Redefining supply chain Rajeev Daswani, managing director of Marami Metal Plating, discusses the importance of localising and digitalising the supply chain in order to improve the goods movement
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oday, companies across industries globally are looking at ways to establish close-knit relationships with their supply chain, as closer integration results in improved supply chain management. Over the past few years, there has been an increase in the number of brands building long term strategic alliances with local suppliers. Players, that previously off-shored their facilities to emerging economies, are re-thinking if their efficient but long supply chains are still functional as international inbound supply chains create longer lead times, inventory cost burdens on manufacturing facilities, and also incur added custom duties. Those entering the market are now understanding the potential of building products for the sector from the very beginning. The benefits of this approach include controlled costs, no import costs, reduced delivery lead time, and inventory accumulation. A fundamental way in which a firm can manage its supply chain is by increasing its know-how on outsourced jobs and procured items within an organisation. At Marami, for example, the clearer clients are about their specifications for metal plating, better are their chances of receiving the desired quality. A supply chain is best effective when a client sets boundaries and is able to monitor and control it — precise communication and aligned expectations — are vital. Additionally, in this digital era, companies should re-organise and create new competences by utilising the latest integrated IT solutions to ensure being on par with practices followed internationally, thereby helping them overcome any challenges they may face. Changing trends and heavy competition have also called for companies to adopt a more openminded approach in allowing local vendors to become part of their processes, ensuring that both sides support the overall vision of growth. In recent times, we have found that clients understand that a selected vendor within the supply chain is best suited to process a particular job and relies on them to provide a suitable price, delivery time, and overall execution. Clients are also putting further emphasis on hiring qualified procurement teams that can balance the supplier-client relationship. Times when overconfident procurement teams used pressure tactics to have suppliers outdo each other
In this region, it is very important that the idea of importing spare parts or repairing them only on a need basis, changes.” to secure business is now on the downturn and we find that there is an open and tolerant attitude where everyone wins. Localising the supply chain In this region, it is very important that the idea of importing spare parts or repairing them only on a need basis, changes. International brands and the regional players, who buy these brands, need to make a conscious and a unified effort towards localising the supply chain so that both parties can benefit. Compared the last 20 years, things are definitely changing, more and more brands are setting up manufacturing facilities locally and there has been an increase in the number of brands building long-term strategic alliances with local suppliers. The overall trend to carry out plating locally on new manufactured components has increased because of greater awareness of the benefits associated with it. However, those players that have been slow to localise their operations, are seeing an obvious loss in market share.” Marami works very closely with some of the leading companies in the region, and has had to adopt a more open approach and relationship towards servicing its clients in the plating industry. By providing clients with an opportunity of localising their plating and spare part repairing needs, working as an extension of
their clients, keeping their centres small and cost effective, while at the same time investing heavily in R&D, Marami offers personalised solutions at affordable prices to its clients. Although long supply chains sometimes seem cost-effective to start with, the surplus inventory and the lead time deviations caused by them often nullify the benefits achieved from sourcing products from global supply regions. Localising the supply chain benefits both the brand as well as the suppliers in any economy. For suppliers, localisation helps to improve overall technical know-how due to increased interaction with international specs, innovate, and have a direct positive impact on the economy as parties involved are able to maximise spare capacity and keep busy. For international brands, localisation helps in exercising a direct control on the supply chain locally instead of depending on global vendors, reducing the overall cost and risks as companies do not need to store or import large quantities, and in customising and modifying designs based on regional needs as well as on geographical, cultural, and working condition differences. In order to maintain a competitive edge, supply chains need to become responsive and flexible to market forces. A long supply chain works against a company’s ability to quickly and efficiently respond to disruptions to the market. Localisation empowers organisations by helping them reduce costs, sense threats, and react quickly. It helps an organisation to realise tangible cost benefits in turbulent times and maintain competitive order fulfillment lead time. When we speak specifically about the manufacturing industry, a non-localised supply chain in most cases, leads to high waiting times for imported parts, increased shipment costs, and a longer response time to local market fluctuations, which eventually leads to organisations left with either unsold inventory or stock outs.” At Marami, our system features include complete hard chrome plating setup; a pioneering electroless nickel plating setup; complete stainless steel passivation; complete nickel sulfamate, tin plating and copper plating setups; complete manganese and zinc phosphate and black oxidising setups; portable brush plating and on-site applications; and machine-shop with lathes, grinders, welding, and polishing systems.
Logistics News ME | March 2017 | 49