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Lecture 31: Supply Chain Impellers and Value Chain — Transcript

by NPTEL IIT Kharagpur · 5,713 words · 851 segments · language en · Watch on YouTube

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0:01[Music]
0:22[Music]
0:25hello dear students welcome back to nptl
0:28online course on Logistics and supp
0:29Supply Chain management so now we'll
0:32start discussion on supply chain
0:34strategy right we'll see what are the
0:37different factors or maybe impellers we
0:40can say which are forcing our supply
0:42chain you know to behave in that way so
0:46that they can survive for a longer
0:47period of time there there is as such no
0:50longer period but yes because daily the
0:53scenario is changing so they have to you
0:56know keep on changing their they need to
0:58keep on revising their capability as
1:00well so this is a part of your supply
1:02chain strategy how you are coming up
1:04with new tools and then maybe how you
1:07are tracking your customers in that way
1:10how you are tracking their behavior so
1:12that you can develop that type of
1:13particular strategy right so this week
1:16we'll talk about developing the supply
1:18chain strategy right and here is the
1:21basic first introductory part we will'll
1:23talk about what are the supply chain
1:25impellers in the last week we talked
1:27about supply chain drivers right what
1:29are are main those Logistics and cross
1:31functional drivers how we can change
1:34those drivers so that the overall
1:35efficiency and responsiveness of the
1:37supply chain can be managed in this
1:40particular session we'll talk about what
1:42are the impellers those forces which are
1:45forcing us to change the drivers to
1:47manipulate those drivers here and there
1:50in terms of coming up with the basket of
1:53product and services right and then
1:55we'll talk about the value chain as well
1:57in this particular session right we'll
1:59talk about some uh specific uh success
2:02parameters when we'll talk about supply
2:04chain success and we'll end up with the
2:07case study right so already we discussed
2:10about supply chain drivers so other than
2:12that what are those forces and factors
2:15we need to consider and these forces
2:18factors are known as impellers of supply
2:20chain right in that way how they are
2:22putting extra pressure on the supply
2:25chain that this is not now that era
2:28where you can you know uh stretch a
2:31customer or maybe you can do something
2:33uh illegal unethical and then customer
2:36is not aware about those things right so
2:39because customer is now full of
2:41information even if you talk about very
2:44simple example if you are keeping little
2:47higher price maybe 1% 2% with your
2:50competitors in the at the same moment
2:52they can find out okay the price is
2:55something else he is offering something
2:57else so then that way that customer will
3:00never turn back to you right so these
3:03are some of the forces because this
3:06transparency has been maintained
3:08throughout the supply chain this
3:09transparency is obviously very very
3:12important when you are manufacturer you
3:15are services provider you are those
3:17product provider you are selling the
3:19product but this transparency is equally
3:22spread along that Network for the
3:25customer as well if you along with other
3:2830 players in the market operating with
3:30the same product or Services obviously
3:33they have access to information of all
3:36those 30 players right so then you need
3:39to pick your pricing strategy very
3:41carefully you need to pick your delivery
3:43strategy your feature you are offering
3:45the quality you are offering the variety
3:48you are offering so that in the end you
3:50can convince the customer that you
3:52should visit our store and then you
3:54should make the purchase decisions so
3:57other than what drivers we discussed
3:59obvious ly facility inventory
4:01Transportation information system
4:03sourcing
4:04pricing these drivers are there but
4:08these drivers we are forced to you know
4:11change these drivers enhance these
4:14drivers depending upon those impellers
4:17right what are those forces coming from
4:19the market we need to change these
4:21drivers accordingly and then we will be
4:23coming up with the competitive strategy
4:26as well as your supply chain strategy
4:28having said that competitive strategy
4:29Str y means for the whole organization
4:32the competitive strategy may be how you
4:35can get the maximum customer potential
4:37right maybe to increase your customer uh
4:41group right from maybe like right now
4:43you are having only 10% share you want
4:45to increase to 25% right how you can do
4:48that and then you know that you are
4:50targeting those middle class families or
4:52lower class families so then your
4:53pricing is very very important
4:56efficiency in supply chain is very very
4:58important so that means because your
5:00overall vision is to capture that
5:02mission is to capture that 25% of the
5:05market based on efficiency cost
5:08parameter then your supply chain
5:10strategy should be in synchronization
5:12with your your overall strategy
5:14competitive
5:15strategy so uh if you go through
5:19literature we have identified initially
5:22we identified three main impellers and
5:25in that empowered customer is the first
5:27one like I talked about
5:30the knowledge the customer is having
5:33right now and how he's getting the
5:35knowledge because of the access to
5:37information simple example if you want
5:40to book air ticket right so then you
5:44have all those options maybe make my
5:47trip is there go Vivo is there maybe
5:51IRCTC is there maybe the individual
5:54website of that Airlines is there right
5:57so all these platforms are there not
5:59only the now what this these platform
6:02will do Indigo will not do that because
6:04Indigo will give the information this
6:07you can consider at the first level
6:10indigo is at first level in that way
6:12providing the services you'll get all
6:14the related information of the Indigo
6:16flights going from one point to the
6:19other point where you are searching
6:20right and prices of all the points how
6:23many stoppage are there timing and all
6:25that information you will get right
6:28second level you can in include these
6:30players now what the second level
6:32players are doing you will search flight
6:35from Kolkata to Delhi it will give you
6:37all the possible combinations mix up of
6:41maybe different players individual
6:43players pricing all those things roots
6:46and how many stoppage and all those
6:49things will be highlighted on the
6:51website and then you can compare within
6:53no time and that way you you are as
6:56empowered
6:57customer now there is this is not the
7:00end the next third level you
7:03include kind of exigo player now what
7:07exigo is doing exoo is putting all these
7:10platform at one platform right what is
7:13happening sometime I'm confused that
7:15whether I'll get this ticket cheaper on
7:17make my trip or goo or IRCTC or some
7:21other platform right so then you will
7:24first you'll check in make my trip then
7:26go then make IRCTC so this will consume
7:30time I want immediate solution you go to
7:33exigo exigo will give you from Kolkata
7:35to Delhi all the possible flights and
7:38prices what is the best price in mmt
7:41what is the best price in goo IRCTC in
7:44for particular flight right so this this
7:47is how the customer is so empowered so
7:51any offline retailer cannot say that I'm
7:55charging 3,000 and you are getting that
7:57product through online on 20 2500 right
8:01so then maybe offline retailer can you
8:05know uh negotiate with you as per the
8:08price somewhere maybe 200 or 300 rupees
8:11but then in the end he'll say this point
8:13that maybe online it will take time so
8:15then responsive supply chain we are
8:18saying that within same day delivery
8:20within two days delivery if that product
8:22is not that much Argent we can wait for
8:242 days we can save 500 bucks what is
8:27that so that way the customer is more
8:30empowered right he's having access to
8:33whole information and thanks to the it
8:36tools we are having now this is one
8:39example I quoted for customer let's take
8:42now the producer perspective the
8:45manufacture the services provider we
8:48have material resource planning
8:50enterprise resource planning vendor
8:51manage inventorying total asset
8:53visibility these kind of softwares are
8:55there right in the warehouse we have
8:58warehouse management soft softwares
9:00during transportation we have
9:01transportation management softwares
9:04finding the best route optimum route in
9:06terms of distance in terms of what load
9:08you are carrying in terms of
9:09infrastructure road condition everything
9:11weather condition you are getting MRP
9:14material resource planning Erp
9:16enterprise resource planning how many uh
9:19different raw material required what is
9:21the what should be the batch size of
9:23each material when you should place
9:25order with the vendors and out of three
9:27vendors a vendor will get this much
9:29order B will get this much all this
9:32information thanks to all it tools they
9:34are collecting the information the
9:36future of supply chain we talked about
9:38in last to last session I think where we
9:40talked about supply chain control Towers
9:43all these parameters can be tapped there
9:46and if you are taking decision related
9:48to sourcing related to procurement
9:50regular procurement okay five listed
9:53vendors are there for this particular
9:55component let us check the vendor rating
9:57of each vendor
9:59so related to price this third vendor is
10:02most efficient related to delivery first
10:05is most you know quick in making
10:07delivery related to Quality fifth one is
10:09the high reliable in terms of quality
10:12quickly you are getting the information
10:14and then you can place the orders the
10:17third impeller of supply chain is
10:20globalization now because this uh we
10:23cannot say that here this is working in
10:25local market and it is not working in
10:28foreign market if these days if someone
10:30is coming that uh with the credit card
10:32option to you and it is saying that only
10:34it will work in India hardly I think uh
10:37anyone will be interested in that how
10:40you can provide Solutions overseas when
10:42we are visiting because that frequency
10:44of traveling is also now increasing day
10:46by day right and globalization it's not
10:49only that local Indian market or any
10:51other Asian market right so wherever you
10:54are getting the best quality best
10:56quantity best price you should Outsource
10:59and then within no time we thanks to our
11:02that infrastructure fastest
11:04infrastructure and that way channelized
11:06supply chain distribution Network that
11:09we are getting delivery in no time so
11:11then globalization is third major
11:13impeller which is forcing you to be
11:16always responsive cost efficient you
11:19cannot say that this we are
11:20Manufacturing in India this is more cost
11:22carrying why don't you shi to the some
11:24other location we are you know you can
11:27reduce that cost you can reduce the raw
11:31material cost labor cost the location
11:34where you are spending your you are
11:36planning your facilities that cost you
11:38can reduce right so that globalization
11:42is another major Impaler other than uh
11:44these two because the research now is
11:47more on how we can go for sustainability
11:49how we can enhance the integration and
11:52collaboration among those uh players so
11:55that way it is also working as one of
11:57the impeller now sustainability see uh
12:01because every other day in news also
12:04because this time is now summer season
12:06is going on so yesterday there was news
12:0953 degree temperature in Delhi first
12:12time right so that means then maybe
12:14couple of days we'll talk about the uh
12:17environmental change and then uh how
12:20things are pollution and we'll talk
12:21about having debates uh in the media and
12:24all all those things will be there then
12:27in that way customer is also getting in
12:29information at least this is the stage
12:31where we are getting information we
12:33somewhere we in our unconscious mind we
12:35are thinking about yes we should make
12:37some decision we should take some steps
12:39to you know go sustainable go green we
12:42should reduce the wastage and then when
12:44we are going uh in the office we are
12:47keeping all the lights on AC always on
12:49and all those things are happening and
12:51then we are actually not you know trying
12:53to or we are not relating what we are
12:55doing in our day routine life but very
12:57soon the time will come when you will be
12:59forced to you know you you will force
13:02yourself only that you have to be
13:03sustainable and it will be unbearable
13:06for everyone right so then
13:09sustainability talking about Supply
13:10chains we have to stretch in that Way
13:13Green Logistics we talked about green
13:15Supply recycling reuse remanufacturing
13:18refurbishment of the products how we can
13:21ensure how we can extend the life of the
13:23product so that waste should not be
13:25generated how we can add value to the
13:29after the end use of the product right
13:31so that sustainability measure is
13:33important collaboration and integration
13:35is another thing that it's not that in
13:38isolation you are working and you are
13:41collaborating with your suppliers and uh
13:43then you are there and maybe distributor
13:45is there you have to include the
13:47customer also in your manufacturing
13:49process that concept is also now going
13:51that customer are part of only Services
13:55processes manufacturing also we need to
13:57record the customer requirement their
13:59specification like d is doing for years
14:02together right they are recording their
14:04requirement their specification and then
14:07they are configuring the laptop or PCS
14:10whatever your requirements are as per
14:12that so in that way it can happen only
14:15when you have strong partnership and
14:17relationship not only with suppliers
14:20with suppliers with storage houses with
14:22manufacturing houses with your uh
14:24distribution network with your
14:26warehouses distribution fulfillment
14:28centers Transportation agencies with
14:31customers with end consumers right from
14:34where the information is being generated
14:36and being circulated so these five major
14:39impellers of Supply chains are there
14:41which which will help you to design your
14:44supply chain so uh these two video link
14:47I have given you first one is on
14:49highlighting the bull whip effect of
14:51covid-19 pandemic you can just go
14:53through this video and uh here it has
14:56been highlighted that how during Co 19
14:59we realized that uh maybe suddenly there
15:02will be because shutdown was happening
15:04maybe tomorrow we'll not get the grocery
15:06items how we'll survive tomorrow we'll
15:08not get the all the kitchen items right
15:11so then we started stocking the items
15:13right we started purchasing more and
15:15more than what we are consuming right so
15:19that is known as Panic buying so this
15:21video is on that right how it can see
15:24now there is again the same population
15:26is there earlier they were let's say
15:29they were uh giving demand for 500 units
15:32now suddenly 1,500 units it is coming
15:35right so that means still the demand is
15:37same but the because of the panic buying
15:40they started purchasing more right so
15:42this video is on that another case of
15:45Amazon giving customer what they want
15:47you can see just that this is
15:49highlighting all the impellers how and
15:52what customers are you know time to time
15:55they are uh uh it's not that for one
15:58product I will say tomorrow I need that
16:01product for other product maybe I'll say
16:03I can wait for 5 days so C Amazon need
16:06to design the services as per that they
16:09need to operate their Network
16:10distribution Network as per that right
16:13maybe today I'm cost efficient because I
16:15can afford 10 days delivery but tomorrow
16:18I want same day delivery of one product
16:21so then I am ready to pay higher so that
16:24these two videos you can just go through
16:27so there are some Concepts Maybe we
16:29discussed a little bit about that or
16:31maybe uh on on that uh during this last
16:35five six uh weeks Journey so just
16:37quickly we'll go through if we missed
16:39some points of supply chain system
16:41concept so this is holistic approach and
16:44interconnected system integrated system
16:47right so that means it's not supply
16:50chain for one manufacturer it's not
16:52supply chain of the raw material
16:54supplier it's one complete Supply let us
16:56take the example like the W be effect we
16:59were talking about right how the thing
17:02at one hand end is happening and it is
17:06how it is reaching to the other end of
17:09the supply chain right so because it is
17:12system concept we need to avoid this
17:14bull effect overlap in the information
17:17we are sharing right so you need to
17:20recognize the changes or disruptions
17:22whatever are happening at one end and
17:26because these changes or disruptions
17:29will have ripple effect how like I told
17:31you during covid-19 we suddenly started
17:35realizing maybe tomorrow there will be
17:37shortage of the grocery item not only
17:40grocery item let's say there was sudden
17:43increase in using the hand gloves using
17:45the mask sanitizers and mask price
17:48earlier maybe 20 25 rupees now it was
17:52coming with 100 rupees cost right so
17:55because there was increase in the
17:58disruption happen happened in the that
17:59supply chain right and demand because
18:01now every other person is using the mask
18:04earlier we were using rarely or when we
18:06were traveling or when we are usually
18:09visiting the hospital then we used to
18:11wear right but now you you after
18:14covid-19 during that particular period
18:16of two years especially you see if you
18:18are traveling through air right how many
18:20PP kit you were bearing face shield face
18:24mask gloves all those things right so
18:27then this this is this disruption at one
18:31end happened so then raw material supply
18:34interrupted right shortage of raw
18:36material supply so reple effect is there
18:38so this is total system concept we need
18:41to understand right total cost concept
18:44right this is one system concept so cost
18:47is also the total supply chain cost
18:50right if I'm saying that total supply
18:52chain cost is $500 from starting to end
18:56that means it's not only the
18:58manufacturer is bearing some part
19:01supplier who is supplying the product is
19:03bearing the suppliers of supplier some
19:05part is bearing manufacturer is bearing
19:08then the distributor who is Distributing
19:10to 500 retailer he is bearing some cost
19:13so this is total supply chain cost and
19:16in the end if I'm saying the profit by
19:18selling one unit is $50 this profit is
19:22complete supply chain profit right it
19:25will be shared throughout the supply
19:27chain suppliers of supplier will get
19:29some margin suppliers will get margin
19:31co-manufacturer manufacturer will get
19:33margin Warehouse keeping all those
19:35people will get margin Transportation
19:37agencies will get margin and your retail
19:40distribution who is keeping your
19:41inventory will get in the end some
19:44margin out of this $50 right so total
19:47cost concept means total this will be so
19:51that means cost procurement cost will be
19:54there production Transportation
19:55inventory storage distribution starting
19:57to end to complete supply chain cost
20:00will be there now in that we need to
20:03make the tradeoff so whenever we are
20:05saying we we have seen we are making
20:07trade off when we designed our supply
20:09chain drivers in terms of efficiency and
20:13responsiveness
20:16right so so then we saw that if we are
20:20spending more on keeping inventory we
20:22are more responsive right because
20:24quickly customer is coming we are
20:26meeting the demand but at the same time
20:28we saw that the price of keeping uh the
20:31cost of keeping that inventory was
20:33increasing so efficiency is compromised
20:35right so in supply chain we are making
20:39Traders like that we are having so many
20:41different Traders cost and quality so
20:44Amazon divided different customer
20:46segments like I quoted the example of
20:49PNG so for detergent so maybe for surf
20:54XEL is for middle class family uh the
20:56nma is for lower class as per the the
20:58pricing I'm saying right so they have
21:00identified different different customer
21:03groups accordingly they have designed
21:05the product right pricing is done but
21:08then yes cost and quality cost is lesser
21:11quality will be compromised somewhere
21:13right cost and Speed Amazon if you want
21:16one day delivery they will charge you
21:18$25 right if you want five six days
21:22delivery maybe they will charge $5 right
21:24so then if you want standed delivery
21:26maybe 10 to 15 days then there will be
21:29no charge right so that means cost and
21:32delivery if you'll reduce the cost
21:35obviously they will ship when they are
21:37getting the economies of scale right so
21:39that way responsiveness is compromised
21:41inventory level and Customer
21:43responsiveness because I'm keeping that
21:46much inventory which I can meet maybe
21:48the daily demand or maybe the first half
21:50of the next day so suddenly if there is
21:53more Demand right so then that means so
21:56I will say no I'll be stock off so that
21:59means the responsiveness is compromised
22:01but I want to save in inventory right so
22:04that I can do so uh this requires
22:07decision makers to carefully evaluate
22:09the implication of different choices so
22:12on one hand maybe you can somewhere you
22:14can say we we can afford to be sometimes
22:17stock out but on other hand you can say
22:20that yes we always we need to ensure the
22:23uh supply of the product we need to keep
22:25that Safety stock seasonal stock if
22:28there there is Spike in the season we
22:29need to meet that because if today we'll
22:32say no to the customer next day that
22:34customer will not come back right
22:36another is W beip effect we have
22:38discussed this obviously information
22:41delay forecast inaccuracies and Order
22:44batching right so due to these are some
22:47of the factors where you know the will
22:50effect is observed order batching means
22:53let's say the example we talked about
22:56that our retailer placed order for 50
22:58units then manufacturer started
23:01producing for 75 units because
23:03manufacturer knows that for 50 units
23:06again we'll change over to some other
23:08product so change over will take time
23:10let us produce maybe 75 or 100 items and
23:13then we'll change over to the next model
23:15so if we'll increase the batch size the
23:18cost per unit production will decrease
23:21right because we are now producing more
23:23economies of scale after standardization
23:25once you are set you can keep on
23:27producing right so without any defect
23:29that way you can ensure but yes then if
23:32you are producing extra to save that to
23:35get the economies of scale then you are
23:38spending extra to keep that extra
23:40inventory so there is again trade off
23:43between inventory you are keeping and
23:45the economies of scale you are getting
23:48by increasing the batch size right so
23:52bull effect may be in the best example
23:56in markets as when you are you know
23:58spending in the market you're buying
24:00stocks online right so when everyone
24:02starts buying the price is increasing
24:04right so then if fuel start selling so
24:07others are also feeling maybe uh now
24:09because election results are going to be
24:11declared on 4th June right so then
24:14analyst those Market analyst they are
24:16analyzing the if this will happen there
24:18will be you know uh again rise in the
24:21stock price so that means the demand is
24:24increasing when stock price is rising
24:26and then demand will decrease Supply
24:28will be increased stock price will fall
24:30down so this is how it is working on
24:32Market sentiments right so means again
24:36that bu bip effect is there right if
24:38you're uh assessing maybe 5% change your
24:42next player in the supply chain will
24:43assess it as 7% next you will pass the
24:46information every time when we are
24:48passing the information that means we
24:50have
24:50multi-stages so the many stages long
24:54structure you will opt so that means
24:57that will be effective will be enhanced
24:59right so how much flat structure you can
25:02opt for your organization for sharing
25:04the information the accurate information
25:07you will get if directly if something H
25:10is happening in the market if directly
25:12you are recording that without any bull
25:14be effect that means that whatever
25:17customer is requiring you can supply the
25:20exact product coming to the value chain
25:23see these are time to time I have talked
25:26about but let us go in the structure way
25:28these all are non value adding
25:30activities and these are value adding
25:32activities having said that I'm not
25:34saying that these HR activities are not
25:36required financing accounting activities
25:39information techn information technology
25:41can be value adding can be non value
25:43adding I'll tell you the scenario right
25:46so these are those activities which are
25:48supporting your these actions like if
25:51I'll talk about Information Technology
25:54how you will develop the new product if
25:56you are not having information
25:58technology to tap the information coming
26:00from the market so that means in that
26:03way if you this information technology
26:06is helping you to develop the new
26:09product new feature that means this is
26:12value adding activity but if this
26:14information is helping you to keep the
26:18inventory level in the Market at the
26:21safe inventory then it is not going to
26:23add any value for the customer right so
26:26that means now it is non value adding
26:27activity
26:29Finance accounting will see one by one
26:31all these operations new product
26:33development see if I'm a renovating my
26:37product I'm providing you new features
26:39right so that means these new features
26:42customer is directly getting the benefit
26:44so this is value adding activity
26:46marketing and sales marketing and sales
26:50see uh if I'm recording your requirement
26:53what is marketing I'm recording your
26:55requirements and accordingly I'm
26:56providing you the customized product and
26:58services that means this is value adding
27:00activity then again if I'm providing you
27:03after selling this product again I'm
27:06coming up with the promotional offers
27:08and all that and in a way educating you
27:11maybe how you can use that product how
27:13you can after sale Services also I'm
27:15providing right so that that is a kind
27:18of or I'm recording your feedback just
27:20to improve the services level right so
27:22then it is value adding activity
27:24operations obviously core value adding
27:27activity because here you are doing all
27:29those activities which are converting
27:31your raw material into your finished one
27:33which is creating your you know space in
27:36the market profit in the market
27:39margins uh fetching more customers right
27:42distribution now distribution earlier
27:44maybe distribution may not be the value
27:46adding activity for the customer when
27:48you are going to retailer and picking up
27:51the inventory right but now if
27:54distribution is doing the Doorstep
27:56Delivery so that means it is value
27:58adding activity for the customer
28:00customer doesn't have time to visit your
28:02retail shop customer don't want to carry
28:05the all the packets right they want that
28:07it should be delivered at the doorstep
28:10then distribution is valuing activity
28:12because I'm driving value out of that
28:15services like I talked about after sale
28:18Services if I need some information
28:20related to how to install that how to
28:23use that something goes wrong with the
28:26functioning of that product how quickly
28:29I can get the after sales Services how
28:31your customer care support is supporting
28:34all those points even if I'm going for
28:36routine maintenance of that product so
28:38then how you are ensuring that
28:40supporting activity Finance now the
28:44budgeting part financial planning
28:46investment planning working Capital
28:48Management how you'll ensure the flow of
28:50the finance through the supply chain
28:53whatever you are doing whether you are
28:56maintaining liquidity Ratio or not
28:58whether you are maintaining inventory
29:00you are investing highly in inventory or
29:02technology or not how as a customer I'll
29:04get benefit out of that so this
29:06financing budgeting all thing you are
29:08doing just to keep running your
29:10organization budgeting is required so
29:12that you can meet the demand you can
29:14purchase the orders you can pay for
29:16those orders and that part right so that
29:18means this is internal management of
29:20your organization customer is not going
29:22to get any value out of that accounting
29:25again if you are doing the you know
29:28audits are there why you are doing
29:30audits how much inventory is there so
29:32that you can keep the track of the
29:34inventory that whether we are keeping
29:35extra inventory or the whatever is
29:37required what are the assets available
29:40in the organization whether we are
29:42utilizing or not in that way accounting
29:44is related with the assets as well how
29:46we are keeping the transactions right
29:49when we are paying to our customer all
29:51these things you are you know sorry not
29:53customer when we are paying to our
29:55vendors right if 90 days 60 days payment
29:58terms are there when we are paying our
30:00customer this all you are again
30:02maintaining your internal supply chain
30:04nothing to do with the customer right
30:06information technology already I told
30:09you it can be value adding it can be
30:11nonv value adding if you are managing
30:13information within the warehouse to
30:15ensure the proper stock rotation to
30:17ensure that inventory should not go
30:19obsolete then it is nonv value adding
30:22activity right Human Resources you keep
30:24on training developing whatever
30:26recruitment process selection everything
30:28placement induction is happening that is
30:31just to keep running your organization
30:33whether you have today 500 workers or
30:36thousand workers I really don't care as
30:39long as I'm getting my product with
30:41whatever specifications you have
30:44designed these are some of the factors
30:46we should consider when we are saying
30:48that the success of any supply chain uh
30:51will go through quickly Supply sense how
30:54we can anticipate understand and respond
30:56effectively you need to sense the supply
31:00market right so having said that that
31:03means now we need to take care of your
31:05supply sources because your supply
31:07sources raw material supplier are not
31:09only supplying to your organization they
31:11are supplying to maybe to your
31:14competitors to some other other
31:15Industries as well so you need to sense
31:18maybe there will be
31:21uh your raw material suppliers may be
31:23stock out because of there is excess uh
31:26demand or maybe other players ERS are
31:28keeping the excess demand so that they
31:31can meet that excess demand coming from
31:34the market during that peak season right
31:37so in that way you have you have to
31:39sense the supply then after sensing you
31:42need to respond how quickly market
31:45conditions are changing you you have
31:47says that Supply is also changing right
31:50so you need to manage with the vendors
31:52not only with the quantity with the
31:54quality with the variety with the
31:56different types of G uh grade of
31:58material we are using right so all those
32:01you need to respond to the supply then
32:05deciding and committing this is the part
32:07where now you have decided and you start
32:09implementing your whatever Supply
32:11strategy you have fixed or demand
32:13strategy you have fixed right so you
32:15will go for various strategic options
32:18you'll set your priorities and make the
32:20informed decisions so that you can you
32:23know ensure the smooth supply and demand
32:26of the supply chain so having said that
32:29we want continuous demand you need to
32:32generate Demand right you need to sense
32:35the demand whether the customer are
32:37shifting to my customer group or they
32:39are going to my competitor group if so
32:42why they are going to my competitor
32:44group oh they are providing these many
32:46extra features or maybe they have
32:49lowered down the price or maybe they are
32:52uh doing they're providing some
32:54promotional offers right so in that way
32:57we need to understand that their
32:59preferences we need to forecast the
33:01demand pattern and we need to align our
33:03supply chain activities as per that and
33:06once we recorded the demand we need to
33:09respond we need to how you will respond
33:11to demand you will start acquiring the
33:13raw material you'll start planning your
33:16uh production scheduling sequencing
33:19everything you will do how many models
33:21you are manufacturing different models
33:24how many units are required inventory
33:26level you will set accordingly you will
33:28uh set up your and polish your
33:30distribution networks to complete to
33:32ensure the Fulfillment processes are
33:35happening on time and Final End delivery
33:38can be done right so we can conclude
33:41here that so success of supply chain
33:44obviously how quickly you are sensing
33:47the market right and then it's not only
33:50one end you need to sense your other end
33:53the backward integration you with your
33:55suppliers you need to sense right cuz if
33:58Supply is coming from them only then you
34:00can meet the demand of the customer
34:02right and then we need to take care of
34:04all the empowers and the customer is
34:07empowered but in that way the
34:09manufacturer is also empowered right
34:11manufacturing is having all the access
34:14if I'm just I quoted one example if I'm
34:17looking for one ticket so see I can get
34:20information from anywhere but on the
34:22same time indigo is also getting
34:24information make my trip is also getting
34:27information that there is Need for
34:29ticket I need to travel from Kolkata to
34:32Delhi you see if you'll keep on
34:34searching you will get targeted
34:36advertisement in your social media
34:38website whenever you will open you'll
34:40get that 5% Don the price like this and
34:43when you'll actually start booking the
34:45ticket then you'll see there will be
34:47increase in the price because they know
34:49that continuously you are tracking that
34:51so both way customer is also empowered
34:53and supplier is also empowered in that
34:56way right and then lest development in
34:58terms of sustainability so that also we
35:01need to take care because this now the
35:03coming era is we need to set up the
35:05sustainable supply chain where we need
35:08not only to ensure the delivery of the
35:10final product we need to ensure how
35:12after the use of that final product can
35:15be again utilized right so if I'm
35:18ensuring that through my supply chain my
35:20customer will be more delighted they
35:22will feel more satisfied oh this supply
35:25chain partner or this services provider
35:28is doing these kind of activities let us
35:30go to him and get the services right so
35:34uh these all are references for your
35:36further reading thank you very much

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