Sanjay More, Barlow World Logistics

Report
Innovation in Supply Chain Management
Sanjay More
Barloworld Logistics, Dubai
26 September, 2012
Contents
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Definitions
Current trends
Innovations in supply chain
Cutting edge solutions
Matching it to your business
Innovation
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Innovation is the development of new customer value through
solutions that meet new needs, unarticulated needs, or old
customer and market needs in new ways.
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This is accomplished through different or more effective
products, processes, services, technologies, or ideas that are
readily available to markets, governments, and society.
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Innovation is not equal to Invention or Improvement.
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In short “doing
Source: Wikipedia
things differently”
Supply Chain Management
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Supply chain management spans all movement and storage of raw
materials, work-in-process inventory, and finished goods from point of
origin to point of consumption.
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Another definition is provided by the APICS Dictionary when it defines
SCM as the "design, planning, execution, control, and monitoring of
supply chain activities with the objective of creating net value, building
a competitive infrastructure, leveraging worldwide logistics,
synchronizing supply with demand and measuring performance
globally."
Source: Wikipedia
A typical supply chain model
Innovations that changed Supply Chain Management
#1. Container & Cranes
The box that changed the world
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It gave the world an unit to ship
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Standardized the size and capacity
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Set tariffs across a distance
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Defined the capacity of ships
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Road transport and trucking
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Helped warehousing to measure
and build capacity.
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Helped manufacturer and traders in
making and ordering decisions.
Innovations that changed Supply Chain Management
#2. Pallets & Forklifts
Movement of goods made easy
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Movement made easy
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Storage made easy
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Counting made easy
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Stock taking made easy
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Air Freight made easy
Innovations that changed Supply Chain Management
#3. Racking system and VNA
Storage of goods made easy
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Systematic storage
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Stock taking became easy
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Segregation of Fast Moving vs
slow moving goods
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Facilitated unique location
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More capacity
Innovations that changed Supply Chain Management
#4. Barcoding & RFID
Tracking and data collection
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Stock replenishment
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Tracking
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Intelligence building
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Real-time data
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Facilitated planning
Innovations that changed Supply Chain Management
#5. Production line and LEAN
Productivity and process management
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Improved efficiency
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Reduced the lead time
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Reduced the cost
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Simplified production and also
principles were applied across the
supply chain
Innovations that changed Supply Chain Management
#6. Computer & Web technology
The power of computation and connecting
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Computer facilitated the
computation of complex formulas
and large amount of data
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Facilitated analysis and trends
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Web enabled data sharing
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Real-time data analysis
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Conversion of data
Innovations that changed Supply Chain Management
#7. Mobile & Communication
The speed of communication
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Real time data capturing
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Simplification of process
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Shorter processes
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Enabling data conversion
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Facilitates quick analysis
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Speed in response
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Less paperwork
Innovations that changed Supply Chain Management
#8. DRP & ERP
Distribution and Resource planning
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Streamlining processes
Quick access to information
Best business practices
Improved efficiency
Improved customer satisfaction
Improved on-time delivery
Reduced inventory costs
Better planning, tracking and
forecasting
Innovations that changed Supply Chain Management
#9 DTS & TMS
Dedicated Transport and management
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Improved financing, cash-flow
Increase visibility
Reliability
Route mapping and optimisation
Optimisation of resources
Integration
Innovations that changed Supply Chain Management
#10. Inventory & Demand planning
Reduce costs and improve availability
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Reduce excess inventory
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Improve cash flow
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Forecast demand
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Reduce gut feel risks
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Improve availability
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Improve customer satisfaction
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Better return on investment
Innovations that changed Supply Chain Management
#11. Inventory Optimisation
Creating a strategic advantage
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Deal with greater levels of
complexity
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Manage longer lead times and
uncertain supply
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Deal with bigger production runs
and supply constraints
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Different modes of transport
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Network optimisation
Innovations that changed Supply Chain Management
#12. Supply Chain design and
network modelling
End to end supply chain solutions
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Global supply chain network
modelling with mapping, locations
and road network databases for
any combination of countries in the
world.
Reach your full supply chain
planning potential
Carbon Footprint mapping
Areas for innovation
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Supplier
Manufacturer
Wholesaler / distributor
Retailer
Consumer
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All these major points are connected with one or the other forms of
transportation.
demand planning
demand planning
Inventory planning
Inventory planning
Value / Price
– Production planning, ERP
– Production Planning Demand Planning, Distribution planning, network
modeling, Inventory optimisation,
– Warehousing and Distribution
– Air Freight, Sea Freight, Sea Air, Road, Rail, multimodal
The future of Supply Chain
Technology
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We as a supply chain industry haven’t used the available technology to the full extent.
Collaboration
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The supply of goods moves from one network to another network therefore collaboration
amongst these networks is very important. i.e. Suppliers and their suppliers, customers and
their customers (if applicable).
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Collaboration with government bodies, regional legal and tax compliance, association and
international norms and regulations are some of the areas also calls for the collaboration.
Planning and Strategic alignment
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Improve Customers performance
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From suppliers order point to customers demand point
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Dell Computer’s direct-sales model for business clients
The Green Trailer
Drag reduction 35-43%
Fuel saving 7-10%
Monthly saving
AED 4250
Carbon reduction 14
Tons in 6 months
Link to Barloworld Logistics case studies
Thank you
thinking
outside
the box

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