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Innovation in Supply Chain Management. Sanjay More Barloworld Logistics, Dubai 26 September, 2012. Contents. Definitions Current trends Innovations in supply chain Cutting edge solutions Matching it to your business. Innovation.

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innovation in supply chain management

Innovation in Supply Chain Management

Sanjay More

Barloworld Logistics, Dubai

26 September, 2012

contents
Contents
  • Definitions
  • Current trends
  • Innovations in supply chain
  • Cutting edge solutions
  • Matching it to your business
innovation
Innovation
  • 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.
  • This is accomplished through different or more effective products, processes, services, technologies, or ideas that are readily available to markets, governments, and society.
  • Innovation is not equal to Invention or Improvement.
  • In short “doing things differently”

Source: Wikipedia

supply chain management
Supply Chain Management
  • 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.
  • 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

innovations that changed supply chain management
Innovations that changed Supply Chain Management

#1. Container & Cranes

The box that changed the world

  • It gave the world an unit to ship
  • Standardized the size and capacity
  • Set tariffs across a distance
  • Defined the capacity of ships
  • Road transport and trucking
  • Helped warehousing to measure and build capacity.
  • Helped manufacturer and traders in making and ordering decisions.
innovations that changed supply chain management1
Innovations that changed Supply Chain Management

#2. Pallets & Forklifts

Movement of goods made easy

  • Movement made easy
  • Storage made easy
  • Counting made easy
  • Stock taking made easy
  • Air Freight made easy
innovations that changed supply chain management2
Innovations that changed Supply Chain Management

#3. Racking system and VNA

Storage of goods made easy

  • Systematic storage
  • Stock taking became easy
  • Segregation of Fast Moving vs slow moving goods
  • Facilitated unique location
  • More capacity
innovations that changed supply chain management3
Innovations that changed Supply Chain Management

#4. Barcoding & RFID

Tracking and data collection

  • Stock replenishment
  • Tracking
  • Intelligence building
  • Real-time data
  • Facilitated planning
innovations that changed supply chain management4
Innovations that changed Supply Chain Management

#5. Production line and LEAN

Productivity and process management

  • Improved efficiency
  • Reduced the lead time
  • Reduced the cost
  • Simplified production and also principles were applied across the supply chain
innovations that changed supply chain management5
Innovations that changed Supply Chain Management

#6. Computer & Web technology

The power of computation and connecting

  • Computer facilitated the computation of complex formulas and large amount of data
  • Facilitated analysis and trends
  • Web enabled data sharing
  • Real-time data analysis
  • Conversion of data
innovations that changed supply chain management6
Innovations that changed Supply Chain Management

#7. Mobile & Communication

The speed of communication

  • Real time data capturing
  • Simplification of process
  • Shorter processes
  • Enabling data conversion
  • Facilitates quick analysis
  • Speed in response
  • Less paperwork
innovations that changed supply chain management7
Innovations that changed Supply Chain Management

#8. DRP & ERP

Distribution and Resource planning

  • 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 management8
Innovations that changed Supply Chain Management

#9 DTS & TMS

Dedicated Transport and management

  • Improved financing, cash-flow
  • Increase visibility
  • Reliability
  • Route mapping and optimisation
  • Optimisation of resources
  • Integration
innovations that changed supply chain management9
Innovations that changed Supply Chain Management

#10. Inventory & Demand planning

Reduce costs and improve availability

  • Reduce excess inventory
  • Improve cash flow
  • Forecast demand
  • Reduce gut feel risks
  • Improve availability
  • Improve customer satisfaction
  • Better return on investment
innovations that changed supply chain management10
Innovations that changed Supply Chain Management

#11. Inventory Optimisation

Creating a strategic advantage

  • Deal with greater levels of complexity
  • Manage longer lead times and uncertain supply
  • Deal with bigger production runs and supply constraints
  • Different modes of transport
  • Network optimisation
innovations that changed supply chain management11
Innovations that changed Supply Chain Management

#12. Supply Chain design and network modelling

End to end supply chain solutions

  • 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
Areas for innovation
  • Supplier demand planning
  • Manufacturer demand planning
  • Wholesaler / distributor Inventory planning
  • Retailer Inventory planning
  • Consumer Value / Price
  • All these major points are connected with one or the other forms of transportation.
    • 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
The future of Supply Chain

Technology

  • We as a supply chain industry haven’t used the available technology to the full extent.

Collaboration

  • 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).
  • 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

  • Improve Customers performance
  • From suppliers order point to customers demand point
  • Dell Computer’s direct-sales model for business clients
the green trailer
The Green Trailer

Drag reduction 35-43%

Fuel saving 7-10%

Monthly saving

AED 4250

Carbon reduction 14 Tons in 6 months