


Supply Chain Analytics

Descriptive Analytics

Diagnostic Analytics

Predictive Analytics

Prescriptive Analytics

can be represented through graphs, plots, charts and dashboards in a simple way that is easy to understand.

situation using optimization or heuristics and the likelihood of possible impact in the future on various stakeholders. Prescriptive Analytics can recommend which items to reorder and also determine excess inventory required to meet seasonal fluctuations in demand using machine learning and artificial intelligence.

Diagnostic Analytics: Diagnostic analytics ascertain the cause effect relationship of the events/activities that occurred in the past. It gives a root cause analysis using techniques like data mining and data discovery. For example, a correlation analysis will show a relationship between loss of sales and extended delivery times.

Descriptive and diagnostic analytics uses the data from the past to infer what happened and the reasons behind it whereas predictive and prescriptive analytics are forecasting tools which uses historical data to predict the outcomes and possible course of action to be taken will have an impact on those outcomes. Companies are now utilizing combination of all of these analytics to compete in this business environment. Supply chains that can leverage new technologies are able to mitigate risks in the future and make quality decisions that help them remain competitive.

Predictive Analytics: Predictive analytics uses the previous data to forecast the most likely outcome in the future. It uses probability and algorithms to estimate a parameter. It can be used to determine inventory requirements for various warehouses. Prescriptive Analytics: Prescriptive analytics suggests the best course of action to be taken in the present

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Statistics in Supply Chain and Classification of Supply Chain Analytics


A New World for Supply Chain Analytics Post Pandemic View - Pushkar Symbiosis Institute of Operations Management, Nashik. Introduction It is said that data is the new oil and analytics is the required ignition to produce the power punch to run large businesses. Today analytics is the buzz word used in almost every domain of any business. Does this power punch help societies overcome current catastrophic condition? Post pandemic times will witness great Socio-economic and behavioral changes amongst the consumers. It will be wise to keep in mind that like any other viral infection, health conditions caused by covid-19 is treatable and not curable. Thus there will be fatalities (very less in number) and transmission (like the common flu) even after vaccines are created. Thus post pandemic times refer to a comparatively long time frame where government imposed restriction will be removed but self-imposed restriction in the public will persist. Here are a few insights into how data analytics in supply chain or popularly called as Supply chain analytics will be useful post pandemic times.

Illustration of different applications of Supply Chain Analytics

terms of input from the customers down the supply chain, or any other external factors in consideration like a new competitive product or weather condition or economic slowdown etc. With the increase of door to door delivery of essentials and non-essentials through services provided on internet platform will not only give a boost to the preventive measures for the disease but will also give a better idea of consumer behavior and sentiments through analytics as all the data will be coming from the end consumers directly. E.g. While purchasing a product or service at a brick and mortar store, it is difficult to record the reasons for a non-purchase of items or services. However, with more internet-based services, it is easier to record and analyze what web links a consumer has opened or

Demand Forecasting Demand forecasting is perhaps one of the most important aspects of Sales and operations planning. A near to perfect demand planning ensures that the entire supply chain works in an optimum manner. Basically there are two components of this forecast. First component comes from the statistical calculation of past data and second component comes as corrected data in

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at what point he/she quits the web page. Thus giving the demand planners a better idea of customer’s behavior and thus either come up with a better sales strategy or a better demand forecast for the upcoming time horizon.

suppliers for the production of 70% of its generic drugs needs to be reevaluated and alternate source needs to be identified keeping not only the cost of procurement but other factors like quality, reliability, geo-political conditions in mind.

Capacity Planning Firms need to utilize their capacity in an efficient way in order to meet any change in demand as well as follow the new norms of working inside a factory or office premises. E.g. A segregation of the workforce as per whether they are required to work in office premises or they can work from their homes. Tech-based solutions to ensure that those working from their homes are effective in their working hours, a plan for automation of a work unit to reduce human contact may require future projections and costbenefit analysis. All these capacity planning measures may be achieved to a certain extent using data analytics.

Spend Analysis Spend analysis is the process of identifying, gathering, cleansing, grouping, categorizing, and analyzing an organization’s spend data. With many firms losing their profit over the first quarter of the year 2020, it becomes extremely essential for firms to cut down any unnecessary expenses so that all essential expenses can be met. The travel and hospitality sector is likely to feel the heat for some time and thus they need to wisely judge their spending in order to gain (much) from their business. E.g. Mc Donald’s in the United States has closed its dine in facility and moved all of its services to take out to curb the overhead expenses on dining facilities.

Supplier Risk Assessment A supplier risk assessment is basically an audit of a vendor’s processes, policies, and financial health to determine how much risk it poses to the contracting organization. With the current economic slowdown, OEMs need to re-assess their supplier risk, as there may be issues regarding suppliers running on low cash flow or a low work capacity which may take some time to recover. So a new rating shall be provided to the suppliers based on the inputs and accordingly a future contract or purchase order quantity to be decided. E.g. Indian pharma companies’ dependency for the APIs from Chinese Momentum | June’ 20 Edition, Vol. XII

Asset Utilization Analytics The asset utilization ratio calculates the total revenue earned for every dollar of assets a company owns. A very low asset utilization indicates either there is mismanagement in the concerned unit or there is not enough demand of the products or services from that unit. Thus there might be an effort to divert the assets of a company to some other product line or service. E.g. Many logistics and hyperlocal businesses like Swiggy and Zomato have ramped up their services for delivering groceries instead of their main businesses. 30

A New World for Supply Chain Analytics Post Pandemic View


Cost to manufacture Manufacturing costs are the costs incurred during the production of a product. These costs include the costs of direct material, direct labor, and manufacturing overhead. Such costs directly reflect on the price of the product or service in the market. With an economic slowdown, the purchasing power of buyers are surely going to get affected and thus producers and service providers must have a sharp eye on the cost they are incurring to produce a product or service so that such product and service remains competitive in the market.

Network Optimization A supply chain network optimization empowers companies to compare the current state of their supply chains to multiple “what-if� scenarios. Firms will have to re-evaluate their supply chain network in such a way that SKUs which are of prime importance like vaccine or PPE kits can be more responsive in nature while taking care that cost to serve is also not very high thus creating a balance between cost-effectiveness and responsiveness of the supply chain network.

Inventory Optimization Inventory optimization is the practice of having the right inventory to meet your target service levels while tying up a minimum amount of capital investment. With the current catastrophic situation, the warehouses need to have a different approach. They need to dedicate a particular storage space to essential goods like hand sanitizers, gloves, masks, etc. Also, there should also be a minimum stock of these items always present down the distribution channel in case the COVID-19 situation revives or ramps up again in the near future.

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Illustration of Zone of strategic fit which every firm likes to operate inside.

Conclusion With the changing times, the supply chain analytics will play a crucial role for businesses to adapt to the new condition and also pave a way for a better and safe service to the customers.

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A New World for Supply Chain Analytics Post Pandemic View


Start-ups in Supply Chain Analytics

The supply chain management forms an inherent part of any organization and with the changing dynamics, it becomes essential for the companies in this space to look for viable options to enhance the productivity of the existing supply chain practices, thereby leaving no room for wastage in any form. This calls for analyzing the existing supply chain methodologies and finding the best wayout, if required.

With the development of advanced technologies, this objective can be easily fulfilled and is exemplified by few of the start-ups as mentioned: LOGINEXT LogiNext, started in 2014, is among top 50 fastest growing tech companies of India by revenue. The company provides SAAS based solutions to optimize logistics and service operations on field. It empowers its clients to track field agent movements every single minute on a single map interface for better work force management. LogiNext provides Last mile delivery solutions using data driven analytics for planning of resource capacity and routes for distribution models including multiple pick up and drop

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algorithms. The algorithm considers parameters like real time location field agents, customer locations, their time preferences, traffic and weather conditions for dynamic re-routing of delivery updating ETA (Estimated time of arrival) based on change in conditions. LogiNext serves large enterprises from multiple industries like consumer goods, supermarket chains, retail, courier, transportation, repair services and utilities facilitating smooth movements of their shipments and satisfying customers.

SCOPT Analytics SCOPT Analytics was founded in 2017 with a Vision of “We want to be the ‘Go-To’ consulting and analytics partner for global enterprises in their business transformation journey. ”The team has over 5 decades of experience in supply chain and digital technologies. Srinivas GR and SaibalSrakar are the cofounders of SCOPT Analytics and they lead an amazing team of highly qualified and well-acquainted consultants and members. DEM-SENSE is SCOPT analytics proprietary cloud hosted Demand Forecasting Platform. It has the following features which enables smooth functioning.

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• •

Integration of external data sources Capture business inputs and knowledge from users Different approaches for forecasting like Top-down, Middle-out and Bottom-up Forecasting among dimensions such as product, time and geography

OPT-NET is cloud hosted Network Optimization Platform which has its own benefits such as:

• •

• • •

Cost analysis and drivers Simulation of business scenarios Optimize total cost for business scenario

The services provided by Suplari has benefitted many organisations. For instance, Hulu, an American OTT service provider had the challenge to manage its high budget allocated for cloud, IT, content and marketing and at the same time develop sourcing strategy to manage its suppliers. Suplari catered to this issue and help achieve Hulu data visibility and insights, eliminating hundreds of manual hour reporting and empowered the suppliers and budget holders with spend visibility and analytics for making better decisions. In the similar lines, this start-up has helped various organisations like GIA, Nordstrom etc.

Suplari Inc. Finding a place in the Gartner’s cool vendor in sourcing and procurement applications (2019), Suplari has emerged as a leading AI and machine learning based solutions provider start-up to help its clients gain a better perspective and insights of their suppliers and the associated costs. Founded by Nikesh Parekh in 2016, Suplari provides services on all analytic fronts from data collection to visualization and exploration. Some of the key features offered are:

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End-to-end data collection and interconnection using AI and machine learning to clean, normalize and categorize the data from multiple systems (mainly ERP based systems). 360 visibility dashboards and analytics for monitoring real time data for different supply chain stakeholders like supplier and employees. AI-powered insight applications like financial and process optimization. Finding better opportunities for cost savings and alternatives.

Trackonomy Awarded with the Technology Pioneer Award by World Economic Forum in 2019, Trackonomyis, another interesting company in Supply chain Analytics startup space, founded by Dr. Ajay Koche in 2016 providing a single unified platform for the following features which are simply Unique for its customers.

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Start-ups in Supply Chain Analytics


Analytics for inventory management including order arrival, storage, departure, processing etc. and at the same time preventing spoilage and recovering theft. • • •

All these features are provided by Trackonomy at a substantially low cost to its clients than its peers which makes it the most preferred choice for supply chain analytics solutions. The future of this start-up, as envisioned by Erik Volkerink, the CEO is to increase the deployment of Internet-of-Things(IOT) for enabling enhanced efficiency and an efficient supply chain management.

Keeping high value items safe by round the clock monitoring. Efficient monitoring and alarming systems for cold chains. Providing insights into alternate route management and optimization, enabling automated resolution and real-time monitoring.

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No requirement of any infrastructure, installation, platform training etc.

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What’s New in FORSE at SIMSR?

New YouTube Series on Impact of COVID- 19 Operations and Supply chain will certainly go through new revolutions in this post pandemic era and we, business graduates, certainly must be well updated about them. So, stay tuned to our channel and keep learning and exploring.

After successfully completing two series on Procurement and Total Quality Management, FORSEdu – our YouTube initiative is ready to launch a brand-new series on the impact of COVID 19 on supply chain and the digital world. This situation of pandemic is a never experienced domain for businesses and institutes over the world. The trade barriers and restrictions, though essential to combat the virus are creating new hindrances for supply chain. Our YouTube series would focus on what changes are being faced, how are companies trying to adapt to theses changes and the new developments that are/ will be taken by corporations in the digital domain.

Corporate Relations The Corporate Relations team is the face of the FORSE committee and our college for the corporate world. It connects the students of KJ SIMSR to the industry and engages with multiple organizations to bring various live projects for all MBA students. The team manages the project from its inception, onboarding, to its planning and delivery.

up as many diverse projects as possible. It aspires to be able to bring in value adding projects for the team, and build a very strong base for the vertical and planning other initiatives, one of which would be organizing seminars by industry experts. The plan is to take the Corporate Relations to its heights and unleash its real potential.

Currently the CR team, along with its FORSE members, are engaged in a Live project, where they are applying their classroom learnings into the practical world. This provides a great opportunity to the students to furnish themselves and make them industry ready. The team is currently planning to reach out and take

One of the live projects brought in by the Corporate Relations team is from Dharshitth Tyres. It is a family owned business dealing in Tyres and Engine components (Exclusive dealers for MRF tyres). They are currently planning for business expansion to increase their target customers.

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FORSight- A new KSS initiative community in the preparation for placement process and improve performance in group discussions. A post will be shared every Sunday on all our social media handles. Also, we will be sharing an interesting question about our topic on Saturdays. Some topics already covered are positive transformation of pandemic on supply chain , Will India decouple itself from Chinese manufacturing and so on.

This

June, the KSS team of FORSE launched a new initiative “FORSight”. The aim of this project is to help keep fellow forseians as well as other student community updated on the recent happenings of the world. Topics related to operations, business and supply chain will be covered, also special focus on current affairs will be made.

Informative sources such as key reports from consulting firms, blogs and articles will be shared pertaining to a particular topic to develop thorough understanding. Such approach has been adopted to ensure comprehensive learning about the topic in depth. This will also help student

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So if you have not seen our posts yet, go check them out on our social media handles to explore more. Also, stay tuned and keep learning.

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What’s New in FORSE at SIMSR?


What’s Exciting in FORSE at SIMSR? Live Project – Dharshitth Tyres students from Dharshitth Tyres. It is a business dealing in Tyres and Engine components. Students worked on various domains of business such as Business Development, Market research etc. They got to apply concepts like Competitive Analysis and Benchmarking to identify the best business practices, probable value additions to core competencies of the company. FORSE is focused on bringing more opportunities of these kind for its members.

Live projects are a great platform for students to apply their skills and knowledge into the real industries. Students get hands-on experience about subjects from live projects. Apart from this working on a live project helps them to become familiar with the industry environment and objectives. In the previous academic year, FORSE provided a live project opportunity for

KSS on Finance FORSE has always believed in exploring new areas and expanding its horizons while arranging activities, designing competitions, and conducting seminars and sessions. It is not only limited to Operations and Supply Chain Management but it rather identifies the needs of the student community as a whole and tries to bridge the gap by proactively arranging various sessions.

The session primarily surrounded on the above-mentioned topics which also involved the practical application of the same. The students were explained how to go about while doing analysis and the various Technical Analysis techniques such as Candlestick Patterns and much more. The Commodity markets were also explained and the basics about the same were made to clear. The various jargons used and the techniques explained were actually shown real time on an application which helped the audience to gain a better and clear understanding of the

Knowledge Sharing Sessions (KSS) are meant to help the students to learn from their peers and get a chance to gain knowledge on the subjects of their interest areas.

This year FORSE conducted an insightful session on Finance which touched upon various interesting topics such as: •

Stock Market Basics

Fundamental Analysis

Technical Analysis

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The Commodity markets were also explained and the basics about the same were made to clear. The various jargons used and the techniques explained were actually shown real time on an application which helped the audience to gain a better and clear understanding of the concepts. The presentation was designed keeping in mind the target audience. The Question and Answer session which was followed helped in clearing the queries and building a stronger foundation for the concepts explained.

understanding of the same. We witnessed an audience hailing from various backgrounds. It was attended by the super senior of FORSE committee who gave remarkable insights and appreciated the efforts of the team.

The session was followed by discussion on various current affairs related to stock markets and Finance as a whole which helped the students to get a better

Industrial Visits- An Overview FORSE believes in providing practical exposure and learning directly from the experiences itself. And therefore, when students visited from Germany through Student Exchange Program to KJ SIMSR, FORSE ensured that they get an opportunity to visit some varied industries from their areas of interests and help them in getting acquainted with the same.

for reduced contact while manufacturing. 5S and Green initiatives are adopted to improve the efficiency and utilization of chemical wastes to as high as 70%. The students were given a chance to visit the entire plant and understand the process. Day 2: Bharat Petroleum Corporation Limited (BPCL) The industrial visit started with a visit to the BPLC that is Bharat Petroleum Learning Centre, where the officers from BPCL greeted us and made arrangements for our breakfast. A lecture was arranged for us at the BPLC giving us insights on the petroleum industry and its scenario with respect to India. The discussion held there helped us understand the petroleum industry in a much better way. After lunch, we proceeded to the BPCL terminal, from where the BPCL distributes its petroleum

Day 1: TechNova Imaging Systems The team had an enriching experience through their visit to TechNova Imaging systems at Taloja, one of the pioneer companies manufacturing Digital Offset plates and chemicals for newspaper printing. The setup was well enclosed to avoid the penetration of sunlight from outside. A high degree of automation is incorporated Momentum | June’ 20 Edition, Vol. XII

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What’s Exciting in FORSE at SIMSR?


products with tankers. There, we had an opportunity to observe and understand in detail how the tankers are filled in an automated manner. Also, we visited the control room, where the officers explained to us how the terminal and all its processes are controlled from the control room.

breads and pasta of which some are their in-house creation. The students visited their head office that also happens to be their head manufacturing unit, in Marol, Mumbai. Here they prepare the dough and various sauce and also toppings for the outlets in Mumbai. The staff showed us around their storage units, their ovens and also introduced us to their chef who is also the head of innovation in their kitchen. The team got a chance to interact with them and get to know how they manage their supply chain, especially for their outlets in Gujarat. The taste of pizza involves a lot of hard work, planning and dedication of people, which is what we learned and the visited ended with pizza, garlic bread and pasta treat from the hosts.

At the end, we had snacks and we departed from the BPCL terminal. It was an informative, interesting and a successful visit.

Day 3: Cheeliza and Times of India As a part of IV for POMS conference we got an opportunity to visit Cheelizza- India ka pizza, which a pizza restaurant chain in Mumbai and Gujarat. It is chain of Ruchi Foods Pvt Ltd. They not only specialize in pizza but have also various varieties of

Momentum | June’ 20 Edition, Vol. XII

FORSE looks forward to many more visits to improve learning and gain exposure.

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What’s Exciting in FORSE at SIMSR?


Article Writing Experience

❖ Nimisha Agarwal, Indian Institute of Management (IIM) , Shillong “Ecommerce is part of our daily lives yet we are unaware of the various challenges associated with the management of returns. I would like to thank team FORSE who gave me an opportunity to learn about the challenges in reverse logistics and various strategies adopted by companies worldwide to manage the problem.“ - Winner and Writer of Reverse Logistics : A view more to cost benefit analysis , March 2020 Issue

❖ Vishnu Bajpai, International Management Institute (IMI) , New Delhi “Article is not just about penning down your thoughts on paper , it's more about structure , research , articulation , sequencing , visualization and art of storytelling. Well this article writing competition was out of my area of interest , operations .. still I participated in it because I wanted to learn something new and in the process I developed interest in specific topic” - First Runner-up and Writer of Importance and Impact of Sustainable Supply Chain, March 2020 Issue

❖ Raj Singh, K.J.Somaiya Institute of Management Studies and Research, Mumbai “It was quite an enlightening experience. The topics were very relevant to the current trends in supply chain Industry. The articles in this magazines are well researched. So, to compete with them I had to dug deeper which enhanced my personal understanding of the subject matter.“ - Writer of Shift from Cradle to Grave to closed loop Cradle to Cradle supply chain, March 2020 Issue

❖ Dhruvi Shah, K J Somaiya Institute of Management, Mumbai “I'm thankful to FORSE for giving an opportunity where in my article could be published. I hope whoever read the article could increase their knowledge, just as I could do mine. Congratulations to FORSE for publishing such valuable articles.“ - Writer of Green Supply Chain Management, March 2020 Issue

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Brain Teasers •

OpsWords

Answers of OpsWords of March 2020 Edition:


Brain Teasers •

Caselet

•

Quiz

1.

Identify the process using the picture.


Brain Teasers 2.

3.

Which event do you recall by looking at the pictures below?

Name this successful top Indian logistics start-up using the pictures given below.


The ACERS @ FORSE

“LEADERSHIP IS THE CAPACITY TO TRANSLATE VISION INTO REALITY” – Warren Bennis


TEAM MOMENTUM

“Teamwork makes the dream work." –

Bang Gae

Faculty In-Charge Dr. Pramod Shetty Designer

Area Chairperson Operations

Shubham Shah Nikhil Mhatukade

Editor Navpreet Bolla

Key Contributors Aashay Badani | Aditya Modh | Bradley Fernandes | Devendra Panda Harin Gada | Hiral Mody | Mehul Jain | Nalin Sharma Neha Sarkar | Parth Dedhia | Payal Golui | Pratik Landge | Rohit Shrivastava Shrishti Sarda | Srishti Mall | Sufiyan Momin | Vedang Makwe

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Profile for FORSE SIMSR

Momentum - June 2020 edition  

Dear Readers , It gives FORSE; K J Somaiya Institute of Management’s official Operations committee, immense pleasure to present you the Jun...

Momentum - June 2020 edition  

Dear Readers , It gives FORSE; K J Somaiya Institute of Management’s official Operations committee, immense pleasure to present you the Jun...

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