GSCM DIARIES Industrial Visit to JNPT Port on 12th December, 2017
Industrial Visit to Times of India Press, Airoli on 11th December, 2017
OpsKeyKhoj Treasure Event conducted on 8th December, 2017
Sponsored By
MOMENTUM
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Chairperson’s Note
K.J.Somaiya Institute of Management Studies and Research, Mumbai (SIMSR) , is known for its ability to bring about excellent managers and leaders year after year who are not only learning enthusiasts but also have the acumen to think from the global perspective. This all comes about because of the dedicated faculties and world class curriculum specially chosen to raise 21st century leaders. We have seen many passionate students coming to the college with a vision to achieve excellence and make everyone proud. FORSE, the Forum for Operations Research and Supply Chain Team has been constantly trying to bring learning rigour among the Operations enthusiasts and include something new and knowledgeable with every event and activity conducted by them. Their quarterly edition of operations magazine - ‘MOMENTUM’ is another such learning platform which goes from local to global in terms of its theme and content selection. It brings about a comprehensive plethora of knowledge just a click away. Dear Readers , It gives us immense pleasure to present you the Global Supply Chain Management Conference (GSCM) based 3rdvolume of KJ SIMSR’s official Operations magazine. With every edition the team is making our college proud as its viewership is increasing each quarter and reach going global. Dr. J S Lamba Faculty In-charge - FORSE Area Chairperson (Operations) KJ SIMSR, Mumbai
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FORSEian’s Note
Dear Readers, We at FORSE (Forum of Operations Research and Supply-chain Enthusiasts) , since our inception have been devoted to bring out excellence and build the acumen of the students in SIMSR by organizing various events, international conference and magazines orbited around supply chain and logistics. MOMENTUM is an attempt to bring enlightening topics and concepts in the field of operations, supply chain and logistics for our readers. It contains the articles based across different themes in each issue. The December Issue marks the 3rd edition of MOMENTUM, aligned with the theme of international conference – Global Supply Chain Management Conference (GSCM) organized by FORSE Team under the guidance of SIMSR’s operation faculty members. FORSE team was fortunate to host 15 students and Prof. Dr. Dirk Hartel, Professor and Head of Department Service Management/Logistics Management from DHBW (Duale Hochschule Baden-Württemberg) University, Stuttgart, Germany for GSCM 2017 Week from 10th December – 16th December at SIMSR campus. Latest trends and innovations in supply chain with onset of advancement of technology help to streamline processes and define the future of working. Knowing what is going on in the market and which trends may help to make processes more efficient can save costs, optimize capacity allocations, and ultimately increase customer satisfaction. In the light of new research and studies, we present our theme for GSCM Edition of Momentum volume III as – “Smart Supply Chain, Driving into the future” On behalf of our complete FORSE Momentum Team who have worked meticulously to publish this issue, we hope that the magazine gives you great insights and aggrandize your knowledge bank. Stay tuned for upcoming issues with similar interesting themes. Keep Learning! Dheera Varandani Convener
Rohit Soneji Co-convener
Rohit Radhakrishnan Co-convener
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Editor’s Note
Dear Readers, “Knowledge without application is like a book that is never read”
We are delighted to bring to you the special GSCM edition of Momentum. The Global Supply Chain Management Conference is a melting pot of diverse ideas, theories and innovations in the area of Supply Chain management. It is the ideal place to discuss, deliberate and learn about various aspects of this ever changing industry and how new knowledge and research is being implemented to generate path breaking trends and optimise processes. Staying true to the theme of GSCM 2017 - “Managing the Supply Chain, Driving into the future”, the articles in this special edition of Momentum include and capture various innovative trends that have contributed to process optimisation and towards making businesses more intelligent and profitable. The articles included talk about and provide insight into various topics like the diverse role data analytics plays in optimising the supply chain, automation in the supply chain, smart manufacturing and artificial intelligence in the supply chain. We hope to generate awareness regarding new ways of working that are prevalent in the industry. We have also included articles on the success stories of famous brands and how innovations in Supply Chain have made these brands worldwide leaders in their own fields. Last but not the least, we would like to thank everyone who has contributed to the magazine and wish for enthusiastic participation in the future as well. We hope you have a great experience reading this edition of Momentum and in GSCM 2017. We also hope we were successful in leaving you with a richer knowledge base to cherish and apply in various aspects of your career. Happy Learning, Team Momentum
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TABLE OF CONTENTS Automation in Supply chain Pg - 5 Role of Data Analytics in optimizing the supply chains Pg - 8 Internet of Supply Chain (IoSC) Pg - 11 RoRO Ferry Pg - 16 Smart Manufacturing - Road to WCM Pg - 18
Artificial Intelligence in Supply Chain Management Pg - 20 Smart Supply Chain Pg - 23 Did you know? Pg - 27 Brand Success Stories Pg - 28 Global Supply Chain Conference – GSCM Dairies Pg - 32 MOMENTUM
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AUTOMATION IN SUPPLY CHAIN MANAGEMENT Krunal Sampat Vatsal Gandhi MMS ‘A’ (2017-2019)
Introduction We have long anticipated the introduction of automation and robotics in the mainstream supply chain to help organizations stay abreast of the competitive market where a customer expects a product to be delivered within hours of ordering. However, the subject of automation has always been surrounded by rave reviews from critics citing robots and technology would be taking over the entire workplace. So, is it really possible to replace the human element from supply chain management? Let’s dig in further to understand the actual role of automation in Supply Chain Management. Robotic Process Automation (RPA) A recent trend has emerged in the Automation technology named Robotic Process Automation (RPA) which acts as a glue between multiple processes and adds an element of Artificial Intelligence. Neural networks and machine learning play an important role in making the system intelligent which in turn helps in taking rational decisions. Since RPA is still in the nascent stage, activities pertaining to back office are more suitable for automation. Some of the activities which can be automated are as follows:
Procurement and inventory management acts as a core function for any supply chain and in order to have an effective supply chain, we should make sure this function works efficiently. RPA helps in monitoring inventory and broadcasting live status to various stakeholders. Gone are the days when the person responsible used to forget to reorder the inventory, and today, automated systems help in reordering based on optimal inventory level, past demand, and trends over the period. In short, RPA helps in doing high volume repetitive tasks more swiftly and effectively. Monitoring and providing analytics helps in machine learning which in turn helps in making future decisions. Automation has replaced manual intervention in order processing and repetitive activities in fulfillment centers and warehouses where a robot would work alongside employees to fulfill an order in minimal time. Today robots are equipped with machine learning and high-resolution cameras integrated with various sensors based on the type of products and needs. Robots singlehandedly perform picking, sorting and packaging with high accuracy and nearzero defect. Automated Guided Vehicles (AGV) and self-driving vehicles are a common sight in large warehouses. Amazon was one of the first major players who played a vital role in RPA by acquiring Kiva Systems back in 2012. Kiva was later renamed as Amazon Robotics
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and continued to invest in research and development for the e-commerce industry. As the trend set in UPS, FedEx and Walmart followed the league and have set up automated fulfillment centers across the globe. Benefits of RPA are as follows: - Cost Reduction - Improved Compliance - Improved Service Delivery - Optimized Processes - Enhanced Scalability - Improved Reporting
Understanding Automation with an example – Catalyst (A Li & Fung Company) Catalyst is a division of Supply Chain major Li & Fung and offers automation for inventory management, loss prevention, and customer experience through RFID technology. Inventory Management: Catalyst offers variety of solutions for inventory management. Catalyst Scan provides a handheld to an employee for keeping track of inventory with high accuracy. Catalyst Shelf is a smart shelf wherein scanner is integrated into display shelf which provides live status and highlevel reports. Catalyst Robot moves across the stores taking inventory
based on unique RFID tags and helps in locating particular SKUs.
Customer Experience: Catalyst Smart Fitting Room is a touch screen integrated with a mirror which helps in bringing relevant information about the product based on RFID tag. It also acts as an assistant which gives additional information to the user. Catalyst Smart Tray is a tray integrated with a smart screen where a user places the product on the smart tray and
relevant information is displayed on the smart screen. Loss Prevention: Catalyst Safe is a safety mechanism which sets off an alarm when someone tries to remove RFID tag forcefully. Catalyst Mat is an automated mat wherein if someone doesn’t pay for an item and tries to shoplift, mat automatically triggers an alarm and the data is recorded. In short, Catalyst automates many tasks which, earlier, would have required human interaction to take a particular decision. Also, its smart solutions help in the accurate calculation of inventory .
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Key Statistics from various research groups Before concluding some key statistics about automation in the supply chain, Information Study Group (ISG) listed some insights in its study: RPA has reduced 43% of the time taken in backoffice tasks like billing, collections, and processing. Invoicing was fastened by 34%. By 2019, 72% of the companies would be relying on RPA. Capgemini Consulting highlighted some key statistics in its white paper on Future State of Supply chain: 75% of the respondents believe automated supply chain is important/very important.70% have already started efforts to implement a digital supply chain. 48% believe that the majority of communication
with stakeholders is still done using traditional methods like phone and emails.95% believe, by 2022, most of the supplier processes will be automated. 94% expected, by 2022, real-time status updates across stakeholders would be a possibility. PwC Report estimates that 45% of the repetitive-work activities can be automated saving around 2 trillion dollars in annual wages. Conclusion: To conclude automation cannot control the whole supply chain and human interaction is still required in areas like product development, strategic planning and maintaining customer relationship. Looking ahead, all the stakeholders including workers, should embrace automation with open arms and invest more in research and automation Automation will be crucial in streamlining the operations and building an efficient, intelligent and responsive supply chain. In future a business would be successful if it is flexible enough to take full advantage of automation and related technologies like Block-Chain.
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ROLE OF DATA ANALYTICS IN OPTIMIZING THE SUPPLY CHAINS Jatin Panchal JBIMS (2017-2019)
Change is the only constant. The confluence of people & technology has given rise to myriad possibilities of addressing the issues of mankind sustainability. There is a tectonic shift in technology that the world is experiencing today. Digital technologies like the 'Internet of Things', 'BIG Data Analytics' have realized some of the distinct tasks that were once true only in Sci-Fi movies. With the proliferation of data from people and the processes, it is imperative to analyze it and extract insights! The manufacturing industry has been a forerunner in adopting new processes and technologies – right from Kaizen, JIT, and Lean principles to Robotic automation which, now, have become the essence of each and every manufacturing organisation
organization. One of the key elements in the long-term sustainability of manufacturing companies is the continuous improvement, which has given rise to the new era of manufacturing, i.e., Industries 4.0. Industries 4.0 or Connected manufacturing calls for the integration of cyber-physical systems (currently working in silos) to form an enterprise where data acts as a cohesion force between processes to bring about process optimization, thereby maximizing throughput. Today, data generated from these systems are analyzed independently to realize insights from a particular process or operation. BIG Data and Analytics will play a key role in the integration of Information Technology (IT) and Operational Technology (OT) systems thus bringing
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about the true value of Industries 4.0. By removing the barrier of data transfer amongst different processes (e.g. maintenance to supply chain to purchase to finance), can lead to better decision making. Let’s discuss about one such critical process of any enterprise i.e. Supply Chain. Traditionally, the aim of supply chain has been to 'Get the right product in the right place at the right time'. Apparently, with the usage of data analytics to optimize the supply chain, the aim of DIGITAL Supply chain has taken a new definition, it is 'Predict the right product, forecast the time to order and make available at the right place before time'. One of the challenges of existing supply chains is the 'lack of strategic planning and forecasting' due to limited buy-sell relationships of suppliers and buyers. Also, there is a lot of static data lying idle in the Enterprise Resource Planning (ERP) systems regarding materials, spare parts etc. which if combined along with historical maintenance and part replacement records could provide valuable insights. With the rise in Digital Technologies, the use of legacy ERP and Supply chain systems, are creating a bottleneck as the newer systems are more agile, easy to configure and use, and more importantly, are DYNAMIC. Today, companies are moving towards Cloud-based ERP systems that can be accessed from across
the plants (facilities) around the world. BIG Data technologies are deployed to make effective use of the legacy data and come up with real-time insights into the day-to-day operations. Some of the ways in which Digital technologies are optimizing the SCM are as follows: Improved flexibility, scalability and depth of data: The below image shows various data sources in SCM and how the explosion of data has happened in terms of volume, variety, and velocity. BIG data Analytics will act as a catalyst in providing contextual intelligence to SCM data. It will enable more robust and complex supplier networks, and collaborate on a single platform to add value to the regular transactions. Reducing risks and improving the speed with accurate forecasting and prediction. Use of geo-analytics to merge and optimize the delivery networks Today, be it the product or service companies, all are moving towards adopting Outcome-based Metrics and Performance Management systems to assess people and processes. With the advent of high-speed technologies and endless storage infrastructure capabilities, features like flexibility, agility, quick turnaround have become defacto to SCM systems. Companies that are hesitant towards embracing the change will sooner or later become obsolete in this everchanging scheme of things. Let us take a real-world scenario that most manufacturing organizations are facing today.
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It is tangibly associated with SCM and how implementing such systems of Predictive Maintenance with deep learning and artificial intelligence capabilities can lead to efficient decision making. Talking about the happenings in the industry, IBM has developed a powerful cognitive analytics platform that has the power to think like a human brain. There are many instances of integrating IBM Watson’s cognitive computing capabilities for a transparent, intelligent and predictive supply chain. As per the survey*, 65% of the value of a company’s products or services is derived from the suppliers. Suppliers and the supply-chain, impact everything from the quality, delivery, and costs of a business’s products and services, to customer service and satisfaction, and ultimately profitability. Also, a survey** by the Chief Supply Chain Officer of IBM said that Lack of visibility and transparency is the greatest hurdle in achieving the organization’s supply chain objectives.
Hence, there are solutions available in the market that address these issues to bring more transparency, intelligence and predictive capabilities in the supply chain systems. Today, the manufacturing operations including predictive maintenance activities are carried out in silos in enterprise servers, and predominantly focus on asset data (IT), with almost all ERP providers having their inbuilt BI that focuses on descriptive analytics. With a solution now focusing on data from sensors and machines (OT), the predictive maintenance is redefined and brings about more accuracy in the prediction. Combining the conventional predictive maintenance with CBM, the solution focuses on real-time analytics and dynamic workflow giving rise to IT-OT integration. I recall this statement from one of the TED Talk on Data Science, it says “Data is not the new Oil, but it is the new Soil”. I would further add to this saying ‘Data is the new soil which if harvested decently, can reap outcomes that will answer the industry’s toughest questions’.
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INTERNET OF SUPPLY CHAINS (IOSC) Niyant Thakar Vividh Shah MMS ‘A’ (2017-2019)
Many factors like customer centricity, cost pressure, increasing interdependence, closer alignment & disruptive technologies are driving the need for change in the supply chain. Moreover, when we talk about disruptive technology few words that our mind whispers first are IoT, Blockchain, Big data analytics, cloud computing, machine learning, etc. We use IoT to record data, blockchain to share this data with all stakeholders and last comes analysis of data for which we use big data analytics. We are heading towards a future in which data is the “Life blood” of every company. Presently collecting data is not a challenge, with advancement in IT & electronics technology. It is estimated that the amount of data worth analysing will double by 2020. Challenge is how to route
this data strings across the boundaries separating industry, commerce, government offices, insurance companies and people. Other challenge is how right data reaches right participants in real time & how to maintain control over data in the process. Data remains at focal point of future digital supply chains for significant wealth generation. However, this data is hard to explore ocean of ones & zeros if companies cannot turn that data into something meaningful. That’s where IoSC comes into the picture to help resolve this problem
Internet of Supply Chains (IoSC) On a conceptual data model when webbing of data that connects a value network is formed, that is what is called IoSC. It delivers cloud-based services like advanced analytics as a service (AAaaS) which helps to keep data at the focal point of value creation in an open ecosystem that consist of companies, their suppliers & customers.
SEMANTIC WEB Internet of Supply Chains (IoSC)
Blockchain
Linked data technologies MOMENTUM
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Semantic web In most languages, syntax is how you say something whereas semantics is the meaning behind what you say. The internet created a standard way for computers to communicate with one another, in other words it gave voice to computers so that they may talk to each other and exchange information using syntax called HTML. However much like a parrot can mimic human sounds without understanding them, computers merely mimic human information to one another without understanding actual meaning. Web helped create quick and easy way for us to retrieve and view information and act as huge document storage and retrieval system. Today computers do not understand the meaning behind the web pages that they are showing us. While they may understand the syntax the semantics are lost on them. That is the problem. Now if we can get the computer recognize what is in a web page, they can learn what we are interested in. If they know that then they can help us in what we want.
They could turn out to be actively helping us instead of being passive. This is really, what the semantic web is all about. It helps computers understand the meaning behind a web page. Semantics web is about things instead of web of today, which is more about documents. Letting computers know how these things related with each other is what Semantic web is all about. Microformats, RDF, OWL, RDFA are a few promising technologies that are in use today, which can imbed semantics, and html documents. What we actually need is secured & shared data space, which provides language (linking) of data logic & conceptual data model. The data science of semantic data management provides meaning, not just a collection of stored data in a big data repository. Linked data technologies Few of the elements, which form part of web data for semantic web are part number, part name, it’s properties, manufacturing date and any other data one might conceive. Using semantic web one can query that data & draw inferences using applications. Web of data can be a
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a reality only if data is in particular format, accessible and manageable by Semantic Web tools. In addition, to create a Web of Data (as opposed to a sheer collection of datasets) relationships among data should be made available. Linked Data exactly does this, providing collection of interrelated datasets on the Web. Linked Data helps in accessibility, largescale integration & reasoning of data at various levels of complexities and this lies at the heart of Semantic Web. Examples Wikipedia available in RDF named as DBPedia, which allows you to ask sophisticated queries against Wikipedia,
and incorporates links to different datasets on the Web, e.g. Eurostat data along with Wikipedia data. This extra links (in terms of RDF triples) helps in extra & more precise knowledge from other datasets. User experience would be extremely sophisticated via this application as it develops by virtue of integrating facts from several datasets. Block chain Digitized world is about transition from document-driven approach for managing supply chains to a data based report generation with assistance of digital supply chains.
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$40 Trillion is total financial value annually encompassed by global supply chains today. Yet it faces challenges in areas like end-to-end information inefficiencies as data is in silos, data system is incompatible or not integrated, paper-based flows and unreliable data. Blockchain is the advance upcoming technology with great potential to address these problems.
Information Security
Paper based data flow
Unplanned flow disruptions
Information asymmetries
Key challenges which Blockchain can address
Lack of synchronization
Uncertainty in event data
Block chain is a cryptographically protected, decentralized digital ledger technology, with robust error and fraud resistance, which can contain data as well as transaction records. It can also comprise contract, technique for implementing the same & timestamped record of its execution without need of central authority. Today due to blockchain it is possible to address issues like loss of integrity of information by building trust & respecting confidentiality and sanctity of information. As information in blockchain can’t be tempered, we would have the capacity to create applications, which would be useful in controlling
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everyday business by predictive analytics & automation/robotics. In addition, selfexecuting smart contract with machine-tomachine communication capability. Obstacles in use of blockchain is absence of trust in new technologies and new unknown suppliers. Practical Examples of Blockchain: It is possible to assure the customer that they are using legitimate products by determination of product authenticity and origin. Walmart after implementing this technology is able to reduce time for confirmation of exact source from 6 days to 2 secs and it now has an entire farm to shelf historical data of its products.
EU has proposed smart contracts at BAPISCO –“Blockchain-based Autonomous Processes for Industry 4.0 Smart Contract” which can help with unprecedented level of automation by flexibly connecting partners with data and contracts. Conclusion: IoSC web of data will help in providing better-integrated business planning, more real-time response between planning and execution, and significant power added to the analytics that help predict and prevent disruptive supply chain events by greater connectivity of “meaning” rather than just “data”
Semantic Web
Cloud Computing
Machine Learning
IoSC Linked Data Technology
Blockchain
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MAIDEN INDIAN RO-RO FERRY KICKS OFF Hardik Maniyar Ankit Agrawal MMS ‘A’ (2017-2019)
Globalization and technological development has made it necessary for every Industry to optimize their processes and be cost-effective in every possible way to have a competitive edge in the market. Innovation in logistics channels is one of the relatively untapped arenas which promises a huge potential. Ro-Ro ferry is one such concept which was developed in the mid-19th Century. Ro-Ro ferry is the abbreviation for 'Rollon, Roll-off' ferry, where the vehicles carrying passengers and goods are
rolled on the ferry from one port and rolled off to the other port. This hybrid of roadways and waterways transport systems has helped in optimizing supply chains by reducing the lead time and the transportation costs. How it does it Function: 1)The ferry is docked near the flexible ramp which is connected to the terminal through a bridge 2)Vehicles and passengers are transported to the flexible ramp by road 3)Vehicles with driver and goods or passengers are then transferred to the ferry 4)The ferry travels to the destination port by Waterways 5)Passengers and Vehicles are then transferred to the destination terminal via the flexible link and the bridge
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The first Ro-Ro ferry project in India is developed between Ghogha near Bhavnagar and Industrial Hub Dahej in the state of Gujarat. This project is funded by the Government of Gujarat and Sagarmala project of central Government. The distance between Dahej and Ghogha by road is 340 Km and it takes approximately 7 hours. While the distance by waterways is just 30km. With the help of Ro-Ro Ferries, the travel time between these two points is reduced to 1hr 30mins. This ultimately results in the reduction in fuel consumption and congestion of roads. This project is a revolutionary step towards the development of Gujarat. Apart from optimization of the supply chain for industries in Gujarat, this project will give access of Industrial Area in Dahej to the Saurashtra region of Gujarat. People from Saurashtra will be able to travel every day from Ghogha to Dahej for jobs, trade, and tourism. The first phase of this project was inaugurated by Honourable Prime Minister Narendra Modi on 22nd Oct 2017. Though the first phase has been launched to carry only passengers, after the inauguration of phase two and three, a ferry from Ghogha to Dahej and vice versa will be able to carry 80 loaded trucks, 100 light motor vehicles and 500 passengers at a time. In future, the service will be extended to the Gulf of Khambhat and Gulf of Kutch.
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SMART MANUFACTURING: THE ROAD TO WORLD-CLASS MANUFACTURING Saharsh Bhanawat (PGDM- IB) Parvinder Singh (MMS) (2017-2019)
Manufacturing is the backbone of any country’s economy. It is vital in terms of providing employment, generating revenue, effective use of resources and so on. In India, it has emerged as one of high growth sectors. According to Confederation of Indian Industry (CII), Indian manufacturing sector contributes around 16-17% to the GDP and gives employment to around 12% of the Indian population, and it is also expected that by the end of 2020* India will become the fifth largest manufacturing country in the world. Initiatives such as 'MAKE IN INDIA' by honorable PM Narendra Modi has also opened the gate of Investment in the field of manufacturing. Every company’s primary purpose is to earn margin by producing goods at low cost and cutting down the non-value added activities. How can this be done? Is there any magic wand which can achieve higher quality product, improve productivity, increase energy efficiency, and provide a safer working environment? The answer to this question lies with the concept of ‘Smart Manufacturing’ which can help the companies to achieve their dream of low-cost manufacturing. This new methodology is now peaking at a rapid rate. Companies such as Saint Gobain, Kimberley-Clark Corporation, John Deere etc have adopted this methodology and are reaping rewards out of it.
Now, the basic question that stands tall is, what exactly is Smart Manufacturing and how it can be implemented? Smart Manufacturing is nothing but the marriage of Information and Technology bringing the rapid revolution in the manufacturing unit and giving birth to their child, which can be called as Manufacturing Intelligence. 20 years from now everything from ground level to upper level will fundamentally change how products are invented, manufactured, shipped and sold. Smart Manufacturing not only concerns with producing more efficient and low-cost goods but also provides equal importance to the safety of workers and protection of the environment by making zero-emissions, zero-incident manufacturing possible. Smart Manufacturing is considered as the next Industrial Revolution. It is the ability to solve existing and future problems through various routes or pillars of WCM that allows solutions to be implemented at the accelerating speed as required by the businesses while generating additional value for it. Every company uses different methodologies to become World Class Manufacturers (WCM). There are different Pillars that are associated with Smart Manufacturing that covers the whole Manufacturing Concept: - Health & safety - Environment &Risk Prevention - Reliability - Industrial Efficiency
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- Quality & Process Control - Customer Focus & services - Innovation Development and Growth Each of the above Pillars is indispensable in any company in order to move towards becoming World Class Manufacturers. This new phenomenon of manufacturing would help factories to reduce cycle time while increasing yield and improving operation visibility. Take an example of a windshield processing company in India where it produces 1 million of Windshields by adopting the Methodology of WCM. Also, adopting WCM methodology at the workplace would provide various other benefits - enhance plant yield, increase machine utilization capacity, streamline proper flow of supplying products to customer and cost optimization. This method would also help the companies to generate confidence in the customer's mind by providing Zero-Defect products. Investments in a Smart Manufacturing infrastructure are essential for a secured industrial future. Smart manufacturing has the potential to increase the flexibility of the plants, lower the cost of products and
environmental sustainability. Government and Private Sector will have to work in tandem to realize the goal of WCM by working collaboratively on the following spheres: Investment in public-private partnerships in order to establish Smart Manufacturing Innovation centers with 'test beds' to accelerate and drive breakthroughs in the Field of Manufacturing. Rebalance federal investments in research and development to restore equal funding for applied research at the same level as the basic science. Once this is done, we can be ready for the further advancements in this concept. During the period of 90’s or 80’s, we were not able to see the future, but today, with the help of predictive analytics and other similar concepts, it has enhanced our capability to predict the future and clearly, Smart Manufacturing will enable manufacturing units to achieve Zero Accident, Zero Occupational Diseases, Zero Breakdowns, Zero Defects, Zero lead Time and a lot of other benefits.
improve
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ARTIFICIAL INTELLIGENCE IN SUPPLY CHAIN Anurag Gupta IMI - (2017-2019)
Taking into consideration how frequently the word is used these days, ‘Artificial Intelligence’ is almost on the verge of becoming a cliché. Perhaps, that can be attributed to just how easy everything has become due to the former. Before proceeding further, it is crucial to understand what Artificial Intelligence actually is. Artificial Intelligence is a branch of computer science that focuses on the development of intelligent machines that work and behave just like humans. Artificial Intelligence can be divided into two categories: Augmentation and Automation. Augmentation refers to that AI which helps out humans in their day-to-day activities. Examples of AI in the form of Augmentation are virtual assistants like Siri, Cortana etc., and software solutions. Automation is that AI which functions completely on its own and does not require any human intervention for performing tasks. The self-driving car is an example of AI in the form of automation. Artificial Intelligence, either in the form of augmentation or automation, has made its mark in almost all the functional areas of a business like Human Resources, Manufacturing, Production, and Distribution among the others. Supply-Chain is a functional area where the importance of Artificial Intelligence cannot be undermined. It can be the differentiating factor between two firms competing for the leadership in the
market. Following are some of the ways in which Artificial Intelligence will completely change how the game is played in the supply-chain: AI, by using historical data and trends, will be able to streamline the entire process right from the demand for the product to its supply. Moreover, this will be done with least human involvement, thereby reducing the cost, increasing the efficiency and saving a lot of time. One of the most time-consuming aspects of the supply-chain is the 'transportation'. However, this can be changed by adopting and using AI in transportation. The likes of Tesla and Google have already achieved a fair amount of success with their selfdriving cars. If this technology can be completely incorporated in the supply chain, it will lead to huge benefits for the firm, especially in terms of increased accuracy, decreased lead times and reduced human and labor costs. Supply-chain is one functional area which is extensively based on data. Traditionally, supply-chains are forced to stick to certain parameters because of data limitations. But with the incorporation of AI, it would not face this problem. With access to literally infinite sources of information, AI would be able to modify the supply schedule at will, by considering the continuously changing conditions like weather, traffic etc. at minimal risk and error.
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Artificial Intelligence has already been employed by companies and has resulted in great success. Siemens, for one, has automated its production lines to such an extent that they can run unsupervised for several weeks. Siemens is also working towards the creation of a fully selforganized factory. The aim of this factory is the automatic conversion of orders and demand into work orders, and incorporating them into the production process.
Danone (Food Company) is another company which has benefitted from the use of AI in the supply chain. Danone used analytics coupled with machinelearning capabilities to analyze the demand-planning gains. This helped them reduce their forecast errors by as much as 20% and also reduce 30% in lost sales.
The technology giant IBM has come up with Watson Supply Chain with the primary aim of increasing chain visibility and gaining risk insights. The system employs cognitive technology to gather and interpret discrete data from a variety of sources such as media, newsfeeds etc. The game is not as easy as employing AI in the system and reaping immediate benefits. There are a few points that should be considered to ensure that AI can result in the desired benefits: - The supply chain is completely databased. More precisely, real-time data. The AI must be integrated in such a manner that it has instant and continuous access to data. - Moreover, it must be made sure that the data is not restricted solely to the organization. Arrangements must be made so that AI can access data related to the
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the entire industry including the competitors as well. This is because, if the AI is unable to see forward-most demand, the constraints and the costs in the supply chain, the results will be no better than that of a traditional supply chain. AI, in the supply chain, can be truly beneficial when it can not only make decisions but also execute them in a timely manner. Scalability is another limitation of the traditional supply chain. However, this can be overcome with the use of AI. AI must be able to process tremendous amounts of information at a rapid pace and should be able to make decisions efficiently, and more importantly, on a large scale. It is crystal clear that Artificial Intelligence is the way forward now. It is now in the hands of the firms to decide whether to embrace AI or to stick to the traditional methods of supply chain management (which are
certainly going to become outdated sooner rather than later). However, it must be noted that merely implementing AI in the supply chain is not enough and is in no way a guarantee of success. Just because AI has turned out to be fruitful for one, doesn’t necessarily mean that it should have comparable results for others too. This is because no two firms are same. They differ in a lot of senses such as the kind of competition they face, the kind of processes they employ, the amount of financial and human resources at their disposal, the quality of management, the kind of raw materials used in the production process and several other considerations. Before going ahead with implementation of AI in the supply chain, these are some of the key factors, among others, that the firm needs to consider. Moreover, implementation of AI requires a fair amount of investment and it might require the firm to lay-off employees as well.
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SMART SUPPLY CHAINS Swapnil Wardhane SIBM Pune (2017-2019)
Supply Chain Management has always been an integral component of business and is essential for differentiating itself and on delivering upon customer satisfaction. It has been used for boosting customer experience, reduction in operating costs and improving upon financial position as Dr. Eliyahu Goldratt rightly puts in his book ‘The Goal’. With the advent of Industry 4.0 the way we approach supply chain in changing. There is a new wave that talks of use of artificial intelligence and how they will change the way we operate our supply chain network. Artificial intelligence and natural language processing has already seeped into our systems. Every time we shop on sites like amazon or search on websites like google, Data mining helps organizations
Learn from the kind of products a client prefers and hence is shown a range of products similar to his liking to increase the chance of a click on the advertisement. A typical Supply chain today comprises of: • Planners who design the supply chain • Expensive and Complex system • Work on data that is stale and thus decision making is hampered • Use oversimplified models that cannot be implemented in the real-world scenario. In the light of Industry 4.0 the Supply chain needs to be able to do the following things: • Access Real Time Data to make smarter choices • Decision process needs to be quick, continuous and ever incremental • Better Inventory Management control
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• Will reduce the need for keeping stocks of raw materials, WIP’s & FG’s • Cost of change needs to be factored & they need to be scalable • Should Have Faster and Smarter Last Mile Coverage and Logistics • Should have the ability to provide customized solutions to clients • Supply chain need to be Agile and Resilient Businesses these days is about speed and accuracy and Data analytics has started playing a vital role in how we run supply chain, the example of which is Zara Fashion that takes around 20 days to design and stock an outfit in its international stores. A feat that employs a lot of big data analytics and an agile supply chain. Data analytics provides for developing supply chains that cater to the need of the customer and offer customized solutions. Not so far in the future Automobile Companies will offer customers the opportunity to design their own cars which will allow a high degree of customization for the customer. The Supply chain with Data Analytics can actually allow for Companies in finding out on a real-time basis what the customer requirements are. This helps them to develop machine learning models that allow for running simulations on supply route, network and coverage areas to address issues like the impact of lateness or missed deliveries before they can become a threat. Predictive analytics plays a huge role in designing of smart supply chains. Use of predictive analytics and machine learning allows companies to reduce their inventories
by a considerable amount and factor in the impact of ‘bullwhip effect’. It also allows the companies to develop Just-inTime (JIT) Solutions for their vendors and the vendor’s vendor. This further allows the companies to develop solutions where all the vendors are on the same platform and allows for strategic planning in developing products and services for clients while reducing stocks of Raw Materials procured. The companies can plan their production using Predictive analytics and make the most efficient use of all the resources at hand to reduce their downtimes and schedule maintenance in the most productive manner to reduce faults and breakdowns. Developing Smart Supply chains requires the supply chains to be Agile which means that they should be flexible in nature to accommodate the small changes in demand or supply or even the customer requirements and should be ready for all contingencies that may arise. In the retail industry Supply chains are developed in such a fashion that the companies are continuously monitoring
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real time data of how customers react to their new offerings and can make changes accordingly in terms of product offerings by being able to understand and paint an accurate picture of the requirements of the customer. Supply Chains in this century need to also be resilient as the chances of Supply Shocks and Demand Shocks, due to an ever changing and continuously evolving world keeps adding new technologies and offerings in the market that have considerably reducing the life cycle of products. The Supply chains need to be able to bear these shocks without impacting the production schedule and the delivery dates for the customer. A resilient Supply chain allows the company to play offense by gaining competitive advantage in developing a supply chain strategy that is focused on sustenance while remaining agile and operations focused. A World Economic Forum/PwC analysis found that companies focusing on supply chain resilience reacted to adverse events faster, outperforming their competition resulting in 7% higher stock performance for these companies.
Supply Chains in the world are developing quickly and are becoming smarter by the day. These supply chains are providing for solutions to organizations which are flexible and customizable to suit the needs of the customers. These supply chains are huge in size and are very complex and thus have a sizeable impact on the environment and the Smart Supply Chains of the world need to factor this while developing solutions. This has led to development of the term Green Supply Chains and these Green Supply Chains will enable companies to play their part on developing a world that is not just smart but is also sustainable. Green Supply Chains can be developed by the use of concepts like: Designing green Buildings to reduce the carbon foot print of the Logistics Buildings that are used in warehousing, distribution and running network centers for logistics. •This can be done from something as simple as using efficient energy solutions like solar or LED lights in office buildings
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• Promoting use of Natural lighting in building to reduce electricity usage • Designing Green building using material that has low carbon footprint in construction • Recycle water for non-consumption use. • Leveraging IT for Smarter Route Mapping and Logistic Solutions • Use of Smarter Packaging that reduces wastage of material • Developing Strong reverse logistics models that allow for the companies to have an efficient reverse logistics network • Developing Strategic Business Partners by selecting business partners that themselves employ Green Supply Chain measures or helping them develop the same
Today companies are paying more and more attention to their supply chains be it Amazon developing designing for better material usage or DHL using better route mapping to reduce carbon footprint. Supply chains are the backbone of any industry and smart supply chains will remain the same if not transcend the boundary and become the nervous system for businesses to perform successfully by providing the businesses with a competitive edge; by giving them an idea of what the customer requirements are in real time, developing smart procurement solutions, planning and scheduling production, allowing for high degree of customizations and running & developing resilient and green Supply chains.
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Kartik Iyer PGDM- (2017-2019)
FedEx ships more than 10 million packages every day, between sites all across the globe. That’s about the same as delivering a package sent by each and every resident of the states of Tennessee and Kentucky combined, every day of the year! In 2003, FedEx Express introduced hybrid electric-diesel trucks into their delivery truck system. The goal was to replace its entire 30,000 fleets with the hybrid, but they've fallen substantially short, citing the lack of investment by other companies in hybrid technology. The RFID technology used widely today in the Supply Chain Management has its use being traced long back since the World War 2. 40% of the items made by the US Apparel Manufacturers make use of RFID tags. It is also used widely in transportation systems for quick ticketing to save the precious time of passengers. Reusable containers are slowly gaining some attention as green technology is a priority for companies and in the near future, the savings for warehouses will likely become exponential. Currently, disposable containers cost $87 million in waste. Reusable containers could reduce this to a mere $2.5 million. The industry is making critical steps towards creating an autonomous supply chain in the very near future. For instance, in 2016, Uber’s self-driven truck successfully delivered over 50,000 cans of Budweiser. According to the 2015 U.S. consumer survey, nearly 45% respondents are willing to pay up to 20 US dollars for drone delivery if their order arrives within the hour. Amazon's warehouses have the square footage more than 700 Madison Square Gardens and could hold more water than 10,000 Olympic Pools. Amazon has more than 45,000 robots working alongside 230,000 people across 20 fulfillment centers. The robots - 16 inches tall and almost 145kg - can run at 5mph and haul packages weighing up to 317kg. Maersk Line owns around 600 vessels operating around 130 countries making it one of the largest shipping companies in the world.
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BRAND SUCCESS STORIES Arushi Joshi PGDM- (2017-2019)
Key list of characteristics defines the success of best-in-class supply chains and set them apart with exemplary management. These characteristics include a proactive use of big data, highly optimized inventory management, flexibility and speed with order fulfilment, customization with process implementation, energy sustainability, and of course, compliance. As listed by research and advisory company, Gartner, Inc., the following companies exemplify excellence with these characteristics, setting the mark high for the demand-driven supply chains of today. PEPSICO – PepsiCo, the food and beverage behemoth is best known for their carbonated soft drinks. Organic products, for example, were up 11 percent in 2015 while the overall food market is growing at 3 percent according to a report released by the Organic Trade Association. With the growing preferences of consumers towards nutritious foods and in order to manage these risks and maintain the service levels, PepsiCo needed to develop new risk management practices and redesign its supply chain as it expanded its beverage lines by leveraging its premier health & wellness brands such as Naked Juice and O.N.E. Coconut Water. These are manufactured in remote regions of the world, including Southeast Asia. The United States, along with other markets
that include Canada and the United Kingdom have the majority of the customer demand. The challenges which PepsiCo included longer lead times, more variable supply than its traditional beverage supply chain and the need to develop a seasonal inventory strategy to address both U.S. demand fluctuations as well as the supply risk of the disruptive typhoon season in Southeast Asia. The company had to build enough inventory to minimize stock-outs, without causing excessive losses through obsolescence. PepsiCo approached this task on five fronts: Supply chain design with contingencies – PepsiCo supply chain partners source raw materials locally by collecting the water as part of the coconut processing operation and packaging it into finished goods cases. It imports packaging materials from different countries. PepsiCo utilizes U.S. warehouses next to seaports that enable it to flow product through both the U.S. East and West Coasts so as to optimize the logistics. For domestic customers, U.S. copackers provide an option to postpone the final packing of the product closer to market. This higher-cost backup alternative would only be implemented in the event of a supply disruption in Southeast Asia. Inventory optimization – To mitigate the long lead times and high supply variability. Because of enough inventory to meet customer services, there is a high probability of expiration risk especially
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with organic products with a shorter shelf life. PepsiCo using academics and historical data derived formulas to predict both the percentage of stock outs as well as the percentage of obsolete/expired product to implemented an optimal balance. PepsiCo reapplied the formulas to other emerging product categories with supply challenges, such as Naked Juice pro-biotic smoothies with an even shorter shelf life — as low as 20 days — compared to other items in PepsiCo’s portfolio of premium juice beverages. The solution is now part of PepsiCo’s sales and operations planning system, which ensures that every stakeholder within the company is aligned around the solution’s output. Early-warning systems - PepsiCo worked with suppliers to improve communications and data quality around possible disruptions as earlier a disruption in a supply chain is detected, the sooner it can be dealt with. Routine checkpoints were established and regular communication between the supply chain organization and the supplier base was ensured. Building relationships and developing true partnerships were keys to unlocking this particular supply chain improvement.
Supply flexibility has reduced lead-time. Brand equity - Consumers tend to be more tolerant of supply shortages when the product concerned has a strong brand. A cross-functional effort involving marketing and sales teams along with supply chain professionals has worked to build the product’s brand equity. Certifications such as Fair Trade, NonGMO, and Organic have also been selectively implemented, which can inspire consumers to embrace PepsiCo’s brands. Overall, managing the challenges of new product offerings prompted PepsiCo to take a comprehensive look at its supply chain design to build in additional risk management through mitigation and resilience. Importantly, the company also identified a new source of supply chain innovation: new product supply chain design. And by reapplying its experience with one new product line to another, the company achieved broader competitive gains — improving customer service, becoming better able to adapt to change, and controlling costs more effectively.
Buffers around stock, capacity, and leadtime - U.S. demand for hydration products rises in the summer, for instance, it developed a system of buffers aligned with these periods. Other strategies for building resilience include dual-sourcing in Southeast Asia and securing backup supply capabilities in the United States.
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JOHNSON & JOHNSON Together, Johnson & Johnson Medical Devices Companies (JJMDC) and Intermountain Healthcare partnered to reduce waste and variation by streamlining JJMDC suture inventory. For over three years, Intermountain Healthcare has been leading its product standardization strategy with its own tools and data analytics. Recently, Intermountain expanded its eff-orts by focusing on reducing variation in its clinical products in collaboration with their practitioners and partnering with JJMDC to utilize JJMDC’s clinical knowledge and Care Advantage approach to help strengthen Intermountain Healthcare’s supply chain analytics. Reducing product variation not only creates economic savings, but it has clinical value as well. Intermountain approached JJMDC for their
expertise as a strategic supplier to help reduce variation in its future use. This resulted in significant eff-iciencies for the system and value for its patients, including reduction in 118 JJMDC suture SKUs, 25% increase in inventory turns, and direct product cost savings of over $17,000 per year. As pressure to reduce costs and improve outcomes strains healthcare supply chains, innovative collaborations, such as the one between Intermountain Healthcare and JJMDC, are addressing some of the most pressing challenges by utilizing expertise across the broad JJMDC portfolio. Managing suture inventory is a complex task for any health system. Across Intermountain’s 22 hospitals and 200 clinics, the supply chain organization was
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managing over 1,200 suture codes – more than 300 of which were only being used by a single facility. Together the teams conducted a needs analysis and developed the following goals: • Eliminate products that are only used in one facility • Minimize amount of low volume product • Standardize product with multiple units of measure • Remove products with similar attributes without compromising patient outcomes Following steps were taken to achieve the goals: Starting with Data - Intermountain’s cross-functional team started with clear and accurate data to ascertain the direction and breadth of the project. They drew analytics from existing structures to determine which codes could be standardized or removed without disruption to clinical functions, and support the standardization e-fforts of Intermountain with their clinicians. Two key data elements used to make informative and realistic strategic recommendations were - Product attributes such as needle type, shape, and size; suture type, length, size, and colour and product usage at each patient care location for every physician rather than simply relying on the number of products purchased. Providing a Change Management Roadmap – It was important to give clinical teams time to address the volume of sutures identified for
replacement. By breaking up the conversions into manageable steps, it allowed the clinicians to adopt each activity such as consolidating units of measure and standardizing to widely adopted suture technologies. Requesting Feedback - Achieving success required clinician buy-in and comfort with the new recommended products. JJMDC and Intermountain engaged these clinical teams to receive their input and approval. Receiving clinical feedback and integrating it into the standardization process increases the likelihood of the long-term sustainability of the decisions. Further, it strengthened trust and partnership between JJMDC, Intermountain Supply Chain, and clinicians across all the 22 hospitals. After reviewing over 500+ diff-erent suture products: - 118 sutures were eliminated by adopting a higher velocity item as the standard - Direct product cost savings came to over $17,000 per year - Within Intermountain’s distribution centre, inventory turns for the remaining sutures increased by 25% - Having fewer higher-velocity items reduced risk of expired .
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GLOBAL SUPPLY CHAIN CONFERENCE GSCM DAIRIES Deyasini Sanyal PGDM- (2017-2019)
The Global Supply Chain Management Conference (GSCM) is held on 16th December 2017 at K.J Somaiya Institute of Management Studies and Research, Mumbai and organized by FORSE – the Forum of Operations Research and Supply Chain Enthusiast committee. – the Forum of Operations Research and Supply Chain Enthusiast committee. It is an international conference which aims at providing a platform for Supply Chain Management enthusiasts and experienced professionals to discuss, deliberate and enhance various facets of the robust and ever-expanding supply chain management industry. Times are changing rapidly and every business is looking for new avenues to provide excellent customer service, introduce a wow factor, optimize efficiency and cut costs. Supply chain management is an aspect of every business that provides a plethora of lucrative opportunities which when
utilized efficiently can not only help achieve monetary goals but can also open previously unchartered avenues and help propel businesses to new heights. Thus, a well thought out and implemented supply chain network has become the need of the hour and the Global Supply Chain Management Conference aims at providing and exposing the world to innovative and out of the box ideas that will greatly aid the industry. Keeping in mind how technology, digitization and automation are dramatically changing the supply chain and how supply chain managers have to create and maintain efficient and effective supply chains and adopt new strategies to gain a sustained competitive advantage, the theme for GSCM 2017 is “Managing the Supply Chain, Driving into the future”. The conference aims to provide an interdisciplinary forum for industry professionals, researchers and academicians and students to present and discuss latest developments and applications in the comprehensive areas of Supply Chain Management. Over the years, GSCM has played host to eminent leaders in the industry like Mr. Howard James-Scott, Head-Supply Chain, Flipkart, Mr. Surendra Deodhar, Head- Supply Chain Management, Reliance Life Sciences and Mr. Devaraj Chithur, Associate Vice President, Tata Consultancy Services to name a few. Keeping the tradition alive, we are pleased to have Prof. Dr. Katja Kuhn as our Keynote speaker to enlighten us with her insights and knowledge.
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Dr. Kuhn, currently the Dean of Faculty of Technology and Vice- Rector of Dual University of Baden-Württemberg (DHBW), has been imparting quality education to students for nearly 15 years now. We are also delighted to invite Mr. Sanjay Digambar Patil – Cluster Head (Mumbai region) Toubro’s Heavy Civil Independent Company as a guest speaker at the conference who will be sharing his industry insights on "Logistic Challenges in Mega Projects with reference to Metro & Monorail". An exemplary speech by the president of Dabbawala Community kept the audience engaged with the unique methodology adopted by the community to serve the Mumbai City daily with their Six Sigma Certified Services. The Conference ended with a healthy discussion during Round Table Conference with high dignitaries from industries like - Dr. Sachin Kamble. Associate Professor (NITIE), Mr. Deepak Jakate (Managing Partner, Envision Management Services), Mr. Rakesh Shah (Owner, RPM Infotech Consulting Pvt Ltd) and Mr. V V Sople (Dean Research,ITM). Thus, the conference presents ample opportunities to learn from industry experts and network with the delegates, academic professionals and students. Like every year, GSCM week has been action packed aiding students in understanding concepts related to Supply Chain and Operations in an exciting way. Sanrachna, the inter-college case study competition, provides students the opportunity to work on a case, apply their knowledge to a real business situation and win exciting prizes.
XQuixIt, the on-campus live operations quiz, invites teams from various B schools all over the county to test their Operations knowledge and battle it out for the Ops Whiz crown. Various intracollege events like OpsKeyKhoj, the oncampus treasure hunt and OpsQuest, the intra-class beer simulation game were also organized. All the events attract participation from students and the winners are awarded cash prizes and exciting goodies. Industrial visits to TOI Press and ISKON Kitchen have also helped students to understand the real-time execution of operations in a better way. KJ SIMSR also had the privilege to host professors and students from the DHBW University, Stuttgart, Germany. Their stay was an enriching experience for SIMSRites as they helped us understand how industries and businesses function in their country. Also, the exposure to their culture and traditions helped us develop a global perspective. We would like to thank our sponsors JScottwitchy, Cipla Healthcare, Blujay and MyPlatformQ, for sponsoring our event. We would also like to introduce Frapp, our Student Partner thank them for associating with GSCM and SIMSR. We hope GSCM 2017 has been a learning experience for one and all and has exposed everyone to various facets, nuances and aspects of the Supply Chain Management industry. We thank everyone for the enthusiasm and hope to see you again in GSCM 2018!
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Team Momentum
Faculty In-Charge
Dr. J S Lamba Area Chairperson Operations
Designer
Editor
Amman Kr Sharma
Hiral Shah
Key Contributors | Yash Jain| Deyasini Sanyal | Parvinder Singh |Ajay Yadav | | Jhalak Jain | Ankit Agrawal |Kartik Iyer | | Hardik Maniar | Kaustubh Ashturkar |
Senior Team | Shikhar Sodhani | Shashank Jain | | Rohit Soneji | Dheera Varandani | Rohit Radhakrishnan | Special mention to one and all who contributed with the articles . Promotions
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