2. Overview of Project
2. Warehousing & its Role
in SCM
5. Lean Manufacturing -
Basic
3. Automated Storage &
Retrieval System
4. Inventory Control
Technique
1. Introduction to Supply
Chain Management
WE TUBE WE LOUNGE
1. Mr. Rajdeep Mhatre -
Director - Supply Chain
Management, Chep
2. Mr. Neelesh Talathi,
CFO - Pepperfry.com
3. DR. Vinay Nayak.
President - Alembic
Pharmaceticals
NEWS WIRE
1. Snapdeal Establishes 8 New Logistics
2. 13 Keys to Choosing the Right WMS
3. Supply Chains Struggle to Maintain PPE
Inventory Into Pandemic.
4. Mahindra Logistics Adds Over 10,000 Jobs.
5. Post Covid 19 Supply Chain Strategies
6.DHL Express Appoints Manish Patel as Vice
President for operation.
7.Chennai Bangalore Eway Gets NHAI Push in
Boost To Logistics Hubs
8.What Is Micro Fulfillment ?
9. Digitising The Supply Chain
10. Supply Chains Needs Long Term Resilience
4. What is Supply Chain?
● Two or more parties linked by a flow of resources - typically material ,
information and money - that ultimately fulfill a customer request
● Supply Chain try to maximize the total value generated
Is equal to
What customer pays
Minus
Total effort expended to fulfill the need
● Linear chain of operation involving movement of goods to meet
customer requirements.
● Goal of Supply chain is to I) Maximise Profit
II) Minimise Cost
III) Customer Satisfaction
5. What is Supply Chain Management?
● It is the integration of business process from end user through original
supplier that provides products, services and information that add value to
for customers.
● Supply Chain Management is basically integration of suppliers,
distributors and customer logistics into a one cohesive process.
● Supply Chain Management is a network of facilities and distribution
options that performs procurement of materials, transportation of
materials into intermediate or finished product and finally distribution of
these products to customers.
6. Supply Chain Management Cycle:-
Supply Chain Management Objectives:-
● Minimising the time
● Improving quality
● Reducing transportation cost
● Reducing Warehousing cost
● Competitiveness and efficiency
8. Warehousing and Storage
● “Warehousing and storage is an act of storing and assorting the finished
goods so as to create maximum time utility at minimum cost”.
● STORAGE involves proper management for preserving goods from the time of
their production or purchase till actual use.
● When this storage is done on a large scale and in a specified manner it is
called WAREHOUSING .
●
● WAREHOUSE MANAGEMENT Is a key part of the supply chain.
AIMS: To control the movement and storage of materials within a warehouse .
● WMS monitors the progress of products through the warehouses. It involves
the physical warehouse infrastructure, tracking systems, and communication
between product stations.
9. Functions of
Warehousing :-
1. Receiving of goods
2. Preparations of records
3. Identification
4. Storing
5. Packing
6. Information of receipts
7. Breaking of bulks
8. Search the goods
9. Delivery of goods
Basic Functions:-
10. Warehouse Alternatives :-
Private Warehouses
● Owned or leased by the product owner & Control is fully with the product owner
● Changes can be made to integrate the warehouse with rest of the logistical system
● Provides market presence to the product owner
Public Warehouses
● Available to companies on hire , Overheads get distributed over a large customer
base
● Flexibility of location , Significant scale economies, several users and resultant
volume, benefits in transportation costs
Contract warehouses
● Contract warehouse operators take over logistics responsibility from manufacturing
company
● Expertise of management Shared resources with several clients
11. Factors to be considered
for Ideal Warehouse:-
● Convenient Location
● Availability Of Mechanical
Appliances
to Load and Unload Goods
● Adequate Space
● Cold Storage Facilities
● Proper Arrangement for
Protection
● Sufficient Parking Space
● Round the Clock Security
Arrangement
● Latest Fire Fighting Equipments
Objectives of effective
Warehouse Operations-:
● Provide timely customer service
● Keep track of items so they can
be found readily & correctly
● Minimize the total physical effort
& thus the cost of moving goods
into & out of storage
● Provide communication links
with customers
13. Inventory:-
● The term Inventory means the value or amount of materials or resource on
hand. It includes raw material, work-in-process, finished goods , stores &
spares.
● Inventory Control is the process by which inventory is measured and regulated
according to predetermined norms such as economic lot size for order or
production, safety stock, minimum level, maximum level, order level etc.
● Inventory control techniques are the tool available for smooth running of the
business enterprises.
● The inventories should be maintained at a level lying between the excessive
and the inadequate. This level is known as the “OPTIMUM LEVEL” of
inventories.
● It consists of a variety of computer-controlled systems for automatically
placing and retrieving loads from defined storage locations.
14. Objectives :-
● To reduce investment in
inventories and made effective use
of capital investments
● To average out demand
fluctuations due to seasonal or
cyclic variations
● To smoothen the production
process
● To minimize losses due to
deterioration, obsolescence,
damage, etc.
● To meet the time lag for
transportation of goods.
Benefits :-
● Ensures an adequate supply of
materials
● Minimizes inventory costs
● Better utilization of available
stocks
● Facilitates cost accounting
activities
● Eliminates duplication in ordering
● Provides a check against the loss
of materials
● Enables management in cost
comparison
15. 1. ABC Analysis:-
● In this technique the materials are divided into 3 groups. A,B,C according to
the cost of the materials and money value.
● A items - A few costly items come under this category these items require
proper storage and handling, overstock is avoided.
● B items - These are neither costly nor cheap.
● C items - Cheaper in cost.
● It is also known as Selective Inventory Control Method (SIM).
● The origin of ABC analysis is PARETO’S 80 – 20 rule.
● This rule says that 80 % of country’s economy is controlled by 20% of the
people.
● If we apply this rule to verify its correctness, the results say that it is correct
● It consists of a variety of computer-controlled systems for automatically
placing and retrieving loads from defined storage locations.
16. Procedure for ABC Analysis:-
● Make the list of all items of inventory.
● Determine the annual volume of usage & money
value of each item. Multiply each item’s annual
volume by its rupee value.
● Compute each item’s percentage of the total
inventory in terms of annual usage in rupees.
● Select the top 10% of all items which have the
highest rupee percentages & classify them as “A”
items.
● Select the next 20% of all items with the next highest
rupee percentages & designate them “B” items.
● The next 70% of all items with the lowest rupee
percentages are “C” items.
17. 2. VED Analysis:-
● VED: Vital, Essential & Desirable
● Vital items – Its shortage may cause havoc &
stop the work in organization. They are
stocked adequately to ensure smooth
operation.
● Essential items - Here, reasonable risk can be
taken. If not available, the plant does not stop;
but the efficiency of operations is adversely
affected due to expediting expenses.
● Desirable items – Its non availability does not
stop the work because they can be easily
purchased from the market as & when
needed.
18. 3. FSN Analysis:-
● The abbreviation for FSN in “Fast
moving, Slow moving and Non
moving”.
● Here in this analysis, the date of
receipt or the last date of issue,
whichever is later, to determine
the no. of months which have
lapsed from last transaction.
● FSN is helpful in identifying active
items which need to be reviewed
regularly and surplus items and
non moving items are examined.
4. SOS Analysis:-
● S’ stands for Seasonal items and
‘OS’- Off Seasonal items.
● In general it is merit to seller to
buy seasonal items at lower price
and keep inventory and sell them
at high price during Off seasons.
● If not the seller has to buy the
goods at higher prices during Off
seasons.
● Decisions are taken based on the
fluctuations and availability.
20. Automated storage and Retrieval system(AS/RS)
● An automated storage & Retrieval system
can be defined as a storage system that
performs storage and retrieval operations
with speed and accuracy under a defined
degree of automation.
● It consists of a variety of
computer-controlled systems for
automatically placing and retrieving loads
from defined storage locations.
21. Objectives of AS / RS:-
● Increase Storage Capacity
● To recover factory floor space
presently used for storing work
in process
● To Increase labor productivity
in storage operations
● To Improve safety in storage
function
● To Improve control over
inventories
Components of AS /RS:-
1. Storage structure
2. SIR machine
3. Storage modules (e.g., pallets
for unit loads)
4. One or more Pickup-and-
deposit stations
5. Control system
24. Lean Manufacturing:-
● Lean Manufacturing is a systematic approach to enhancing value in
a company’s inventory by identifying and eliminating waste of
materials, effort and time through continuous improvement in pursuit
of perfection.
● Waste is anything that happens to a product that does not add value
from the customer’s perspective.
● Key Principles of Lean Manufacturing:-
– Recognition of waste
– Standard Processes
– Continuous Flow
– Pull Production
– Quality at the Source
– Continuous Improvement
25. Techniques of Lean Manufacturing:-
1. 5-S Model
● Strategy for creating a well organized, smoothly flowing manufacturing
process .
● There are Set of Rules to organize each worker’s work area for maximum
efficiency.
5 -S Model Before 5-S After 5-S
26. Techniques Lean Manufacturing:-
2. Kanban
● A system that uses replenishment
signals to simplify inventory
management Signals (usually cards)
hold product details - What to make,
when to make it, how much to make,
and where to send it .
● Cards stay attached to a bin that
holds the product
● When bin is empty, it is returned to
the start of the assembly line for
replenishment
● Full bins are returned to the
customer, and the cycle continues .
Benefits:-
● Highly visible systems
● Simple, effective, and inexpensive
● Reduces inventory
● Improves the quality of service
● Improves lead times
27. Techniques Lean Manufacturing:-
3. Cellular Manufacturing
● Production work stations and equipment are arranged in a product-aligned
sequence. – Increased production velocity and flexibility .
● Aims to move products through the manufacturing process one-piece at a
time, at a rate determined by customer demand (the pull).
29. Mr. Rajdeep Mhatre Director -SCM, CHEP
● Mr.Rajdeep Mhatre is a hard core supply chain professional.
● In video,he spoke about his work experience that changes his livelihood like a
professional man. He defines about his journey from start to end from konkan
chemicals to chep. And he gain many professional relationship in his thirty
three years of experience.
● Chep has been developed in year 2008 in india and Mr. Rajdeep Mhatre joined
as a project manager after a couple of years, they collect 350 customer’s till
now across in india. And they have five regional offices in india.
● Spoke on his past six years with chep. He joins as a project manager and after
some years the logistics department came out. Then he raise his hands for
taking the chair of director and finally he is in role and playing an important
role in this company.
30. Mr. Rajdeep Mhatre Director -SCM, CHEP
● In operations they first give their priority for safety and precautions for their
employees.
● And Secondly, Creating value for the customers by following all the government
regulations such as environmental law, safety law, etc.
● Chep make customer’s belief by knowing them, they are following legal things
in their productions. They don’t harm forest lives they are not doing any illegal
actions in their production process.
● They target to fulfill the every customer needs and expectations by serving their
needs with their product and service offerings.
● Success will be defined by the ability of the supply chain to respond effectively
and quickly to customers. Being proactive rather than reactive is the need of the
hour in this building.
32. ● He is a finance leader who comes with over 20 years experience.He has
worked with organizations like Unilever, Vedanta and currently is the CFO at
Pepperfry.com.
● In his dynamic career he has astutely managed finance, crafted business
strategies, led transformative initiatives and closely partnered all functions or
organizations.
● He work has also taken him to work with MNC's in Asia, Africa & UK in leading
regional and global roles.He is studied from R.A Poddar college and after
welingkar institute.
● In his 22 years working currier, after did of his chartered accountancy, he is
work with P.C Hansotia which is today part of Loyyd also have some article
with them.
● After of his qualification his is picked up by Hindustan Unilever as a
management trainee.
Mr. Nelesh Talathi ,CFO Pepperfry.com
33. ● After that he went in Delhi for commercial manager. Importance of his role is
he has empathy of his employee.
● On that time he knows the what is the innovation in the market. Laundry has
the category have lower profitability then he study how to get more profit on it.
● Post that he went to Egypt ,create strategy and implement in business with
local partners.
● He’s last role in Hindustan Unilever's is planning analysis and he his indirectly
report in group with CFO Of company.
● He sort of lots of things there he always think what is market expect from
unilever. And how to get consistency in performance of unilever in market.
● After that he join vedanta after that he knows the vision of CFO.
● From last two years he is CFO of Pepperfry. According to his accept, challenge
go slow get experience of every situation.He is always aggressive for work.
34. 3. Dr. Vinay Nayak.
President
Alembic Pharmaceutical
35. ● Currently associated as a President of Alembic Pharmaceutical Ltd. Earlier he
worked with Watson, Cipla Pharmaceutical Ltd, Lupin Pharmaceutical Ltd.
● A person recognized for his turnaround with excellent leadership Quality.
● Dr. Nayak one of the very few people of Indian Pharmaceutical Industries who
become a business head with a Quality background.
● He shared the secret of all the success of his career.
● Being a curious person, he always like to learn new things, he always like to
add value to what he have and also shared that he is lead speaker to most of
the conference in India. He believe on learning and implement something new
in the organization.
● Dr. Nayak communicated on working on developing competency framework.
Presently associated with Alembic Pharma Ltd, which is leading
Pharmaceuticals Company in India.
Dr.Vinay Nayak,President Alembic Pharmaceutical
36. ● He shared about success story of Alembic Pharma Ltd and also about the FDI
and its effect on the Alembic Pharma Ltd. Detailed explained how FDI is
helpful to Pharma Industry.
● He communicated about the Global Pharma Community and its impact on
India. As per him in next 5 years India will play major role in Pharma Industry
as now days India is developing the Automation, maturation, and also
developing in the IT sector, India would be in good position in Pharma Industry
in next few years.
● He spoke on his strength with positive attitude and to look forward with
positive outlook.
● He also gave advice to professional, be people oriented, task oriented and be a
team member and learn the art of collaboration, These things are more
important to be a global player, otherwise you never achieve your goals.
Dr.Vinay Nayak,President Alembic Pharmaceutical
38. ● Snapdeal, India’s leading value-focused
e-commerce marketplace, expanded its
nationwide logistics network by opening 8
new centres at manufacturing hubs located
across cities in India.
1. SNAPDEAL ESTABLISHES 8 NEW LOGISTICS
● The expansion is part of a decentralized network designed by Snapdeal,
where its centres are located within commercial hubs inside a city to ensure
faster pickup of packets from the sellers. This has become all the more
important due to COVID-19 related restrictions, which at times reduce the
operating hours
● The new centres are located inside the manufacturing hubs at Bahadurgarh,
Rajkot, Bhiwandi, Agra, Yamuna Nagar, Noida, Mathura and Mumbai.
○
39. ● Earlier this year, Snapdeal opened 15 logistics centres. With the new addition,
the company now runs 23 logistics centres. Snapdeal’s logistics hubs offer
dedicated facilities for the manufacturing units, including packaging of orders
and online tracking for orders in transit and facilitate faster movement of
packets.
● According to a Snapdeal Spokesperson, “The additional logistics capacity
comes ahead of the festive season sale when the volume of orders is higher. ”
● Snapdeal services over 26,000 pin codes across India, which includes all the
metros, Tier 1 & 2 cities, and most of Tier 3 and 4 towns of India.
● In 2020, Snapdeal is aiming to add 5,000 manufacturer-sellers on its platform
this year.
1. SNAPDEAL ESTABLISHES 8 NEW LOGISTICS
40. ● Supply chain solutions provider MVP uses a warehouse management system
(WMS) to "efficiently and accurately" run its 500,000 square feet of warehouse
space, which serves about 40 clients. The WMS controls product receipt,
putaway, and storage.
● Follow these steps for successful WMS implementation:
1. KNOW WHEN YOU NEED A WMS.
2. A WMS CAN PROVIDE A RANGE OF CAPABILITIES
3. LET BUSINESS LEAD THE PROJECT.
4. ASSESS YOUR BUDGET.
5. EVALUATE THE REPORTING CAPABILITIES
2. 13 KEYS TO CHOOSING THE RIGHT WAREHOUSE
MANAGEMENT SYSTEM
41. 6. ASK ABOUT “TIME TO VALUE.”
7. CHECK BUSINESS INTELLIGENCE SOLUTIONS
8. CONFIRM CONNECTIONS BEYOND THE WAREHOUSE WALLS.
9. CONSIDER THE VENDOR’S EXPERIENCE IN YOUR INDUSTRY.
10. EVALUATE THE UPGRADE PATH.
11. ASSESS THE PROVIDER’S COMMITMENT.
12. TRAIN AND ADJUST THE DEADLINE
13. CONTINUOUSLY IMPROVE.
2. 13 KEYS TO CHOOSING THE RIGHT WAREHOUSE
MANAGEMENT SYSTEM
42. ● Supply chains are struggling to build personal protective equipment inventory,
with 77% of respondents saying they have no supply remaining for one of
more types of PPE, according to Get Us PPE's August shortage index.
● Get Us PPE is a nonprofit that distributes PPE donations. The index, which the
nonprofit says is the largest of its kind, is based on a database of requests the
organization receives.
● - "While large hospital systems are beginning to benefit from a recovering PPE
supply chain, smaller, non-hospital facilities are still facing acute PPE
shortages," Get Us PPE said in a report accompanying the survey.
● The three most requested items in Get Us PPE's database in August were N95
respirators, disinfecting wipes and surgical masks, the organization said.
3. SUPPLY CHAINS STRUGGLE TO MAINTAIN PPE
INVENTORY MONTHS INTO PANDEMIC
43. ● The three most requested items in Get Us PPE's
database in August were N95 respirators,
disinfecting wipes and surgical masks, the
organization said.
● It is especially difficult to obtain PPE in rural
parts of the country because of the geographic
location, the cost of ordering PPE in small
amounts and the inability of smaller
organizations to meet minimum order quantity,
according to Alizée Weber, the deputy director of
operations at Get Us PPE.
●
3. SUPPLY CHAINS STRUGGLE TO MAINTAIN PPE
INVENTORY MONTHS INTO PANDEMIC
44. ● Mahindra Logistics said it has added 10,100
seasonal jobs ahead of the festive season and
will retain a significant number of these
employees.
● The company said keeping true to its five-year
road map, it is actively employing
differently-abled persons, ex-servicemen from
the armed forces and bridging the gender
diversity gap by hiring more women from various
backgrounds and experience.
4. MAHINDRA LOGISTICS ADDS OVER 10,000 JOBS
45. ● MLL has recently started hiring associates from transgender community at
their warehouse in Bhiwandi, Maharashtra, it added.
● MD and CEO Rampraveen Swaminathan said, "We encourage and value
diversity amongst our employees, associates, business partners, customers
and communities.
● It is therefore imperative to make MLL attractive for millennials, provide
equal opportunity to women as well as persons with disabilities, recruit
employees from diverse backgrounds like armed forces, and LGBTQIA
workforce."
4. MAHINDRA LOGISTICS ADDS OVER 10,000 JOBS
46. ● Business segments that were the kings of the market were on the receiving
end of this major impact.
● With strict lockdown across the countries, businesses faced the toughest
challenge they ever could with depleting cash flows, stores shutting down,
sales getting down and financial problems deepening.
● It is not like these companies were not up for improving their supply chains
and operation before COVID, there have been several initiatives that were
taken to provide better service to the customer in past as well.
● However, now the focus has become laser-sharp to improve supply chains &
operations and thus striving to be successful in such times as well.
5. POST COVID19 SUPPLY CHAIN STRATEGIES
47. ● Some examples of such initiatives
majorly lie in the following segments
1. Business continuity plan
2. Omnichannel approach
3. Supplier Base expansion
4. Inventory calibration and safety stock
management
5. POST COVID19 SUPPLY CHAIN STRATEGIES
48. ● DHL Express India said it has appointed Manish
Patel as its vice-president for operations.
● In his new position, Patel will be responsible for
delivering service performance, leading and
developing a cohesive team of senior managers in
operations, and ensuring consistent employee
engagement across levels.
● Patel succeeds Ashutosh Bajpai, who takes over
as vice-president for DHL Express, and will now
be based out of the regional office in Singapore,
DHL Express said.
●
6. DHL EXPRESS APPOINTS MANISH PATEL AS
VICE-PRESIDENT FOR OPERATIONS
49. ● With his over two decades of experience at DHL Express, growing within the
ranks through roles in India, Sri Lanka and Singapore, since 2017, Patel has
held the role of senior director for ground operations in India.
● "I am looking forward to this new and exciting challenge. DHL Express has an
excellent team of people. I am privileged to work with them to help deliver on
our customer promise locally," said Patel on his appointment to the new
position.
6. DHL EXPRESS APPOINTS MANISH PATEL AS
VICE-PRESIDENT FOR OPERATIONS
50. ● Giving a big push to the construction of
expressways and to provide faster connectivity to
upcoming logistics hubs, the National Highways
Authority of India (NHAI) has invited bids for one
package of the 263km Bengaluru-Chennai
Expressway.
● The work on this four-lane expressway project,
which will provide high speed and seamless
connectivity to two upcoming logistics parks in
Bengaluru and Chennai, will start in February or
March.
7. CHENNAI-BENGALURU EWAY GETS NHAI
PUSH IN BOOST TO LOGISTICS HUBS
51. ● The project has been divided into 10 packages, three each in Andhra
Pradesh and Karnataka and four in Tamil Nadu.
● After completion, a car can travel the distance between Chennai and
Bengaluru in less than two-and-a half hours.
● The NHAI has set strict timelines for award and progress of all the 23
expressways and greenfield highways which have been finalised.
7. CHENNAI-BENGALURU EWAY GETS NHAI PUSH
IN BOOST TO LOGISTICS HUBS
52. ● Microfulfillment is a strategy for fulfilling customer orders from retail store
locations near the customer.
● According to Forbes, since the COVID-19 pandemic, total online spending
surged to more than $82 billion in May of 2020, and buy-online, pick-up
in-store (BOPIS) orders grew 195%. According to their data, it would’ve taken
4-6 years to reach that spending level in “normal” circumstances.
● This growth in ecommerce led to a necessary evolution in traditional retail
fulfillment, with distribution centers (DCs) shifting processes to
accommodate for drop-shipping to end-users and shipping each orders
directly to stores for customer pickup. The term ‘microfulfillment’ gained a
whole new meaning thanks to the pandemic.
●
8. WHAT IS MICROFULFILLMENT?
53. ● There are multiple ways to accomplish microfulfillment, and each solution will
look different depending on the needs of the retailer and their customers, and
pandemic pressures brought on – which look different for each industry.
● While the term microfulfillment is mainly used to reference online order
fulfillment from existing store locations, it can also be used for a few similar
strategies like dark stores or customer fulfillment centers.
● Grocery is the industry where these technologies are making an immediate
impact.
8. WHAT IS MICROFULFILLMENT?
54. ● Customer expectations have transformed from
seeking mere ‘satisfaction’ to ‘delight’, on-time
delivery to scheduled delivery.
● While organisations have leveraged
technologies such as data, IoT, robotics and
analytics to drive manufacturing efficiency, the
use of digital solutions in supply-chain planning
for handling uncertainty, managing complexity.
● To enhance visibility, it is also imperative for
organisations to be aligned to a singular
definition of supply-chain performance across
the chain through key supply-chain KPIs, which
can be tracked in real-time
9. DIGITISING THE SUPPLY CHAIN
55. ● Organisations need to establish a scenario-based planning capability to
synchronise supply fulfilment in a highly dynamic and evolving demand
environment.
● Daily and weekly planning, instead of monthly, is necessary, with tighter
feedback loops between execution and planning cycles. This requires
digitally-enabled decision-making platforms.
● The pandemic has increased the pace of adoption of digital supply-chain
solutions, unlocking significant top- & bottom-line value. A digitally-enabled
supply chain need no longer restricted to large organisations. It is the need of
9. DIGITISING THE SUPPLY CHAIN
56. ● Before COVID-19 struck, supply chains were
praised for their just-in-time capabilities. Now
entirely new levels of supply chain resilience are
needed, according to the Council of Supply
Chain Management Professionals' (CSCMP)
2020 State of Logistics Report.
● In 2019, the U.S. economy achieved 2.3%
growth, and the logistics sector grew to $1.65
trillion in expenditures. Productivity improved,
bringing its cost to 7.6% of gross domestic
product, an improvement from 7.9% in 2018,
says CSCMP.
10. SUPPLY CHAINS NEED LONG-TERM RESILIENCE
57. ● The consumer confidence index dropped 18.1 points in early April 2020, and
March saw an 11.9-point decline, the report says. Among the steps needed to
build long-term supply chain resilience, according to the report:
- Support demand for surges in areas such as groceries and e-commerce.
- Reconfigure supply chains for other sectors that have plummeted, such as
heavy industry.
- Adapt to the ripple effects of social distancing as the industry feeds a larger
consumer appetite for home delivery.
- Redirect idle trucks and distribution center capacity to booming sectors.
10. SUPPLY CHAINS NEED LONG-TERM RESILIENCE