Volume 09, Issue 02, March 2020.
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How it all Began
In this issue Student Articles Puzzle/Do you know Astonishing Facts Student Feedback
Without data, you’re just another person with an opinion. ~ W. Edwards Deming
Re-imagining traditions of Supply Chain: The age of AI Revolution resulted in improvements – be it in cost efficiency, higher returns, authentic analytical and exceptional algorithmic powers. Most companies have taken off, based on the reliability and credibility of software that displays human-like cognitive capabilities; one being AI. It has been continuously growing alongside firms where the impact of AI on business performance and benefits earned by indulging in machine learning is also rising. Despite being recognized as one of the top three industries in the world, AI hasn’t received much focus from the supply chain domain. Fresh insights embedded by AI would allow consumers to get what they are looking for and simultaneously allow suppliers to exercise correct information. Therefore, if implemented correctly, AI can be a catalyst and act as a magic wand in the field of supply chain management and logistics. By early 2021, approximately 50 percent of SCM will adopt AI strategies and machine learning. Automated planning and optimization of almost every working field in industry, would work best when AI stands out to be the right tool stemming genuine feedback based on the measure of success reaped by companies trying their fortune with this intelligence. Based on large volumes of data used every day and requisite demand for forecasts, some supply chains have moved to an AI-based solution. An inaccurate buying behavioural data would result in an erroneous future demand. With these wrong predictions, a probable risk of a poorly developed supply chain can emerge. Thereby, having access to accurate forecasts can comparatively provide a better view of global logistics and networks. Next, estimates based on historical records are useful information for future predictions. The software attached with features of language recognition and time-series analysis can showcase progressiveness as compared to typical forecasting application. Warehouse optimization, is another prominent aspect of the supply chain that is
improving agility and enhanced monitoring. Practising highly advanced analytical operations will help manage significant inventories and transportation, thus optimizing the WMS. Recently, demand planning applications being a step of utmost importance has transpired in search of machine learning. Advancing connections with AI, a firm anticipates demand for a product or service by incorporating factors including competitor pricing data, weather updates or store traffic for efficient and impressive delivery. Consequently, AI is used in predictive analytics for the functioning of crucial machinery and to create an alternate production schedule, an essential parameter in the list of tasks for an ultimately successful supply chain. In the coming future, AI usage in supply chain and logistics might become a new normal for everyone to adapt. Thus far, by unlocking the very key to higher growth prospects, SCM might be able to accelerate every aspect of the industry to a superior and elevated platform in the realm of businesses. Source: 20 Things to Know About AI for SCM (Steve Banker, 2019) ~ Deepanshi Birthal (17 JSGP)
From GM to Amazon, Flipkart to Alibaba, robots in warehousing and industrial applications have come a long way. Robotic enthusiasts have toiled hard to mesh technological breakthroughs in robots, internet of things (IOT) and artificial intelligence (AI) being the latest addition. Companies having warehouses in their supply chain network are loving these automated machines which can work autonomously. AI has helped both in automation as-well-as augmenting the field. In 2016 distribution center robotics industry globally was estimated at $2.2 billion and is expected to grow to $4.44 billion by 2022 at a CAGR of 11.8%. The warehouse robotics market is classified based on type, function and software. Also, the E-commerce industry will hold the largest share of warehouse robotics market during the above forecast period. Robotics in warehouses, therefore, has a great future in not only optimizing the inventory but also making the whole supply chain a competitive advantage for companies. This competitive advantage has the potential to make organizations thrive in this dynamic world of change and technological disruptions.
Warehouse Robotics: An Indian Perspective
Humans have always worked towards their ever-persistent need to ease out a living. This undying desire to ease and simplify their work has led to innumerable inventions, discoveries and produced ways, which hitherto were no better than dreams. Robots are no distinction; conceptualized for tasks that was either difficult or dangerous for shop floor workers. The first robot in supply chain patented in 1961 (filed in 1954) was in manufacturing; it was fit for moving material for around twelve feet.
In various parts of the world robots in one or many of their manifestations have derived the future of supply chain management. Multiple expressions of robotic experience in warehouses have
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OCTANE -The Octaphi Newsletter taken the form of Autonomous Mobile Robots, Aerial Drones and Automated Storage and Retrieval Systems. What prompts and help the robots: 1) AI along-with machine learning, 2) Smart sensors and their response capability and 3) excellent WM software. Supply chains in India having warehouses can improve their overall effectiveness by employing all or any of these technologies as per their requirement, where these can provide not only a competitive advantage but can enhance business sustainability. In the present era of disruption, being agile is only way forward, smart adoption of technologies can help, but this should be complemented by strategic engagement of humans with technology. Fully automated warehousing solutions in India is a distant dream, but the use of conveyors and other simple mechanical equipment is giving the lead. Structural and policy changes, such as India’s economic tax reforms, complemented by the rise of ecommerce which has the potential to drive the warehouse robotics market. The cheap and abundant labour availability in India and the harsh operating conditions are a potential threat to significant investments, but the economic reforms to reduce unemployment and the increased wages can act as a necessary catalyst. In turn, this would help the warehouse robotics market to realize it’s true potential. Source: Warehouse Robotics: Everything You Need to Know in 2019 (Ruthie Bowles,2020)
~ Hitesh Gupta (19 JGBS)
The green supply chain for green environment The rising global temperature, the melting snow caps, the seasonal abnormalities all point towards the damage of planet earth. It is in the light of these events, going green has garnered attention from all nook and corner. Products and companies who have not taken a stand in this cause are facing backlashes from its patron. Years of brainstorming have given them the solution of reviving the supply chain. The realization that SCM can contribute to improving the quality of elements (air, water, and land), has formulated the Environment Supply Chain Management (ESCM) or green supply chain management (GSCM). The remodeled supply chain makes itself greener and eco-friendlier. Further, a sustainable business strategy is vital to the future or long-term value of firms and their stakeholders. It is this understanding that compelled organizations to revamp their supply chain model. Even the customers have moved one step ahead to demand products as well as its supply chain to be eco-friendly. They want the cooperates to be active participants in making the world a better place. Being environ
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-mentally aware and operating businesses corresponding to that is going to be the prerequisite for any company. While there are several remedies to attain the GSCM goals, the following are in trend and widely in use: AI and predictive analyses are aiding to furnish better forecast and optimize production. It leads to better management and utilization of resources in the manufacturing unit. The zerowastage policy affects other factors like the logistics and sourcing of the material. They have scrutinized process to select vendors and making sure that their goals and the companies’ goals are in the same direction. Blockchain known as the shared visible ledger can keep track of the vendors sourcing regions and practices. Logistical improvements to cut down carbon footprint is one of the least expensive means by which organizations can cut cost as well as emissions and depletions. Advanced algorithms can reroute the shipments according to conditions of external factors. Novo Nordisk, a pharmaceutical company, has pledged to send its products only in ships to cut down the carbon footprint. Amazon has introduced E- rickshaws for last-mile delivery. Cargo pooling by large freight and carriage companies will slacken the current emissions to a great extent. By optimizing the storage space per shipment, the per cargo emission shall be diminished. Circular economy, a system where every waste generated is wiped out by refurbishment, recycling and reusing, can be enforced. An excellent reverse logistics system in place will aid in recollection of the waste produced. Organizations can exploit the space in the empty containers which come back to the organization for restocking. Environment audits that determine the current status and achievements that an organization has achieved with sustainability goals serve as an indicator of how much more effort the organization has to put in for obtaining the target. The perks of executing ESCM are many. The appeal of the company will rise in the eyes of the general public. They can leverage the mass support for different product launches and broaden their customer base. The fear of defying environmental laws can be abandoned for eternity. Realizing sustainable business models might seem farfetched, but this is the future of business in coming era. Source: Blume Global, 2019
~ Aiswarya Martin (17 JGBS)
PUZZLE
Dilemma: On a weighing balance, four parcels have to be weighed. Unfortunately, the scale is broken. Radha places Parcel A and Parcel B on 1st part and Parcel C and Parcel D on the other. The first part weighed heavier. She placed Parcel A and Parcel C together in 1st part and Parcel D and Parcel B in the 2nd. The 2nd part weighed heavier than the 1st. Now she placed Parcel A and Parcel D in 1st part and Parcel C and Parcel B in the 2nd the balance it was found perfectly parallel to the base. Arrange the parcels from heaviest to lightest.
Solution Parcel A > Parcel B > Parcel C > Parcel D Source: MentalUP.com ~ Nandini Garg (17 JGBS)
Student’s Feedback Corner OCTANE is an insightful source. I recommend all management students to read the regular newsletter.
~ Sukhbir Chawla (NITIE) Octane is a good platform to keep you updated. I strongly recommend reading it as its keeps pulse on how change affects business activities.
~ Aditya Dhar (Monash, AU)
ASTONISHING FACTS The world's largest package delivery company UPS was founded by two teenagers with a bicycle and $100 borrowed from a friend.
Editorial Board: Tuhin Banerjee, Aiswarya Martin Faculty Mentor: Saroj Koul Jindal Global Business School, Delhi NCR
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