Exclusive Interviews with Shailesh Haribhakti, ESG Champion, Board Chairman, Audit Committee Chair and Independent Director at some of the country’s most preeminent organizations on Transforming ESG from Obligation to Innovation
Aparna Sharma, HR Practitioner & Independent Director on Corporate Board on Grooming Leadership
Industry Experts Present Practical Strategies to Garner Industrywide Collaboration to Drive Holistic Business Growth
Dear Readers,
Welcome to the September 2024 issue of Celerity Supply Chain Tribe, where we delve into the ever-evolving world of supply chain management and the power of collaboration. As supply chains grow increasingly complex, the ability to collaborate effectively has emerged as a key differentiator between those who merely survive and those who thrive. Our Cover Story, “Reimagining Supply Chain Collaboration to Unlock Latent Potential,” explores the profound impact of strategic partnerships across the supply chain. Through real-world success stories, we highlight how companies have dramatically reduced inventories and costs while enhancing speed, service levels, and customer satisfaction—all through the power of collaboration.
In our Leadership column, we are honored to feature Shri Shailesh Haribhakti, who shares his visionary insights on transforming ESG from a mere obligation into a wellspring of innovation. His thoughts challenge us to rethink how environmental, social, and governance factors can drive value creation and long-term sustainability.
This issue also offers a treasure trove of wisdom from senior industry leaders on the Art of Leadership.
Finally, we invite you to relive the excitement of our maiden conference on Sustainable Value Chains through our special photofeature. The energy, passion, and insights shared during this event were truly inspiring, and we are thrilled to showcase the best moments with you.
As always, we hope this issue provides you with valuable perspectives and inspires new ideas to elevate your supply chain practices. Your feedback is always appreciated as we continue to explore the future of supply chain management together.
Warm Regards,
Charulata Bansal Publisher Charulata.bansal@celerityin.com
www.supplychaintribe.com
Published by: Charulata Bansal on behalf of Celerity
Edited by: Prerna Lodaya e-mail: prerna.lodaya@celerityin.com
Designed by: Lakshminarayanan G e-mail: lakshdesign@gmail.com
Logistics Partner: Blue Dart Express Limited
Supply chain collaboration is a hot topic today and we have witnessed umpteen success stories where companies who have collaborated effectively across the supply chain and achieved dramatic reductions in inventories and costs, together with improvements in speed, service levels, and
5 LEADERSHIP
Shailesh Haribhakti, ESG Champion, Board Chairman, Audit Committee Chair and Independent Director at some of the country’s most preeminent organizations, emphasizes that it’s time to shift the narrative from ‘Hard to Abate’ to ‘Affordable to Abate’.
16 FOCUS
Aparna Sharma, HR Practitioner & Independent Director on Corporate Board stresses that leaders need to stay invested in the idea, provide needed resources, be a role model and not just provide lip-service or just come and speak at Annual Conferences or an Induction Program.
customer satisfaction. Even having known the significant impact it has on organizations and on the entire value chain, companies often fail in achieving the desired collaboration. Our Cover Story attempts at uncovering those challenges while our subject matter experts offer us some great insights into harnessing perfect synergies to ultimately drive allencompassing growth...
21 PHOTO FEATURE
Celerity Supply Chain Tribe successfully delivered its maiden Conference on Sustainability on August 8, 2024, in Mumbai with The Centre for Excellence in Sustainable Development – Goa Institute of Management, as the Knowledge Partner. A Recap…
27 OPINION
Hanuman Swami, Global Planning and Fulfillment Manager, ABB, explores essential components of these strategies, provides best practices and innovative approaches to help global firms excel in a complex global environment.
30 TRENDING GLOBALLY
News from around the world.
Editor: Prerna Lodaya
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While many companies have made strides in reducing their Scope 1 and 2 emissions, the real challenge lies in addressing Scope 3 emissions, which account for 80 to 90% of a company’s total carbon footprint. Fortunately, regulators are beginning to shine a light on this issue, ensuring that companies cannot claim to be net zero by only addressing the more straightforward aspects of their operations. The message is clear: most emissions that need to be abated reside in the supply chain, and it’s time to shift the narrative from ‘Hard to Abate’ to ‘Affordable to Abate’, emphasizes Shailesh Haribhakti, ESG Champion, Board Chairman, Audit Committee Chair and Independent Director at some of the country’s most preeminent organizations, as the Keynote address during our maiden conference on Sustainability.
AS the world stands on the brink of transformative technological advancements, the imperative for adopting sustainability and ESG (Environmental, Social, and Governance) practices in the supply chain has never been more critical. One such breakthrough is the recent development at the Institute of Photonics, where researchers have enabled the transmission of entangled photons over optical fibers—a key step toward building a quantum Internet. This innovation is not just about faster communication; it represents a leap toward quantumsafe encryption, ensuring that sensitive data, including vital climate information, remains secure. This advancement underscores the disruptive nature of technology, which, alongside telecom and sustainability, will redefine how we collaborate and innovate in the future.
While many companies have made strides in reducing their Scope 1 and 2 emissions, the real challenge lies in addressing Scope 3 emissions, which account for 80 to 90% of a company's total carbon footprint. Shockingly, an analysis of over 1000 Business Responsibility and Sustainability Reports (BRSRs) revealed
that corporate attention to Scope 3 emissions is abysmally low. Fortunately, regulators are beginning to shine a light on this issue, ensuring that companies cannot claim to be net zero by only addressing the more straightforward aspects of their operations. The message is clear: the majority of emissions that need to be abated reside in the supply chain, and it’s time to shift the narrative from “Hard to Abate” to “Affordable to Abate.”
The transition to renewable energy is no longer optional; it is mandatory. In cities like Mumbai, 20% of distributed electricity can now come from renewable sources, blending seamlessly with fossil fuel-generated power. The supply chain must embrace this change, prioritizing renewable energy over fossil fuels to bend the curve toward sustainability. The same principle applies to electric vehicles (EVs). Although the market temporarily shifted towards hybrid vehicles, the momentum is returning to fully electric options, and within three years, EVs will dominate the market. The electrification of all energy is not just a possibility—it is an imminent reality.
To bring Scope 3 emissions into focus, companies must embrace three fundamental principles: collaboration, innovation, and technology. First, collaboration is crucial. Large corporations should work closely with their suppliers, particularly MSMEs (Micro, Small, and Medium Enterprises), to integrate them into carbon emissions measurement efforts. This involves paying a portion of the costs and ensuring that payments to MSMEs are made on time. By doing so, MSMEs will be more motivated to participate in the value chain, contributing to the overall sustainability effort.
Moreover, companies should diversify their supplier base, prioritizing those with the lowest carbon footprints. By doing so, Scope 3 will become a “mustdo” rather than an afterthought. The role of collaboration cannot be overstated; it is the bedrock upon which sustainable supply chains are built.
Technology will play a pivotal role in transforming supply chains. Ray
Kurzweil’s concept of the “Singularity” emphasizes how technology will revolutionize production and supply chains. As technologies such as IoT, Machine Learning, AI, and 3D printing converge, the era of hyper-personalization will dawn. We will witness the ability to decompose raw materials at the cellular level and reassemble them where needed, eliminating inefficiencies and distractions that compromise sustainability.
India, in particular, stands at the crossroads where the intersection of AI and sustainability offers a transformative opportunity. By integrating AI into sustainability initiatives, India could surpass its 2070 net-zero commitment and lead by example on the global stage. AI can optimize resource use, reduce waste, and enhance energy efficiency across various sectors, demonstrating that economic growth and sustainability can coexist harmoniously.
India’s proactive approach to decarbonizing its steel and cement industries exemplifies its commitment to renewable energy. The integration of hydrogen, nuclear energy derived from thorium, and renewable sources like solar and wind into the national energy mix aligns with India’s deep-seated ethos of celebrating nature’s gifts while prioritizing a sustainable future. These efforts highlight India’s leadership in the global fight against climate change and its dedication to ensuring a greener future for generations to come.
India, in particular, stands at the crossroads where the intersection of AI and sustainability offers a transformative opportunity. By integrating AI into sustainability initiatives, India could surpass its 2070 net-zero commitment and lead by example on the global stage. AI can optimize resource use, reduce waste, and enhance energy efficiency across various sectors, demonstrating that economic growth and sustainability can coexist harmoniously.
The era of sustainability is upon us, and the supply chain is at the heart of this transformation. By focusing on Scope 3 emissions, embracing renewable energy, fostering collaboration, and leveraging technology, we can create a supply chain that is not only sustainable but also innovative and resilient. The imperative is clear: sustainability and
ESG practices are no longer optional— they are the foundation for a prosperous and responsible future. Let us seize this opportunity to lead the way in building a sustainable, equitable, and technologically advanced world.
Michael Dell was once quoted as saying, “Collaboration equals Innovation.” Nothing can be more apt when we talk about Value Chain Collaboration and why it holds crucial importance in today’s times. Supply chain collaboration is a hot topic today and we have witnessed umpteen success stories where companies who have collaborated effectively across the supply chain and achieved dramatic reductions in inventories and costs, together with improvements in speed, service levels, and customer satisfaction. Even having known the significant impact it has on organizations and on the entire value chain, companies often fail in achieving the desired collaboration. Our Cover Story this time attempts at uncovering those challenges while our subject matter experts offer us some great insights into harnessing perfect synergies to ultimately drive all-encompassing growth...
AS per Deloitte’s 2023
Global Chief Procurement Officer (CPO) Survey, 69% of CPOs indicated that enhancing risk management and developing resilient supply chain is a top organizational priority, while 61% believed that increasing supplier collaboration is their top strategy to deliver value. Supply chain collaboration is key to building an agile and responsive supply chain that can withstand unforeseen challenges. By working together, supply chain partners can gain visibility into each other’s networks, identify, manage, and mitigate risks proactively, develop contingency plans, and innovate to adapt to changing market conditions.
Collaboration has always existed within supply chains of an organization through communication and information exchange with suppliers, 3PL partners, distributors, etc. Traditionally, interactions between manufacturers and their suppliers would involve
transactions such as issuing purchase orders or exchanging capacity and demand information. This information exchange was often siloed, not in real time, and sometimes inaccurate. Similar patterns of transactional and disconnected information exchange can happen with logistics partners, contract manufacturers, and other players. This way of working often leads to significant inefficiencies in the system and mistrust on both sides.
However, recent disruption events, regulatory trends, shift in supply dynamics, and changing consumer expectations have compelled organizations to move away from traditional collaboration to a win-win collaboration approach characterized by a trust and commitment to build resilient supply chains. The current complexity of supply networks also necessitates pushing the frontiers of collaboration beyond tier 1 suppliers to include other supply chain partners such as sub-tier suppliers, contract manufacturers, and logistics service providers.
Bob Pearson, in his book, Pre-Commerce, stressed that when collaboration is genuine, we are capable of creating solutions that would have never occurred otherwise. When you no longer wonder about where an idea came from, forget about time zones and know that you have accessed the best thinking from anywhere on the planet every time, then you are truly leveraging collaboration. Taking his thoughts further, an interesting study on this topic highlighted pertinent benefits of collaboration. These include:
Through a deeper understanding of each other, buyers and suppliers can mutually benefit from improved performance across the supply chain. The collaborative networks provide insights into suppliers’ overall performance, stock ranges, and demand fluctuations. This helps to increase accuracy in demand forecasting and optimize stock management.
Start with a well-thought-out supply chain collaboration strategy, grounded in business goals, with a well-defined process and governance framework covering technology and data governance policies. Leverage organizational change management to create trust-based partnerships and facilitate rapid and seamless supplier onboarding. This can streamline common challenges since each supplier comes with its own set of systems and technical and functional procedures. Establish effective communication channels, demonstrate value, address concerns or resistance, and actively involve supply partners in the design and implementation of the chosen collaboration platform. All of these elements are instrumental for success.
Source: Deloitte
Nikhil Puri, Vice President – Direct
All the challenges that come across in collaboration like lack of communication, assignment of tasks, dedicated workflow can be leveraged through technology. This will help in seamless flow of collaboration. Technology will also enable transparency too in the collaboration. As the competitiveness has been increasing day by day, it is imperative that the Intellectual Property Rights are safeguarded at all the times. Before indulging in sharing data and information it is imperative to sign an NDA (Non-Disclosure Agreement) with the respective stakeholders. Also, technology can be used to create barriers and restricted rights on data sharing.
Cost Savings: Establishing and preserving relationships with key suppliers can eliminate many setup costs associated with setting up new deals. Relationships with suppliers go further than simply saving money- in addition they assist in creating smoother processes, decreasing availability/quality problems or delays which could have an effect on customer support.
Fostered Innovation: Leveraging supplier information and insights paves the way for developing marketplaceresponsive merchandise. For innovation to work, there is a need to integrate crossfunctional teams that, in turn, integrate business methods with operations— which calls for a broad network of interactions.
Strengthened Relationships: Longterm collaboration fosters mutual growth for both parties. Developing strong, trust-based partnerships encourages open communication, understanding of goals, and shared successes. Building trust takes time. Companies should start with small collaboration efforts and build momentum with time.
According to Tannistha Ganguly, Global Head, WMS (IT Delivery), Kimberly-Clark, there are many benefits of supplier & vendor collaboration. In today's business world it is no longer a 'Nice to Have' strategy but has become a 'Must Have' tactic. Most common benefits are greater cost savings, better risk management, improved efficiency in operations, higher customer satisfaction,
etc. All of these in return add to market share and more revenue. The more integrated we are with our vendors, the better control we have on our supply chains. It allows us to view data in realtime, helping us to take faster decisions in times of emergencies and otherwise too. The chances of innovating together with our vendors, especially in key areas, increase if we are better integrated with them, sharing both information and risk. Collaboration can happen at a tactical level as well as at a more strategic level.
Seconding these views, Seema Mohanty, Global Supplier Manager, Bayer, added, “I see procurement not just as a function which buys on behalf of the organization. The procurement function is rather a vital interface between the external world of suppliers and internal stakeholders of the organization. And when there are multiple parties involved, collaboration becomes vital. Collaboration forms the bedrock of any human interaction and interface.”
She elaborated, “In today’s world, one cannot operate in isolation. Let me take an example of sustainability. Sustainability is more than just a buzzword these days. It has become a vital parameter of differentiation between companies today and will become a necessity for everyone tomorrow. If a company takes a target of Net Zero, then they cannot attain it unless their suppliers also attain the same in their operations. In this context, Scope 3 emissions are becoming more and more important than ever before and there comes in collaboration between multiple partners.” So, as a procurement professional, one has to negotiate not
just on the cost and delivery timelines, but also know about emissions and their corresponding carbon footprint. Sustainability as a focus area is relatively new and everyone has to learn from each other. Different industries and different players in those industries are at varying maturity levels. So, it is imperative that there needs to be lots of knowledge sharing with respect to sustainability practices, not just among suppliers and customers, but also among competitors as well. Procurement has a major onus here to make collaboration happen.
According to McKinsey, several factors make supplier collaboration challenging. Projects may require significant time and management effort before they generate value, leading companies to prioritize simpler, faster initiatives, even if they are worth less. Collaboration requires a change in mind-sets among buyers and suppliers, who may be used to more transactional or even adversarial relationships. And most collaborative efforts need intensive, cross-functional involvement from both sides, a marked change to the normal working methods at many companies. This change from a cost-based to a value-based way of thinking requires a paradigm shift that is often difficult to come by.
The actual value generated by collaborating can also be difficult to quantify, especially when companies are also pursuing more conventional procurement and supply-chain improvement strategies with the
Leadership is pivotal in fostering a culture of collaboration. True collaboration starts at the top, where leaders must champion transparency, trust, and shared objectives. The myth that collaboration dilutes authority or leads to loss of control needs to be dispelled. Instead, leadership should view collaboration as a strategic tool that enhances innovation, reduces risks, and accelerates growth. By setting clear expectations, encouraging open communication, and recognizing collaborative successes, leaders can create an environment where teams are motivated to work together across boundaries.
same suppliers, or when they are simultaneously updating product designs and production processes. And even when companies have the will to pursue greater levels of supplier collaboration, leaders often admit that they don’t have the skill, lacking the structures they need to design great supplier-collaboration programs, and being short of staff with the capabilities to run them. After all, what great supplier collaboration necessitates is much more than the mere application of a process or framework—it requires the buy-in and long-term commitment of leaders and decision makers.
According to Seema Mohanty, when multiple parties are involved in collaborating for an end goal, the main challenges can be placed under two heads: Different performance parameters for different parties; and Lack of trust between the different parties. Therefore, whenever different parties get together to collaborate, the final expected outcome should be made clear from the beginning. This then needs to be translated into what it means for each party involved. ‘What success looks like for each party’ should be discussed and agreed upon from the beginning. Conflicting success parameters for different parties, if any, should be identified and addressed from the beginning. This would help keep future challenges at bay and would also lay the foundation for a trustful collaboration. Open and fair communication on successes, failures and challenges would help build trust over time and would keep all parties motivated.
For Nikhil Puri, Vice President – Direct Purchase, Yokohama OffHighway Tires, some of the challenges that the corporate face are
(i) Lack of effective communication: Communication is the pillar when it comes to collaboration. Communication that works in corporates may not work while collaborating. Communication has to be open and transparent.
(ii) Purpose misalignment: More often than not, the purpose is not clear when starting to collaborate. Clear goals should be defined before starting the collaboration.
(iii) Assignment of tasks: When collaboration is started, roles and responsibilities have to be clearly defined amongst the stakeholders. There should not be any overlap nor there should be any conflict which may result in derailing the collaboration.
(iv) Too many initiatives at once: Corporates tend to achieve more once the collaboration is initiated. This can lead to digression from core objective. Main 2-3 themes should be selected and more can be added once some of these themes are at the point of conclusion.
(v) Lack of dedicated workflow: Corporates may have the best workflows when they are interacting internally but once they start to collaborate, it may happen that the workflow gets intertwined and may result in potential disputes. A clear workflow has to be established before even starting the collaboration.
(vi) Work Culture differences: Corporates can have procedures, defined set ups but the party with whom they are collaborating may not be much structured. These procedures may hamper the speed at which the partner works. Work culture should be clearly defined and Dos & Don’t should be compiled and agreed to avoid any disputes.
“Collaboration across sectors can lead to remarkable efficiency gains by leveraging diverse expertise and resources. For instance, a manufacturing firm partnering with a technology company can integrate advanced analytics and IoT solutions into their supply chain, optimizing production schedules, and reducing downtime. By focusing on shared goals, such as reducing carbon footprints or improving time-to-market, companies can pool resources, share best practices, and innovate together. Crosssector collaborations break down silos, leading to streamlined processes, cost savings, and more agile responses to market demands. However, the challenge is to identify cross sectoral relevance in the supply chain. Product compatibility is a must,” highlights Arif Siddiqui, Founder & MD, Coign Consulting. To this, Tannistha Ganguly adds, “Cross-sectoral collaboration can be between two different companies coming together or it can be a collaborative effort between companies and other entities like governments and NGOs, etc., with a common shared goal. Normally, these entities will combine
their resources to achieve a goal. A crosssector collaboration happens when there is a common problem which several companies and entities need to solve for their own benefit, but the problem is too big for one to solve. That's a situation that encourages cross-sector collaboration. Few examples can be certain environment related problems such as how to reuse/ recycle the plastic bottles after it is used by the end consumer; or how to educate the public in cybercrimes and financial crimes.” There are many such examples where industry and other entities have collaborated to achieve a shared goal. So, the first step will be to build a shared vision. Once that vision is ready, then build a focused group with measurable goals & milestones. Industry has various partnership models like Joint Projects or Joint Programs, which are used to execute such projects.
According to Nikhil Puri, startups are ready to go that extra mile as their weakness is being complemented by the corporates. Corporates are more structured and have contingency plans in place. Startups can learn more from corporates and they can fast track their success. They can collaborate with corporates to do it ‘first time right’. Startups have to let go of their inhibitions and need not be intimated by the corporates.
Adds Tannistha Ganguly… “When we work with the startups, we look at the gaps that they can fill for our organization. Most organizations reach out to startups when they realize that they don’t have the desired in-house capability to address a particular concern, or they have cost constraints to partner with bigger IT services vendors. The motivation for startups is the repetitive business and the scale & exposure that they can get from established players. But it is the passion and the vision that these young startups bring to the table, whether they get the contract or not, that makes the corporations work with them. Such is the competitive streak that these young companies have and that is one of the most impressive facets about them for us to work with them. The scale that we bring to the table is what these startups aspire for. In a nutshell, this can be a win-win for both the companies if we can harness it well. It’s a great symbiotic relationship that can culminate into a greater success story for others to emulate. Agility and quick turnaround with a go-getter attitude is what encourages the corporations towards working with startups.”
Startups and large corporations can create symbiotic relationships where each complements the other’s strengths. Arif Siddiqui avers that startups
bring innovation, agility, and fresh perspectives, while large corporations offer scale, stability, and established market presence. In operations and supply chain, startups developing cutting-edge technologies or sustainable materials can collaborate with large corporations to pilot these innovations in real-world environments. These partnerships allow startups to scale rapidly while enabling corporates to remain competitive and innovative without bearing the entire risk of development.
Taking his insights further, Nikhil Puri asserts, “We have to identify the complementary skills. Startups are far more agile than the established firms. Having said that, startups lack experience. Can we actually complement those skills? Can an established organization embrace the risk-taking appetite of a startup? Honestly, startups have a nothing-to-lose attitude, but an established organization will always think twice-thrice about the probably contingency plans. If both the organizations can come together and start harnessing each other’s strengths, they can run a pilot project. They can see proof of concept, if it works well, then take it forward, but before we actually delve into this, we need support from the leadership. Established players come with the experience of risk mitigation strategies. They are well versed in contract management.
There are many benefits of supplier & vendor collaboration. In today’s business world it is no longer a ‘Nice to Have’ strategy but has become a ‘Must Have’ tactic. Most common benefits are greater cost savings, better risk management, improved efficiency in operations, higher customer satisfaction, etc. All of these in return add to market share and more revenue. The more integrated we are with our vendors, the better control we have on our supply chains. It allows us to view data in real-time, helping us to take faster decisions in times of emergencies and otherwise too. The chances of innovating together with our vendors, especially in key areas increase if we are better integrated with them, sharing both information and risk. Collaboration can happen at a tactical level as well as at a more strategic level.
When multiple parties are involved in collaborating for an end goal, the main challenges can be placed under two heads: Different performance parameters for different parties; and Lack of trust between the different parties. Therefore, whenever different parties get together to collaborate, the final expected outcome should be made clear from the beginning. This then needs to be translated into what it means for each party involved. ‘What success looks like for each party’ should be discussed and agreed upon from the beginning. Conflicting success parameters for different parties, if any, should be identified and addressed from the beginning. This would help keep future challenges at bay and would also lay the foundation for a trustful collaboration. Open and fair communication on successes, failures and challenges would help build trust over time and would keep all parties motivated.
Leadership is pivotal in fostering a culture of collaboration, according to Arif Siddiqui. “True collaboration starts at the top, where leaders must champion transparency, trust, and shared objectives. The myth that collaboration dilutes authority or leads to loss of control needs to be dispelled. Instead, leadership should view collaboration as a strategic tool that enhances innovation, reduces risks, and accelerates growth. By setting clear expectations, encouraging open communication, and recognizing collaborative successes, leaders can create an environment where teams are motivated to work together across boundaries,” he states.
According to Nikhil Puri, there is a gap in cross-sectoral collaboration. The role of leadership holds immense influence to drive the change. The leadership must create a culture of collaboration because culture is always driven from the top. It can’t merely be just a problem statement. “Leaders empower cross-functional teams involved in procurement to make decisions and take ownership of projects. This promotes innovation and ensures diverse perspectives are considered. Leaders allocate adequate resources, including budget, technology, and personnel, to support collaborative initiatives in procurement. This demonstrates commitment and enables teams to execute effectively. Leaders need to articulate a clear vision and
strategic objectives for procurement management. This includes aligning procurement goals with overall business objectives and growth targets. Leaders actively build relationships and foster trust between procurement teams and other departments such as finance, operations, and marketing. This enhances collaboration and reduces friction in achieving shared goals. Leaders have to lead by example. Their behavior, attitudes, and commitment to collaboration set the tone for the entire organization. By demonstrating a collaborative mindset themselves, leaders inspire others to follow suit and drive accelerated growth in procurement management through effective cross-sectional collaboration,” he elaborates.
According to Seema Mohanty, everyone in the organization should be aligned to its overall vision and goals and how these translate back to their sphere of activities. I would then look at how empowered every individual in the organization is to take decisions in their sphere. A common myth is that there are just a few leaders in the organization who are capable enough to take decisions. Rather, everyone in the organization should be empowered enough to take decisions that relate to the work they do. And they should collaborate with each other, as necessary, to take these decisions. This would bring in effectiveness, efficiency and would keep people motivated.
Advancements in artificial intelligence (AI) and machine learning (ML) are taking supplier collaboration to the next level. According to Gartner, AI augmented supply chains can experience up to a 20% increase in forecasting accuracy over traditional approaches. Combining large datasets across the supply chain network and leveraging AI pattern recognition can help supply chain partners unlock deep insights around risk, demand volatility, and optimizing supply and logistics.
Beyond statistical forecasting, AI can help assess probable scenarios and improve decision optimization. It can also automate repetitive planning tasks and free up cross-functional teams to focus on higher judgment decisions with partners. The bottom line is that AI and ML will act as catalysts for enterprises on their path to predictive, leadingindicator supply chain strategies based on actionable intelligence that can be exchanged rapidly across the supply chain ecosystem.
Emphasizes Arif Siddiqui… “Technology is a powerful enabler of collaboration, but the hesitation often stems from concerns about compatibility, cost, and change management. To overcome these barriers, companies should start small, piloting integrations that offer quick wins and measurable benefits. Demonstrating success in these initial projects builds confidence and
helps overcome resistance. Additionally, leadership should focus on selecting technologies that are scalable, flexible, and offer strong support and training. It’s also crucial to communicate the long-term benefits of integration, such as improved data visibility, predictive analytics, and enhanced decision-making capabilities. With the right approach, technology can transform collaboration from a challenge into a competitive advantage.”
Nikhil Puri adds that all the challenges that come across in collaboration like lack of communication, assignment of tasks, dedicated workflow can be leveraged through technology. This will help in seamless flow of collaboration. Technology will also enable transparency too in the collaboration. As the competitiveness has been increasing day by day, it is imperative that the Intellectual Property Rights (IPRs) are safeguarded at all the times. Before indulging in sharing data and information, it is imperative to sign a NDA (Non-Disclosure Agreement) with the respective stakeholders. Also, technology can be used to create barriers and restricted rights on data sharing.
To this, Tannistha Ganguly mentions that there are several technological capabilities that companies can employ to share data and information among their supply chain partners. Technologies can integrate both the suppliers and the customers within a company's scope. Cybersecurity protocols have also matured over the years which enable safe and secure rule-based data sharing between entities. Most large and medium companies invest heavily in their data security and risk management. Software vendors also keep making patches and upgrades so that security leakages are identified and stopped before any major harm can occur. So, investing in a good data security system will be a major step in ensuring that supply chain partners can share data confidently. Also, what data to be shared, how much information to be shared – these are data strategies which the business have to make based on their overall growth strategy. Today we have multiple technologies that can be used to share data seamlessly among supply chain partners. Some examples are Mulesoft, API, CPI, Kubernetes, Node.js, etc. But the choice of technology is the
second step; building the data sharing strategy will be the first step.
Effective supply chain collaboration is a transformative journey with multiple agile steps, constantly delivering value at each stage with many possibilities to improve. Some key considerations are listed below as per Deloitte study:
The journey should be initiated with a clearly defined strategy. This includes identifying gaps in current processes followed by a comprehensive assessment of the technology landscape.
“One” platform for all suppliers is key for successful collaboration. Such a platform should be able to collect data from multiple siloed systems; and Join, transform, curate, and create a contextualized data set for effective collaboration.
Start with developing foundational capabilities to enhance operational visibility with critical suppliers (start small). Once foundational capabilities are established, they can be extended to other suppliers (scale rapidly).
Onboarding of other supply chain partners, namely sub-tier suppliers, logistics service providers, etc., needs to be well-thought-out, as it can be challenging but rewarding.
True collaboration requires stakeholder buy-in, which can be achieved through effective communication, change management, and the demonstration of value. The realization of value and the understanding of value are pivotal factors that drive adoption.
Having a well-defined “playbook” can accelerate development and reduce overall implementation time. This comprehensive playbook should include functional and technical requirements, a robust governance framework that defines roles, responsibilities, decision-making
processes, and a strategy for partner onboarding and organization change management, including “Why buy?” frameworks that help ease the process of internal and external stakeholder alignment.
In a nutshell, organizations of the future must be flexible, adaptable and able to respond to change using new innovations and collaborative techniques to achieve their strategic objectives.
Supply chain leaders understand that the value derived from supplier collaboration could increase by a huge margin in the coming few years. But achieving that requires committed leadership as well as a phased approach, which could involve the following:
Identify key supply chain partners based on strategic importance and foster trust through executive sponsorship. Start small by collaborating deeply with one or two partners.
Develop joint business plans with common goals related to quality, cost, delivery, flexibility, and innovation. Review progress regularly.
Breakdown organizational silos by linking supply chain partner operations through shared, cloud-based platforms to enable seamless data exchange.
Create cross-functional teams and processes in order to promote joint decision making. Chunk critical personnel when feasible, and periodically measure collaboration.
Ensure equitable sharing of risks and rewards so that both partners gain from collaboration over traditional transactional contracts. Ensure that the arrangements are reviewed periodically.
Source: GEP
“Leadership building is an organization-wide ongoing activity. Leaders need to stay invested in the idea, provide needed resources, be a role model and not just provide lip-service or just come and speak at Annual Conferences or an Induction Program. They must actively participate in the process and provide the necessary support by being there physically and being the sponsor in the effort,” emphasizes Aparna Sharma, HR Practitioner & Independent Director on Corporate Board.
LEADERSHIP is needed at all levels and across an organization and its network of relationships. Directors and Boards need to know what types of leadership to exercise and/or delegate, also when and where. Those for whom they are responsible should be clear about what is expected of them and properly supported. The potential to make a significant difference can exist throughout a company. Good ideas and promising initiatives can arise in many places. The leadership template needs to be customized as it varies from one to another organization. In my view, age has nothing to do with leadership or maturity. It comes with experience, persistence, it comes with setbacks and learning from those mistakes.
Effective leadership involves mutual respect and trust, and good relationships between key players and important stakeholders. While issues remain unresolved, leadership voices may need to exhibit a degree of alignment and a united front to the external world until a consensus is reached and a common position can be shared. This can require
listening leadership that is sensitive to changing stakeholder concerns and priorities and relational leadership or taking the initiative and being responsive in building relationships with them.
The manager or the leader is usually uncomfortable with someone who is smarter than them. That’s what makes people highly insecure. Your success lies in the fact that you identify and help groom someone who is smarter than you. One must not wait to be nominated when they sense an opportunity to grow. You might not have ready answers to the challenges that come your way, but that’s how you get an opportunity to mitigate them and clear the path to success while being on the job.
People can be over-led. They may need space to grow and do what they feel is best. The cult of personality that sometimes accompanies individualistic leaders can overshadow others and lead them to withdraw into darker corners. More collectivist and democratic forms of leadership can be better at widening
Aparna Sharma is an Independent Director on Corporate Boards, HR Practitioner, Best Selling Author, Academician & Motivational Speaker. She is currently contributing as a Board Mentor with various boards & as an advisor to various corporates in areas such as Strategic Leadership, Organization Behaviour & Strategy for Board Room Effectiveness, Organization Culture & Development, Leadership Relationships, Temperamental Traits & Derailment Factors within Boards.
participation and encouraging discussion and debate. To work well, it requires secure personalities who are open to ideas and invite challenge rather than seek to avoid it or stifle questioning.
At a time of discontinuity and uncertainty, new ideas and initiatives may be sought. More democratic approaches may be required to encourage engagement, involvement and participation, and enlist interest, commitment and support. It may be necessary to build a shared purpose and consensus for moving forward. For best results, such an approach should include key customers, important suppliers and business partners whose active contributions are likely to be essential for success.
The adoption of such approaches might need to be accompanied by a review of governance arrangements and mechanisms for ensuring alignment, raising of issues and settlement of disputes. There may also be implications for the management and distribution of intellectual property and the sharing of financial rewards.
Charismatic leadership can sometimes be attractive to those who like to be led but may not be everyone’s cup of tea. In certain cases, charismatic leaders can serve their purpose, but it may become difficult to remove them. Independent Directors should be alert to leaders who overstay their welcome, keep rivals down, block challenges and begin to exhibit the attributes of a tyrant.
Authoritarian, dominant and exploitative forms of leadership are often not in tune with contemporary requirements for caring commitment, environmental awareness and concern, agility, flexibility and sensitivity. People tend to resent being used and either taken advantage of or taken for granted. They are less likely to go the extra mile when required, but more likely to jump ship as and when a better opportunity appears, or an escape route arises.
More consensual forms of leadership may be better at holding people together, but when a window of opportunity to act is rapidly diminishing, this should not be at the expense of decisive
I really believe that everyone is a leader in his or her personal capacity. Unless and until, the energy is high for leaders at all points in time, grooming leaders or successors will be tepid if your own energy is not contagious.
leadership. Servant, Supportive and Enabling Leadership can work well in more stable situations, when the people of an organization know what is required to succeed. During a period of instability and flux, more than monitoring, reacting to requests for help and taking pride in not interfering may be required.
Collective leadership that embraces a competent executive team and to which they contribute can be particularly effective at encouraging ownership and commitment. Leadership that is imposed, or to which people are subjected, can cause more passive responses. The active involvement of others can result in a more participative form of leadership. Co-operation with other entities and cocreation can stimulate a requirement for more collaborative or shared leadership.
Leaders must know when to change gear and put more emphasis upon becoming a catalyst and a trigger of change. People may have to be challenged, inspired and encouraged rather than largely left alone because of what they have collectively achieved in the past. Untapped potential may need to be released and new elements introduced.
A more entrepreneurial approach to leadership may be required. May be the corporate culture has to change to match a technological revolution or rapidly changing customer requirements.
Sometimes, an approach to leadership may need to be better aligned to that of joint venture or consortium partners. A change of style may be required to match that of a key customer with which a company wishes to become a longer-term strategic partner and work more closely. Legal and regulatory changes, Government policy changes and
international agreements sometimes have implications for how business leaders have to behave.
During discussion of what approach or approaches to leadership to adopt, directors must revisit the company’s mission and purpose and also what they are collectively trying to achieve. The approach that is selected might be more appropriate if it is viewed as a means to an end rather than an end in itself.
As organizations become more fluid, open, flexible and responsive, opportunities are shared and more mutually beneficial relationships are forged, some forms of leadership are in decline. Top down and centrally controlled leadership has been challenged by more consensual and shared approaches, especially where people are critical elements of corporate success. However, tight control by small groups may still exist as more business models are adopted where activities are contracted out and/or automated. When key tasks are undertaken by algorithms, these and those who create them can become critical resources.
Command and control approaches to leadership may still exist in more stable contexts where routine activities and prescribed standards persist. However, other approaches more suited to contemporary requirements may continue to emerge as situations change. Further approaches may be latent. Leadership has traditionally been viewed as the leadership of people. It may evolve as more activities are undertaken by digital and other technologies. Many of the people involved may be undertaking support and maintenance tasks.
In fluid situations, such as when there is a change of status or business model,
I think in many organizations, the conundrum is Build or Buy. If Build is the old template, there are successful organizations that continue to be a talent factory and continue to groom people who are also employable in other organizations. Companies continue to invest in Leadership Development, Coaching, Mentoring, and On-the-Job Training.
or during a transition or transformation journey, permanent, fixed and inherited leadership arrangements and personnel may require review. Owners and other stakeholders may step in to trigger and force changes. Interim or temporary leadership arrangements may be needed to ensure the agility and flexibility to cope with a succession of stages, challenges or opportunities.
Availability, succession issues and divisions over longer-term direction are among the circumstances that can give rise to rotating leadership. Events such as a takeover or insolvency can result in the replacement of some or all members of a leadership team. Some changes might trigger a search for different leadership approaches, experience and qualities. For example, a leader of a major and mission critical transformation project on tight timescales might have experience and qualities that the head of a stable business might lack.
Crisis leadership may demand a particular skill set. Some companies face so many inter-related challenges that someone with program management experience covering a portfolio of projects may be more suitable than a person who has led a homogenous entity on what has been closer to a single corporate project. In certain occasions, aspects of subversive or revolutionary leadership might be practiced by some members of a leadership group. A promising venture may need to be protected. Revisionists might wish to advance an initiative that is opposed by vested interests and supporters of the status quo. Liberating leadership could endeavor to release pent-up forces to change.
Absent, ineffective or weak leadership
can lead to drift and delay. Sometimes when leadership decisions are taken, those on nomination and remuneration committees over-react. They overcompensate. By trying to address what they feel has been lacking, they go too far in a different direction. Account must also be taken of emerging developments, future requirements and longer-term aspirations.
There may be few business advocates of the delusional leadership that is sometimes found in the political environment. While determined and focused leadership might have more appeal, directors need to think through what the determination and focus should be applied to. Directors who advocate responsible and responsive leadership should clarify to whom a board should be responsible and accountable and what they should be responsive to.
Certain companies seem to recruit a succession of people with similar attributes and educational and/or social backgrounds. When assembling candidates to be considered and shortlisted, those who desire more inclusive and diverse leadership should cause the net to be cast more widely.
Some family members accustomed to family leadership of a family-owned company exert their power of patronage to limit selection to older close relatives rather than look more broadly. The future success of the company concerned may depend upon whether a family uses governance arrangements to ensure continuing control rather than open up possibilities.
Those who trigger and/or enforce changes at the top should think through their implications for the people of an organization and its stakeholders. Changing the allegiances of those who are led, their perspectives and approaches,
and an organization’s values and culture may take longer. Leadership changes can be unsettling. Maintaining confidence may require careful communication.
In uncertain times, leaders who in the past endeavored to provide physical support and safe and healthy working environments might also turn their attention to mental illness and the provision of emotional support. Some approaches of leadership are complimentary. Others could represent alternatives that are in different positions on a spectrum. A balance might need to be struck, for example between proactive and reactive leadership.
Climate change and environmental, pandemic and sustainability challenges might necessitate a review of corporate purpose. The value of purposeful leadership for engaging and securing commitment can depend upon the nature of the purpose articulated. It might benefit from involving key stakeholders in the formulation or selection of a corporate purpose. It can be particularly relevant when there is a significant change of direction, purpose and priorities.
Innovative leadership might be an approach that is different, distinctive or novel for some companies. It might be essential for a particular business, or a certain stage in the development of an enterprise. It could be an ad hoc change to address a challenge or seize an opportunity, or a more lasting requirement for coping with an altered situation, a significant shift of circumstances, requirements or resources, or a transition or transformation.
As businesses face evolving challenges, four aspects of leadership will become dramatically more important: Insight, Integrity, Courage, and Agility. Similar action points were signalled in our preceding article on Grooming Leadership by Aparna Sharma. Taking these insights forward, we present to you inspirational words of wisdom by the exceptional supply chain leaders for the young managers to imbibe and excel in their career. Read on…
Menon, Former Executive Vice President – End-to-End Supply Chain, Colgate-Palmolive
Iwas managing the end-to-end supply chain of Colgate Palmolive, which involved manufacturing, engineering, safety, quality, procurement, packaging, planning, customer service, logistics, etc. I have also worked in different geographies including New York, Central Europe West comprising Germany, Switzerland, and Austria before I moved back to India in Q4,2019. Having worked in various geographies across the globe, I would like to state that at work, we get into unconscious biases in many ways. For instance, on the issue of equating hard work and motivation to working late hours, I would like to share that in Germany, people leave their workplaces right on time. Does that mean they are not motivated enough, or they are not competent performers? No, not at all! I have seen first-hand how efficient they are. For them, striking a perfect work-life balance is an extremely critical affair and it helps them to be more productive. We need to be open and learn best practices from other countries, other cultures and imbibe them in our work environment.
As Indians, we have two terrific strengths – Analytics and the ability to handle ambiguities and this is true especially for supply chain professionals. The key lies in leveraging these two strengths to shift the dialogue in the right direction. In today's VUCA world (Volatile, Uncertain, Complex and Ambiguous), these are especially critical, and I would like supply chain managers to use their strengths and explore managing overall businesses to become CEOs like Tim Cook (Apple), Mary Barra (GM), Doug McMillon (Walmart), AG Lafley (P&G), etc.
I would love to see more diversity at the workplace and especially in the supply chain. Collectively we need to prioritize this agenda and bring about an equilibrium at our respective workplaces because I believe diversity brings in better thought leadership. Lastly, leaders should have passion and energy. Leaders must be able to set a vision for people and have the clarity of communication. Once you do that and get the team onboard on how to set the bar higher, and truly empower them, you will see MAGIC happen. In summary, leverage analytics, develop the ability to handle ambiguity, have a clear vision and clarity of communication, empower your team, strive to set the bar higher, embrace diversity in all aspects and you will have passionate leaders for the future.
SUPPLY chain managers, by definition, are leaders. I think the theme is very clear –you don’t need to lead a number of people in order to be qualified as a leader, you need to be mindful of the work at hand. We must continually learn and unlearn things to get past our own achievements. Resting on our past laurels is not an option. We must set ourselves on the journey of continuous improvement and enhanced efficiency. Additionally, a leader today must focus on safety and sustainability, both are bed rocked by optimization.
To make the transition to CEOs, all leaders need to understand cash, profitability and the people, process and platform continuum very well. For this, we need to continually keep ourselves informed of the developments in our market and world at large. We need to be able to see and understand the trends and interconnections that inform our larger businesses.
SUPPLY chain leaders should not restrict themselves to only supply chain as a silo. They should understand the entire business end-to-end and participate in wider business discussions with Marketing, Sales and Finance. They should know each and every line of the P&L of their company and understand how company makes money. SCM Leaders have a very good opportunity to get 360 degree view of their business by engaging with Vendors, Factories, Warehouses, Transporters, Distributors, Sales Team, Retailers and Consumers. They also get enough opportunities to know and engage with people in person in corporate functions like Finance, IT, Marketing, HR, Legal and Taxation. Thus, I see a Supply Chain Leader being equally capable of handling CEO’s role, as any other functional leader.
AT a broader conceptual level, the tenets of supply chain management remain common. However, companies within the same industry often have variations in the design, execution and ‘culture’ of their supply chain which makes them more differentiated and competitive. This makes Supply Chains unique and the subtle innovations in the brick & mortar, technology, people processed and thus the culture makes Supply Chains an ‘Inexact Science’ like economics, philosophy & psychology. Taking a cue from this underlying principle, as supply chain practitioners, we come with a lot of practical realities. Understanding the business end-to-end would set us on the right trajectory to be the CEO. While we might find it overwhelming at first, some interesting success stories of inspiring personalities around us such as Tim Cook who was the SCM Head and went on to lead Apple, will help us carve the right leadership trajectory once we are determined to explore and advance into the Supply Chain Leadership Maze. As supply chain leaders, we must establish the critical importance of the profession so that our younger generations are enthused to join the supply chain cadre and bring in their innovative streaks to make this a wonderful place to work in and drive holistic growth of businesses and make a lasting impact.
Amidst the unprecedented global attention from policymakers, we view the present as an opportune moment to strategically pivot towards sustainability. This shift particularly emphasizes addressing Scope 3 Emissions, aligning with the evolving landscape and heightened global emphasis on ESG principles. With this firm vision in mind, Celerity Supply Chain Tribe successfully delivered its maiden Conference on Sustainability on August 8, 2024, in Mumbai with The Centre for Excellence in Sustainable Development – Goa Institute of Management, as the Knowledge Partner. The presence of ESG stalwarts made it a grand affair and affirmed our stance that taking the RIGHT Turn to Scope 3 is not a CHOICE anymore, but a MUST for corporates…
WITH the remarkable surge in market and policy support for Environmental, Social, and Governance (ESG) considerations, it has now become a focal point in boardroom discussions. India has committed to achieving the Sustainable Development Goals (SDGs) by 2030 and attaining Net Zero status by 2070. Regulatory bodies like SEBI in India have established a comprehensive framework mandating ESG disclosures for listed entities, extending to supply chain participants of these companies. These tell-tale signs were enough for Celerity to pick the thread and create a congregation to bring together the biggest voices of
Our Keynote Speaker, Shri. Shailesh Haribhakti, ESG Champion, Board Chairman, Audit Committee Chair and Independent Director at some of the country's most preeminent organizations, perfectly set the tone of the event with a clear message that the majority of emissions that need to be abated reside in the supply chain, and it’s time to shift the narrative from ‘Hard to Abate’ to ‘Affordable to Abate’.
ESG under one platform to not just deliberate but also work on the decisive ACTION AGENDA for the stakeholders to drive the sustainability bandwagon ahead.
This conference was meticulously designed to tackle the most critical issues and developments in Sustainable Value Chains, with a particular focus on Scope 3 emissions. Scope 3 emissions originate from external sources such as supply chain partners and IT service providers. Due to limited visibility, measuring and managing these emissions is especially challenging for reporting companies. As the drive to achieve net-zero emissions intensifies, addressing Scope 3 has become a crucial priority across various
industries. Businesses must now integrate this aspect into their strategic planning to effectively navigate the challenges posed by Scope 3 emissions. The day-long deliberations delivered a proactive and forward-thinking approach, encouraging attendees to embrace change and innovation in a rapidly evolving landscape. This maiden event facilitated attendees in gaining valuable insights, practical tips, and actionable takeaways to build green and sustainable operations that fast-forward your business. These topics and more were explored through four insightful panel discussions, five presentations, and a Carbon Literacy Workshop. Here’s how the day unfolded…
During his inaugural address, Dr. Niraj Gupta, Head, Corporate Governance & Public Policy, Indian Institute of Corporate Affairs (IICA India), spoke on the critical importance of addressing Scope 3 emissions within supply chains, emphasizing that while these indirect emissions are often overlooked, they are vital for achieving comprehensive sustainability. He highlighted the unique challenges faced by Indian businesses, particularly small and medium-sized suppliers, who may lack awareness and resources to manage these emissions effectively. Dr. Gupta also urged businesses to view Scope 3 management not just as a regulatory obligation, but as an opportunity to lead in both economic growth and environmental stewardship.
Dr. Ajit Parulekar, Director, Goa Institute of Management, during his inaugural address, talked about Goa Institute of Management’s journey in embedding sustainable practices into an educational institute’s working.
Our first panel, ‘The Backbone of Sustainability: Reinventing Supply Chains’ explored the transformation of supply chains into sustainable models that reduce environmental impact and promote social welfare.
Moderator: Sanjay Desai, VP - Asia, Supply Technologies
Panelists:
Jaswinder Saini, Vice President – Procurement, Tata Play
Sandeep Chatterjee, Supply Chain and Sustainability Leader, IBM
Veeshwass Kulkarni, General Manager, Legrand India
Vishal Bhavsar, Head – ESG, Multiples Alternate Asset Management
Our Second panel, ‘Leveraging Technology for Sustainable Supply Chains’ stressed on the pivotal role of technology in transforming supply chains into efficient, transparent, and resilient ecosystems. The discussion highlighted the challenges of integrating these technologies, including investment requirements, data privacy, and the need for skilled personnel, while showcasing success stories of technology-driven sustainability transformations in various industries.
Moderator: Dr Raj Amonkar, Professor and Chair IT & Operations Management, GIM
Panelists:
Jangoo Dalal, Co-Founder & Chief Executive Officer, GovEva
Vidya Tikoo, Senior Vice President – Sustainability, Aditya Birla Management Corporation Pvt. Ltd.
Nishtha Gupta, Head – Sustainability & ESG, Suzlon Energy Ltd.
Varun Chopra, Executive Chairman, GEAR
Lt Col Monish Ahuja, Chairman, Confederation of Biomass Energy Industry of India
Another panel delved on ‘Circular Economy and Sustainable Value Chains: A Perfect Match’, which examined how companies can integrate circular economy principles into their operations and value chains, focusing on design innovation, product life extension, and recycling and reuse strategies.
Moderator: Capt Tapas Majumdar, Founder Director, The Sustainability Practitioners
Panelists:
Bipin Odhekar, Head – Sustainability, EHS & Operations excellence, Marico Ltd.
Shankar Karhale, VP – Corporate Environment & Sustainability, Aarti Industries Ltd.
Kaustubh Phadke, General Manager, GCCA (Global Cement and Concrete Association)
Our last panel focused on ‘The Future of Reporting: Transparency, Accountability, and Impact’, exploring emerging trends and best practices in sustainability reporting, including the use of technology for accurate data collection and analysis.
Moderator: Dr Arpita Amarnani, Faculty Member & Chair, Centre for Excellence in Sustainable Development at Goa Institute of Management
Panelists:
Dinesh Agrawal, Principal Consultant at Consocia Advisory
Aparna Sharma, Advisor, Independent Director at multiple Boards of Companies
Raja Raghavan, Vice President – ESG, Jio
Carbon Literacy Training by The Centre for Excellence in Sustainable Development – Goa Institute of Management was a hands-on workshop with the objective to impart a thorough and nuanced understanding of carbon emissions, with a particular emphasis on Scope 3 emissions. This training empowered supply chain managers, corporate leaders, and key stakeholders with the necessary knowledge and skills to accurately measure, monitor, and mitigate their carbon footprints. By integrating advanced carbon li teracy principles, the CLT facilitated the incorporation of Environmental, Social, and Governance (ESG) considerations into strategic business planning and operations.
Ashwin Kak, Start-up mentor, Consultant, Advisor presented his research on Sustainability within the Value Chain.
Raghavendra Pai, India Sustainable Sourcing Lead, Syngenta, delivered whitepaper Presentation on Leveraging Technology for Sustainable Supply Chains.
Ashok Bhimanpalli, Head- Safety & Sustainability, CIE Automotive India Ltd., did an Industry Presentation on Circular Economy.
Dr. Sushmita Nande, Faculty of Operations & SCM at MES Garware College of commerce, Global Mentor ISCEA, Member of MCCIA and IIMM, delivered whitepaper presentation on The Future of Reporting: Transparency, Accountability, and Impact.
Anil Kumar Kanchi, Co-Founder, Director, PlanetWise Pte Ltd., Singapore, delivered whitepaper presentation on Integrated Supplier Engagement for Value Chain Emissions Reporting.
In today’s increasingly interconnected world, global firms face the multifaceted challenge of managing operations across diverse markets, each characterized by distinct demands, regulations, and cultural nuances. To remain competitive and agile, companies must develop and implement robust planning and fulfillment strategies. This article by Hanuman Swami, Global Planning and Fulfillment Manager, ABB, explores essential components of these strategies, provides best practices and innovative approaches to help global firms excel in a complex global environment.
STRATEGIC planning is the bedrock upon which successful global operations are built. It involves setting long-term objectives, identifying necessary resources, and outlining steps to achieve desired outcomes. For global firms, strategic planning must integrate various factors, including market dynamics, competitive landscapes, regulatory environments, and cultural differences.
Market Analysis and Entry Strategy: Understanding the unique characteristics of each target market is
crucial for global success. Comprehensive market research is the first step in identifying opportunities, assessing risks, and determining the optimal entry strategy. This might involve direct investment, partnerships, joint ventures, or franchising. For instance, a technology firm seeking to enter a new market might establish a local partnership to navigate regulatory hurdles and gain valuable market insights.
An example from India is the entry of Xiaomi into the Indian market. Xiaomi leveraged partnerships with local e-commerce platforms and telecom operators to overcome regulatory challenges and quickly gain market
is a distinguished supply
with 19 years of experience in optimizing global supply chains. Hanuman has published influential papers on forecasting and price sensitivity and has driven significant cost savings and efficiency improvements across multiple international projects. His innovative approach and leadership have consistently delivered exceptional results in the field of supply chain management.
share. This approach allowed Xiaomi to tailor its products to Indian consumer preferences, such as offering budgetfriendly smartphones with high specifications.
Scenario Planning: Given the unpredictable nature of global markets, scenario planning is essential. Firms should develop multiple scenarios based on potential market developments, economic shifts, and geopolitical changes. This approach allows companies to remain flexible and adapt to unforeseen challenges. In Asia, the impact of geopolitical tensions, such as the US-China trade war, has necessitated scenario planning for companies with regional supply chains. For example, Apple has diversified its production to include suppliers in countries like India and Vietnam to mitigate risks associated with potential trade disruptions between the US and China.
Alignment with Corporate Vision: Strategic plans must align with the overall corporate vision and objectives. Whether a company’s focus is on market expansion, product innovation, or operational excellence, its strategies should reflect long-term goals. Regular reviews and adjustments are necessary to stay aligned and responsive to changing conditions. A notable example is Tata Group’s strategic alignment with its vision of becoming a global conglomerate. Tata’s investments in sectors such as information technology, steel, and automotive across multiple countries reflect its long-term vision of diversified global growth. Regular strategy reviews and adjustments ensure that Tata Group remains on track with its overarching goals.
Operational planning translates strategic goals into actionable steps. It involves setting specific objectives, allocating resources, and implementing processes to achieve desired outcomes. For global firms, operational planning must address the complexities of managing diverse operations across different regions.
Supply Chain Management: An efficient supply chain is critical for global operations. Companies should focus on optimizing their supply chains by selecting reliable suppliers, managing inventory effectively, and ensuring timely delivery of goods. Leveraging technologies such as real-time tracking systems and predictive analytics can significantly enhance supply chain visibility and responsiveness. In India, companies like Reliance Industries have invested heavily in supply chain management. Reliance’s integration of its petrochemical supply chain with advanced tracking systems has improved operational efficiency and responsiveness. This approach allows Reliance to manage its vast network of suppliers and distributors effectively.
Resource Allocation: Effective resource allocation is vital for balancing efficiency with effectiveness. This includes managing human resources, technology, and financial capital. Investing in training and development is essential to building a skilled workforce capable of operating across different markets. For example, Infosys, a major Indian IT services company, invests significantly in employee training programs to ensure that its workforce is adept at handling emerging technologies and global client needs. Infosys’s continuous investment in skill development supports its strategic goals of innovation and global expansion.
Risk Management: Operational planning must incorporate risk management strategies to mitigate potential disruptions. Firms should identify and assess risks related to supply chain disruptions, regulatory changes, and market volatility. Developing contingency plans and diversifying suppliers and markets are effective strategies for managing these risks. In Asia, the COVID-19 pandemic highlighted the need for robust risk management strategies. Companies like Samsung faced significant disruptions in their supply chains. In response, Samsung diversified its supplier base and increased its investment in local production facilities across Asia to mitigate future risks.
Effective fulfillment strategies are crucial for meeting customer expectations and maintaining a competitive edge. For global firms, fulfillment involves managing inventory, distribution, and customer service across various regions.
Inventory Management: Accurate inventory management is essential to avoid stockouts and overstocking. Companies should employ advanced forecasting tools and inventory management systems to optimize stock levels and ensure product availability. Implementing just-in-time (JIT) inventory practices can further enhance efficiency and reduce carrying costs. In India, BigBasket, an online grocery delivery service, uses sophisticated inventory management systems to maintain optimal stock levels and ensure timely delivery of groceries. By utilizing data analytics and real-time inventory tracking, BigBasket efficiently manages its inventory and minimizes operational costs.
Distribution Network: A welldesigned distribution network is crucial for delivering products efficiently and cost-effectively. Global firms should evaluate various distribution models, such as centralized or decentralized warehousing, and select the one that aligns with their strategic goals. Leveraging third-party logistics providers (3PLs) can also help firms expand their distribution capabilities. In Southeast Asia, the logistics company Ninja Van exemplifies an effective distribution network. Ninja Van’s use of decentralized hubs and advanced technology enables efficient last-mile delivery across diverse and geographically challenging regions.
Customer Service and Support: Exceptional customer service is a key differentiator in the global marketplace. Firms should offer multilingual support, address regional preferences, and provide multiple channels for customer interaction. Implementing customer relationship management (CRM) systems can enhance service quality by tracking customer interactions and feedback. In
India, Swiggy, a leading food delivery platform, has set a high standard for customer service by offering support in multiple languages and integrating user feedback into its service improvements. Swiggy’s focus on customer satisfaction has helped it maintain a competitive edge in a rapidly growing market.
Technology plays a central role in modernizing planning and fulfillment strategies. Global firms should leverage innovative technologies to streamline operations, enhance decision-making, and improve customer experiences.
Data Analytics and Artificial Intelligence: Data analytics and artificial intelligence (AI) provide valuable insights into market trends, customer behavior, and operational performance. Firms can use these insights to make informed decisions, optimize processes, and predict future trends. For instance, predictive analytics can help forecast demand and adjust inventory levels accordingly. In India, Paytm has utilized AI and data analytics to enhance its digital payments platform. By analyzing transaction data and user behavior, Paytm offers personalized services and detects potential fraud, improving both customer experience and security.
and Digitalization: Automation and digitalization drive efficiency and reduce operational costs. Automated systems for order processing, inventory management, and logistics can enhance accuracy and speed. Digital tools such as supply chain management software and enterprise resource planning (ERP) systems can integrate various functions and improve overall coordination. For example, Lenskart, an Indian eyewear retailer, has implemented automation in its manufacturing and logistics operations. By using automated production lines and digital inventory management systems, Lenskart has increased operational efficiency and reduced turnaround times for its products.
Cybersecurity and Data
Protection: As global firms manage sensitive data across multiple regions, cybersecurity and data protection are paramount. Companies should invest in robust security measures to safeguard information and comply with regional regulations, such as the General Data Protection Regulation (GDPR) in Europe. Regular security audits and employee training are essential for maintaining a secure environment. In Asia, the rise of cybersecurity threats has prompted companies like Alibaba to invest heavily in cybersecurity measures. Alibaba employs advanced security technologies and protocols to protect its vast e-commerce platform and maintain customer trust.
Understanding and addressing cultural and regulatory differences is critical for global firms. Companies must navigate diverse legal frameworks and cultural norms to operate effectively in various markets.
Compliance with Local Regulations: Compliance with local regulations and standards is mandatory for global firms. This includes adherence to tax laws, labor regulations, environmental standards, and trade restrictions. Engaging local legal and regulatory experts can help ensure compliance and mitigate potential legal issues. An example from India is the compliance requirements for e-commerce companies. The Indian Government has implemented regulations related to data protection, consumer rights, and foreign direct investment (FDI) in e-commerce. Companies like Amazon and Flipkart have had to adapt their operations and compliance strategies to meet these evolving regulations.
Cultural Sensitivity: Cultural sensitivity is essential for building strong relationships with customers, partners, and employees. Firms should be aware of cultural differences in communication, business practices, and consumer preferences. Tailoring products and marketing strategies to align with local
cultures can enhance brand acceptance and customer loyalty. In Asia, the global expansion of Coca-Cola provides a noteworthy example of cultural sensitivity. Coca-Cola has customized its marketing campaigns and product offerings to align with regional tastes and preferences, such as introducing unique flavours and culturally relevant advertisements in various Asian markets.
Ethical and Social Responsibility: Global firms are increasingly expected to demonstrate ethical and social responsibility. Companies should adopt sustainable practices, support local communities, and adhere to ethical business standards. Transparency and accountability in corporate social responsibility (CSR) initiatives can enhance reputation and build trust with stakeholders. An example from India is the CSR initiatives of the Aditya Birla Group. The company engages in various social and environmental programs, including education and healthcare initiatives, to contribute to the well-being of communities in which it operates. These efforts enhance the company’s reputation and foster positive relationships with stakeholders.
Effective planning and fulfillment strategies are vital for global firms aiming to achieve operational excellence and maintain a competitive edge. By focusing on strategic planning, operational efficiency, fulfillment excellence, technological innovation, and cultural sensitivity, companies can navigate the complexities of global markets and drive sustainable growth. Embracing these strategies with a forward-thinking approach will enable global firms to thrive in an ever-evolving business landscape.
Incorporating these strategies into the core of global operations not only helps firms manage present challenges but also positions them for long-term success. By continuously adapting to new developments and maintaining a proactive stance, global firms can remain resilient and competitive in the face of an ever-changing global environment.
Tesla's electric Giga Train has begun operations, transporting employees to Gigafactory Berlin, promoting sustainability while easing traffic congestion
Tesla has launched its first all-electric train service in Germany, dubbed the "Giga Train", connecting Erkner station to Tesla Süd, serving both Tesla employees and the public free of charge. It represents a significant development in sustainable transportation with important implications for supply chain leaders.
The Giga Train provides a free, ecofriendly commute for Tesla employees to the Gigafactory Berlin, optimising the workforce supply chain. This efficient transportation solution can potentially improve punctuality, ensuring a steady supply of labour to the factory.
By accommodating up to 500 passengers per trip, the Giga Train helps alleviate traffic congestion on regional roads. This improvement in local infrastructure can lead to more efficient logistics operations, potentially reducing delivery times and transportation costs for Tesla's supply chain.
The battery-electric train is estimated to save approximately 50 tons of CO2 emissions per week. This significant reduction in carbon footprint aligns with sustainable supply chain practices and may help Tesla meet environmental regulations and corporate sustainability goals.
The success of the Giga Train could serve as a model for implementing similar sustainable transportation solutions in other regions. This scalability could potentially benefit Tesla's global supply chain by
providing environmentally friendly logistics options at other manufacturing sites.
The train service, operated by Niederbarnimer Eisenbahngesellschaft (NEB), demonstrates successful integration with existing transportation infrastructure. This collaboration model could be replicated in other locations to enhance supply chain connectivity and efficiency. By focusing on sustainable, efficient transportation solutions like the Giga Train, Tesla is not only addressing immediate logistical needs but also paving the way for more environmentally conscious supply chain practices in the automotive industry and beyond.
Innovations such as Tesla's Giga Train could transform supply chains of the future by providing a highly efficient
and sustainable alternative to traditional freight transport. Utilising advanced electric propulsion and cutting-edge technology, the Giga Train significantly reduces greenhouse gas emissions and operational costs, making logistics ecofriendlier and more cost-effective.
Its state-of-the-art automation and high-capacity design facilitate faster and more reliable product delivery, optimising inventory management and shortening lead times. The integration of the Giga Train into existing supply chain networks can streamline operations, enhance distribution route flexibility and support the global shift towards greener transportation solutions. This innovative approach not only boosts the efficiency of goods movement but also contributes to a more sustainable and resilient supply chain infrastructure.
These projects are essential for improving rail connectivity, ensuring timely coal supply, and reducing logistics costs
In its relentless pursuit to transform India's coal sector, the union government is spearheading a comprehensive strategy aimed at fast-tracking infrastructure development and fostering collaboration among key stakeholders. This initiative is a cornerstone in the Ministry’s vision to position India as a global leader in sustainable coal production and logistics, aligning with the broader goal of a prosperous and developed nation by 2047.
A robust coal evacuation network is critical for bolstering India’s energy security, ensuring a consistent and reliable supply of coal to meet the growing demands of the country’s power plants and industries. In a significant move
towards enhancing this network, the Ministry of Coal has unveiled a strategic plan focusing on the development of critical logistics projects. This endeavour aligns with the PM Gati Shakti vision of “Integrated planning and synchronized time-bound implementation,” a pivotal approach to realizing the ambitious vision of Viksit Bharat 2047.
As part of this strategy, the Ministry of coal has identified 38 priority rail projects under the coal logistics plan that will be fast-tracked in close coordination with the Ministry of Railways. These projects are essential for improving rail connectivity, ensuring timely coal supply, and reducing logistics costs, thereby enhancing the overall efficiency of coal
transportation across the country.
Among these priority projects, government has recently approved two significant rail projects in Odisha: The Sardega-Bhalumuda double line and the Bargarh Road-Nawapara Road single line.
The 37.24 km long SardegaBhalumuda new double line, passing through various coal blocks of the IB Valley and Mand-Raigarh Coalfield, will facilitate the evacuation of coal from mines operated by Mahanadi Coalfields Limited (MCL) and several private mines. This project is particularly strategic as it reduces the transportation distance to power plants in Northern India from Sardega, thereby enhancing efficiency.
Similarly, the 138.32 km long Bargarh Road-Nawapara Road new single line will significantly improve coal evacuation from the Talcher Coalfield, providing a direct and shorter route towards Nagpur and the western regions. This project is expected to substantially reduce logistics costs and improve the overall efficiency of coal transportation from the Talcher region.
The Ministry of Coal, under the visionary guidance of Coal Minister remains committed to fast-tracking these and other critical projects, ensuring that India’s coal sector not only meets the current energy demands but also set the foundation for a sustainable and developed nation by 2047.
The sector is anticipated to expand to approximately 595 million sq. ft by 2027
India’s Logistics and Industrial sector has exhibited strong growth in the first half (H1) of 2024 (January-June), affirming its resilience and relevance in the current market landscape. Across the eight cities of Mumbai, Delhi NCR, Bengaluru, Kolkata, Chennai, Hyderabad, Ahmedabad, and Pune,
both Grade A and Grade B rents have experienced impressive Y-o-Y increases of 4.8% and 6.4%, respectively. This upward trend indicates a robust demand for warehousing and light manufacturing leasing of varying grades. Furthermore, the cumulative total supply of industrial properties currently stands at an
impressive 393 million sq. ft. Considering the projected growth, the sector is anticipated to witness a substantial expansion, reaching approximately 595 million sq. ft by 2027. This expansion emphasizes the strong potential in the Logistics and Industrial sector, demonstrating a positive outlook for
developers, investors, and stakeholders in the coming years.
In terms of vacancies, Grade A properties stood at 6.6% in H1 2024, while Grade B properties vacancies stood at 15.4% over the same period. The gross absorption in the top eight cities amounts to approx. 24.2 million sq. ft., with Grade A properties contributing 70% and Grade B properties contributing 30%.
“Organized Grade A warehousing supply stood at 204 million sq. ft surpassing the Grade B supply of 189 million sq. ft. thus indicating a strong preference of tenants to go for future-ready spaces what can increase warehouse efficiency, ESG compliance
and automation needs.” said Yogesh Shevade, Head, Logistics & Industrial, India, JLL.
The 3PL or third partly logistics sector remained the dominant demand generator with a 38% share of gross absorption. The auto and engineering sector stood in second place with a 23% share of gross absorption, followed by the FMCG, FMCD, and the retail sector, which contributed 20% of the absorption. Several key transactions have also taken place across various sectors, including logistics, e-commerce, auto and engineering, FMCG, FMCD, retail, and others.
The growth drivers in India's
warehousing sector include the rise of quick commerce, the development of the National Logistics Policy, increased e-commerce penetration into Tier I and Tier II/III 3 cities, and the outsourcing of warehouse space to 3PL. Grade A warehousing is gaining prominence due to lower rents and better efficiency per pallet positions compared to Grade B properties. The industry also places increasing emphasis on ESG (Environmental, Social, and Governance) considerations, with sustainability practices being implemented in construction and operations.
Leaders Responsive to Team Resistance and Feedback Can Improve Success Rate by 62%
Seventy-six percent of logistics transformations never fully succeed, failing to meet critical budget, timeline or key performance indicator (KPI) metrics, according to a survey by Gartner, Inc. At a time when logistics leaders are regularly launching new transformation initiatives, the survey findings showed that 81% of logistics leaders believe that transformation is critical, yet only 20% adopted the approach of using resistance as a resource to leverage the collective wisdom of their teams to improve transformation outcomes. Adopting this less common approach dramatically improved the odds of transformation success by 62%.
“Leaders often respond to resistance by ramping up urgency and adopting a directive leadership style, which is not only ineffective, but actually counterproductive," said Snigdha Dewal, Senior Principal Researcher, Gartner’s Supply Chain practice. "Instead, leaders should engage their teams from the start of the process, embrace the areas of resistance as a resource, not a problem, and act on feedback to adapt transformation plans and how they are implemented. Harvesting the collective wisdom of their teams can lead to dramatically improved odds of success.”
"Resistance can be productive or unproductive, but leaders must shift from viewing resistance as a barrier to
seeing it as a source of valuable insights and learn how to leverage it," said Dewal. "This approach not only enhances project management outcomes, but also boosts staff morale and can help unearth new competitive advantages."
The three key drivers behind this leadership approach include: Leaders demonstrate listening: Leadership knows the objectives, but also stay openminded to changes or evolutions based on what they learn during the process.
Resistant stakeholders are involved: Leadership engages the most-resistant team members to better understand the hurdles in the way, or to interpret the broader team’s change appetite.
Leaders maintain an adaptable mindset: Leadership recognizes that transformations have many setbacks, so often will focus on only a few aspects that will be mission critical. Failure can be viewed as an indicator of where not to currently focus efforts.
