Transcript
            
            
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              Hello everyone.
            
            
            
              firstly, I would like to thank Mark and Mike for giving this opportunity
            
            
            
              to present in the Con 42 Go Lang event.
            
            
            
              My topic of discussion today is information visibility and
            
            
            
              standardization, and the key drivers of the supply chain, so resilience.
            
            
            
              In today's volatile global business environment, supply chain resilience
            
            
            
              has become critical for organizational success and sustainability.
            
            
            
              Today in this presentation, we will examine how collaborative approaches,
            
            
            
              particularly information sharing.
            
            
            
              And standardization to enhance supply chain resilience.
            
            
            
              With the help of a case study, production forecast, vis visibility,
            
            
            
              which we have implemented in one of our clients, consumer goods industry.
            
            
            
              We will explore how shared information systems and.
            
            
            
              Standardized processes would improve risk management and
            
            
            
              overall supply chain performance.
            
            
            
              Also by highlighting the importance of standardizing the calendars for
            
            
            
              cost generation by timing, and then establishing global visibility for
            
            
            
              effective capacity and material planning.
            
            
            
              Okay, let's understand the resilience of supply chain definition, right?
            
            
            
              The capacity of a supply chain to anticipate withstand and rapidly recover
            
            
            
              from disruptive events while maintaining the business continuity and competitive
            
            
            
              advantage through flexible operations.
            
            
            
              that's where you call yourself as a resilient supply chain.
            
            
            
              And why is it?
            
            
            
              Why is it important?
            
            
            
              recent global disruptions, including the COVID-19 pandemic, climate related
            
            
            
              dista disasters, cyber attacks, geopolitical conflicts, have revealed
            
            
            
              significant vulnerabilities in conventional supply chain frameworks.
            
            
            
              What we are going through right now today with the tariffs and
            
            
            
              the whole Panama Canal, challenges are so disruptive in nature that
            
            
            
              the entire supply chains are not.
            
            
            
              Sustainable.
            
            
            
              So it is very important and critical to build your ecosystem in such a way that
            
            
            
              you can have supply chain resilience.
            
            
            
              What are the key characteristics of supply chain?
            
            
            
              True resilient supply chains poses PO pro proactive risk
            
            
            
              identification capabilities.
            
            
            
              Robust contingency planning, diversify supplier networks and data-driven
            
            
            
              visibility that enable rapid adaptation to evolving challenges.
            
            
            
              Now let's talk about the collaborative approaches within
            
            
            
              the supply chain management.
            
            
            
              active cooperation is very important.
            
            
            
              Active co active collaboration approaches involve coordination between different
            
            
            
              entities within the supply chain network.
            
            
            
              Emphasizing shared decision making and no share goals.
            
            
            
              I can give you one example where, you have, the manufacturing plant
            
            
            
              operating out of different country and the distribution center is operating
            
            
            
              out of a different country, right?
            
            
            
              it could be like an intercompany or intercompany network kind of supply chain.
            
            
            
              Now, this manufacturing organization, which is actually doing the production.
            
            
            
              Based off of the forecast, which is shared by the distribution center.
            
            
            
              Now this distribution center is generating the forecast, and once that
            
            
            
              forecast is generated, it is shared with the manufacturing organization.
            
            
            
              However, manufacturing organization has to procure all the required raw material
            
            
            
              from various suppliers and eventually.
            
            
            
              Reduce the product, assemble the product, and then ship the product
            
            
            
              out from the manufacturing facility to the distribution facilities.
            
            
            
              So it is very important that you share your information
            
            
            
              across all these partners.
            
            
            
              Otherwise, you will not be able to produce the product and at the same
            
            
            
              time, you will not be able to fulfill your customer orders or the demand
            
            
            
              within the distribution center.
            
            
            
              So it is very important.
            
            
            
              For you to have information sharing across these partners and also
            
            
            
              have joint planning initiatives with synchronized operations.
            
            
            
              in a lot of industries, this is called synchronized business planning, or
            
            
            
              integrated business planning, where you are actually sharing all these
            
            
            
              information between across the systems and also between the different layers
            
            
            
              within the supply chain network, right?
            
            
            
              What are the key benefits?
            
            
            
              The key benefits collaboration delivers significant advantages
            
            
            
              throughout the supply chain ecosystem.
            
            
            
              Obviously, your forecast will be improved, you will have risk
            
            
            
              less, reduced inventory cost.
            
            
            
              You will be able to respond to market changes very quickly and precisely
            
            
            
              on time and increased overall supply chain performance, which will yield.
            
            
            
              Better results and which will also improve your inventory terms
            
            
            
              and also your profitability.
            
            
            
              Information sharing and visibility constitute the cornerstone of effective
            
            
            
              supply chain collaboration by establishing systems that provide real time or near
            
            
            
              real time access to critical data.
            
            
            
              Because this entire supply chain network organizations can develop more informed
            
            
            
              strategies and respond with agility.
            
            
            
              To unexpected changes, market shifts and operational disruptions, right?
            
            
            
              Enhanced visibility across the supply chain ecosystem reduces significantly
            
            
            
              the effect optimizes the inventory management through decreased safety
            
            
            
              stock requirements, and enable more precise resource allocation.
            
            
            
              This cross-functional organizational transparency ultimately lead to
            
            
            
              improved customer service levels, reduce operational costs, and
            
            
            
              increase competitive advantage and volatile market conditions.
            
            
            
              how can you make this happen?
            
            
            
              that's the final goal, but then how can you make all this happen at a
            
            
            
              different, strategies, at a different, levels of the organization, right?
            
            
            
              you need to make sure there is a comprehensive visibility.
            
            
            
              We can talk about one example from a comprehensive visibility standpoint.
            
            
            
              we know lot of times, the products are procured from different
            
            
            
              places and then they are basically stored within a warehouse.
            
            
            
              Now, there could be a situation where the container has arrived
            
            
            
              to the warehouse, but it has not.
            
            
            
              Unloaded, or it is not, the inventory is not pulled into the dock yet, right?
            
            
            
              The product is available, it's right outside of the warehouse.
            
            
            
              it's not available on the shelf, right?
            
            
            
              If you don't provide this information to the customer service will not be able
            
            
            
              to really commit to any orders, even though the product is not on the shelf.
            
            
            
              It's outside, available, outside on the dock.
            
            
            
              Probably you can pull that container out and then bring the product to
            
            
            
              the shelf maybe within 24 hours of post-processing time, right?
            
            
            
              If that information is not available to the customer service, you
            
            
            
              probably will lose the business.
            
            
            
              So it is very important to have that comprehensive visibility, not just
            
            
            
              comprehensive visibility, but real time data access if customer service
            
            
            
              is provided with this information.
            
            
            
              Then they should be able to really take, take that insight and
            
            
            
              commit to the customers, right?
            
            
            
              not just, it doesn't end there.
            
            
            
              So you need to really have your data and real time access between all the
            
            
            
              partners within the supply chain network.
            
            
            
              It could be suppliers, it could be manufacturers, or
            
            
            
              it could be distributors.
            
            
            
              If you do that, then that enhanced decision making capability will improve
            
            
            
              and then, and you will be able to have that increased competitive advantage
            
            
            
              and then maintain sustainability and profitability, which will in turn
            
            
            
              lead to financial sustainability.
            
            
            
              Now let's talk about the production forecasting and supply chain planning.
            
            
            
              Production forecasting is very important because.
            
            
            
              Unless your forecast is accurate, there is no way you will be able to
            
            
            
              manage your supply chain network.
            
            
            
              It is very important for you to have some kind of algorithm, some kind
            
            
            
              of modeling to do demand prediction, depending on the market needs.
            
            
            
              And then eventually converting that market prediction into a forecast at a,
            
            
            
              at a. Skew level or at an item level, and then that forecast getting converted
            
            
            
              into your capacity planning, right?
            
            
            
              it could be unconstrained planning or constraint planning, but end
            
            
            
              of the day you need to have some kind of capacity planning to align
            
            
            
              all your production capabilities.
            
            
            
              So once you do that, then you will be able to produce the product.
            
            
            
              However, when you have to produce your product in such a way that your
            
            
            
              inventory levels are optimized, if you just produce the product, more than
            
            
            
              the demand, then you will have, an increased inventory situation and your
            
            
            
              inventory returns would not be manageable.
            
            
            
              So you need to ensure your inventory optimization, and you need to make
            
            
            
              sure your stock levels are managed.
            
            
            
              So that you are not having the, increased or decreased inventory situation.
            
            
            
              And again, this again cascades back to the supplier management as well, right?
            
            
            
              If your supplier is not able to give you the product on time, you will
            
            
            
              not be able to produce the product.
            
            
            
              So this is more like a loop that.
            
            
            
              You are actually bringing in all your partners of the supply chain to ensure
            
            
            
              your forecast is good, and then your capacity planning is good and the
            
            
            
              supplier network is managed, and then your inventory optimization is maintained in
            
            
            
              such a way that your stock levels are not going up and stock levels are not going
            
            
            
              down, and then that agility is required to make sure you are proactive, risk
            
            
            
              mitigation, and ultimately strengthening.
            
            
            
              Competitive advantage in volatile market situations.
            
            
            
              Okay, now let's talk through a case study, production forecast
            
            
            
              visibility implementation.
            
            
            
              So the context here is a manufacturing enterprise was struggling, with
            
            
            
              supply chain vulnerability and increasing demand fluctuations and
            
            
            
              persistent disruption events, right?
            
            
            
              this is, quite natural with any organization where you have multiple
            
            
            
              layers of stakeholders and multiple layers of partners within the network.
            
            
            
              To address these challenges, the company launched a strategic initiative to
            
            
            
              strengthen its resilience through enhanced production forecasting capabilities,
            
            
            
              and then also share the information within the cross network so that all
            
            
            
              the stakeholders in on the network.
            
            
            
              Have the visibility right?
            
            
            
              What are the key objectives?
            
            
            
              The key objectives are to enhance demand production accuracy by leveraging
            
            
            
              advanced analytics significantly.
            
            
            
              Reduce procurement lead times per business.
            
            
            
              Critical components, establish optimal inventory thresholds throughout
            
            
            
              the distribution network and cultivate exceptional supply chain
            
            
            
              responsiveness and adaptability.
            
            
            
              Obviously, these are the key objectives, which.
            
            
            
              Yeah, any company would like to keep on their initiatives so that
            
            
            
              the context, whatever we discussed, can be addressed and solved.
            
            
            
              The implementation leadership, right?
            
            
            
              as a supply chain systems manager, someone has to own this, champion
            
            
            
              this, and then be part of that transformation initiative, orchestrating
            
            
            
              the cross-functional collaboration.
            
            
            
              Securing the stakeholder commitment and directing the technical deems to
            
            
            
              develop this sophisticated forecasting platforms and, integration systems.
            
            
            
              Because you have seven, eight partners here using different kinds
            
            
            
              of systems, it is very important for us to understand these systems
            
            
            
              thoroughly inside out and then build integration between these systems.
            
            
            
              Otherwise you will not be able to deliver the product what you
            
            
            
              want to be delivered, right?
            
            
            
              It is very important to have that orchestration between all the
            
            
            
              stakeholders and, internally have some kind of commitment, which can become
            
            
            
              more of a standardization and be that, lighthouse for the organization.
            
            
            
              Okay.
            
            
            
              Let's talk through what are the key components of this initiative, right?
            
            
            
              I know we wanted to initiate that project, what it takes to make that happen, right?
            
            
            
              what are the key components for this initiative?
            
            
            
              So shared, shared visibility, right?
            
            
            
              shared visibility is one component.
            
            
            
              establishing comprehensive access to production forecasts across
            
            
            
              manufacturing, plants and suppliers, creating a unified, authoritative.
            
            
            
              Source of demand projections throughout the supply chain network.
            
            
            
              So let's double click on what I mean by shared visibility, right?
            
            
            
              your forecast at a distribution center needs to be shared with the
            
            
            
              manufacturing organization, and in turn needs to be shared with your suppliers.
            
            
            
              So the distribution center.
            
            
            
              The manufacturing organization and suppliers are talking one single language
            
            
            
              and one single metric so that it is actually shared within a skew level data
            
            
            
              on what you wanna sell, what do you wanna produce, and what do you wanna make Right
            
            
            
              across all the layers of the supply chain.
            
            
            
              that's shared visibility, and then providing them access to that.
            
            
            
              Data within your system or within their system doesn't matter,
            
            
            
              but end of the day, you have to provide that visibility is what one
            
            
            
              objective of the initiative, right?
            
            
            
              Standardized processes, Standardized processes is very important.
            
            
            
              The organizations there, there can be situation where the organizations have
            
            
            
              multiple functions and each of these multiple functions could be managing.
            
            
            
              Multiple portfolio products.
            
            
            
              The way you forecast a thermometer versus the way you forecast
            
            
            
              a, a hair dryer is not same.
            
            
            
              thermometer is more of a, a, an item which is depending on.
            
            
            
              your, health related things, whereas hair dryer is more of a day-to-day
            
            
            
              product, which can or cannot have stable demand depending on the type
            
            
            
              of the product and the quality of the product and price of the product.
            
            
            
              however, you need to have some kind of standardized processes in
            
            
            
              your organization so that you have.
            
            
            
              Same language you have, same, calendar to ensure methodological
            
            
            
              consistency across all the business units in geographical regions.
            
            
            
              Now, the third one is the capacity planning.
            
            
            
              as I said, the tooling equipment, what is needed for manufacturing the thermometer
            
            
            
              versus a hair dryer could vary, right?
            
            
            
              Depending on the type of the product.
            
            
            
              The capacity planning conversation also needs to have, and then there, there has
            
            
            
              to be some kind of alignment on that.
            
            
            
              Capacity planning, a item procurement, optimizing the
            
            
            
              acquisition process of staff.
            
            
            
              Strategically critical, high value components is very important.
            
            
            
              What it means is within your supply chain, you probably definitely will have,
            
            
            
              okay, these are my aqs, BQs, and cqs.
            
            
            
              So it's like Pareto analysis.
            
            
            
              where you are saying, 80% of my revenue is coming from 20% of these
            
            
            
              products, so therefore I classify this as aqs, and then the remaining
            
            
            
              are probably B skews or cqs, right?
            
            
            
              So it is very important to figure out what those high value components are, and at
            
            
            
              the same time, what those high value co end products are or finished goods are.
            
            
            
              And then put together a plan with the help of, some kind of advanced notifications
            
            
            
              within, within, within the supply chain.
            
            
            
              Okay.
            
            
            
              Let's jump in and talk about the processes and the challenges, what
            
            
            
              we had, during the implementation.
            
            
            
              So standard, I know we talked about the standardization, right?
            
            
            
              the standardization efforts, establishing a unified terminology, unified
            
            
            
              performance indicators and operational protocols across all the business units.
            
            
            
              As I said, the way you wanna do for a thermometer versus the way you want to
            
            
            
              do for a hair dryer could be different.
            
            
            
              you really need to have some kind of standardization there to define what that
            
            
            
              unified terminology is, what that unified calendar is, what that unified metric is,
            
            
            
              and then ensure that the data is shared across all levels of the business units.
            
            
            
              So that, that's definitely one of the critical process and also a
            
            
            
              challenge which we had to solve.
            
            
            
              The second thing is the global integration, right?
            
            
            
              as I said, there are multiple stakeholders here, multiple partners
            
            
            
              in this, overall engagement.
            
            
            
              So you need to build all these data streams so that you are doing
            
            
            
              like a cohesive enterprise wide forecasting framework, right?
            
            
            
              and when you do this, you're not trying to do like a one size fits all solution
            
            
            
              here, but, but at the same time, you need to really thoroughly understand.
            
            
            
              The business use case and how you can make it work for that product portfolio
            
            
            
              and, build a cohesive enterprise, wide, forecasting framework, which
            
            
            
              has visibility across the network.
            
            
            
              Right?
            
            
            
              And the third one is, the metrics installation, right?
            
            
            
              deploying sophisticated measurement systems to quantify the forecast
            
            
            
              position is also very important.
            
            
            
              End of the day, if your forecast is not good, the success.
            
            
            
              Of the initiative will be very bad.
            
            
            
              So it is very important to agree to a number to have a KPI
            
            
            
              defined and not just KPI defined.
            
            
            
              It is also very important that your KPI is measured, right?
            
            
            
              I think I. Measuring and then reinforcement are very important.
            
            
            
              Unless you do that, there is no way you will be successful, and then
            
            
            
              unless we get the best results out of that, adoption will not be there.
            
            
            
              It is very important as a, an orchestrator or as an implementation leader to ensure
            
            
            
              all these, efforts and processes and challenges are addressed and, need to put
            
            
            
              together a mitigation plan on how we can.
            
            
            
              Make this happen.
            
            
            
              And also make sure have some kind of reinforcement model in place so
            
            
            
              that we can see that operational continuity across the supply chain.
            
            
            
              So these are some results and, performance improvements, what we achieved, once
            
            
            
              this implementation was done, right?
            
            
            
              the overall equipment effectiveness across the manufacturing.
            
            
            
              Facilities was increased by 15%.
            
            
            
              The reduction of the lead time was done through 25%.
            
            
            
              obviously there was a procurement lead time, which was happening.
            
            
            
              So when we classified and when we.
            
            
            
              Segmented all the items saying, okay, these hundred SKUs are a
            
            
            
              items, and so on and so forth.
            
            
            
              Our focus was on, which are high volatile items, which are low
            
            
            
              volatile items, and then which has, more of a coefficient of variation.
            
            
            
              When we analyzed it and when we segmented the data, we were able to identify
            
            
            
              all the AI items and for those items.
            
            
            
              We were able to reduce the lead time by 25%, which is a huge win.
            
            
            
              Which is a big win.
            
            
            
              And we had also stockout reduction, improvement.
            
            
            
              there was an increase of 30% in the stockout, reduction, which is a
            
            
            
              dramatic decline in inventory shortages for mission critical components.
            
            
            
              So you are able to, you are able to ensure the product is.
            
            
            
              Made and you are also able to ensure the product is on the shelf timely.
            
            
            
              And obviously that would, bring down your stock out reduction.
            
            
            
              And then the communication also got improved by 40%,
            
            
            
              which is phenomenal, right?
            
            
            
              market efficiency gains and cross-functional information
            
            
            
              exchange, as I said, as I gave that.
            
            
            
              Example of the warehouse and the product sitting on the dock,
            
            
            
              which was a very generic example.
            
            
            
              But in this case, as we communicated with, several stakeholders with
            
            
            
              real time data, with comprehensive data visibility, that the overall
            
            
            
              communication improvement was phenomenal.
            
            
            
              And it's 40%, which is a very huge.
            
            
            
              When, for the organization and for the function.
            
            
            
              And then the, it's a something to celebrate, as a
            
            
            
              supply chain, orchestrator.
            
            
            
              So I know we talked about, the initiative, but why actually did we do this?
            
            
            
              What are the implications for supply chain resilience?
            
            
            
              supply chain resilience will obviously bring in enhanced visibility, real time,
            
            
            
              shared visibility of demand forecast.
            
            
            
              Empower stakeholders to identify supply demand misalignments before
            
            
            
              they get escalated, and then take some troubleshooting and then have
            
            
            
              some strategic risk prevention.
            
            
            
              So enhanced visibility is one implication, improved planning.
            
            
            
              Precision forecasting has revolutionized, risk management practices enabling
            
            
            
              data driven resource allocation and sophisticated scenario modeling
            
            
            
              that anticipates disruptions rather than merely responding to them.
            
            
            
              we got to a situation where, we are having systems which are KPI driven, right?
            
            
            
              if I have to give you an example, today in the modern world, we have
            
            
            
              systems where you wanna say, what do I need to do to maintain my inventory?
            
            
            
              Turn of.
            
            
            
              Three thirds or four thirds, right?
            
            
            
              Or what do I do to make sure my service levels are 95%, right?
            
            
            
              So if that is the metric, what you want to achieve, systems are able to tell
            
            
            
              you back, this is what you need to do.
            
            
            
              You need to have.
            
            
            
              Product on the shelf.
            
            
            
              You need to have product on the shelf for aqs or BQs or a combination of aqs
            
            
            
              and BQs and so on and so forth, right?
            
            
            
              So all of these, all of this is able to happen with the help of improved planning,
            
            
            
              precision forecasting, and then it has really revolutionized and it'll work.
            
            
            
              Only when we enable data-driven resource allocation and sophisticated
            
            
            
              scenario modeling and all of that are really helping to bring back
            
            
            
              that resilience, which we discussed.
            
            
            
              Not just that, the standardization benefits, right?
            
            
            
              when you do across regional harmonization, instead of doing a siloed operations,
            
            
            
              within the manufacturing organization or within the supply chain where.
            
            
            
              one team is not talking to another team and then create, creating
            
            
            
              that siloed operational structure.
            
            
            
              With the help of this standardization, it is easier to address all the
            
            
            
              disruptions and then also optimize and then accelerate the decision making.
            
            
            
              I think that's the critical word here, accelerate the decision making
            
            
            
              so that your resilience is ba bring.
            
            
            
              Brought back into the game, right?
            
            
            
              these are some of the implications.
            
            
            
              And all of these implications were solved with the help of the project, what was
            
            
            
              done in the initiative we discussed.
            
            
            
              Okay.
            
            
            
              Let's talk through the key takeaways here.
            
            
            
              the collaborative approach, strategic cross-functional collaboration in
            
            
            
              forecast sharing drives a substantial resilience against, through
            
            
            
              synchronized decision making and transparent, information exchange.
            
            
            
              The value chain.
            
            
            
              So collaboration definitely brings, back that resilience, standardization
            
            
            
              value, implementing harmonized, global processes, with a calibrated, locally
            
            
            
              adaptable creates a resilient operational foundation that balances the consistency
            
            
            
              with necessary market responsiveness.
            
            
            
              Standardization has its own value where you will be able to
            
            
            
              mitigate the risk, and then also where you will be able to support.
            
            
            
              from a process standpoint and system standpoint, and more of a shared service
            
            
            
              value can be brought back with the help of the standardization, which will
            
            
            
              be resilient and, risk proof, right?
            
            
            
              not just that the continuous improvement, the supply chain resilience demands
            
            
            
              are persistent evaluation, right?
            
            
            
              as I said, reinforcement is needed, to keep your process intact, to
            
            
            
              keep your systems intact, and then all of that would happen with the
            
            
            
              help of continuous improvement.
            
            
            
              The, and then once you have the continuous improvement, it is very
            
            
            
              scalable to have some kind of systemic, upgrades and some kind of systemic
            
            
            
              assessments on a periodic basis.
            
            
            
              And then also not just that data driven refinement, right?
            
            
            
              today when you do your segmentation, you probably got aqs as a hundred.
            
            
            
              BQs as a hundred and Cqs as a hundred, right?
            
            
            
              Tomorrow, in next three months.
            
            
            
              To three years, your data might have got changed, right?
            
            
            
              So it is very important for you to have data-driven refinement considering
            
            
            
              the data at that moment, right?
            
            
            
              so all of that continuous reinforcement and pro active adaptation to emerging
            
            
            
              disruptive patterns is very important that continuous improvement is need
            
            
            
              of our, and then not just that, the practical application forward thinking.
            
            
            
              Organizations must prioritize, end-to-end visibilities, process
            
            
            
              standardizations and, cultural transformation as well to keep the
            
            
            
              sustainable and competitive advantage in the current, volatile market situations.
            
            
            
              With this, I would like to conclude, con for 40 twos, Golan event.
            
            
            
              And again, this is, mother Shema.
            
            
            
              It was an honor and, privilege to present in this event.
            
            
            
              And I would like to thank again, Mike and Mark for giving this
            
            
            
              opportunity to present in this Con 42 presented, Golan event for 2025.
            
            
            
              And if there are any other questions, happy to answer and
            
            
            
              thank you for the opportunity.
            
            
            
              Thank you.