CELERITY SUPPLY CHAIN TRIBE JUNE '23

THE ‘QUINTESSENTIAL’ FOOD VALUE CHAIN

Unraveling Aspects Redefining the Indian Food Supply Chain and making it FutureReady to serve the global markets

Nitin Kathuria Marico

Sandeep Baxla Indofil Industries

Rajesh Edlabadkar

Sukanta Das Hindalco Industries

Amit Kumar Baveja Kellogg Company

Balaji Reddipalli Borosil

Sreenivas Rao N Sun Pharma

Akhil Srivastava AB InBev

Sachin Gupta Shell

Sreekanth V Colgate-Palmolive Nikhil Puri

Mitesh Gangar Aarti Industries

Purushottam Tatkar Henkel

Arush Kishore

Lt Col Vijay Nair (V) Saarthak

Animesh Tripathi Colliers India

Vikas Sharma Zepto

Vivek Sarbhai Thermofisher Scientific

Sourabh

R Lava International

with on-spot

Panel

Panel

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DAY

Panel

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Atul Barve Reliance Retail

Ashish Tripathi TORM A/S

Dr Firoze Hussain Delhivery

Laxmana Murthy Legrand (India)

Ajit Jangle FM Logistics

Sanjay Desai Humana International

Manpreet Kaur Vivantaa Captech Pvt. Ltd

Ravikant Parvataneni Argon & Co

Kaushik Ghatak ValueQwest

Prasanna Salvi Blue Dart Roquette Anirban Sanyal

Irfan Mulla Allcargo Logistics Ltd Actis IGBC Mumbai

Gaurav Bhatia Reliance Pharma

Flipkart

Rajeev Kadam TotalEnergies Marketing India Indorama

Samrat Paul Zepto

Rajat Sharma

Food and Funding!

Dear Readers,

While the World will observe the World Food Safety Day on June 07, the Global Report on Food Crises (GRFC) for 2023 highlights that the number of people experiencing acute food insecurity and requiring urgent food and livelihood assistance is on the rise. The report indicates that over a quarter of a billion people are facing acute hunger, with economic shocks and the Ukraine war contributing to the increase. In 2022, around 258 million people across 58 countries and territories faced acute food insecurity at crisis or worse levels, up from 193 million people in 53 countries and territories in 2021.

As the threat of another year of food crises looms ahead, our Cover Story looks at addressing challenges such as food wastage, food safety and quality and environmental impact. Experts from this sector discuss multiple innovative ways including implementation of sustainable production processes, ethical sourcing, clean and efficient supply chain, etc. Read on to know more.

The start-up funding winter continues in this soaring heat. In the Special Report section, seasoned investors reveal their evaluation strategy, and tips that supply chain startups can address to become more attractive for VC and PE investments.

This issue packs in a lot more including potential of Metaverse in supply chain, use of Applicant Tracking System (ATS) to get the best match for both parties, and some more on customer-centricity and use of lean management principles for resilience.

Enjoy the read and let us know what you think.

Charulata Bansal Publisher

Charulata.bansal@celerityin.com www.supplychaintribe.com

CONTENTS

The ‘Quintessential’ FOOD VALUE CHAIN

Food supply chains are complex and opaque networks involving various stakeholders such as farmers, government machinery, retailers, logistics providers, etc. Moreover, external factors such as climate change, price inflation, Covid and the Ukraine war have been creating further strain on the global food value chain. These global disruptions are reinforcing the need for Sustainable and Resilient Food Chains. The ‘Quintessential’ Food Value Chain urgently needs an OVERHAUL, which should be ably supported by new age tech deployment, adoption of sustainable practices & innovative approaches to reduce wastages and a collaborative spirit to drive holistic growth.

CHAIN

Prof. Abhishek Behl (Management Development Institute, Gurgaon, India) and Nirma Jayawardena (OP Jindal Global University, India), project the future of metaverse in supply chain and its potential impact on the same…

35 | Applicant Tracking System (ATS): The Holy Grail of Candidates

Sanjay Desai, Co-founder & Regional Director, Humana International (S) Pte Ltd., reveals the cheat sheet on ATS for candidates and employers to find the RIGHT MATCH… trends of in-city warehousing in India.

38 | LEA’R’N with Continuous ‘R’ESILIENCE

Prof (Dr) Kalyana C Chejarla and Ganesh

Mahadevan trace a few relevant resilience strategies, using the lean management principles.

Indian Supply Chain Startups –The Ultimate Dealmakers

Seasoned investors share their evaluation strategy, some ground rules for startups to sustain & survive in tough times and their poised role to lead the growth trajectory…

INTERVIEW

Taking the Customer-First Approach

“To keep customers happy, give them what they want, when they want it and at the lowest price,” emphasizes Sanjay Kshirsagar, Head of Supply Chain – South Asia, Brenntag India …

Editor: Prerna Lodaya

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Exploring in METAVERSE SUPPLY CHAIN

New age technological innovations such as metaverse can have a significant impact on senior supply chain leadership decisions because they enable novel planning approaches, quick virtual testing, and accelerated time to market for new products. Owing to its inherent functionality, the metaverse would create a virtual supply chain that would emulate the most minute variables across inventory points, subcontractors, suppliers, products, buffers, customers, ships, and trucks. This would ultimately enable companies to spot potential issues, disruptions, and shortages before they can occur and take corrective action in advance. Prof. Abhishek Behl (Management Development Institute, Gurgaon, India) and Nirma Jayawardena (OP Jindal Global University, India), through this article, project the future of metaverse in supply chain and how its potential impact on the same…

METAVERSES are edge technologies that operate from the bottom up. Digital operations enhance physical supply chains digitally, while the metaverse creates a digital world and translates it into a real one. Companies and governments around the world are investing in the metaverse. Industry practitioners and scholars have recently begun to pay attention to the metaverse. According to McKinsey & Company, the metaverse market is expected to generate $5 trillion in the coming years, involving a variety of products, services, and industries. It is consequently expected that several giants and emerging companies will invest heavily to take advantage of the opportunities presented by this new market. With the help of a threedimensional (3D) representation and a variety of applications, the metaverse can provide immersive experiences that relate to the physical world. Various technologies are used to support avatars

(i.e., smartphones, tablets, smart glasses, headsets, etc.). These include artificial intelligence (AI), simulations, virtual reality (VR), augmented reality (AR), extended reality (XR), blockchain, and digital twins.

METAVERSE SOLUTIONS FOR SUPPLY CHAIN OPTIMIZATION

A virtual world can be used to observe the movement of goods throughout the entire supply chain. To determine how the supply chain responds and where it breaks down, issues such as weather conditions, component shortages, and transportation disruptions can be introduced. The use of these digital twins can facilitate the identification and testing of improvements at various stages, and when problems arise, the virtual world can be used to evaluate potential solutions. Metaverse solutions are also capable of optimizing peak demand planning. In a virtual environment, you can test

Abhishek Behl is an experienced Researcher with a demonstrated history of working in academia and research and is currently a faculty at MDI Gurgaon. He holds a double doctorate in Business Management with a focus on gamification and information management. He has published more than 100 papers in top tier journals and holds prominent position in more than 20 journals of international repute.

Dr Nirma Jayawardena is an Assistant Professor in O P Jindal Global University, India. She completed BSc in Business Management (firstclass honours) from NSBM Green University, Sri Lanka. MBA in International Business from University of Colombo. Graduate Diploma of Business Research and PhD in Marketing from Griffith University, Australia. Her research interests include consumer psychology, consumer social cognition, digital video advertising, and experimental research.

Metaverse has the potential to integrate the real and virtual worlds, enabling residents to carry out their daily tasks without having to move their bodies. As a result, a great number of businesses have adapted to account for this recently discovered fact. Every individual is represented by a corresponding digital avatar that may be communicated with, managed, guided, and watched over. Companies have the ability to buy and sell products, monitor operations, receive information, adjust projections, and deliver services within the metaverse. As a consequence of this, it becomes a digital imitation of what businesses actually do.

everything from order management to distribution and fulfillment, revealing those areas of the supply chain that require reinforcement during times of increased demand. In the real world, endto-end supply chain network mapping contributes to the development of a more robust and resilient supply chain. When historical data is unavailable or irrelevant, artificial intelligence can produce synthetic data that can be used to develop forecasts and determine the best course of action.

METAVERSE-BASED SOLUTIONS FOR THE DESIGN AND LOCATION OF FACILITIES

Commercial and industrial facility managers are increasingly interested in using augmented reality to improve their operations. A digital augmentation lens allows people to see their physical environment through augmented reality. Smartphones use it daily for navigation or Snapchat filters. Commercial and industrial facility managers can take advantage of augmented reality for convenient assessments. Operational

planning and risk assessment can be done with it. Currently, 1 out of 5 facility management professionals use augmented reality for work. AI and IoT sensors could be used in conjunction with these facilities to track the movement of goods throughout the supply chain once these facilities are constructed. By utilizing blockchain technology, they may be able to plan, respond, and implement the best responses in real time with minimal human intervention. As a result of the metaverse, people will have new opportunities to collaborate and exchange ideas with each other. This means, for example, that in the digital arena, there may be a meeting between firms and their suppliers, where they examine and evaluate the facilities together. There is no doubt that the presentation of new ideas and the exchange of comments both contribute to the facilitation of an efficient and timely collaboration.

ENHANCE SUSTAINABILITY WITH METAVERSE SUPPLY CHAINS

Firms and organisations need to be ready to confront a crucial question regarding one of the many business characteristics that characterise the metaverse which is that does metaverse is essential and accountable type of digital technology? This is an undoubtedly serious subject in the context of Industry 5.0, which represents a radical departure from traditional business practises. Industry 5.0 seeks to utilise cutting-edge technical innovations to help businesses become more productive, eco-friendly, and community responsible.

Metaverse solutions are also capable of optimizing peak demand planning. In a virtual environment, you can test everything from order management to distribution and fulfillment, revealing those areas of the supply chain that require reinforcement during times of increased demand. In the real world, end-to-end supply chain network mapping contributes to the development of a more robust and resilient supply chain. When historical data is unavailable or irrelevant, artificial intelligence can produce synthetic data that can be used to develop forecasts and determine the best course of action.

The literature on digital transformation has exhaustively documented how the implementation of certain digital technologies can have a negative impact on a variety of facets of sustainability. For instance, the deployment of robot’s technology can assist manufacturing systems in managing repetitive tasks and helping continuous systems attain economies of scale as well as efficiencies. Every piece of robotics hardware is equipped with sensors, intelligence that enables it to come to its own conclusions autonomously, and the ability to collaborate with humans to enhance production, quality, and lead times. Robotics, on the other hand, can be considered as a danger because it will likely result in different working conditions and remuneration, as well as the possibility of job loss and the requirement for training programmes. Large volumes of data can optimise processes for low scrap, high saturation of manufacturing equipment, minimal waste, and high energy efficiency. Big data manufacturing systems may be capitalintensive and utilise more energy. Big data uses 200 terawatt hours each year in data centres, according to actual research. This is greater than Argentina, Ukraine, and Thailand's energy usage, half of the world's transportation electricity, and 1% of global electricity demand.

THE CULTURE OF THE ORGANIZATION AND THE COMMITMENT OF STAKEHOLDERS

The culture of the organisation plays a crucial influence in digital transformation projects such as the metaverse. It is possible that progress towards the metaverse will be hindered by the data-

driven culture of an organization, the support of upper management, and cross-departmental and cross-functional cooperation. Organizations may also face difficulties due to a lack of knowledge about or exposure to the metaverse. The Metaverse, according to McKinsey & Company, enables levels of collaboration in training and agile virtual prototyping that were previously impossible. Businesses and their suppliers are now able to collaborate on supply chain management because of this lens. The opinion and engagement of customers, sometimes in real time, is becoming more important than it has ever been, thanks to the metaverse. Nevertheless, the management of project stakeholders is most affected by cultural factors. When individuals are forced to interact with international stakeholders, some of them are unable to accept the differences because they carry different views and values than those that are prevalent in their societies.

This is the core cause of the problem. Before making a purchase decision, clients in other industries, such as travel and hospitality, will be presented with opportunities to participate in immersive experiences. In addition, clients can conduct virtual experiments with a variety of resources, services, and products such as rooms, excursions, restaurants, and flights. In addition, companies in a variety of different sectors have already begun implementing metaverse technologies into their operations. For example, companies such as Amazon, Google, Apple, Nvidia, and Tencent, amongst others, are redesigning their goods and the professions associated with them so that they can function in the metaverse.

CONCLUSION

A variety of applications and threedimensional (3D) representations make up the metaverse. Besides smart devices (such as smartphones, tablets, smart glasses, headsets, etc.), avatars can also be accessed through cutting-edge technologies like artificial intelligence (AI), simulations, virtual reality (VR), augmented reality (AR), extended reality (XR), blockchain, and digital twins. Four aspects have been discussed through this article as; metaverse solutions for supply chain optimization, metaverse-based solutions for the design and location of facilities, enhance sustainability through the use of metaverse supply chains and the culture of the organization and the commitment of stakeholders.

After implementation, the lack of skilled workers has become one of the primary concerns, whereas security was the primary concern before adoption. Strong plans pertaining to human resources, financial costs, supplier relationships, and physical infrastructure should be developed by managers. The technology, known as the metaverse, has the potential to integrate the real and virtual worlds, enabling residents to carry out their daily tasks without having to move their bodies. As a result, a great number of businesses have adapted to account for this recently discovered fact. Every individual is represented by a corresponding digital avatar that may be communicated with, managed, guided, and watched over. Companies have the ability to buy and sell products, monitor operations, receive information, adjust projections, and deliver services within the metaverse. As a consequence of this, it becomes a digital imitation of what businesses actually do.

The ULTIMATE DEALMAKERS Indian Supply Chain Startups

Call it a profit opportunity or unveiling of a new goldmine, the logistics space has been able to capture investors’ attention for all the right reasons. Sitting on the back burner for decades, supply chain domain has proven its power during the times of crisis and emerged as the SHINING STAR of every business vertical. Growing investments into this field has only accentuated the performance and projection of this MIGHTY BEAST. This resurgence has been ably supported by the advent of tech-savvy and eco-conscious supply chain startups who are harmonizing and optimizing the supply chain network of the country. This Story captures the trendsetting landscape enabling a constant infusion of investments from ivy league investors. Here’s an attempt to capture investors’ evaluation strategy for investing, some ground rules for startups to sustain & survive in tough times and their poised role to lead the growth trajectory…

INDIA’S private equity industry has evolved significantly, with a broadened investor base that quadrupled from 200 to 800 active investors since early 2010s, diverse pools of capital, and acceleration in buyout capital for quality assets, as highlighted in a recent Bain & Co., research report. This has enabled tremendous growth in exit opportunities, complemented by the growth in strategic sales and secondary markets, resulting in value capture of 10x to 20x for multiple investors across investment cycles since the 2010s. A supportive regulatory landscape, innovative digital infrastructure, and deepening maturity of founders and talent have all led to this spurt in investment landscape for startups. Indian private equity, bolstered by a maturing ecosystem, demonstrates confidence and resilience to navigate the turbulence ahead and continue its accelerating flywheel of growth.

Another interesting research by Redseer Strategy Consultants highlighted that India has in the past weathered such economic storms owing to strong business fundamentals. In the next few years, India will shine as the preferred

investment haven despite certain challenges. India may see 100-plus matured, large-scale, profitable startups in the next five years. About 20 of these startups are already being listed and the others can look at an IPO journey. Until 2021, investors had a fear of missing out and had made several investments without due diligence. In 2022, a gradual shift was witnessed in the investment approach. In 2023, startups have to show how differentiated they are. They must demonstrate their scalability and ability to grow and demonstrate how they are reducing cash burns. Taking cognizance of the matter, Indian startups have now begun to prioritize profitability and are focused on getting their fundamentals right. The attitudinal shift makes the Indian startup ecosystem attractive to investors.

Latest updates only reflect the reigning supremacy of Indian startups when it comes to attracting investors… Some of the world’s largest logistics players and private equity fund managers such as Panattoni, Investcorp-NDR Group, RMZ, Hiranandani-Blackstone, Actis, Assetz Property, Ivanhoe Cambridge and

Prologis are fast making a foray or are expanding their wings into this highly promising Indian industrial and logistics space, which has a total stock of about 350 million square feet (msf).

As per an IBEF report, the development of industrial and logistics parks, as well as data centers, is a new bright spot on the Indian real estate heatmap. In 2022, these two segments received US$1.8 billion in Private Equity (PE) / Venture Capitalist (VC) investments, representing a 29% increase year on year. The industry garnered investments worth US$1 billion (Rs8,257 crore) at the beginning of 2022. Over the last four years (2019-2022), the warehouse and logistics sector has received a total institutional investment of US$5.4 billion, with 2022 accounting for a major 35% portion.

As part of the latest funding landscape, logistics startup Agraga has raised Series A funding of $8.5 million (Rs70 crore) led by venture capital firm IvyCap Ventures, with participation from Alteria Capital. Malaysian sovereign wealth fund Khazanah Nasional Berhad has bet $40 million (around Rs320

crore) on Pune-based logistics company Xpressbees. Welspun One Logistics Parks (WOLP) has successfully concluded the initial close of its second Alternative Investment Fund (AIF), WOLP Fund 2, raising Rs500 crores from domestic high net worth and family office investors within a short span of eight weeks. The speed of the raise underscores the strong investor confidence in both, the Welspun One platform and the prospects of the warehousing and industrial sector in India. Celcius Logistics Solutions Pvt Ltd, which operates the cold chain marketplace Celcius, has completed its Series A funding round to take the total amount to Rs100 crore ($12.2 million) from Venture capital firm IvyCap Ventures.

Dr. Ivo Ganchev, Founding Director, the Centre for Regional Integration, was quoted as saying, “Opportunities are vast and Indian entrepreneurs have the potential to benefit from them. On one hand, as Bain and Company point out, structural factors such as low leverage, tech adoption, and favorable demographics create conditions for India’s continuous growth. On the other, due to its relative market openness, bilingual workforce and global connections, India has strong soft power within the international business community. The potential of these strengths can be further amplified when combined with correct market positioning and strong leadership to fuel the next chapter of India’s growth story.”

Such a buoyant landscape propelled us to speak to the enthused investors’

Whenever there is a large problem to be solved or a big opportunity to be leveraged, innovative minds get activated. Interestingly supply chain, of late, has been one of those promising domains for startups. This territory, though highly complex and vast, is still at a very nascent stage of technological evolution and it makes perfect sense for young minds to put their energies into something which is practically a crucial part of every business. India’s imperative as well as focus on improving its supply chain efficiencies, trade competitiveness and ease of doing business are driving the spurt in investments.

community who is actively partaking in the supply chain startup growth bandwagon. The discussions led to them revealing fascinating facets of investing. Here’s presenting to you some of the most striking insights unveiled by them…

How has the supply chain investment landscape shaped over the years?

Pramod Gupta, Founder and Lead, TGF Advisors LLP: All of us recognize the potential of supply chain in the country. We have been talking about significant breakages happening in the supply chain in the country and the associated costs, as compared to the Western countries. This has been adversely impacting India’s competitiveness, export performance, etc. Lately, a lot of work has happened from the government’s side on the Supply Chain front. Interestingly we have witnessed a plethora of logistics-tech startups of varied size emerging from the country in the last 7-8 years to solve these challenges. It’s an exciting space to be in as we move forward. Startups will continue to invest, and their scaleup journey will speed up further, given that initiatives like Aadhar linkages, GST implementation and use of data analytics to plug revenue leakages are leading to increasing formalization of the Indian economy. But we still have a very large cash economy. The pace of formalization needs to pick up pace.

Trucking is still quite fragmented in our country. Railway freight has the

potential to become very big, but there are enormous amounts of breakages on the first mile and the last mile, which need to be ironed out. Waterways are virtually non-existent. Then we have a big issue around non-acceptance of Electronic Proof of Delivery (EPoD). As most organizations are just not tuned to the concept, this results in delaying the cargo movement substantially. Moreover, large organizations still treat the trucks and the truck drivers with a fair amount of contempt. Even if trucks move significantly faster, if they are held up for days for loading and unloading, then the benefit of faster speeds on highways is lost. It also significantly impacts the network and has significant cost implications.

In terms of supply chain for foreign trade, the whole world is putting up higher-and-higher non-tariff barriers and India is no exception. That also impacts supply chain efficiencies. Each of these big scale problems presents an investment opportunity in the area of supply chain, subject of course, to government policies and regulatory framework also evolving simultaneously.

Ankit Sethi, COO – SE Asia & India, Fung Investments: Supply chain was not in the priority list for VCs, especially when compared to more in-vogue sectors. Limited knowledge about the sector within the VC ecosystem also played a role in this with corporates/ corporate VCs leading the charge in fostering innovation and startups. With

Pramod Gupta, Founder and Lead, TGF Advisors LLP

the confluence of various macro and micro trends shaping out in the last few years, supply chain and logistics has gained prominence in the larger investor ecosystem with the number of deals, total funding amounts and valuations increasing consistently.

Akhil Srivastava, Director – Supply Chain, AB InBev: Supply chains and its evangelists are striving for continuous focus around maximising velocity to serve, minimising variability and in process building real-time visibility solution platforms. The supply chain tech space has of late seen surge in new incumbents evolving the techstack (which most claim as proprietary algorithms) to gain real-time data based analytics for actionable insights. Very recently firms like Pando, Roambee, Fareye, Nebularc, etc., have shown profound interest from both investor community as well as established corporates.

The world of RTTVP (real-time track and visibility protocol) has seen upsurge and tick in investments. Most of brands and product firms envision that data based decision centric supply chains will be both competitive advantage as well as opportunity to farm data for future digitization and monetisation. These supply chain tech stack firms can play pivotal role to not just predict but with deeper data mining start prescribing how supply chains of futures will help bring optimisation in business and key drivers of inventory management, cost arbitrage as well as sustainability pledges for future emissions reductions.

Companies will thrive and gain

momentum and our supply chains, which used to be static and phone calls enquiry dependent will move towards dynamic and action oriented just like today’s smartphones, which can have our pulse on 24*7 basis with alerts and notifications to rule out any deviations and eventuality. The smart chains will be the game of future, and these will lead to market leadership and apex positions for firms, which embrace data centricity based analytical supply chains …. The Pulse check … is your supply chain Ready for One!!

Arindam Mukhopadhyay, Partner, India Accelerator: Supply chain investment landscape in India has undergone significant changes reflecting the growth and evolution of the Indian economy over the last few years. While in the past, investments were limited primarily to infrastructure projects such as roads, ports, and railways, in recent years, there has been a shift towards more sophisticated and technologydriven supply chain investments.

One of the key drivers of this change has been the growth of e-commerce in India, which has led to increased investment in logistics and last-mile delivery infrastructure. Companies such as Flipkart, Amazon, Snapdeal and Delhivery have invested heavily in building out their supply chain networks, including warehouses, fulfilment centres, and delivery fleets.

There are other sectors such as manufacturing, retail, and healthcare, which have also seen increased investment in supply chain infrastructure. Further,

rise of technology has also played a key role in shaping the supply chain investment landscape in India. This includes investments in automation, data analytics, and artificial intelligence (AI) to optimize supply chain processes and reduce costs.

What factors have led to this strong spurt in investments by VCs and PEs in Supply Chain?

Pramod Gupta: To a certain extent, whenever there is a large problem to be solved or a big opportunity to be leveraged, innovative minds get activated. Interestingly supply chain, of late, has been one of those promising domains for startups. This territory, though highly complex and vast, is still at a very nascent stage of technological evolution and it makes perfect sense for young minds to put their energies into something which is practically a crucial part of every business.

India’s imperative as well as focus on improving its supply chain efficiencies, trade competitiveness and ease of doing business are driving the spurt in investments. We are witnessing a sea change in the policy framework and pace of implementation in the area of supply chain. There has been a paradigm shift when it comes to developing logistics parks, GST implementation, Mission Gatishakti, Bharatmala, etc. There is modernization happening in ports development, railways infrastructure and road network, to name a few. The new National Logistics Policy (NLP) puts equal emphasis on softer aspects like digitalization and process simplification.

Ankit Sethi, COO – SE Asia & India, Fung Investments

In a sector such as supply chain, collaboration with stakeholders is key to push innovation and bring in new ways of working. I would encourage the startups to work with the larger ecosystem as much as possible. This is even more important in the critical areas of digitalization and decarbonization of supply chains. Be close to your customers and stay abreast of their evolving needs. Have a razor-sharp focus on value proposition and business fundamentals. And think of step changes in your areas of focus.

While many of the initiatives have already progressed significantly, the road ahead is even more exciting. All these factors have led to increased investments in supply chain startups over the last few years, and this tailwind is likely to continue in the foreseeable future.

Ankit Sethi: The last few years have seen supply chains being disrupted like never before. The evolving geopolitical landscape has put pressure on the existing structures and has brought supply chain resiliency right on top of the global boardroom agenda. Consumer behavior has been rapidly changing with consumption being increasingly digitally influenced and consumers looking for an omni-channel experience. Consumers are seeking shorter lead times and a higher degree of convenience resulting in re-organization of supply chains. Supply

have made significant investments in e-commerce, logistics, warehousing, and last-mile delivery companies.

• Government Initiatives: The Indian Government has launched several initiatives such as National Manufacturing Policy and the Make in India campaign, which aim to boost domestic manufacturing and create a more efficient supply chain ecosystem.

• Emergence of Technology: The emergence of new technologies such as artificial intelligence (AI), machine learning (ML), and blockchain have transformed the supply chain industry by optimizing processes and improving efficiency.

• Changing Consumer Demand: Consumer behaviors are changing with the rise of new models such as quick commerce, hyperlocal etc.,

operate can alter significantly between geographies and industries, and therefore picking up established models from other ecosystems may not be the right approach. Localization is essential.

Akhil Srivastava: As investors, we analyze these aspects:

• Which Quadrant are supply chains looking to solve and how, for which I refer to the quadrant designed by imminent Prof. Hau L. Lee, Thoma Professor – Operations, Information and Technology, Stanford Graduate School of Business…

• What Wins/Victory does the startup wishes to get of three Vs – Velocity, Visibility or Variability.

• Velocity: In today’s context of instant gratification, startups are solving for speed to deliver measured by Service Level and Rate my Delivery.

• Variability: Today’s supply chains need to ensure minimal disruptions and variations to ensure standardization of product with consistency and conformity.

• Visibility: Today’s supply chains need to work on digitization for ensuring Analytics based Real-Time intervention for actionable insights. Investments Thesis should hence be covering above two concepts along with the Risks and Reward matrix.

chain is also key to the fight against climate change with Scope 3 emissions accounting for >80% of GHG emissions. All these trends have put pressure on supply chains to be agile, transparent, digital, sustainable and collaborative, and are therefore creating new opportunities for innovation. Governments are also doing their bit, as seen in India, to boost the sector by investing in infrastructure – both physical and digital.

Arindam Mukhopadhyay: There are several factors that have led to a spurt in VC and PE investments in supply chain:

• Growth of E-commerce: The rapid growth of e-commerce has created a huge demand for efficient supply chain solutions and VCs and PEs

which has led VC and PE investments in these areas.

• Globalization of Business: Companies are increasingly relying on global supply chains to source materials and distribute products and VCs and PEs have invested in companies that offer cross-border supply chain solutions to help companies expand their reach.

Are there any challenges that you feel should be ironed out before looking out for investments when it comes to supply chain startups?

Ankit Sethi: Founders should be careful about adopting a one size fit all approach. The context within which supply chains

1. Pre Revenue Startups: The idea and problems they are looking to solve and tech driven models to enable faster adoption will be primary drivers while investing in early (pre revenue firms). What would also be critical is to see teams fungibility and ability to quickly pivot during this stage to find a PMF (Product Market Fit) while they master the MVP (Minimal Viable Product).

2. For Startups which are romping up capital for growth with Series A/B should focus as much about execution as it is about technological advancements so the following two factors of operational excellence and ability to execute by the founders (their past performance of solving

Akhil Srivastava, Director – Supply Chain, AB InBev

problems at scale) matter the most.

3. For Late stage startups, it’s about Digitizing and Monetising the business, use the traction to spread global reach and incubate key partnerships.

Finally, Execution Always Triumphs the Idea. So, the core to investing will be in teams who have unparalleled GRIT and Perseverance to Execute and Win!!

Arindam Mukhopadhyay: Yes, there are few challenges that supply chain startups can address to become more attractive for VC and PE investments…

• The supply chain industry is highly fragmented, with many small players operating in different segments of the value chain. This can make it difficult for startups to gain scale and achieve economies of scale, therefore startups should focus on building a strong value proposition.

• Building a supply chain infrastructure requires significant capital investment, which can be a barrier for startups. VCs and PEs are often hesitant to invest in startups that require large capital investments, especially if they are unproven in the market.

• Startups need to adopt emerging technologies that are available today to be able to differentiate themselves by offering innovative supply chain solutions that can improve efficiency and reduce costs.

What are the evaluation criteria for investors for selecting the right company?

Pramod Gupta: The specifics may vary,

but focus on fundamentals is true of any startup, irrespective of the sector. The most important aspect that we look for before making a start-up investment is the founding team and are they able to offer investors a comforting vibe. While obviously having a sector understanding or prior experience is a great plus, I have personally taken bets on people who have no prior understanding or exposure to the sector. In terms of specifics of what people look at in terms of quality of the founder(s) is their transparency, depth of problem understanding, work done to create a business model, their resilience, and the ability to pivot as and when needed. Are they open to feedback? Do they give you a sense of high integrity? And while having more than one founder gives us comfort, I have invested in single-founder start-ups too. If there are indeed more than one founders, it’s important to understand their vibes with each other, clarity of role split and how do they complement each other.

Once the ‘Founder’ box gets ticked, we move to other aspects such as the problem they are trying to solve, is it significant enough? Is there a Product Market Fit? How is their GTM (Go-ToMarket)? Are they capable enough to manage the scale-up and implement processes as they scale? Do they know their customers end requirements well? Have they got the supply-side and customer acquisition piece thought through. What progress have they made in putting partnerships in place, where needed. As a startup investor, while I don’t look for perfect answers to all of the above, but broadly one needs to get a sense that either these are in place, or the team is capable of finding answers along

the way. Lot of it is data, but at times, it is more of conversations and gut feel.

Coming specifically to supply chain startups, supply chain is an executionheavy field, and hence it’s important to understand whether startup team has in it, to get down to trenches and execute deeply? The other thing especially true of supply chain is that there are a lot of procedural and compliance requirements and unlike pure tech services, finance plays a much larger role in supply chain. Therefore, I personally put immense emphasis on their ability to work with the finance and supply chain of their customers or even suppliers. In short, the real magic happens when tech excellence meets operational excellence, and it's truer in supply chain than in many other sectors.

Ankit Sethi: Investments in supply chain startups typically follow the same process as investments in other sectors. However, there are certain peculiarities. Firstly, supply chains can be strongly influenced by macro factors and developments in other sectors, and therefore investors need to have a forward-looking lens on deciding the trends that they want to back. Second, the supply chain is broad with multiple verticals and sub verticals embedded, each with their own specific nuances and potential for innovation requiring consideration by investors. From a personal perspective, I look for companies which are working towards an exponential change as incrementality may not be sufficient and would eventually get displaced in this sector.

Akhil Srivastava: To me, these seven are the key criteria for making an investment

Porter’s Five Forces – Threat of new entrants, Bargaining power of buyers, Bargaining power of suppliers, Threat of new substitutes, and Competitive rivalry; are a MUST to keep a tab on marching ahead and continue to thrive. Supply chains will lead construction of a ‘new whole-ofnation’ system for science and technology innovation, to face heightened odds in the world. Thus, each country/ government is working to build reliable supply chains locally, offering both an extensive opportunity for startups along with alleviating the risks of going global.

Idea; Founder; Team; Product Market Fit; Clients/Customers or the Target Market; Scalability; and Competitive landscape.

Besides, there are several stages that investors weigh these key criteria for:

• For Pre Seed Stage: Idea and Founder matter the most.

• For Series A/B Stage: Team, Product Market Fit, Current Clients / Customers are the most important factors.

• For Late stage Startup: Scalability and Competitive landscape are high on the agenda of investors.

A due diligence should ensure reviewing startup’s competitive strategy and identify which inputs are most essential for the new supply chain business. Consider inputs beyond the scope of traditional supply chains, such as skills and IP. For example, identify the owners of software essential to operations. Then, identify how the supply chain supports the maintenance of these critical inputs and which geographies are involved. Go as far back in the supply chain startups as possible to gain a detailed understanding of where these inputs originate and how exposed client’s company really is to disruptions across the globe.

Arindam Mukhopadhyay: We, at India Accelerator, use the following evaluation criteria to select the right supply chain startups:

• Founder: We evaluate whether the founder has right experience needed to execute on the business plan, this

includes looking at the founder's track record, technical and industry experience, and ability to build a strong team.

• Business Model: We determine whether the startup has a large addressable market and a clear path to growth, this includes looking at the attractiveness of industry, market size, revenue streams, pricing strategy, cost structure and competition.

• Traction: We ensure the startup has proven product-market fit with existing customers who are willing to pay for the product or service and can get new customers efficiently.

• Technology and Innovation: We look for startups that are leveraging technology and innovation to create new and differentiated solutions in the supply chain domain, which gives them a significant advantage over the competitors.

What would be your advice to these companies to sustain their growth momentum and be successful in the long run?

Pramod Gupta: Even though startups often attract investors on the strength of their business ideas, unit economics must make sense right from the start. So, in parallel with working on product market fit and GTM, founders need to double down on unit economics. Number two, especially in today's

funding environment, startups must have their runway planned out. We have seen that a lot of startups end up chasing vanity revenue where they would either discount significantly or give away too much for free or go overboard on marketing expenditure. There are some startups who have exhausted virtually their entire funding on IPL advertising. I firmly believe that all these things don’t help. Every startup must keep a hawk’s eye on the runway and growth with profitability. And where needed, investors need to guide – or even step in – to ensure that happens.

Then in terms of execution, startups must strike a fine balance between tech, strategy and execution so that they are able to implement their ultimate vision. The most important thing during black swan events is the agility of the team. How open are they to inputs? Are they ready to act to pivot the business or change the revenue models as per the evolving scenario? Like everything else in life, the ones who are more agile and open to inputs do better than those who are highly capable but rigid. Startups should also look out for having a set of mentors and advisors or experts who are invested in them and who are happy to spend time helping them guide through scale up as well as in handling various eventualities. There are enough and more very experienced people who want to help startups; and it doesn't necessarily need to be a commercial relationship. I am myself working with a few startups to help them scale, grow or even pivot where needed.

The Indian supply chain sector is poised for strong growth in the near future, driven by various factors such as government initiatives, increasing investment in infrastructure, rising consumer demand, and the growth of e-commerce. Startups are poised to play a crucial role in this journey, as they are well positioned to drive innovation as well as disruption in the supply chain domain.

Arindam Mukhopadhyay, Partner, India Accelerator

I would like to mention two of my investee startups that got impacted by COVID, but they not only survived, but they also continue to thrive. Today they have a growing business and are in the process of raising much larger rounds. The first one is Intugine, a leading realtime multimodal supply chain visibility platform. One can imagine when a company’s major goal is enhancing visibility in the supply-chain world, how would happen to their business during COVID; if there is no movement, there is no need for visibility. Obviously, they got impacted as deeply as one could imagine, but they survived. They managed it through a prudent use of funds, and they used the Covid period to take care of a lot of developmental backlogs since there was no day-to-day operational pressure coming in from the customer’s side. They made effective use of that period for deep enhancements and improvements on the product side and then as soon as COVID started easing, they reached out to their existing customers and delighted them with the outcomes. They expanded their offering to existing customers, and taking references from the existing customers, they've managed to go to newer customers. They also used this time to create offering that have enabled them to move beyond India and also get into ocean freight visibility for international trade.

Another interesting story is about Syook – a SaaS based Real-Time-Location platform for business process automation of enterprises, helping them track assets,

and enhance safety and compliance. During Covid when the factories were shut down for a long periods of time or were partially operational, they pivoted their stance and even started helping the government in contact tracing. While it was not a high revenue generator for them, it really helped them work through their product because besides being gainfully employed for a larger purpose, they could add dimensions to their product around dealing with movement (from earlier situation of handling mostly stationary situations). They now have a diversified set of offerings across multiple use cases, especially those involving significant compliance and safety matters, like pharmaceuticals and offshore drilling.

Ankit Sethi: In a sector such as supply chain, collaboration with stakeholders is key to push innovation and bring in new ways of working. I would encourage the startups to work with the larger

ecosystem as much as possible. This is even more important in the critical areas of digitalization and decarbonization of supply chains. Be close to your customers and stay abreast of their evolving needs. Have a razor-sharp focus on value proposition and business fundamentals. And think of step changes in your areas of focus.

Akhil Srivastava: Porter's Five Forces – Threat of new entrants, Bargaining power of buyers, Bargaining power of suppliers, Threat of new substitutes, and Competitive rivalry; are a MUST to keep a tab on marching ahead and continue to thrive.

The other prime factor will be government policies emphasizing selfreliance and building ‘independent and controllable’ technology capabilities, which have increased significantly since the pandemic. Supply chains will lead construction of a ‘new whole-of-nation’ system for science and technology innovation, to face heightened odds in the world. Thus, each country/ government is working to build reliable supply chains locally, offering both an extensive opportunity for startups along with alleviating the risks of going global.

When shifting supply chains from one country to another, other considerations need to be made. Goods are not the only flows that face disruption. Capital, people, and data flows also face new challenges in the decoupling scenario between world powers. The new country’s regulatory environment, tax code, environmental considerations, workforce skillsets, availability of finance, and infrastructure — all need to be thoroughly analysed when evaluating the benefits and costs of such a move.

Key Questions to answer for startups to know if they've achieved productmarket fit:

Ask yourself whether you've met these criteria:

• Is the product creating growth and traction?

• Are consumers spreading the word about your product on their own on social media or reviews?

• Do people think it is worthwhile to spend money to get your product with repeat purchases?

Graph courtesy: Appinventiv

For example, reducing geopolitical risks by moving production to a new country may come with the benefits of lower labor costs and fewer taxes, but lurking political risks and environmental, social, and governance-related liabilities are issues that should not be overlooked instead keenly evaluated for scaling of businesses.

Arindam Mukhopadhyay: Following are some of the rules that startups can imbibe to tide past eventualities and uncertainties in the future:

• Focus on strategy and the business model, it should be ready to scale which means growing exponentially.

• Stay customer-centric to deliver unfulfilled demand of the customers by continuously gathering feedback and use it to improve products and services.

• Achieve a proven product-market fit by analyzing the market, target audience and competitive landscape.

• Build a strong team and an organization structure that is agile and allows for scaling.

• Create an efficient way to generate revenue and cash flow from the business and manage expenses.

• Finally, be adaptable and resilient, expect challenges and setbacks along the way, but learn from failures and pivot quickly to grow and improve.

How do you project the growth of Indian supply chain segment in the future and what crucial role are startups poised to play in this journey?

Pramod Gupta: We have just started. Supply chain growth is closely linked with manufacturing. If you look at the last 2-3 decades, very large part of India’s growth has actually come from services. We are just entering the manufacturing era now. And as we enter the manufacturing era, the role of supply chain can't be emphasized enough. Then the reform measures we spoke about earlier, such as Gati

Criteria to invest in late state startups

• Growth and Momentum at a fast rate

• Customer Acquisition at a low cost: Companies with product-market fit receive organic and non-paid growth.

• Consumers Retention (loyal and Repeat Sales): Retain consumers by knowing who is happy with your product and why. Satisfy your consumers and entice them to buy by determining what product features are most valued.

• Ability and ease to scale easily when needed: By clearly understanding what you provide to consumers, your company will experience less growing pains and be able to scale with ease.

Shakti, port investments, the railways investment, logistics parks, digital India movement, National Logistics Policy, etc., are only accentuating the pace of supply chain growth and accrued investments.

And as I said earlier, while there are large problems to be solved or significant opportunities to be leveraged, startups are uniquely placed to lead the innovation race. Let a thousand flowers bloom. I am personally truly excited about the potential that supply chain holds in times to come, and especially about the role that startups can play in it.

Ankit Sethi: India has a growing middle class with rising urbanization and incomes resulting in one of the largest and fastest growing consumer base globally. On the other hand, the Indian government is strongly encouraging manufacturing and investing heavily in the country’s infrastructure. Supply chain would be the pillar on which these macro trends would sustain, and this would create strong tailwinds for startups in the sector resulting in one of the largest opportunities available globally. I believe startups would play a pivotal role in shaping the future of supply chain in India.

Akhil Srivastava: Startups working on profitable scalability with technological advancements and culture to embrace changing environment would be the beacon of light for building Resilient and Agile supply chains, which would enable Indian corporates gain both competitive advantage and outreach to end consumers.

Arindam Mukhopadhyay: The Indian supply chain sector is poised for strong growth in the near future, driven by various factors such as government initiatives, increasing investment in infrastructure, rising consumer demand, and the growth of e-commerce.

Startups are poised to play a crucial role in this journey, as they are wellpositioned to drive innovation as well as disruption in the supply chain domain. Following are the areas where startups are leveraging technology to streamline operations, improve efficiency, and provide better services to customers…

• Last-mile delivery: This is a critical area for e-commerce companies, and startups can leverage technology and innovation to improve the efficiency of this process.

• Warehousing and fulfilment: These are critical components of the supply chain, and startups can provide innovative solutions such as automation and robotics.

• Supply chain visibility: This is becoming increasingly important for customers, and startups can create innovative solutions to improve visibility and transparency in the supply chain.

• Logistics: Aggregation platforms can help small and medium-sized businesses access logistics services at a lower cost, and startups can provide innovative solutions in this space.

The FOOD VALUE CHAIN ‘Quintessential’

According to the United Nations Environment Programme’s (UNEP’s) Food Waste Index Report 2021, people globally waste 1 billion tons of food each year. A staggering onethird of all food produced globally is lost or wasted. Food supply chains are complex and opaque networks involving various stakeholders such as farmers, government machinery, retailers, logistics providers, etc. Moreover, external factors such as climate change, price inflation, Covid and the Ukraine war are creating further strain on the global food value chain. These global disruptions are reinforcing the need for Sustainable and Resilient Food Chains. In lieu of this, the ‘Quintessential’ Food Value Chain urgently needs an OVERHAUL, which should be ably supported by new age tech deployment, adoption of sustainable practices & innovative approaches to reduce wastages and a collaborative spirit to drive holistic growth. Aspects such as streamlining of processes, improvements in cold chain infrastructure, complying with regulatory standards would help in redefining the overall food supply chain and make it READY to serve the global markets.

Arecent Press Information Bureau release stated that India’s agriculture sector has been witnessing robust growth with an average annual growth rate of 4.6% over the last six years. This has enabled agriculture and allied activities sector to contribute significantly towards country’s overall growth, development, and food security. Further in recent years, the country has emerged as the net exporter of agricultural products, with exports in 2021-22 touching a record US$ 50.2 billion.

While these stats offer much to cheer about… there are myriad challenges on the way to achieve the ultimate vision of achieving an agile, adaptive, and efficient food supply chain. A well-developed food processing sector with improved infrastructure like cold storage and better logistics can help the country in not only achieving the stated vision, but will also result in reducing wastage, improving value addition, ensuring better farmers' returns, promoting employment, and increasing export earnings.

Initiatives like the National Agriculture Market (eNAM) and the Promotion of FPOs formation have been introduced to strengthen the agricultural market. With the interventions including Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), PM Formalisation of Micro food processing Enterprises (PMFME), productionlinked incentives (PLI), etc., attempts have been made to boost the food processing industries to harness its linkages with the agriculture sector.

Ministry of Food Processing Industries (MoFPI), through its schemes, is helping to strengthen food processing/ preservation infrastructure with efficient supply chain across the country and thereby reducing gap between production and processing capacity & post-harvest losses. The Ministry is also implementing a Scheme for Integrated Cold Chain, Value Addition and Preservation Infrastructure as one of the component of Pradhan Mantri Kisan Sampada Yojana with the objective of reducing post-harvest losses of horticulture and non-horticulture produce and providing remunerative price to farmers for their produce.

As per the Economic Survey 2022-

23, to facilitate the unfettered growth of the food processing sector, there is a continuous need for extensive investment in cold chain infrastructure and address logistical challenges. In fact, the NITI Aayog Strategy for New India also identifies the lack of adequate and efficient cold chain infrastructure as a critical supply-side bottleneck that leads to massive post-harvest losses (mostly of perishables) estimated at ₹92,561 crore annually. The uneven geographic distribution of cold storage infrastructure also contributes to regional-level disparities.

During a recent event, Shri Manoj Ahuja, Secretary, Department of Agriculture and Farmers Welfare, said, “Ministry of Agriculture recognizes the importance of the cold chain industry in ensuring food safety, reducing food waste, and increasing the shelf life of perishable products and ministry has set up an extensive outlay of policies and programs to give strength to this sector. Technological innovation is crucial for the growth and development of the Indian Cold Chain industry. With the advent of advanced refrigeration and cooling systems, industry is now able to store and transport goods at much lower temperatures, which helps to extend the shelf life of perishable products. This has led to an increase in the export of perishable goods from India, as the products can now reach international markets in better condition.”

Dr. Abhilaksh Likhi, Additional Secretary (DA&FW), said, “The Indian Cold Chain industry is expected to experience significant growth in the coming years. The increasing demand for perishable goods such as fruits, vegetables, and meat products, as well as the rise in e-commerce and online grocery sales, are driving this growth. As the demand for these goods continues to grow in India, the government recognizes the need to support the development of the cold chain industry in order to ensure food security and public health.”

In the management of food supply chains, criteria including the incoming quality of materials, processing methodology, storage conditions, outgoing quality, and much more must be documented at each link in the chain. Synchronizing and sharing this

information among all of the parties along the chain is critical for enabling lot traceability, collaborative coordination and optimization of operations, product consistency and quality management, regulatory compliance, and ultimately, customer safety and satisfaction.

Industry experts in this sector have been vocal about the challenges being faced to streamline their supply chain network and have been taking innovative measures to strengthen FOOD supply chain network in the country aimed at reducing wastage on the go and delivering FRESH produce to their end consumers. Here’s capturing the developmental landscape and strategies to enhance the logistics infrastructure…

WASTE MITIGATION STRATEGIES – A MUST FOR SURVIVAL

The Food Value Chain has been marred with one of the biggest constraints in its growth – HUGE WASTAGES. Globally, around 14% of food produced is lost between harvest and retail, while an estimated 17% of total global food production is wasted (11% in households, 5% in the food service and 2% in retail), according to stats by UN Food and Agriculture Organization (FAO). Forward-looking companies are constantly addressing this challenge through innovative measures. Somnath Chatterjee, Executive Vice President & Head of Procurement and Logistics, ITC Foods Division, elaborates, “Forward-looking companies are addressing the challenge of food wastage by focusing on more efficient and sustainable production processes, utilizing more data-driven solutions to optimize, and forecast supply chains, and developing innovative retail solutions to reduce food wastage. Companies are also investing in conservation technology, investing in education, and training initiatives that promote food waste prevention, and collaborating with local markets and farmers to reduce waste. Additionally, companies can implement incentives to promote food donations, source or produce products with higher nutritional value and longer shelf life, or use non-toxic packaging materials to extend the shelf life of products.”

Abhishek Joshi, Country Lead

- Ag-Business & Supply Chains, Transform Rural India, states, “The key differentiation is to clearly identify two distinct areas for addressing this, without which any strategy or operational intervention within the entire supply chain would be meaningless. These are “food loss” & food waste”. Perhaps they appear similar, they are not. Food loss is lack of planning of supply & demand vectors, non-directed efforts in mitigating risks & misaligned production feeding the downstream channels – inventories, warehousing, channel alignment and fulfilment. At the composite upstream system, food waste majorly, is at consumers’ and channels’ level, resulting from misaligned upstream plays. Overstocking of inventory, non-directed inventories to identified channels, packaging-pack- mixing with lots over or its under availability at shelfs, better transport configurations, seasonality pull strategies, predictive forecasting not meeting or over exceeding demand at retailers’ end and timely marketing or directed promotional priorities. For the composite downstream system. concurrently for both, Data visibility is important.”

He expresses that the highperformance companies with a good product mix of perishables & expired products for food consumption are able to sequester integrated efforts across all nodes of their supply chain system. Some measures are interlining the ‘origin source’ of forecasting, planning and procurement, outlining key inventory standards for optimized efficiency, increasing digital adoption across the curve & investing in technologies where efficiencies are shorting performances, increasing visibility for both synchronous & asynchronous nodes, collaboration beginning from suppliers-suppliers to customers-customers, adaptive packaging with transportation and fulfilment as key fulcrums ‘the product line / SKU density’ mix, as we say & NOT solely on center of gravity of distribution priorities for omni channels. The key aspect however, which has differentiated these high-performance organizations to reduce both ‘loss & waste’, essentially lies in collaborative efforts of all partners in their supply chain system.

According to Harish Kumar, Director – Supply Chain, House of Spices India, most companies in the food & beverages sector are addressing

the challenge of food wastage through various strategies and initiatives. Some key approaches include:

• Improving Supply Chain Visibility: Enhancing visibility across the supply chain is crucial for identifying areas of waste and implementing targeted solutions. Companies are utilizing advanced technologies to track and monitor food products throughout the supply chain. This enables better inventory management, reduces losses due to spoilage, and facilitates real-time decision-making.

• Cold Chain Management: Maintaining proper temperature control throughout the cold chain is crucial to prevent food spoilage and extend shelf life. Companies are investing in advanced refrigeration technologies, cold storage facilities, and transportation systems to ensure optimal temperature conditions and reduce food waste associated with inadequate cold chain infrastructure.

• Product and Packaging Innovations: Companies are investing in research and development to develop innovative products and packaging

Somnath Chatterjee, Executive Vice President & Head of Procurement and Logistics, ITC Foods Division

As consumers become more concerned with the origins of their food, the food supply chain may shift towards greater transparency and traceability, enabling consumers to make more informed choices about what they eat. Companies can reduce their carbon footprint by using renewable energy sources, improving transportation efficiency, and investing in energy efficient technologies. They can aim to design and operate their food value chain according to circular economy principles by reducing waste and actively reusing or recycling materials wherever possible. Overall, the food supply chain is likely to become more diverse, flexible, and responsive to changing consumer demands, while at the same time adopting more sustainable and efficient practices to help meet global food demand.

solutions that minimize waste. This includes techniques like modified atmosphere packaging, intelligent packaging, and compostable materials that extend shelf life, reduce spoilage, and enhance overall sustainability.

• Collaborative Partnerships: Many companies are forging partnerships and collaborations across the food value chain to address wastage collectively. This involves close coordination between farmers, suppliers, manufacturers, distributors, retailers, and even non-profit organizations. By sharing information, resources, and best practices, these collaborations can identify inefficiencies, streamline processes, and reduce overall food waste.

• Consumer Education and Awareness: Companies & government both recognize the importance of consumer behaviour in minimizing food waste. Examples like the campaign of "Love Food Hate Waste" initiated by the UK's Waste and Resources Action Programme (WRAP) and "Save Food, Share Food" Campaign by Feeding India. They invest in educational campaigns and initiatives to raise awareness about the issue and

provide practical tips to consumers on reducing waste at home, proper food storage, etc.

PITFALLS ON THE WAY…

There are several pressing concerns that companies are facing in managing their supply chain, deciphers Somnath Chatterjee. Some of the most common ones include:

• Supply Chain Disruptions: One of the biggest challenges companies face is supply chain disruptions, such as natural disasters, pandemics, trade disputes, and transportation issues. These disruptions can impact the entire supply chain and can result in delayed or missed deliveries, increased costs, and loss of revenue.

• Managing inventory: Companies must strike a balance between holding enough inventory to meet customer demand and controlling inventory costs, such as storage and obsolescence. Accurately forecasting demand and effectively managing inventory levels is a key challenge facing companies.

• Supplier management: Companies must ensure that their suppliers are reliable and ethical. They must

monitor suppliers for quality, delivery performance, and financial viability. The challenge is to find suppliers that meet these criteria and to maintain good relationships with them.

• Cost pressures: Companies are under pressure to reduce costs while maintaining high-quality products and services. They must find ways to reduce costs across the entire supply chain, including sourcing, transportation, and inventory management.

• Managing complexity: Many companies have complex supply chains that span multiple countries and involve numerous partners and vendors. Managing this complexity, while maintaining visibility and control, is a significant challenge for companies.

Overall, managing the supply chain is a complex and challenging task for companies. Companies must adapt to changes in the market and maintain flexibility, while also ensuring that they meet customer demands and remain profitable.

Harish Kumar adds that in managing the supply chain in the food industry, companies face several challenges that impact their operations and overall performance. Here are some of the most significant challenges:

• Food Safety and Quality: Ensuring food safety, following regulatory compliance and maintaining highquality standards is a critical concern for companies. They must adhere to strict regulations and standards to prevent contamination, maintain product integrity, and safeguard consumer health. Monitoring and managing food safety risks throughout the supply chain, including during production, transportation, and storage, is a top priority.

• Supply Chain Complexity: The food supply chain is often complex, involving multiple stakeholders, diverse products, and global distribution networks. Lack of end-

to-end visibility hampers efficient decision-making and increases the risk of disruptions.

• Demand Volatility and Forecasting: The food industry is subject to demand volatility influenced by changing consumer preferences, seasonal variations, and unforeseen events such as natural disasters or pandemics. Accurate demand forecasting becomes challenging, leading to inefficiencies such as overstocking or stockouts.

• Cost Pressures and Margin Optimization: Cost management is a constant concern for companies operating in the food industry. Fluctuating raw material prices, transportation costs, energy expenses, and labour challenges can impact profit margins.

• Sustainability and Environmental Impact: Growing concerns about sustainability and environmental impact drive companies to address issues like greenhouse gas emissions, water usage, waste management, and responsible sourcing practices. Balancing economic viability with sustainable practices is a key challenge in managing the food supply chain.

• Supplier Risk Assessment: Maintaining a reliable and resilient supplier base is crucial for companies in the food industry. Supplier selection, qualification, and performance management are essential to ensure consistent product quality, on-time delivery, and continuity of supply. Companies actively assess and

mitigate risks related to supplier reliability, geopolitical issues, natural disasters, and other potential disruptions.

INNOVATIVE PRACTICES TO MANAGE FOOD SUPPLY CHAIN

Large companies often implement innovative practices in managing their supply chains to increase efficiency, reduce costs, and improve the overall performance of their business. Overall, the use of innovative practices in managing supply chains enables large companies to gain a competitive advantage in the marketplace, while also improving their sustainability and resilience in the face of ongoing challenges and disruptions. Some innovative practices that large companies follow in managing their supply chains, as offered by Somnath Chatterjee, include:

• Implementing real-time tracking and monitoring of inventory levels and shipments using advanced technologies such as RFID, GPS, and IoT

• Using predictive analytics and machine learning algorithms to forecast demand and optimize inventory levels and distribution patterns

• Collaborating with suppliers and distributors to share information and improve visibility across the supply chain

• Adopting sustainable and environmentally friendly practices such as using renewable energy, reducing waste, and implementing reverse logistics

• Establishing agile and flexible supply chain models that can quickly respond to changes in market demand, disruptions in the supply chain, and new opportunities

• Investing in automation and robotics to increase efficiency and accuracy in the supply chain, especially in areas such as warehousing and transportation

• Implementing blockchain technology to improve supply chain transparency, traceability, and security, making it easier to track products and prevent counterfeits.

To address the concerns in managing the supply chain in the food industry and promote more efficient and effective operations, companies have implemented various innovative practices. Here are some examples presented by Harish Kumar:

• Supply Chain Digitization and Integration: Digital transformation initiatives involve integrating disparate systems, applications, and data sources to achieve end-to-end visibility and streamline processes. This includes implementing Enterprise Resource Planning (ERP) systems, cloud-based platforms, and supply chain management software to enable seamless information flow and collaboration.

• Supplier Collaboration and Risk Management: Effective supplier collaboration is crucial to managing risks in the supply chain.

The government has recently announced the launch of ‘Agriculture Accelerator Fund’ – aimed at bringing innovative and affordable solutions for challenges faced by farmers. It will also bring in modern technologies to transform agricultural practices, increase productivity and profitability. Additionally, the government announced its intent to build an open-source digital public infrastructure that will likely support agtechs with relevant information services across the value chain.

Companies engage in proactive supplier relationship management, including regular communication, joint planning, and risk mitigation strategies. Supplier assessment programs help ensure compliance, quality, and reliability.

• Last-Mile Delivery Innovations: Lastmile delivery is a critical aspect of the food supply chain, and companies are exploring innovative solutions to improve efficiency and customer experience. This includes route optimization algorithms, delivery drones, lockers, and crowd-shipping models that leverage the sharing economy.

• Robotics and Automation: Robotics and automation technologies are employed to streamline processes, reduce labor-intensive tasks, and improve operational efficiency. Automated systems can handle tasks such as sorting, picking, packing, and palletizing, leading to faster order fulfilment and reduced errors. India is still catching up on this trend and there’s a long way to go.

• Advanced Data Analytics and Predictive

The adoption of technology is creating wonders in the modern food supply chain. It is perhaps one of the best sectors, immediately after pharma, which has not only evolved upon adding to its supply chain maturity standards but also been at the forefront in not only in leveraging but frequently seen deploying unique high-end technology driven models for its customers. With customers keen not only about the safety, quality and batch life of the products anymore but are demanding to know the origin source of raw materials in processed foods, from sourced ethically to processed hygienically, the traceability in modern food supply chains is now given. The food supply chains internally also are shifting from earlier track & trace to now monitoring real-time data by harnessing powers of IoT (sensors) for efficient monitoring and control of its inventories in flow to retail shelves.

Modelling: Leveraging data analytics, machine learning, and predictive modelling techniques can provide valuable insights for demand forecasting, inventory optimization, and risk management. Companies analyze historical data, market trends, and external factors to make informed decisions and mitigate supply chain uncertainties.

ENHANCING DEMAND PLANNING AND FORECASTING

The latency of demand planning & forecasting has predominantly now covered with the rapid adoption of digital tools and emerging ML/AI embedded standard definitions of such digital products. According to Abhishek Joshi, the assimilated technology is enabling to overcome any planning elasticity, which could have earlier impacted the synchronization of processes, facilitating companies to reduce risks, optimize both – information & physical flow of products & services envelope – meeting customers’ end requirements. However, despite these trends, most organizations continue to grapple with meaningful decision-making insights. One aspect of that is proliferation of ‘fad techs’,

which do not necessarily integrate or speak easy to each other when adapted to larger aspect of whether they have been carefully deployed to address any of the pertinent challenges, which the organization struggles to respond.

“The answer is not simple, however enhancement or value earning pivot purely from system and processes standpoint can only be secured when organizations are acutely aware of their process strengths and weaknesses. The balance of efficiency, optimized flows, increased visibility, predictive and prescriptive analytics for demand analysis, sales & operations planning, forecasting accuracy with visibility to shifting trends in demands, consumer choices and channels to inventory management & fulfilment have to be balanced to ensure any digital adoption is cost effective, reinforces, and enhances value and is able to differentiate the competitive value both for its suppliers and its customers. The choice of evaluation is critical, the objectivity of changing landscape and dynamics of linear and omni channels is critical. Above all, customer preferences, serve cost to customer, cost of change management, scale up of the adopted tech besides other aspects of redundancy by exercising

Abhishek Joshi, Country Lead - Ag-Business & Supply Chains, Transform Rural India

investments in such technologies is the most critical aspect when planning to enhance functions. Organizations would have to layer these up and see if automation is for automation’s sake justifies for organizational long-term objectives without operational supply chain systems’ dilution,” elucidates Abhishek Joshi.

There are several ways companies can work towards enhancing demand planning and forecasting, according to Somnath Chatterjee. These are:

• Collect and analyze data: Good data is key to accurate forecasting. Companies should collect historical sales data, customer orders, and market trends from various sources and use analytics tools to gain insights into how different factors affect demand.

• Improve forecasting methods: Companies can use statistical models and machine learning algorithms to develop more accurate forecasting models. They can also use scenario planning to evaluate the impact of changes in economic conditions or other factors on demand.

• Increase collaboration: Companies should involve all relevant stakeholders, such as sales teams, marketing teams, and supply chain partners, in the forecasting process. Increased collaboration can help identify potential demand drivers and barriers, as well as improve the accuracy of forecasts.

• Leverage technology: Many software solutions are available that can help with demand planning and forecasting, including enterprise resource planning (ERP) systems and demand planning software. These tools can help automate data analysis and forecasting tasks, freeing up resources for strategic planning.

• Adapt to changes quickly: Demand planning and forecasting must be flexible enough to adjust to changing market conditions and customer preferences. Large companies must be prepared to modify their

Fundamental changes to global behavior, coming from both the public and private sectors, could boost transparency and resilience to the global food system. Potential steps to take include the following:

• Sustainably transform agriculture to boost yields, especially in importing countries with fast-growing populations

• Find ways to reduce global food waste and optimize use of land for food and biomass production

• Accelerate the development and adoption of alternative meat and encourage the consumption of the most efficient proteins.

Source: McKinsey

forecasting methods and strategies when necessary to stay ahead of the curve.

Additionally, various strategies are being explored and implemented in improving the forecast as most of the agricultural commodities are seasonal and availability is a concern. Harish Kumar captures few of them:

• Demand Sensing Technologies: Implementing demand sensing technologies, such as point-of-sale (POS) data analysis, social media monitoring, and web analytics, enables companies to capture real-time demand signals. These technologies provide more accurate and timely information about changing customer preferences and market dynamics, improving demand forecasting accuracy.

• Demand Segmentation: Segmenting customers based on their characteristics, behavior, and preferences helps in understanding their unique demand patterns. Companies can develop tailored forecasting models for different customer segments to account for variations in demand drivers and seasonality. This approach allows for more accurate and granular demand planning.

• Statistical Forecasting and Predictive Analytics: Companies can leverage statistical forecasting techniques, such as time series analysis, regression analysis, and exponential smoothing, to predict future demand. Advanced

predictive analytics models, including machine learning algorithms, can be used to incorporate a wide range of variables and generate more accurate demand forecasts.

• Scenario Planning and Sensitivity Analysis: Companies can conduct scenario planning and sensitivity analysis to assess the impact of different scenarios on demand. This involves evaluating various factors such as changes in customer preferences, economic conditions, and market trends. By simulating different scenarios and their potential effects on demand, companies can develop contingency plans and better prepare for uncertain situations.

• Sales and Operations Planning (S&OP): Implement a robust Sales and Operations Planning process that aligns sales forecasts with operational capabilities. This involves cross-functional collaboration, regular demand reviews, and scenario planning to align supply with expected demand levels.

• Continuous Monitoring and Adjustments: Demand planning is an iterative process, and continuous monitoring is essential. Companies should regularly review and update forecasts based on actual demand, market dynamics, and changing customer behavior. By monitoring forecast accuracy, identifying forecast errors, and making necessary adjustments, companies can continuously improve their demand planning capabilities.

INVENTORY OPTIMIZATION IN FOOD VALUE CHAIN

Inventory optimization plays a crucial role in the food value chain by helping to ensure that the right amount of inventory is held at the right time. This can have a significant impact on costs, quality, and efficiency throughout the food value chain. Somnath Chatterjee elaborates, “Food products have a limited shelf life, and if they are not sold or consumed within a certain time frame, they may have to be discarded, resulting in waste. By optimizing inventory, businesses can minimize waste and reduce associated costs. Additionally, having the right amount of inventory on hand can prevent shortages and stockouts, which can lead to lost sales and dissatisfied customers.”

He adds that inventory optimization can also help improve quality and safety throughout the food value chain. By managing inventory levels, businesses can reduce the risk of products becoming outdated or deteriorating, which can affect taste, texture, and nutritional value. Proper inventory management can also help ensure that products are stored and transported safely, reducing the risk of contamination or spoilage. Overall, inventory optimization is essential for companies in the food value chain to minimize waste, ensure product quality and safety, and improve efficiency and profitability.

Adding further, Abhishek Joshi, states, “Without a doubt, inventory management is the most critical part of the planning process in any food value chain. The perishability of the product portfolios for any organization could make or break the entire gamut of its assiduously efforted customer positioning and fierce fencing of its own corporate competitiveness visà-vis its competitors, eroding entire trust & resulting in the lost value of sales. Overstocked and understocked inventory can play havoc to even best of laid plans for any supply chain, however for food supply chains, this adds to an already complicated layer of robust demand analysis with astute focus on forecast visibility along the entire curve from procurement to production to end fulfilment.”

Traditionally, primary wastage (muda) is better efficiently controlled,

owing to lean-semi lean but effectively optimized production linear philosophies. However, research has shown that the lumpy part of it is the secondary food waste down the distribution chain at consolidation dock storage facilities to wholesalers, tertiary retailers, and customer channels where inventories have to be mandatorily controlled to be as closely remain in sync with planning cycles when serving consumer demands. Using the right inventory system whether integrated as an enterprise platform or embedded into crucial stocking and distribution tier nodes becomes important. “The responsiveness agility is critical in food chains. The key variables prior to inventory optimization require synchronized processes layout focused on the foremost optimizing safety standards, efficiently driving processes to ensure that it reduces the chance of perishable products going to waste, products are on shelf when needed with effective batch and lot controls policies within desired fulfilment cycles with optimized packaging and transportation suite plugged appropriately to respective product lines and SKUs attributed to their useful life for lesser returns of near to expiry food products or avoiding inventory obsolescence. The inventory optimization engine relevant for inventories depending over this landscape could structure itself. Key outcomes would be to ensure adapting digital processes to maintain desired equilibrium from demand side, standardizing differentiated strategies for inventory controls and management with enhanced visibility tier up & tier down distribution nodes for any changes or disruptions ensuring efficient working capital management tied up to inventories,” Abhishek Joshi adds.

According to Harish Kumar, there are some key aspects of inventory optimization:

• Balancing Supply and Demand: Inventory optimization helps companies strike the right balance between supply and demand. By accurately forecasting demand and aligning it with production and procurement activities, companies can maintain optimal inventory levels. This prevents stockouts and excess inventory, reducing the risk of

lost sales or wastage due to spoilage.

• Minimizing Holding Costs: Holding excessive inventory ties up working capital and incurs costs such as storage, handling, and insurance. Conversely, insufficient inventory levels can result in increased order lead times, rush orders, and lost sales. Inventory optimization aims to minimize holding costs by ensuring inventory levels are optimized to meet customer demand while minimizing excess inventory.

• Reducing Food Waste: Excess inventory can lead to increased food waste, especially in perishable food products. By optimizing inventory levels, companies can minimize the risk of products reaching their expiration dates before being sold. This reduces the amount of food waste generated throughout the food value chain, contributing to sustainability goals and minimizing financial losses.

• Improving Supply Chain Efficiency: Inventory optimization enhances supply chain efficiency by reducing stockouts, improving order fulfilment rates, and streamlining replenishment processes. With optimal inventory levels, companies can respond more effectively to customer orders, reduce lead times, and improve overall supply chain responsiveness.

• Enhancing Product Freshness and Quality: Proper inventory management ensures that food products are maintained in optimal conditions, preserving their freshness and quality. By avoiding overstocking and minimizing excess inventory, companies can reduce the likelihood of product spoilage, deterioration, or obsolescence. This, in turn, enhances customer satisfaction and reduces waste due to unsellable products.

• Seasonal and Promotional Planning: Inventory optimization supports effective planning for seasonal variations and promotional activities. By analyzing historical

data, customer demand patterns, and market trends, companies can align their inventory levels with expected demand fluctuations during peak seasons or promotional periods. This ensures the availability of products when demand is high, without excessive inventory during slower periods.

TECHNOLOGY FACILITATING THE FOOD SUPPLY CHAIN

According to a Deloitte study, technology is a key enabler disrupting the entire agri and food value chain. Technology adoption is being led by 1,000+ operating agri-tech start-ups in India. The entire agri-tech market size is estimated at ~Rs14 billion in 2020 vs. a potential ~Rs1687 billion, indicating a massive opportunity ahead. In fact, this year’s Union Budget has clearly identified technology as the lever of change for effective decision making and planning. Furthermore, the Ministry of Agriculture & Farmers Welfare has commenced the work for creating Agristack in the country. In order to create Agristack, the department has finalized the core concept of “India Digital Ecosystem of Agriculture (IDEA)”, which lays down a framework for Agristack. Agristack is a federated structure and ownership of data is with the States only. This will

enable agricultural value chain players take data-backed decisions and will also assist in serving the farming community efficiently.

Highlighting the crucial importance of technology, Somnath Chatterjee adds, “Technology is playing an increasingly important role in facilitating the food supply chain.” According to him, some of the ways in which technology is being used to improve the food supply chain include:

• Farming: Technology is helping to increase agricultural productivity, reduce waste, and improve sustainability. For example, precision agriculture uses sensors and GPS to gather data on soil moisture, nutrient levels, and weather conditions, allowing farmers to optimize their use of resources.

• Transportation: Technology is making it easier and more efficient to transport food from farms to consumers. For example, refrigerated trucks and containers help to maintain the quality and freshness of perishable foods during transport.

• Warehousing: Technology is helping to improve the management of food inventories and reduce waste. For example, warehouse management systems can track inventory levels

and expiration dates, making it easier to rotate stock and prevent spoilage.

• Traceability: Technology is improving the ability of food companies to trace the movement of food from farm to table. For example, blockchain technology can be used to create an immutable record of every transaction in the food supply chain, making it easier to trace the source of foodborne illnesses and other issues.

According to Abhishek Joshi, adoption of technology is creating wonders in the modern food supply chain. It is perhaps one of the best sectors, immediately after pharma, which has not only evolved upon adding to its supply chain maturity standards but also been at the forefront in not only in leveraging but frequently seen deploying unique high-end technology driven models for its customers. With customers keen not only about the safety, quality and batch life of the products anymore but are demanding to know the origin source of raw materials in processed foods, from sourced ethically to processed hygienically, the traceability in modern food supply chains is now given. The technological advancements have quelled this all must know appetite of customers to not only increased essence of visibility, but also given standards of consumption

The food supply chain is expected to undergo several changes and trends in the future as the industry responds to evolving needs of the consumer. There will be a notable shift towards local and regional sourcing in the food supply chain. Companies will focus on shortening supply chains, supporting local farmers, and promoting sustainable agriculture practices. This trend is driven by consumer preferences for fresh, locally sourced products and the desire to reduce transportation related emissions. The growth of e-commerce and direct-to-consumer channels will reshape the food supply chain. Companies will need to optimize their logistics and fulfilment capabilities to meet the demand for home delivery and online shopping.

Harish Kumar, Director – Supply Chain, House of Spices India

for food chains, which further brand this as part of its overall customer experience and product-services value. The food supply chains internally also are shifting from earlier track & trace to now monitoring real-time data by harnessing powers of IoT (sensors) for efficient monitoring and control of its inventories in flow to retail shelves. Tracking location of goods, ‘in-transit motion’ by monitoring humidity, temperatures, cold chain transportation at adequate levels by setting up supply chain control towers for both cross border or domestic or even last mile fresh deliveries, the digital tools through integrated inventory, warehouse, transport and order fulfilment systems are constantly meeting service efficiencies, resiliency, responsiveness and sustainability of business objectives.

One of the most promising technology, which has recently seen enormous interest is ‘blockchain’ pivoted by IBM Food Trust & Walmart Global tech in food supply chains. IBM has deployed this emerging platform under its ‘farmer connect’ program for coffee beans, enabling ‘digital trust platform on blockchain’ for consumers that is ‘sustainably grown & responsibly sourced’. The platform, hence, is able to leverage the platform on counts of proof of origin with reliable trust-based documentation among all stakeholders in the supply chain, enhancing brand equity of suppliers with consumer trust by reducing fraud & waste.

After partnering with IBM to create a food traceability system based on the Hyperledger Fabric (a project hosted by the Linux Foundation), Walmart could trace the mangoes stored in its US stores within 2.2 seconds, literally, the speed of thought!

Creating accountability and ensuring transparency across the food supply chain is a necessity rather than an afterthought, especially with food contamination being rampant across the globe. Blockchain tech can effectively help trace the contaminated product (even if it is just an ingredient) back to its source and curb the further spread of foodborne illnesses. Also, granular information about food items derived from Blockchain supply chain solutions removes the guesswork and helps merchants make decisions on how they handle the goods such as getting the accurate shelf-life data of fruits to halt discarding food that is still fresh, a Walmart news release stated.

ENHANCING SUSTAINABILITY IN FOOD VALUE CHAIN

During a recent Deloitte Food Summit, Paul Polman, Co-founder and Co-chair of IMAGINE, and former global CEO of Unilever, was quoted as saying, “Our global system is broken. We are realizing that we can’t have infinite growth on a finite planet, and the costs of not acting become higher than the costs of acting.” We need to move to a net-positive food system and create a reliable food value

Source: Deloitte

chain for the long term. That means giving back more than we take from our planetary food system, making things better than we found them.

Now is the time to do it. “This is the decade of action,” continued Paul. “And the agricultural value chain is the biggest opportunity we have.” Creating a regenerative food system can create a financial benefit of US$4 trillion and it contributes to solving about 30% of global climate issues. But we must realize that it is a leadership issue. “We need political and industry leaders to show courage to set real targets and work in broad partnerships that may, potentially, uncover inconvenient truths.”

Food and FMCG (fast-moving consumer goods) industries together produce more than one-third of global emissions, which mainly come from their upstream supply chains. A recent study finds that – combined – China, India, the US and Brazil generate just over 44% of the global supply-related emissions from food waste and 38% of the global wastemanagement-related emissions. A WEF study highlights that more than 70% of the food industry’s emission sources come from land use, more specifically by agriculture and deforestation. With this large carbon footprint, decarbonizing value chains in these sectors is a gamechanger for achieving the netzero goal. A shift to a productive and regenerative approach to restoring soil health and fertility is an emerging opportunity, expected to generate $1.14

The food sector has the potential to become not only net-zero, but also netpositive by acting as a significant carbon sink through natural carbon storage. The entire food ecosystem will need to work in unison to make a net-zero or even netpositive food system become reality. Building coalitions will be key to establishing common standards, conducting monitoring, and fast-tracking system changes. Food processing and food retail industries will set the pace, driven by consumers and brand perception. Regulators must set standards to enforce end-to-end transparency. Data and analytics skills will help realize it. Innovation, improvement, and development of new technologies will be critical enablers in achieving net-zero.

trillion of annual business opportunities by 2030.

Coca-Cola India, in line with its efforts towards creating an Atmanirbhar Bharat, has announced a decade of successful implementation of its Project Unnati. The project aims to support the Indian agri-ecosystem by enhancing farming efficiency, strengthening forward linkages, and building foodprocessing capacity in the country. The projects also facilitate farmers’ access to enabling infrastructure via high-yielding planting material and Good Agriculture Practices (GAPS) such as ultra-highdensity plantation (UHDP) which involves drip irrigation, on-site training, and farm supplement support. These new technologies lead to a substantial increase in quality, productivity, and profitability per unit of land which further makes fruit cultivation lucrative. Rajesh Ayapilla, Director-CSR and Sustainability for India and Southwest Asia (INSWA), The Coca-Cola Company, said, “Farmers are the backbone of the Indian agrarian economy. Through project Unnati, our aim has been to elevate and enhance the livelihoods of these farmers by not only enabling them with advanced horticulture solutions, but also empowering them to substantially increase their incomes. This is a step in line with the Government of India’s vision towards AtmaNirbhar Bharat, making the agrarian economy self-reliant.”

According to Somnath Chatterjee, there are several ways companies can enhance sustainability in the food value chain. Here are some suggestions:

• Reduce food waste: Companies can reduce food waste by implementing better storage practices, using technology to track inventory and expiration dates, and donating surplus food to food banks or charities.

• Improve packaging: Companies can redesign their packaging to minimize waste and choose compostable or recyclable materials.

• Use sustainable sourcing: Companies can ensure that the food they source is sustainably produced by using environmentally friendly farming

practices, reducing pesticide and fertilizer use, and supporting local farmers.

• Implement energy-efficient practices: Companies can reduce their carbon footprint by using renewable energy sources, improving transportation efficiency, and investing in energyefficient technologies.

• Engage in community initiatives: Companies can engage with local communities to build awareness and support for sustainable practices and involve them in initiatives like community gardens and composting programs.

• Embrace circular economy principles: Companies can aim to design and operate their food value chain according to circular economy principles by reducing waste and actively reusing or recycling materials wherever possible.

By implementing these practices, companies can enhance sustainability in their food value chain and contribute to a more sustainable world.

FAST SHIFTING FOOD SUPPLY CHAIN DYNAMICS

The future of the food supply chain is likely to be shaped by several factors such as changing consumer preferences, advances in technology, environmental concerns, and globalization. Here are some possible ways the food supply chain dynamic may change in the future, as enumerated by Somnath Chatterjee…

Increased focus on sustainability: Given the growing concern about the impact of food production on the environment, there may be a greater emphasis on sustainable practices and reducing waste throughout the supply chain.

Shift towards plant-based alternatives: With the increasing global demand for plant-based protein sources, it is likely that the food supply chain will adapt to cater to this trend. Consumers could see a rise in the availability of plant-based meat and dairy alternatives.

Adoption of technology: There will likely be an increased adoption of technology in agriculture and food production, for example, through the use of GPS tracking and data analytics to improve crop yields, or robotics and automation to increase efficiencies in food processing.

Greater demand for transparency: As consumers become more concerned with the origins of their food, the food supply chain may shift towards greater transparency and traceability, enabling consumers to make more informed choices about what they eat.

Overall, the food supply chain is likely to become more diverse, flexible, and responsive to changing consumer demands, while at the same time adopting more sustainable and efficient practices to help meet global food demand.

Harish Kumar believes that the food supply chain is expected to undergo several changes and trends in the future as the industry responds to evolving needs of the consumer. There will be focus on:

• Shift to Local and Regional Sourcing: There will be a notable shift towards local and regional sourcing in the food supply chain. Companies will focus on shortening supply chains, supporting local farmers, and promoting sustainable agriculture practices. This trend is driven by consumer preferences for fresh, locally sourced products and the desire to reduce transportationrelated emissions.

• Demand for Healthy and Functional Foods: The increasing focus on health and well-being will drive the demand for healthy and functional foods. This will impact the supply chain dynamics as companies’ source and produce ingredients that align with these preferences. Supply chains will need to adapt to handle specialized ingredients, certifications, and additional quality assurance measures.

• E-commerce and Direct-to-Consumer Channels: The growth of e-commerce and direct-to-consumer channels will reshape the food supply chain.

Companies will need to optimize their logistics and fulfilment capabilities to meet the demand for home delivery and online shopping. Last-mile delivery solutions, cold chain management, and packaging innovations will be critical to ensure product integrity and customer satisfaction.

• Supply Chain Resilience and Risk Management: The COVID-19 pandemic highlighted the importance of supply chain resilience. Companies will continue to invest in risk management strategies, scenario planning, and diversification of suppliers to mitigate disruptions. The focus will be on building agility, flexibility, and redundancy into the supply chain to respond effectively to future disruptions and uncertainties.

SUPPLY CHAIN MEGATRENDS

In the food sector, several supply chain megatrends are expected to shape the industry's future. These megatrends reflect the overarching shifts and developments that will have a significant impact on the food supply chain. Harish Kumar enlists some of the megatrends…

• Digital Transformation and Industry 4.0: The food supply chain will undergo significant digital transformation and embrace Industry 4.0 technologies. This includes the adoption of automation, robotics, artificial intelligence, Internet of Things (IoT), and data analytics. These technologies will enhance efficiency, visibility, traceability, and decisionmaking throughout the supply chain.

• Enhanced Traceability and Transparency: Increasing consumer demands for transparency will drive the need for enhanced traceability in the food supply chain. Blockchain technology and other traceability solutions will enable real-time tracking of products, ensuring visibility and accountability. This will enhance food safety, quality control, and consumer trust.

• Customization and Personalization:

Consumer demand for customized and personalized food products will drive supply chain megatrends. Companies will adapt their supply chains to accommodate flexible production processes, enabling customization based on individual preferences, dietary requirements, and health considerations. This trend will require agile supply chains capable of managing small-batch production and quick turnaround times.

• Increased Emphasis on Sustainability: Sustainability will continue to be a driving force in the food supply chain. Companies will focus on reducing carbon emissions, minimizing food waste, implementing circular economy practices, and adopting environmentally friendly packaging solutions. Sustainable sourcing and ethical production practices will gain prominence as consumers demand greater transparency and accountability.

According to Somnath Chatterjee, there are several megatrends that are expected to impact the food sector supply chain. some of them are:

Sustainability: There is an increasing focus on sustainability throughout the food supply chain. Consumers are becoming more conscious of the environmental impact of their food choices and are demanding more sustainable products.

Traceability: The ability to trace products and ingredients throughout the supply chain is becoming more important, as consumers are increasingly concerned with food safety and quality. Advances in technology, such as blockchain, are making this easier to achieve.

Digitalization: The use of digital technologies in the food supply chain is expected to continue to grow, from automating manual processes to using data analytics to optimize operations.

Flexibility: The ability to adapt quickly to changes in demand or supply is becoming more important in today's fast-changing business environment. This requires a

more agile and responsive supply chain.

Collaboration: Collaboration between different players in the supply chain, such as farmers, processors, retailers, and logistics providers, is becoming more important to improve efficiency and reduce waste.

ARE YOU READY FOR A NEW DAWN?

The Indian food and agriculture sector is at the cusp of a transformation and would require all value-chain members to act in tandem, along with government support to secure the future of food in India. India’s farms have been putting food on the table for India and the world for decades. Digital technologies could enhance production at every step, from high-quality agriculture inputs to worldclass agriculture outputs. This could help create sustainable growth for the Indian farmer, boost economic fortunes in rural areas in a flourishing ecosystem, and benefit the entire economy, a McKinsey study stated.

“It may sound like a massive task but transforming the food system offers the opportunity to contribute to a better, healthier, and more sustainable world; to tap into new markets and profit opportunities; and to make an impact that matters. It is the time to be bold, brave, commercial, and take up the challenge together—as together is the way we can take major steps,” stated a Deloitte report.

Taking the

CUSTOMER-FIRST APPROACH

“Customer service is best provided through a robust supply chain. It controls price and delivery – the two most important customer satisfaction factors. You may undercut competitors on retail price with an effective supply chain. You can also meet or exceed client delivery expectations with high-performing operations. To keep customers happy, give them what they want when they want it at the lowest price,” emphasizes Sanjay Kshirsagar, Head of Supply Chain – South Asia, Brenntag India, during an interview…

You have been a close witness to the transformational landscape of Operations & Supply Chains, more so during the last decade. What are the factors that have led to this transformation?

Businesses face rising global competitiveness and periodic operational model disruptions. They need a roadmap and applicable technology to improve supply chain performance to meet these issues. Transformation and modernization of Operations and Supply chain necessitate a review of existing supply chain processes and business models as well as the implementation of new technologies. Ultimately, a company must align its supply chain functions with its overarching goals and objectives. This ensures that a company’s supply chain meets its requirements, drives its growth & success, and mitigates disruptions and risk.

The progression of this change in Operation and supply Chain can be attributed to the following factors:

v A strategic vision with quantifiable long-term objectives

v A plan that is flexible and scalable, because technology evolves rapidly and businesses must keep pace

v Structured governance, ideally with centralized oversight of digital implementation

v A customer-focused, data informed and innovative corporate culture. Based on my experience in supply chain and operations over the last two decades, I can confidently state that a successful supply chain and operation transformation landscape boosts sales, revenues, and profits. This often means digitising supply chain activities and implementing new organisational processes to eliminate challenges and bottlenecks in today’s business and technical world.

What have been a few of the best learnings during the last few years that will stay with you forever and help you climb the success ladder? Nobody sets out in life intending to fail. But the reality is that far too many people fail, and I, too, have failed on many occasions. One of the secrets to my success is that I am not afraid of failure. Instead, I always pick up the beautiful fruits of failure. For me, failure is a mirror that accurately reflects our flaws. Below mentioned are some of the learnings gained…

A business growth & operational excellence enabler, Mr. Sanjay Kshirsagar is a performance-oriented and enterprising leader with organized nature and analytical problem-solving approach. He has demonstrated expertise in cultivating and managing exceptional teams to meet and exceed demanding targets. He holds PGDBA (International Marketing) from Symbiosis Institute of Management Pune and B. Tech (Dairy Technology) from Dr. Panjab Rao Krishi Vidyapeeth, Akola.

Businesses face rising global competitiveness and periodic operational model disruptions. They need a roadmap and applicable technology to improve supply chain performance to meet these issues. Transformation and modernization of Operations and Supply chain necessitate a review of existing supply chain processes and business models as well as the implementation of new technologies. Ultimately, a company must align its supply chain functions with its overarching goals and objectives. This ensures that a company’s supply chain meets its requirements, drives its growth & success, and mitigates disruptions and risk.

v Discipline: Discipline is the foundation of success. Discipline means failing, falling, getting up, and repeating.

v The future is in your imagination: Humans have the power to project their thoughts into the future. We can see possibilities by using our imagination.

v To win, you must expect to win: Visualize your ideal future and then wrap it in a set of core values. This will motivate us to work towards the goal.

v Opportunities await us in every direction: The best way to climb the success ladder is by stepping on the rungs of opportunity. Life is a merrygo-round. Time brings opportunity, recognizing them as brass rings and grabbing them is all we need.

v Your success depends on other people: Nobody’s alone. Success requires social interaction and support. I make industry, community, and global friends. I believe that knowing more people increases your chances of finding help in a crisis.

v Read, Read, and Read: In the end, most importantly, one should read as much and as varied subjects as one can to keep oneself updated with the global current market trends and gain insights.

What have been the challenges faced in managing the supply chain and how did you overcome them? Any

interesting example that you would like to share with us…

Supply chains have always been prone to interruption. Despite being accurately referred to as the ‘plumbing of global business,’ supply chains have received little attention in the past. Unprecedented occurrences like the Covid-19 outbreak and the ongoing turmoil in Ukraine have once again highlighted the vulnerabilities of global supply chains. Customers’ constantly expanding and evolving needs have only accentuated the supply chain issues. Besides, factors such as market volatilities, trade wars, raw material shortages, climate change, stricter environmental regulations, economic uncertainties, etc., are also keeping the supply chain managers on their toes every single day. They are encountering unexpected delays in shipments. There is huge pressure to curtail costs, while on the other hand, freight rates are on a new high. Abrupt market sentiments are only making demand forecasting a difficult task for supply chain managers. We have taken various steps to address these issues. We focused our emphasis on automating processes and enhance end-to-end visibility. We partnered with industry peers such as customers and suppliers to harmonize operational processes.

What has been one of the most challenging tasks that you have achieved in the supply chain? Please elaborate…

During the time of the Covid-19 incident, I was working for a firm that manufactured mechanical cleaning tools, and my primary responsibility was to get dispatches and operations back up and running. Although it was not simple to

get operations and deliveries back up and running, we took the highest care of the employees involved, and this was only possible thanks to close collaboration. In addition to this, we were able to properly manage the additional demand during that time.

You have been an integral part of globally leading companies and have worked in various geographies. What are the biggest differences that you have witnessed in managing supply chain in other parts of the world visà-vis India?

I have worked, visited, and lived in a variety of multinational corporations and nations with distinctive cultural traditions, including Thailand, China, Singapore, Egypt, Dubai, India, and South Africa. Working in tough environments and interacting with people from other cultures has always been an unforgettable experience of my career. In the course of my previous job, I was exposed to a variety of various cultures and picked up a number of useful supply chain practices. According to me, the most significant difference is related to the culture and the management of people. Since people are the most important component of any supply chain, I devised the following method in order to overcome these obstacles: practice open communication; Acknowledge the cultural difference and take action accordingly; and pay attention to work schedules.

How can companies strike the right balance when it comes to inventory optimization?

Inventory management requires establishing a balance between supply and demand. Maintaining a sufficient,

yet cost-effective supply of products and materials must be balanced with meeting customers’ requirements. Based on my two decades of supply chain experience, I suggest the following strategies to improve and balance inventory management:

v Implement Demand Forecasting tools: Demand forecasting can help firms analyze sales patterns using past order data. Businesses can use data to predict product demand and improve customer experience.

v Automate Replenishment: Manual inventory processing costs time and money. Inventory management software should automate replenishment for companies. Distribute inventory across fulfillment centers.

v Track the entire supply chain: Supply chains used to have several independent components. Realtime data analytics now inform supply networks of stock quantities, locations, and delivery timeframes. Barcode/QR code scanners and other tracking gadgets have solved numerous logistics issues. Realtime data helps organizations make quick, informed decisions and minimize costs across the supply chain, improving RoI and customer happiness.

Can you share with us demand sensing and advanced planning

strategies that will help build resilient supply chains?

Businesses need a resilient supply chain to compete in today’s dynamic environment. Customers’ tastes vary quickly in a turbulent market. Thus, product lifecycles are shortening, and purchasers are spoiled with choice. AIpowered demand sensing strengthens supply chains, and companies are using AI and ML to fuel strategy.

The Supply chain Network is becoming more complex, and various disruptions in the network can impact the whole system. Unavailability of data and insights impair decision-making and disable visibility deep down in the demand-supply value chain.

Cognitive supply chain planning using AI-driven demand sensing has become even more critical in these uncertain times. It can ensure on-time delivery for improved customer satisfaction and revenue realization, improved forecast accuracy at the product-mix level, and improved working capital with reduced inventories.

Demand Sensing enhances forecast accuracy by handling multiple types of internal and external data sets. It makes promotions more effective and reduces out-of-stock by enabling timely adjustment of replenishment plans. It automates & improves planning and execution and improves forecasting agility as well as creates a responsive supply chain to meet changing demand effectively.

What would you like to advise young supply chain professionals of tomorrow? How can they enhance their skillsets?

On the basis of my own experiences working in the supply chain, I strongly advise that in order to become a competent supply chain manager, every supply chain manager needs to cultivate these seven productive habits.

v Sceptical: Supply Chain Professionals always assess risk. Scepticism doesn’t mean they’re risk-averse; it means they’re prepared for anything.

v Eye for Details: Supply chain professionals disregard perceptions and superficial analysis. In-depth and unbiased analysis changes perceptions.

v Observant: Supply chain professionals are perceptive and curious. They make decisions beyond reports and excel analyses. They combine quantitative data with qualitative and informal information.

v Technology Friendly: Supply chain professionals understand technical advances. They analyse local technology and refresh themselves.

v Challenge the Obvious: Supply chain professionals always look for continuous improvements by challenging what might seem to be given. They don’t take anything for granted.

v Team Player: This stands out for me as the most critical habit because supply chain procedures necessitate the involvement of cross-functional teams and getting them to agree on the ‘business cause’ is the most difficult assignment. The supply chain serves as the foundation for the balance between demand and supply as well as cost and service.

v Flexible: Supply chain professionals cannot be dogmatic. They must adjust to corporate and external changes. They adapt their strategy and operations basis the external changes. They may accommodate

Supply chain leaders are overlooked for CEO positions. However, they make wonderful CEOs and should be considered. Why do so many successful CEOs have supply chain backgrounds?

It’s no coincidence that many top business executives come from operational roles like supply chain. Apple CEO Tim Cook was COO first. General Motors CEO Mary T. Barra has extensive operations and supply chain experience.

unexpected chain variations.

What are the qualities of a supply chain leaders that make him a people’s person and the preferred leader / CEO of a company?

Supply chain leaders are often overlooked for CEO positions. However, they make wonderful CEOs and should be considered. Why do so many successful CEOs have supply chain backgrounds? It’s no coincidence that many top business executives come from operational roles like supply chain. Apple CEO Tim Cook was COO first. General Motors CEO Mary T. Barra has extensive operations and supply chain experience.

We would like to know from you the incredible journey of customer satisfaction to customer delight powered by a nuanced supply chain… I am a firm believer in making the customer happy, and I think that this should be the focus of all of our efforts. Your company’s expansion is directly attributable to the satisfaction of your current customers.

Customer delight and profitability can be improved by supply chain performance. Effective supply chain management delivers value for customers and your business by reaching customers, cutting retail pricing, and enhancing service levels.

Customer service is best provided via your supply chain. It controls price and delivery – the two most important customer satisfaction factors. You may undercut competitors on retail price with an effective supply chain. You can also meet or exceed client delivery expectations with high-performing operations. To keep customers happy, give them what they want when they want it at the lowest price. That’s possible with good supply chain management. By picking the proper

systems, tactics, and partners in your supply chain, you’re delivering your customers—individuals and businesses—great service, transparency, and visibility. From conception through delivery, you implement systems to eliminate errors and boost inventory efficiency. The better your supply chain, the happy your customers will be and the more likely they are to buy from you again. Your supplier chain has the greatest direct impact on repeat business.

What are the aspects that will make India’s Supply Chain Future-Ready and Resilient?

India needs to effectively bridge the competitiveness gap of US$180 billion vis-à-vis the supply chains of advanced nations and become a leading player globally. Below are some aspects need to work so that India’s supply chain will be ready for future and remain resilient…

An unbalanced logistics modal mix: Unnecessary logistics costs stem from a road-heavy mode mix. 40% of logistics costs—6% of GDP—are transportation. High indirect or ‘hidden’ costs: India has four times the indirect logistics expenses of wealthy nations. Inventory mismanagement and numerous distribution channels are the key causes. Poor demand forecasting owing to technology adoption causes inventory mismanagement. It also raises inventory carrying expenses, including unsold products storage.

Poor-quality infrastructure: The second-largest road network in the world, India’s 5.5 million kilometers, contains only 2.7% national highways. The national highway network, which conducts 40% of road traffic, suffers.

Limited adoption of the latest technology: AI, blockchain, and IoT

adoption in supply chains is slow. Global organizations use the latest technologies to monitor supply chain activities in real-time. Digitization, inventory mismanagement, and faulty demand estimates due to a lack of technology are major factors in India’s competitiveness gap.

Fragmented logistics (trucking) network: Despite its importance to economic growth, India’s logistics sector is fragmented and unregulated with many local firms and no national or regional players that can create end-toend platforms. The trucking industry is extremely disorganized with nonstandard pallets and truck dimensions. Most Indian truck drivers use single trucks and use third parties to place orders. Only 10% operate fleets over 25 trucks. Entry-level enterprises are at a cost disadvantage without market leaders. Truck turnaround time in India is less than 300 kilometers per day, compared to around 700 kilometers in Europe and the US.

Integrating the supply chain network: Integrating the network of the supply chain with supply chains can be made more flexible and agile with the use of platforms that combine processes.

Qualities of a Supply chain Leader that help them climb the corporate ladder and REACH the TOP:

• Understanding how to generate revenue from operations

• Understanding how to prioritize resources

• Understanding different cultures

• Ability to think strategically

• Having a global outlook.

Applicant Tracking System (ATS) THE HOLY GRAIL OF CANDIDATES

As a Candidate ever wondered why hiring managers/ recruiters do not see 70% of the resumes they receive? This is primarily because of ATS application which reviews, ranks, scores CVs based on main keywords, action words, critical job requirements and few other factors. Only the top 20-30% Profile with high matching % go ahead in the hiring process. Remaining are rejected. What does this mean to candidates? It re-affirms the important point that, in order to land a job interview, candidates need to take that extra mile and optimize their CVs to make it ATS-friendly in order to be in top 20-30%. Through this article, Sanjay Desai, Co-founder & Regional Director, Humana International (S) Pte Ltd., traces the evolutionary journey of ATS and offers a great headway for candidates and employers to find the RIGHT MATCH…

ATS stands for Applicant Tracking System. In simple terms, it is an AI application that is being used by Hiring / HR Managers/ Head-hunters and Recruiters globally to scan / update the large amounts of profiles (CVs) into their CRM Software. It is an OCR application (Optical Character Reader or Recognition) whereby it takes the text from a document and converts it into a format, which is optimised and readable for data processing /storage and retrieval in a standardised manner.

ATS system has parameters that need to be fed-in as they are mentioned in the job description, for example (action words, KPI, deliverables, qualifications, requirements, must haves, etc.). ATS system imitates a human mind and compares a CV with the parameters fed in. Based on number of parameters matching, it will highlight a % number as “matched” with the job description (example – 70% match with JD).

How does an ATS system work?

When an organisation or a head-hunter

Sanjay Desai is a seasoned Supply Chain professional who runs his own advisory consulting practice based out of Singapore. He sits as an Advisory board member for multiple startups and SMEs located in Asia. He also runs Humana international handling Talent Development & Executive Placements in supply chain domain across the region. He holds a Bachelor of Commerce and a Postgraduate in Materials Management from premier Indian business school. He is a Certified Logistics Professional from The Logistics Society, Singapore. He is a certified (CPIM) practitioner from APICS, USA. He has completed formal Executive Leadership management courses at INSEAD, Singapore.

The Global Applicant Tracking System Market size is expected to grow at a CAGR of 6.7% during the forecast period, to reach US$3.2 billion by 2026 from US$2.3 billion in 2021, according to a new report by MarketsandMarkets™. The Applicant Tracking System Market is growing due to the presence of global and emerging players in the market. The major factors that are driving the adoption of ATS solutions among the enterprises as well as SMEs across various verticals including BFSI, government, manufacturing, telecom and IT, consumer goods and retail, healthcare and life sciences, energy and utilities, transportation and logistics, and others due to significant adoption of cloud services and security infrastructure.

posts a job on their website / in an open portal, candidates start to apply and send their profiles via soft copy / hard copy depending on the mode requested. Their CVs are uploaded into the ATS system electronically or via manual mode. ATS uses an algorithm called “parsing” to extract & convert the critical information from CV & stores it in their system data base as information for easy retrieval. ATS also helps the hiring manager / head-hunter to easily search / sort the database as required using correct ‘search words’. The software then identifies resumes containing those keywords and ranks them based on their relevance. This means that candidates whose resumes contain the most relevant information as mentioned in the job description are more likely to be shortlisted for further processing in the hiring process.

Does ATS guarantee selecting the “best suitable” candidate?

Yes / No both. But remember that this is NOT the objective of a HR / hiring manager to use the ATS for. This process is not an end to the means of selecting the best candidate. The hiring process is beyond ATS and there are other manual processes, which ensure that an organisation will select the best candidates. ATS application helps the hiring managers to shortlist a much wider pool of candidates from a huge database of profiles in a short span, reducing repetitive task / time & cost. Hiring managers will continue to tighten the parameters and compare the set of profiles repeatedly till they get the most relevant profiles with high % match.

Thereafter the manual process will take over to complete the hiring process.

Advantages of using ATS system

There are many quantitative and qualitative advantages in using ATS system if it is handled and optimised correctly. Let us look at a few major advantages only:

• Reduction in time & duplication of effort: ATS will save time and duplication effort to a larger extent almost all the time. Besides the quality matching, it also helps in automating some of the downstream tasks like filtering / ranking.

• Standardised Quality: The way ATS works, it automatically assigns a standard quality in its scanning process. So, there are no deviations while comparing a large pool of candidates in a consistent manner. Additionally, ATS helps in eliminating bias in the candidate review process by focusing on objective criteria,

Let us look at some Don’ts !! (avoid)

which are mission critical.

• Efficiency & Accuracy: ATS helps organizations to be more efficient in handling large pool of candidates by accurately analysing / comparing the parameters with the profiles and highlighting the top candidates within a very short span like less than couple of hours. The hiring manager can spend more time on qualitative tasks and engaging candidates more effectively, making better informed decisions.

• Greater Candidate Journey & Experience: Usually, head-hunters and organisations have their own HRIS (Human resource information system), which has ATS built-in as a utility. The organisation can leverage this set-up to communicate with the candidates on a real-time basis for critical updates. This helps to enhance candidates’ experience in real time.

• Don’t push your generic CVs to all the positions that you want to apply.

• Avoid using pictures / logos of companies and or creating tables in your CV.

• Don’t overuse action words else your CV will be stuffed with many duplicate action words.

• Do not use readymade CV software applications available in the market which allow you to create various visually appealing formats, they don’t server your purpose.

• Avoid using headers and footers as much as possible as most ATS applications usually find it troublesome “parsing” the information.

• Lastly, try & keep the length of your CV to two pages that is (1 page printed both sides)

• Cost Effective Process: Using an ATS system is certainly cost-effective for employers and recruitment agencies. The software eliminates the need for manual data entry and reduces the amount of time spent on administrative tasks, allowing the person to focus on higher-value tasks.

• Automates Intra-company and Intercompany Communication: An ATS allows improved communication among the recruiting team members and others who are involved in the hiring process. It helps the team members to send messages, schedule emails in bulk, and assign tasks in an organized manner using the e-approval capabilities of an ATS system. Most ATS nowadays integrate seamlessly with google/ outlook calendars and various other email systems. You end up with less paperwork and a more organized automated platform process.

How to ‘beat’ ATS and get your CV past ATS?

It is indeed challenging to ‘beat’ an ATS completely. However, there are subtle ways and means that professionals can practice increasing their chances of getting past the initial screening with high % match. Here are some Do’s and some Don’ts:

• Tailor your resume: As a candidate, you must have a ‘generic’ CV ready. For every new position that you want to apply, you need to tailor the generic CV by incorporating relevant keywords, action words and phrases from the job description. Only then, your tailored CV will be a high % match with the job description amongst other profiles.

• Use a simple word template: Use single font (Arial or Calibri) and with maximum two scales (size 11 for entire CV and size 12 for highlights). Save the file in Word or PDF model only. ATS barely understands beyond Word and PDF documents.

• Identify about 30-35 relevant action words and short phrases from the job

description and include them at least once in your CV under appropriate bullets.

• Keep the content sharp and simple: Remember it is not the design or the colourful layout, but it is the content, clarity & text, which makes your CV appropriate, so FOCUS on these.

• Align your CV and LinkedIn Profile: Make sure to keep your CV as short / conscious as possible and use LinkedIn as an extension of your career history to create a story. Most HR / Hiring Managers will check your LinkedIn profile to get a sneak preview of your achievements or career progression.

• Special instructions in Job Description: Pay full attention to the instructions provided by the company and comply 100% so that you are NOT automatically filtered out due to noncompliance with some instructions.

What is the future of ATS?

We need to acknowledge that technology is constantly evolving, affordable, and available consistently. Similarly, ATS has also evolved long way, adding new improvements and innovative features, making it the core of the Hiring Process.

It has embraced multiple capabilities like social networking via WhatsApp & video conferencing. While we cannot lay down a finger on a number, ATS will continue to evolve and will be in practice easily for next decade, scaling innovation & ideas for HR / Hiring managers globally.

In conclusion, an ATS offers a range of benefits and advantages to employers and recruitment agencies. The software does save time, money, and duplication. It helps to increase accuracy, improve the candidate’s experience, enhance communication, and be cost-effective.

Your resume is your business card. After it passes thru ATS, it will be reviewed thoroughly by a hiring / HR manager. It is absolutely necessary that your CV is ‘tailored’ for each position you apply for. Keep it crisp – just the right size that it covers all key tasks mentioned in JD. It will create an interest for the hiring/ HR manager to shortlist your profile.

Remember that while these strategies can enhance your shortlisting chances, more important for you, is to focus on developing your interview skills, your ability to build a strong professional network and your reputation in the market. They all go hand in hand for a successful career transition. All the BEST!!!

Example of an ATS compliant and ATS non-compliant CV (this photo is for specimen purpose only / not for textual clarity)

LEA’R’N with continuous ‘R’ESILIENCE

In the wake of ever bubbling geo-political risks, legislation & regulation ambiguity, cyberattacks, natural disasters, climate and global health events, supply chain resilience is perhaps one of the top-of-the-mind concerns faced by senior leaders of every organization, country, or an institution. Internet is abuzz with a whole lot of articles, frameworks, survey results and the like – enough to make a hapless supply chain manager’s mind spin. A supply chain manager is today faced with a blizzard of terminologies, viz., disruption, uncertainty, fragility, risk, resilience, and many more. Amidst the pressure of real changes, and a surfeit of here-is-one-more frameworks, the environment is ripe for the supply chain manager to get back to first principles. To build resilience from groundup, it is important to clarify terms relating to supply chain uncertainties. With this as the backdrop, Prof (Dr) Kalyana C Chejarla and Ganesh Mahadevan trace a few relevant resilience strategies, using the basic lean management principles.

UNCERTAINTY is when reality differs from what we expect.

Strategies to address uncertainty therefore belong to both sides of the coin viz., shape reality (demand management, redundant capacities, multiple suppliers etc,) and update expectations (change model parameters, (re)negotiate service levels, invest in training, etc.). Supply chain uncertainties can be grouped into following four categories. This grouping is loosely in the order of: (a) decreasing order of ability to know or quantify, (b) increasing order of magnitude of impact and (c) increasing spatial and temporal system boundaries.

RANDOMNESS

Randomness refers to the unpredictable component of variation in behaviour of every process, equipment, or system from mean/expected behaviour. Randomness (also called white noise) is when the deviation does not exhibit specific patterns. Control limits are defined based on the extent of randomness, that prescribe the buffer needed to run the adjoining processes smoothly. Technically this is called Aleatory uncertainty. When the system under study is zoomed into a unitary process level, randomness is observed. Good techniques to address randomness are statistical process controls, six sigma

Dr. Kalyana C Chejarla teaches and writes on operations, digitalization and decision making at IMT, Hyderabad. He is an alumnus of IIM (L), IIM (A), IBS, and NIT (Jamshedpur). Prior to moving to academics, he worked with organizations such as Tata Motors, TCS, Dell etc., and was part of SCM transformation projects for clients worldwide.

Ganesh Mahadevan is Partner and Lead Consultant at the Kanzen Institute. He has helped more than 50 organizations across industry sectors improve performance through Lean. A BTech from IIT, Mumbai and MBA from NIT, Trichy, he has worked earlier with organizations such as Hindalco and Deloitte.

approaches, robust designs, etc. To an extent, these techniques help bring the process performance within control limits.

VARIABILITY

If the deviation is beyond control limits or if there is a pattern in the deviation of a process parameter, it implies that there are causes affecting the system, which we are not fully aware of. Such a variability is called Epistemic Uncertainty and could addressed by undertaking focused study of the system and learning about all the affecting causes. Incomplete knowledge, understanding, and articulation are information induced sources of variability. Additionally, few action induced uncertainties are triggered on account of feedback effects and decision

making by various supply chain entities. By design, supply chains are wider in scope in comparison to individual processes, and so are subject to epistemic uncertainty. Naturally, as the system boundary increases, complexity and therefore variability increases. We are not recommending unending study or development of models that are the exact replica of real world. The skill and art lie in the ability of supply chain manager to draw and redraw boundaries of system knowledge (s)he should strive for with changing circumstances. A good way to do that would be to link the supply chain risk management to the investments in enhancing supply chain visibility. The cost and effort involved in learning a system must be commensurate with the benefit of resultant uncertainty reduction.

BIASES

Much less talked about, but very much the cause of a numerous supply chain mishaps, is the presence of inappropriate mental models / belief systems in the minds of supply chain managers. This phenomenon is called Ontological uncertainty. Closely related to these mental models are behavioural factors such as cognitive limitations, bounded rationality, and availability of information and time, etc., that affect supply chain decision making.

Typical biases are:

(a) Confirmation Bias is a short term bias in which a supply chain manager accepts only the information that confirms her view, disregards contradicting evidence e.g., failure to adjust forecast against one’s optimistic/pessimistic view,

(b) Endowment Effect is a medium term bias, in which a supply chain manager overvalues the decision in which (s)he has invested time and effort e.g., not changing a supplier (that (s)he selected) even when better alternatives become available.

(c) Sunk cost fallacy is a longer term bias, in which the supply chain manager throws good money after the bad money, eg., he/she continues to invest in a capital project in increments despite the new adverse information. The longer it takes one to realize, recognize and make

By design, supply chains are wider in scope in comparison to individual processes, and so are subject to epistemic uncertainty. Naturally, as the system boundary increases, complexity and therefore variability increases. We are not recommending unending study or development of models that are the exact replica of real world. The skill and art lies in the ability of supply chain manager to draw and redraw boundaries of system knowledge (s)he should strive for with changing circumstances. A good way to do that would be to link the supply chain risk management to the investments in enhancing supply chain visibility. The cost and effort involved in learning a system must be commensurate with the benefit of resultant uncertainty reduction.

corrections to one’s mental models, the bigger the risk one faces. Peter Senge’s ‘The Fifth Discipline: The Art & Practice of The Learning Organization’ does an excellent job of sensitizing and equipping managers to overcome this bias induced uncertainty.

DISRUPTIONS

Black swan events such as a pandemic breakout, Suez Canal blockade, natural calamities, or accidents etc., are termed as disruptions. In highly globalized supply chains, a disruptive event occurring at one corner of the world can swifty transmit to another corner causing plants to shut down. Unlike the previous three uncertainties, which can occur on both supply and demand side of supply chains, disruptions are more common on the supply side.

LEAN MANAGEMENT IS MORE THAN JUST ‘LEAN’

The term Lean was popularized by John Krafcik, in his article, ‘Triumph of the Lean Production System’ in 1988. Then an MIT researcher referred it to as Toyota Production System (TPS). This choice of terminology was perhaps motivated by the central principle of elimination of different kinds of wastes in supply chains in TPS. Unfortunately, such a nomenclature resulted in a somewhat second hand treatment of couple of other fundamental principles of TPS namely Gemba (to observe the problem at site and learn) and Kaizen (continuously strive for improved state). As noted in the vast lean management literature and examples, mere elimination of

even a single waste, results in a marked performance improvement of supply chains. Lost in the temporary success, kaizen-led Gemba was inadvertently pushed under the carpet, or forgotten by many leaders.

This article is meant to remind the supply chain managers of these two principles of learning. The main outcome of waste removal in the initial stages of lean implementation is to provide visibility to supply chain unknowns. Achieving financial performance improvement is just a happenstance. Recall the popular example of a smooth sailing of the ship on highwaters of a sea with a rocky bed. As soon as the water level falls, the problems (read –Opportunities to Improve) surface.

At the fundamental level, it is the information and trust that binds supply chains. As explained earlier, poor quality of either of these two binding elements results in a blindness, which we call as Uncertainty. A well-documented phenomenon called the bull-whip effect ensues with the most upstream players facing the maximum brunt of wild swings of demand propagation. A conventional supply chain response to this blindness was to create buffers in terms of inventory, capacity, and customer lead time. While this might be ok as a short-term measure, our advice to supply chain managers would be to to go beyond the short term measure, and focus on improving the quality of information and trust among supply chain partners.

In doing so, supply chain managers should leverage digital technologies intelligently to reduce lead time by

improving the quality and timeliness of information collection, processing, and propagation within and through the departments as well as the entities outside the organization. Then, through process improvement, developing better understanding of immediate environment, leveraging technology and practices, organizations can continue to keep reducing their uncertainty.

Following are some of the strategies that can be pursued in response to different degrees of uncertainties. The strategies make sense when implemented in the order (except the last) mentioned below, as the capability acquired in one stage serves as the ground to implement the next stage:

Reliability: Improve the reliability of the process through statistical process control techniques such that it operates well within the customer specification limits.

Robust: Robust engineering goes a step beyond reliability by taking control of process design such that the output stays within desirable levels, regardless of changes in environmental conditions, up to an extent beyond which the benefits don’t justify the redundancy costs.

Responsive: Responsiveness as an effective supply chain strategy to counter uncertainty, if the products are innovative, have high margins, and short life cycles or fixed selling seasons. A firm is responsive, when it can meet the alternative delivery requests such as changes in product features, quantity, delivery lead-time, location, or lot size,

The core principle of lean is about bringing supplier and customer closer in all possible ways - physically, capacity wise and information exchange. Any efforts in this direction contribute to better sync between the supplier and the customer, which makes the relationship strong and resilient to the uncertainties. Leaner the supply chain, less is the inventory and the lead time. Flexibility is the natural benefit of Lean and is the basic requirement of a resilient supply chain.

etc. Ways to achieve responsiveness requires deliberate cushion building in the supply chain by signing up with more responsive suppliers, logistics service providers, keeping inventories at various echelons, having quick access to spare capacity, etc.

Flexible / Agile: Supply chains can be made flexible by making them meet the changing environment or more proactively agile by making supply chains able to rapidly capture the opportunity presented by an uncertain event. Organizations can build flexibility into their plans by undertaking a segmentation analysis of their products, component parts and creating operations plans to consist of a mix of standard, optional, and rare products right from design to delivery. Flexibility and agility are structural capabilities, whereas responsiveness refers to information and process capabilities.

Resilient / Anti Fragile: Resilience is a measure of the organizations’ ability to quickly restore its normal functioning post disruption. Several frameworks have emerged both from academic institutions and consulting firms to measure and implement resilience. The frameworks range from improving visibility through digital aids on one hand to big data driven analytical understanding the supply chain data on the other. Further, supply chain managers can improve the knowledge and limitations of their existing supply chains by undertaking supply chain vulnerability assessment, mapped to current and potential geopolitical risks and the likes mentioned at the beginning of this article. Armed with such deeper understanding, the

managers can know the critical spots of in their supply chains, invest on appropriate reinforcements.

Purpose-driven: While the previously mentioned strategies largely focus on the information exchange and structural issues of supply chains, building trust is quite different. Responsible supply chains have always held higher value system than being just profitable. Supply chains touch lives of a huge number of people both within and outside the organization. Purpose-driven supply chains understand that organizations are nothing but people, and people are motivated much more by values such as dignity of work, respect for individual, security, etc., than just money. Such trust can only be built over time by repeated actions that reinforce the belief system of the purpose-driven supply chains, especially in the face of adversity. Motivated stakeholders provide the most resilience cushion that supply chains can ever have in comparison to any other strategies.

Linkwell, an energy meter manufacturer, grew fivefold within a couple of years due to a surge in demand in the overall economy. This growth was managed through lateral expansion of both in-house facilities and multiplying subcontract vendors for upstream processes. By early 2019, fluctuating order characteristics such as product type, order quantity, lead time, etc., and the resultant pressure on profit margins made the management look for ways to implement a flexible operating model that can synchronize output with orders. The answer was implementing Lean to improve flow both within the plant and

two levels of subcontractors, followed by implementing pull throughout its entire value stream, and finally by stabilizing the processes at a higher level of performance. The built-in flexibility throughout Linkwell supply chain during 2019 and early 2020, helped it bounce back on to its feet soon after lockdowns were lifted post Covid-19, resulting in a highly resilient organization. The lean way of thinking is so much imbibed into everyone at the company that it was able to take in its stride numerous challenges imposed on account of Covid-19 such as social distancing, reduced manpower, disturbances in supplies, and occasional order cancellations, which is a mark of a highly resilient organization.

CONCLUSION

As we can see, a short-sighted view of Toyota Production System, misunderstood as ‘only’ Lean Management is the source of woes of several supply chains during recent supply chain disruptions over the past few years. The core principle of lean is about bringing supplier and customer closer in all possible ways - physically, capacity wise and information exchange. Any efforts in this direction contribute to better sync between the supplier and the customer, which makes the relationship strong and resilient to the uncertainties. Leaner the supply chain, less is the inventory and the lead time. Flexibility is the natural benefit of Lean and is the basic requirement of a resilient supply chain.

What we are suggesting to the supply chain managers in this article is that blaming Lean Management as the cause of all troubles, and hence dropping all lean initiatives is akin to throwing the baby with the bath water. Rather this is the time to take Lean to next stage. Don’t let Lean be yet another fad that had passed its time and miss all the gains achieved. Instead, develop a comprehensive understanding of TPS to create learning supply chains that can quickly respond to the dynamics of internal and external shocks. Lastly, it’s worth remembering that only change is permanent, and so no supply chain design is ever eternally optimal. A higher purpose provides supply chains with true north and support at times of turbulence.

Don’t let Lean be yet another fad that had passed its time and miss all the gains achieved. Instead, develop a comprehensive understanding of TPS to create learning supply chains that can quickly respond to the dynamics of internal and external shocks.