Momentum March'20 Annual Edition by FORSE SIMSR

Chairpersonâ&#x20AC;&#x2122;s Note

With a view to aid practitioners and learners in the vast field of operations and interface areas, FORSE - the committee of enthusiasts has been making efforts to bring new and emerging concepts and topics for the readers. MOMENTUM is an outcome of these efforts. I am sure the present issue will kindle your thoughts and further your knowledge in the field of Operations and Supply Chain. Congratulations to the team for their efforts in bringing out this issue. Happy Reading !

Dr. Pramod Shetty Faculty In-charge - FORSE Area Chairperson (Operations) KJ SIMSR, Mumbai

Momentum | Marâ&#x20AC;&#x2122; 20 Edition, Vol. XI

Editors’ Note

Dear Readers, “An investment in knowledge always pays the best interest.” - Ben Franklin We are delighted to bring to you the Annual edition of Momentum. Through this quarterly magazine, we don’t only share knowledge but also provide platform to share your knowledge as we believe that knowledge is power. We all are aware that Sustainability is major concern for us in today’s world. Logistics being an integral part of any business, has a wide scope to integrate sustainability in it. With tis thought we present you this edition with a theme - “Sustainability in Logistics and Supply Chain”. We at FORSE, believe in continuous learning and improvement as it helps in constant expansion of skills. This cultural philosophy also reflects in our magazine. The structure of our magazine is such that it will give you detailed insights of the theme and add value to you. Our magazine has various enriching sections such as Recent Trends, Overview, Various Articles, Start-ups Stories, Brain Teasers and many more engaging activities done by FORSE. The articles that are included in this edition provide good insights into various topics related to Sustainability in Logistics and Supply Chain like Reverse logistics, Impact of Sustainable supply chain, Green supply chain and various enlightening articles. 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. We also hope that we could provide a platform through this magazine to share and gain knowledge leaving you with a richer knowledge base to cherish and apply in various aspects of your career.

Happy Learning, Team Momentum

Momentum | Mar’ 20 Edition, Vol. XI

FORSEians’ Note

Dear Readers, We at FORSE (Forum of Operations Research & Supply Chain Enthusiasts), since our inception have been striving for excellence & building business acumen of students in SIMSR by not only organising simulation events, case study competition, international conference, magazines but also by executing campaigns, posts through social media handles thereby utilising the digital media space to communicate the very fabric of supply chain, operations strategy and logistics with all the operations enthusiasts across different geographies. MOMENTUM our quarterly magazine is an attempt to bring forward enlightening topics and concepts in the field of operations, supply chain and logistics to our readers. It contains articles based on different themes in each issue. Since its inception, Momentum has covered many topics under various themes including but not limited to Green Logistics and Smart Supply chain, Rise of Service Operations in India, SCM & Logistics in E-commerce, Supply chain in 21st Century, Scope of Operations across different Industries & Business Functions, Industry 4.0 and many more. Organizations as well as consumers have become more environmentally conscious and hence, Supply chain sustainability has built up steam in recent years. Sustainability initiatives stretch throughout the value chain, from warehousing, packaging to transportation and waste management. Supply chain & logistics have consistently evolved with time and sustainability is an important part of its evolution cycle. As supply chain is getting global and intricate, it is causing severe damage to the environment. Hence, the need of sustainability in logistics & supply chain is crucial. Through the March 2020 Annual Edition of Momentum which revolves around the theme “Sustainability in Logistics & Supply chain”, we strive to enhance the knowledge of our readers on various aspects of Sustainability & Operations ranging from Reverse logistics, Cradle to cradle supply chain, Importance and impact of sustainable supply chain and Green Supply Chain Management. On behalf of the FORSE Momentum Team, who has worked meticulously to bring this issue to you, we hope that the magazine gives you great insights and aggrandize your knowledge bank. Stay tuned for upcoming issues with more interesting themes. Keep Learning!

Anuj Agarwal Convener

Ankit Vyas Co-convener

Momentum | Mar’ 20 Edition, Vol. XI

Vinit Shah Co-convener

Jay Gala GSCM President

Index

Overview of Sustainability in Logistics and Supply Chain Page 1

Recent Trends In Operations Page 3

Reverse Logistics : A view more to Cost Benefit Analysis Page 6

Why reverse logistics will determine the future of your business. Page 10

Importance and Impact of Sustainable Supply Chain Page 13

Sustainable supply chains: Their Potential to Develop New Value Chains Page 17

Shift from Cradle to Grave to closed loop Cradle to Cradle supply chain Page 20

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Reverse Logistics : Unstated hero of the circular economy Page 23

Green Supply Chain Management Page 25

Start-ups in the Field of Operations Page 28

What’s New in FORSE at SIMSR? Page 30

What’s Exciting in FORSE at SIMSR? Page 33

Article Writing Experience Page 35

Brain Teasers

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Overview of Sustainability in Logistics and Supply Chain The growing use of products such as plastics, pollutants, green house gases and other such harmful effluents have risen the need to develop strategies, solutions and systems to overcome and resolves issues such as wastages, pollution and rising diseases across the globe. Even the world temperatures rising rapidly and the weather acting very harsh and sudden have risen concerns and global warming is the prime issue on the radar.

With

the commencement of the Industrial revolution, there was a shift in the thought process of the businesses and the organizations as a whole. The thinking shifted to being more productive and working on economies of scale. In the latter half of the 20th century however, the business and the organizations were now looking to not only gather huge masses of production but also minimize cost and maximize their potential revenues. Optimum utilization of resources was the price motive.

Sustainability now plays a major role in logistics and supply chain management

Although with the turn of the century, we are now discovering a need that goes beyond optimization. A need to maintain businesses, not only for today but also for the coming tomorrow. Not only for the current generation but for the generations to come. Not only to make proper use of the available resources but also to keep the wastage and damage to least. Not only to grow and develop economically and technologically, but also socially and geologically. Momentum | Marâ&#x20AC;&#x2122; 20 Edition, Vol. XI

with the focus on providing green and more eco-friendly services which minimizes the effects on the planet and paves way for a greener tomorrow. With Globalization in place, the demand as well as the supply for products and services is ever increasing. The process of procuring, manufacturing and distributing these products and services also has a huge demand. With increasing competition from the market forces and impressing pressure to maintain the sustainability, 1

Overview of Sustainability in Logistics and Supply Chain

only those who will be able provide substantial service with sustainable premise will be able to cope up and make it huge. The following are the ways in which sustainability can be integrated into logistics and supply chain management: • Develop a greener eco-system • Try to collaborate together • Create a green supply chain • Make use of renewable energy • Reduce, Reuse, Recycle

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Overview of Sustainability in Logistics and Supply Chain

Recent trends in Operations

barley and sugar for its products locally to as high as 80 per cent. This approach has numerous benefits. Firstly, it creates a more resilient and efficient supply of raw materials. Secondly, it reduces the environmental impacts from transportation and cost associated with it which in a way benefits both the environment and the company. Thirdly, this approach creates local employment for the people and contributes to that economy by paying taxes and creating a local market.

The broad purview of sustainable supply chain encompasses a wide variety of parameters such as the amount of waste, carbon footprint, pollution along with health and safety concerns of the stakeholders involved in the entire supply chain process. Addressing these issues and ensuring their minimal impact on the environment will not only lead to building a positive brand image but will also inculcate a socially responsible work culture amongst the masses. In this direction, it is important to acknowledge the efforts put in by the corporations and societies who have gone an extra mile in setting up an example for achieving environment friendly measures for their supply chain. One of the trends followed by the companies these days is to procure the raw materials from the local suppliers.

Sourcing locally also enables the supplier development by equipping them with the skills and following global standards for achieving efficiency and reduce the carbon footprint. Companies nowadays are focusing on setting up the sustainable supply chain standards and rigorously following them while supplier selection and assessment. Samsung conducts an environment management assessment for all its new

Diageo, a global beverages company procures the agricultural raw materials like

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Recent trends in Operations

suppliers through their in-house certification program, the Eco-Partner Scheme to ascertain a prospective supplierâ&#x20AC;&#x2122;s sustainable plans and their willingness to engage in eco-friendly production with Samsung. Apart from that, it also checks for the use and containment of any hazardous substances by the suppliers and their plans for disposal and handling.

algorithms to handle the consignments on the same routes again. This is possible by the use of such technologies that enables the shipping companies to achieve their objective of sustainability by reducing the transportation emissions, reliability and costs. The mode of transportation is too a focus these days. The best example in this context is DHL, an international logistics company, which developed its own fleet of electric delivery vehicles as a part of its mission to achieve zero carbon emissions by 2050 and currently employs more than ten thousand electric vehicles aiming to replace all its existing fleet of fifty thousand vehicles globally to electric. This move will significantly encourage the other players to use the eco-friendly transportation modes and contribute to a better environment.

The concept of collaborative shipping is gaining prominence these days. Also known as shared shipping, wherein multiple shippers bundle volumes to fill the same transport. This is different from traditional freight bundling in the sense that the bundling opportunities are detected prior to the shipment. This concept is an example of horizontal integration and leads to higher carrier fill rates, lower transport costs and emissions. Healthcare multinationals Baxter and UCB did the same for the mutual benefit of shipping temperature-controlled pharmaceuticals. In the similar lines, backhauling is also practiced by the shipping companies for avoiding an empty return journey.

Another area of concern is the consignment packaging materials which forms an important part of a sustainable supply chain. Recycling and reuse are not new to understand their importance but the packaging materials in the form returnable transit packaging (RTP) are becoming preferable these days because of their lower cost, low maintenance and most importantly environment benefits. Coupled with RFID tags, these kind of packing materials can be easily traced for their reusability and life thereby helping in the areas of inventory management and analysis.

The digitization in the supply chain is the game-changer. Whether it is sustainability or the efficiency, the analysis of the existing supply chain and its modification is carried out using modern tools such as Artificial Intelligence, Internet of-Things, Robotic process automation (RPA) etc. For example, the shipping routes and modes can be identified and optimized by analyzing the available options and finding out the best fit and further develop the

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Not a recent event, Wal-Mart contributing to the sustainability by

Recent trends in Operations

products on their environment friendliness on packaging with respect to their product-to-package ratio, space utilization, use of renewable energy sources etc.

corporations nowadays. Initiative such as â&#x20AC;&#x153;The Sustainability Consortiumâ&#x20AC;? by Walmart is such an example. The research and development as well as the investment for achieving the sustainability goals is an ongoing process and the new approaches for sustainable supply chain are being constantly worked upon development as well as the investment for achieving the sustainability goals is an ongoing process and the new approaches for the sustainable supply chain are being constantly worked upon.

All the above trends discussed require a substantial amount of commitment by the company individually for formulating and following the sustainability plans. There is a need of achieving technical expertise and innovative approaches for sustainability which has eventually become top priority for most of the

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Reverse Logistics : A view more to Cost Benefit Analysis - Nimisha Agarwal Indian Institute of Management (IIM), Shillong Technology has been a boon in facilitating an increase in deliveries and reducing transport time & cost. To maintain a competitive edge in the growing ecommerce industry, suppliers give free and fast shipping as well as easy return policies to attract and retain customers. Stats validate that 8% - 9% of goods purchased at brick and mortar stores and 25% - 30% of e-retail orders are often returned. Hence, handling reverse logistics has become more of a conscious strategic consideration when planning supply chain networks.

“You will not find it difficult to prove that battles, campaigns, and even wars have been won or lost primarily because of logistics.” – General Dwight D. Eisenhower Effective logistics operations can be a crucial factor in helping an organization surpass its targets and drive business profitably. The reason is simply getting the right products to the right customers at the right time is much more complex than it seems. There are numerous examples of how just small supply chain management failures led to the loss of millions to even some of the famous companies. For example, Hershey’s in 1999 because of inefficient supply chain management failed to deliver Kisses and Jolly ranchers worth $100 million to stores during Halloween. Similarly, Walmart in 2013 lost $3 billion as inventory continued to grow faster than sales.

REVERSE LOGISTICS can be defined as “the process of planning, implementing and controlling backward flows of raw materials, in-process inventory, packaging and finished goods, from a manufacturing, distribution or use point, to a point of recovery or point of proper disposal” (source: Reverse Logistics Executive Council).

Flow Diagram of Reverse Logistics Activities

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Reverse Logistics : A view more to Cost Benefit Analysis

James R. Stock first coined the term “Reverse Logistics” in his white paper on “Reverse Logistics.” Later this term was used and redefined by many scientists. Reverse logistics has been the part of the business since a very long time in the form of phenomena like recycling of water bottles, recycling of waste papers, and recycling of metal scraps, etc. However, businesses paying more attention to reverse logistics as a field of research is quite new.

processes. PRM deals with the receipt, processing, and disposition of materials that are returned by the end-user, leading to cost reduction and value recovery. SPM deals with having the right inventory at the proper location to avoid situations of stock-outs or excess inventory in the warehouse. Challenges in reverse logistics management Generous return policies, growing ecommerce, and new consumer expectations, retailers and manufacturers are receiving more returned merchandise than ever before. Studies suggest that returns take up roughly 3%-5% of total revenue, making reverse logistics a challenge for the management.

Examples of Reverse Logistics H&M H&M accepts old clothes from the customers of any brand and use them in their all recycled clothing line. This creates customer engagement and sense of belonging to the brand. Amazon Amazon uses the help of third party vendors such as FedEx, Genco and many other small vendors to handle reverse logistics operations. The return policy creates trust in customers that the product is of good quality resulting in less return.

For example, Raul Castilla, director of reverse logistics at Wal-Mart, mentions that the firm, through its regional return centers, processes 45 million cases of returned merchandise in the form of returns, refurbishments, and disposals.

Apple Apple gives their customers an offer to exchange their old apple phones and get a discount on new handset. The old phones’ parts are then reused in manufacturing. Product Return Management (PRM) & Service Parts Management (SPM) PRM and SPM, which can be viewed as partnering solutions, are the two main opportunities within reverse logistics Momentum | Mar’ 20 Edition, Vol. XI

In addition to existing overheads of managing and optimizing cost of returned goods, these are other issues that 7

Reverse Logistics : A view more to Cost Benefit Analysis

Contribute to the irrational difficulty in handling reverse logistics. Some of them are discussed below: Tracking Product Value: It is difficult to track the value of returned product, as it is difficult to know the useable status of the item as the item has value less than the original product but more than zero.

unforeseen transportation.

damages

during

Challenges, such as these, do not simply go away. Unfortunately, customers do! Hence, there is a need to have an efficient reverse logistics strategy. Strategies to handle reverse logistics Following are the strategies suppliers are adopting to improve their reverse logistics operations:

Tracking Warranty and Routing Status: When reverse logistics value chain includes repairs managed by OEMs or the items being returned are done so under warranty, the process of mitigating loss becomes even more complicated.

New Return & Repair Policies: Companies are using easy return policies as a competitive advantage. However, companies are trying to mitigate the abuse of these policies. For example, Amazon customers had their accounts closed because of returning too many items.

Handling Dealers and Contractors: While dealing with third party organizations the firm must ensure that while replacement parts been sent to distributors, defective goods are also returned by them.

More Collaboration with Retailers: Returns are a significant issue in the electronics industry where they in 2018 top $10 billion per year, according to the Consumer Electronics Association. Manufacturers collaborate with retailers like Walmart, Best Buy, etc. to liquidate the items, and at least 95% of the items get resold.

Physical State of Goods Returned: Products when returned may come back with or without packaging, thus resulting in inconsistent packing volumes and Momentum | Marâ&#x20AC;&#x2122; 20 Edition, Vol. XI

Rethinking logistics and transportation: In order to reduce customer shipperâ&#x20AC;&#x2122;s cost, suppliers are combining delivery and pickup. For this new infrastructure 8

Reverse Logistics : A view more to Cost Benefit Analysis

facilities are being created by either expanding existing facilities or opening Centralized Return Centers to improve the efficiency of returns.

Future of reverse logistics The immediate future of logistics and distribution is omnichannel â&#x20AC;&#x201C; order anywhere, buy anywhere, including web, post, and physical point of sale. A survey from DC VELOCITY suggests that to increase sales, market share, and customer loyalty, supply chains are moving towards omnichannel business.

Optimizing Processes with Data: In order to reduce the need for customers to send back the product, manufacturers are now using IoT, sensors, and connectivity to monitor, troubleshoot, or repair products. Some are also using easy-to-replace hardware and components that can be sent to consumers for self-repair. They are also trying to analyze the data to predict the flow of returns.

Reverse logistics can decrease the return processing costs by approximately 25%, increase productivity by 10%, increase net profits by 2 - 5%, and increase customer satisfaction and retention by a lot, if appropriately implemented. Otherwise it can haunt a company later by decreasing customer satisfaction and increasing customer switch to other retailers/businesses. The reverse logistics market is no longer unorganized, but with the growth of e-commerce players like Amazon and Flipkart, which prefer organized players, this segment has seen a bunch of new companies like Mahindra & Mahindra, Dixon, RT Outsourcing, DHL, RLG, etc.

Example: LOCUS, an Indian startup, uses AI to help businesses map out their logistics. Even in handling reverse pickups, clients can take into account nuances like the volume and fragility of the product being returned. The solution provided by them resulted in a 25% increase in operational efficiency and a decrease in operational cost.

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Reverse Logistics : A view more to Cost Benefit Analysis

Why reverse logistics will determine the future of your business - Apoorv Verma Mukesh Patel School Of Technology Management And Engineering (MPSTME), Mumbai The customer then rambles around spreading ill-will regarding the company and its services, hurting business and profits. If not handled innovatively, it could lead to a permanent disfigurement of the company’s reputation. And believe me, that’s one region you don’t want your company to be treading in to.

Let me be straight-up honest with you. When I first heard the words ‘reverse logistics’, I visualized a management-guru well into his 50s throwing this word around in a high-class party. Yes, it’s a mouthful. And extremely omnipresent. Chances are you may have very well triggered a reverse logistical cycle at least once in your lifetime. I am talking about those ‘hassle free-returns, no questions asked’ advertisements which Flipkart and Snapdeal keep on tossing around. What this fancy concept stands for is trivially simple. Let me break it down for you.

So now I will officially (and academically) define the concept of Reverse Logistics. ‘Reverse logistics deal with the handling of the product after it has been sold, in the form of handling returns, then tinkering with the idea of how it can be reused in order to extract the most amount of value from it. It also answers the question of handling and disposing hazardous wastes which are a constituent of many products. ’With that out of the way, let’s get to the meat of this concept.

Now imagine that you ordered a smartphone from an ecommerce giant like Amazon, and unironically, you find the screen to be cracked upon delivery. Then, unsurprisingly, you placed a complaint and within a couple of days a delivery executive rang up your door and collected the damaged smartphone, without drilling you with a million questions. In essence your smartphone travelled back along its logistical path to the seller. There you go. This should make things more digestible.

Now why would a company add this DLC of sorts to an already cumbersome logistical chain? Can it really boost profits? The answer turns out to be yes. Besides the very obvious issue of a company’s reputation being harmed, this concept may very well prove to be incredibly beneficial economically, competitively, socially, environmentally, you get the point.

With the exponential rise of ecommerce giants like Amazon and Snapdeal, innovators stumbled across the scenario of a customer returning a product due to different factors like damages, lowquality, general dissatisfaction, or anything for that matter. It isn’t difficult to deduce what happens next. Momentum | Mar’ 20 Edition, Vol. XI

How is it economically favourable for a company to invest in such a network? Well, the amount of value which can be extracted from returned goods is enormous. In many of the cases, after 10

Why reverse logistics will determine the future of your business

Well, the amount of value which can be extracted from returned goods is enormous. In many of the cases, after thorough diagnosis, it turns out that the returned product is minimally damaged and only with a small number of repairs can be sent back to the shelf for sale. Or if the product is damaged beyond repair, it can be salvaged and its working constituents can be used as spare parts or recycled from the ground up. This is what those unofficial phone stores actually do, strip the damaged product and sell it for recycling.

damage while also increasing profits for the company. It’s a win-win situation for literally everyone. It is also important from a recruiter’s perspective, as the next generation of employees actively seek out companies which are accountable to the environment by reducing waste, optimal usage of resources along with a general sense of belonging. I guess that this is enough evidence for you to believe the fact that reverse logistics are the dark horse of any productbased business. Largely overlooked, at least in the past, but insanely important for every socio-economic facet there is. Now broadly speaking, there are 2 ways in which a company can implement a reverse logistical chain, a centralized or a decentralized methodology. They mean exactly what you think. If all the aspects of dealing with a product in a reverse chain are handled by a central facility it is called a centralized approach. And a decentralized approach is the one wherein the concerned product is handled at and transferred among multiple certified locations for extracting the maximum amount of value from the product.

According to a white paper by UPS, a famous logistics company in the USA, it is estimated that the secondary market for electronics is estimated to be worth $15 billion in the USA alone. You don’t have to be a statistician to crunch the same numbers for the Indian context where such markets thrive. A company is nothing but stupid for willingly ignoring such an economically juicy aspect of the business cycle. Companies surely cannot miss out on gaining social acclamation as it positively affects everything, from reputation to profits. The modern day ‘woke’ culture revolves around the fact that both the involved parties, the buyer and the seller have to be highly conscious of their environmental impact. Unsurprisingly, reverse logistics also involve efficient use of resources along with ensuring the fact that hazardous waste is successfully disposed, thereby reducing the subsequent environmental Momentum | Mar’ 20 Edition, Vol. XI

It also isn’t too tough to figure out which methodology would be preferable for an industry. The term asset value loss clearly means that items like computers and mobiles lose their value pretty quickly from both the technological and utility standpoint. Then its unquestionable that such goods should be either redirected for repairs or 11

Why reverse logistics will determine the future of your business

salvaged for parts rather quickly in order to retain and extract as much value from them humanly possible.

rewarding way the value of this product can be transferred to the market. The importance of having a well-oiled reverse logistics network is highlighted by an American study claiming that nearly 20% of everything that ever hits the shelves of a market is returned back to the manufacturers.

You also don’t need to wonder much about the industries which should adopt the centralized approach for maximal value retention. Automobiles, heavy machineries and electronics, industrial level equipment is better handled at centralized locations, right under the direct observation of the concerned industry to efficiently figure out the future of the product at hand.

This value is certainly variable (the irony hah) but is definitely a really large chunk of the market, having its worth running in millions. All in all, one thing can be claimed with absolute certainty. Numbers don’t lie, no matter the industry, no matter the scenario.

It also is common sense that such complex and economically crucial devices be handled with utmost dexterity and professionalism directly by the very people who manufactured them, for stupidly obvious reasons.

You’ve got more than enough empirical evidence in support of the fact that the backward cycle of a logistical chain cannot be ignored by any business, period. The only way to improve the logistical aspect of a business which in its entirety lies in our hands is optimization. The means don’t matter, irrespective of being automated or not. One of the only aspects with tangible importance in a business are results. And they are exactly what reverse logistics accomplish.

If you were to take a holistic view, it will be pretty evident that modern organizations are proactively considering the integration of reverse logistics into other dimensions of their business to achieve maximum interoperability among aspects like deciding the most optimized path to put a product on according to its current asset value and also the most economically

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Why reverse logistics will determine the future of your business

Importance and Impact of Sustainable Supply Chain - Vishnu Bajpai International Management Institute, New Delhi "ethical" supply chain isn't inherently the same as a "sustainable" supply chain. A responsible supply chain generally promises it will operate within all legal and ethical systems. This does not however guarantee longevity. A balanced supply chain, considering the economic and social reference points. The sustainability chain needs both participants to understand whether their systems and behavior will be helped by the long-term environment and the community.

What is supply chain sustainability? Supply Chain Sustainability (SCS) is a holistic view of supply chain processes, operations, and technologies which address the supply chain's environmental, financial, cultural, and legal aspects. Factors that affect SCS include waste, carbon footprint and noise, air pollution, labor violations, deforestation and workers ' health and safety.

Enterprises can conserve energy, automate procedures, discover new developments, save money, increase productivity and foster organizational standards by maintaining and optimizing environmental, social and economic efficiency within supply chains. Research shows growing business argument for sustainability in the supply chain.

Need for sustainable supply chain? Guiding supply chains in a more rational way has grown from the laudable hope to the need for long-term viability, motivated by consumer demands, through regulation and a growing business case. A green supply chain has much more to offer than climate, though that is where customers should focus their attention. Sustainability is a synthesis of the economic, environmental, and societal climate. A successful supply chain will cease to destroy both the environment and the company itself. It's also important to recognize that an Momentum | Marâ&#x20AC;&#x2122; 20 Edition, Vol. XI

Importance and Impact of Sustainable Supply Chain

though you may not have the sort of persuasive power over the network, like Target or Amazon, you may be able to influence the manufacturer's policies. 4. Technology Leverage Engineering has turned management of the supply chain from creativity to research. Continued technological advances provide a once-inconceivable capacity for companies to evaluate, adjust, quantify, and automate operating processes such as inventory management, order and delivery management, and transportation management. Steps to achieve supply chain sustainability 1. Making a detailed map If there is no practical transparency in your supply chain nothing can be done. In reality, very few companies understand their entire supply chain consistently, which is more complex and global than ever before.

5. Collaboration Collaborating Individual efforts do not address specific problems relating to the supply chain, either personally or at company level. Often competing companies share parts of supply chains and all can benefit from partnering to establish and improve sustainable practices. While collaboration with rivals can be counterintuitive, combining green activities approaches not only achieves objectives, but also provides an opportunity for positive community awareness and enhanced trust in company and consumers.

2. Educate and shift society Most conservation initiatives include not only structural adjustments but behavioral and community changes as well. An important step in achieving profitability is to receive buy-in from your own staff and from vendors. Training and preparation programs can more efficiently bind us to the task. Display success stories and use successful case studies to build momentum across the chain and in the business.

Examples of sustainable supply chain GlaxoSmithKline(GSK) Most companies found a large amount of CO2 pollution from outside operations. The drugs company gsk is one that has recognize the ability to significantly reduce the carbon footprint 80% in the case of gsk derives from indirect deforestation irrespective of weather itâ&#x20AC;&#x2122;s operations are outsourced, and has begun to look at how to fix this.

3. Encouraging and supporting upstream Conservation cannot be done autonomously. Upstream you'll need help and collaboration on the way back. Even Momentum | Marâ&#x20AC;&#x2122; 20 Edition, Vol. XI

Importance and Impact of Sustainable Supply Chain

Nike The Popular company of sportswear has taken great strides to "clean" the supply chain. The website of the organization states: "Each brand and partner, each choice, every portal, every phase from idea to reclaiming brings cause and effect to an almost endless ecosystem. To provide as much consistency as possible to this environment, we have boiled it up to seven simple stages â&#x20AC;&#x201C;Prepare, Build, Create, Pass, Sell, Using, Reuse. Adobe Systems In 2012, an environmentally sensitive overhaul of its technology packaging was initiated by the American software company. In some cases, plastic was discarded and disks were lined with one sheet of cardboard overwrap instead of three, using the technology of a small design company called Martini Engineering. Martini said that the aim was to "dematerialize the product while preserving its longevity and a large surface area for processing in shops."

Marks and Spencer and MAS Holdings The British company partnered with manufacturer, MAS, to launch the first of four' eco-fabrics in May 2008.' The lingerie plant in Thuruliya, Sri Lanka, was planned to be carbon neutral and incorporates energy-saving equipment, renewable energy, waste reduction practices and a healthy working atmosphere. It uses 40% less electricity than similar factories, allowing the launch of the first carbon neutral bra ever by Marks and Spencer.

Toyota For the third year running, the 2013 Best Global Green Brands Report, compiled by international brand consultancy Interbrand, declared the Japanese automaker the world's Best Global Green Brand in June. It was one of the precursors and reduced emissions associated with its logistics processes, achieving results through better use of assets, sharing vehicle transport with other companies, and modal shifts.

BT (British Telecom) BT has three climatic-change management standards in its procurement policy system. Firstly, to leverage the efficiency, flexibility and ingenuity of its market supply base and to enable manufacturers to reduce the environmental impact (EI), secondly, that the energy consumption and EI of a company is required in bidding, and thirdly, that the energy consumption and EI of any replacement service is smaller than its predecessor. Momentum | Marâ&#x20AC;&#x2122; 20 Edition, Vol. XI

Importance and Impact of Sustainable Supply Chain

UPS The American logistics company UPS has recently announced that its its 8-class 700 trucks will be fueled by liquefied natural gas (LNG) from the end of 2013 until 2014. The company also supplies paperless invoices for international shipments and claims to use pioneering strategies for fuel conservation.

signing 1,500 up to its Responsible Procurement. Maersk had already achieved its 2020 target of reducing CO2 emissions from 2007 levels by 25 percent per container in 2012. Johnson and Johnson The American maker of medical devices and medicinal products is a rare example of a non-tech or industrial business reaching the carbon reduction heights. Although it has an extensive supply chain, it continues to be dedicated to ensuring that its principles remain compatible with activities conducted on its behalf.

Line While it may seem insane to include a container ship corporation in a green listâ&#x20AC;&#x201C; said to add 4 percent of the world's greenhouse emissionsâ&#x20AC;&#x201C;Maersk deserves praise for evaluating its 2,000 vendors and

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Importance and Impact of Sustainable Supply Chain

Sustainable supply chains: Their Potential to Develop New Value Chains - Manasvi Bansal TERI University, Delhi use of available resources, strong governance practices and ethical decision making at all levels. All stakeholders in the supply chain have to be equally responsible and sensitive towards being sustainable. Greening an organisationsâ&#x20AC;&#x2122; supply chain has the potential of creating a significant impact in the sphere of human rights, fair labour practices, environmental protection and corruption. Sustainable supply chains do not just create value, they create shared value; value for all the stakeholders involved in the chain.

this economic world, organisations want to sell the goods they have produced and consumers want to receive these goods. What makes this transaction possible is a smooth and well-connected supply chain. All that was needed was a smooth supply chain. The transaction was as simple as this until a few years back. Today consumers not only want goods, they want goods from sustainable and responsible organisations. Supply chain of an organisation involves all individuals, partners (like suppliers or contractors), resources, technology and activities that are involved in the production and sale of a good.

The need for greener supply chains arise not solely out of environmental concerns, but also out of economic and social concerns. We all want stability, and so do organisations. And a sustainable supply chain creates exactly that; stability. Businesses are in the businesses for consumers and when consumers start demanding sustainability, they should start embracing sustainable practices across their premises as well as across their supply chains. Organisations should also understand there exists a solid business case for greening their supply chains.

Being a sustainable organisation does not guarantee a green supply chain. An organisation itself can be extremely sustainable, with efficient usage of electricity, water and fuel and with fair labour practices, but its supply chain may not be sustainable. Greening the supply chains is easier said than done. Supply chains are long, complex and fragmented in some cases. Transforming into sustainable supply chains is a tiresome task that requires time, energy and of course money. However, there exists no other option today. Organisations need to be committed to greening their supply chains not only for environmental and social gains; but for economic gains as well.

Contrary to popular opinion, sustainability does not solely encompass environmental stewardship. It entails overlapping of the economic, environmental as well as the social aspect. A greener supply chain helps creates value under all these three heads. Shared value by shifting to sustainable supply chains can be in the form of

A sustainable supply chain encourages minimum wastage of resources, effective Momentum | Marâ&#x20AC;&#x2122; 20 Edition, Vol. XI

Sustainable supply chains: Their Potential to Develop New Value Chains

increased resource efficiency, reduced operational cost, tapping of new consumers and markets and reducing the risks of operating. Supply chain sustainability also entails regulatory compliance, enhances reputation, reduces waste, ensures proper health and safety standards and helps prevent workplace tragedies.

more economic value. Most importantly, green supply chains ensure risk mitigation. Risk mitigation again incorporates all 3 types of risks: economic, social and environmental. Economic risks are mitigated as the cost and availability of materials is not an issue owing to their efficient utilisation. Social risks are taken care of by promoting fair labour practices and by ensuring good working conditions and wages. Environmental risks are alleviated by opting for practices of resource efficiency and by minimum wastage of resources.

Customers are not the only stakeholders that demand green supply chains. Today there are regulatory pressures from governments, pressures from labour unions, pressure from non-governmental organisations and from within the organisation itself. Failing to shift to a sustainable supply chain results not only in polluting the environment, but also results in pollution of reputation and customer loyalty for organisations. Organisations do not function in a vacuum; they are related to and influence a large set of stakeholder groups. They have the power and potential to influence all these groups positively.

Since sustainable supply chains help in developing and sustainable a stable longterm brand image, it would help increase the competitiveness of organisations. Customers would definitely be attracted, but such an image and position would also help attract investors since they would be assured of the bright future prospects of such organisations. Transparent supply chains, being accountable with respect to supply chain partners, possessing a solid customer loyalty and demonstrating environmental stewardship are all key tools for drawing investors towards the organisation.

Apart from reducing pollution, water, electricity and fuel use, green supply chains need to ensure that they promote equality and fairness. Working conditions and hours have to be humanised and fair wages have to be ensured in a sustainable supply chain. Empowerment of all stakeholders in the supply chain would help achieve economic, social and environmental gains. There exists no place for corruption and exploitation of any kind in sustainable supply chains. Sustainable supply chains are transparent, efficient, fair, faster and are capable of generating Momentum | Marâ&#x20AC;&#x2122; 20 Edition, Vol. XI

Every organisation is different, and so is their supply chain. For example, agribusiness organisations can work with their sourcing farmers to avoid contamination of ground water by agricultural fertilizers by using natural fertilizer. Similarly, organisations in the business of heavy tools and machinery can collaborate with their suppliers to produce tools with technologies that use lesser energy. 18

Sustainable supply chains: Their Potential to Develop New Value Chains

Organisations in the business of fashion can create global teams that keep a check on the working conditions and wages at the end of contractors as well as subcontractors.

of Things, it is easier to monitor and report on social and environmental indicators. Technology can help monitor and report on working conditions, accidents, resource usage and resource wastage. Monitoring on an on-going basis helps improve processes throughout the supply chain. Everything is possible but not without embedding sustainability into operations and more importantly into the mindset and culture of organisations.

Today, shifting to sustainable supply chains is easier thanks to technology. By leveraging new technologies like artificial intelligence, big data analytics, machine learning, predictive analysis and Internet

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Sustainable supply chains: Their Potential to Develop New Value Chains

Shift from Cradle to Grave to closed loop Cradle to Cradle supply chain - Raj Singh K. J. Somaiya Institute of Management Studies and Research (SIMSR), Mumbai Introduction

profoundly affecting the air we breathe, the water we drink, the climate we live in and the diseases we suffer from. In response to widespread environmental degradation, governments and industries have adopted a strategy known as “ecoefficiency”—minimizing waste, pollution, and natural resource depletion. Many companies have realized significant cost savings and reduced environmental impacts by embracing eco-efficiency. But long-term prosperity depends not on the efficiency of a fundamentally destructive, cradle-to-grave system. It depends on the effectiveness of processes designed to be sustaining, healthy and renewable in the first place.

“Be

good, not less bad”, Global sustainability guru William McDonough. In our densely populated world, the landscape is a product of culture: it has turned into a production landscape. Our future perspective should lie in the sustainable development that nature gives us as an example. It is time for us to rethink the way we live, work, design, build and consume. For years, environmentalists have been persuading us to do more with less in order to make change happen. This is simply not enough. We must fundamentally change the way we design our products, industries and cities. Our current recycling methods are inefficient. They only serve to perpetuate the “cradle-to-grave” manufacturing model that we’ve been using for hundreds of years. Cradle to Grave Our manufacturing systems of the Industrial Revolution are based on a oneway, cradle to-grave stream of materials— a model that takes, makes, and wastes. Materials are mined and refined, products are assembled, distributed, used by consumers, and then discarded to landfills or incinerators. Each step in this stream typically creates unintended environmental and health impacts. The advent of modern industrial processes has had the added consequence of making many processes and materials more toxic. Today, the legacy of the cradle-to-grave model is routine headline news, Momentum | Mar’ 20 Edition, Vol. XI

Cradle to Cradle Cradle to Cradle Design offers an alternative. It rejects the assumption that human industry inevitably destroys the natural world, or that the demand for goods and services is the ultimate cause of environmental ills. Instead, it embraces abundance, human ingenuity, and positive aspirations. It develops product for closedloop systems in which every output ingredient is safe and beneficial – either they get converted into biological nutrient to biodegrade naturally and restore the soil, or into technical nutrients to get fully recycled into high quality materials for 20

Shift from Cradle to Grave to closed loop Cradle to Cradle supply chain

Cradle to Cradle Cradle to Cradle Design offers an alternative. It rejects the assumption that human industry inevitably destroys the natural world, or that the demand for goods and services is the ultimate cause of environmental ills. Instead, it embraces abundance, human ingenuity, and positive aspirations. It develops product for closedloop systems in which every output ingredient is safe and beneficial â&#x20AC;&#x201C; either they get converted into biological nutrient to biodegrade naturally and restore the soil, or into technical nutrients to get fully recycled into high-quality materials for subsequent product generations.

sustainability footprint. Herman Miller applied all its savings gained from energy efficiency measures towards renewable energy certificates and purchase agreements with energy generators to achieve 100% renewable energy for its worldwide operations while Steelcase is now the sole sponsor of a wind farm in Texas producing 35 million kWh of clean electricity each year which is the largest wind energy investment in the furniture industry.

Cradle to Cradle model operates on three principles

around the world. The company worked with suppliers to develop programs that would allow its plastics to be recycled with minimal effects on quality. It gained two major benefits from implementing cradleto-cradle processes. It was able to give a powerful motivational message by

Another successful adopter of cradle to cradle model is DSM, the Dutch plastic giant which employs 21,000 people

Waste is equal to food.

Use renewable source of energy.

Celebrate Diversity.

Some of the early adopter this model came from furniture industry- Herman Miller and Steelcase to other brands such as Allsteel and Keilhauer who used this model to define and improve their Momentum | Marâ&#x20AC;&#x2122; 20 Edition, Vol. XI

Shift from Cradle to Grave to closed loop Cradle to Cradle supply chain

minimizing its effect on the environment, inspiring both employees and suppliers to work on more sustainable products and designs. Also, the focus on closed loop systems led to more product innovation.

industrial revolution began. If it’ s guidance is widely applied, at every level of industry, productivity and profits will no longer be at odds with the concerns of the commons. We will be celebrating the fecundity of the earth, instead of propagating the way of thinking and making that eliminates it. Thus, we will be creating a world of abundance, equity and health that will sustain prosperity for the future generation.

Conclusion Hence Cradle to cradle thinking will lead to “paradigm shift”. And it should be a welcome path out of the “cradle to grave” approach we’ve been following since the

Momentum | Mar’ 20 Edition, Vol. XI

Shift from Cradle to Grave to closed loop Cradle to Cradle supply chain

Reverse Logistics : Unstated hero of the circular economy - Sudeep Kumar Sahu & Anikhesh Pani Xavier Institute of Management, Bhubaneshwar

“This is not working again, I need to

returns are well placed to form the framework of the future in this regard.

buy a new phone”, my roommate yelled. It has been just five minutes he jumped again, “this website is offering to exchange my old phone for Rs5000/- less from the price of my new phone.” 3 days later, he got rid of that metal junk to be glued to another. This phone after refurbishing would be sold to another customer again. Many businesses have implemented reverse logistics.

Many businesses have realized that reverse logistics has a vital strategic role in their actions which can enable them to get above-average returns on their investment. Managing the activities associated with product return and its refurbishing has proved to be a successful business. Companies have now become aware of unorganized markets of secondary products and their potentials.

What is Reverse Logistics? Imagine a world where the hidden source of value creation in a supply chain is taking a step back on the intended route. Reverse logistics, bluntly put, is simply this technique. But as we go deep into this new terminology, it can be well established as the new buzzword in the field of operations.

Though many companies have started looking at it as part of their core competence, reverse logistics are yet to be considered as a strategic lever for any organization. Companies have experienced the tangible benefits that have been created by recapturing from unproductive assets resulted by returned merchandise; for example, improved cash flow, reduced inventories etc. In the case of E-commerce businesses, there is a competitive pressure to provide the customer with an efficient and effective product return process. Also, compression of the product life cycle and introduction of regulatory requirements on products causing environmental hazards have increased the need for reverse logistics.

Reverse logistics refers to the step by step process involved in planning, implementing and managing inbound flow and storage of goods along with related data for the sole purpose to recover value. In mainstream reverse logistics, the product goes back minimum one step with respect to the traditional(forward)supply chain. Major instances of reverse supply chain mechanisms can be seen mostly in end-of-use returns and end-to-life returns. Although B2B and B2C systems have incorporated this methodology in recent times, the escalation into large scale adoption is yet to materialize. Refurbishing and remanufacturing coupled with product recalls as well as warranty Momentum | Mar’ 20 Edition, Vol. XI

Advantages of large-scale implementation of reverse logistics can no longer be ignored by the business community. The world is moving towards a sustainable future and this segment of supply chain management , if implemented 23

Reverse Logistics : Unstated hero of the circular economy

efficiently, can surely put any organization at he top of the food chain. Few benefits include:

they work together in achieving a greater good for the organization in particular and society in general Inspired Leadership: The features of a sustainable market leader is hard to copy if one is not aligned with their core competence. This shall play a detrimental role in making the first movers in this nascent industry a source of inspiration for the industry stalwarts to follow and establish them as the torchbearers of the sustainable future.

Increased Asset utilization: By maximizing the usage of ingredients involves in overall process of providing the end user with any product or service, the company shall be improving its economy of scale factor by multitudes. Customer Satisfaction: By actively getting the customers involved, the feeling of being a larger ecosystem aimed towards developing a greener future shall act as a motivating factor which can not only improvise the stickiness factor but also project the corporation as a well-suited avenue for future collaboration. Future ready Workforce: If workers are made sensitive to the ethical aspect of such working cultures, they shall be prepared to maximize their efficiency as

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In a nutshell, reverse logistics is set to bring the next wave of operational restructuring for the supply chain world. The future is waiting with open hands. We need to untie the shackles of today to unravel the magic of tomorrow. A careful look in this â&#x20AC;&#x2DC;reverseâ&#x20AC;&#x2122;-view mirror will surely guide us ahead.

Reverse Logistics : Unstated hero of the circular economy

Green Supply Chain Management

- Dhruvi Shah K J Somaiya Institute Of Management Studies and Research, Mumbai of-life management of the product. There have been very few studies related to sustainable supply chain management or green supply chain management (GSCM) till now. Some researchers have tried to examine the concept. Shang et al. (2010) conducted a study based on six dimensions of GSCM i.e. eco-designing, green manufacturing and packaging, environmental participation, green marketing, stock and suppliers. It could be inferred from the results that the firms which were focusing on green marketing had become successful competitors against their rivals. Considering the consumersâ&#x20AC;&#x2122; behaviour for greener products as an important business issue in today's age, Wang et al. (2009) developed a methodology to identify those customers who were ready to pay more for green products.

With every passing day, consumers are getting more and more aware about green issues, global warming, pollution and the impact of non-environmental production in nature. Consequently, they also want to know more about the goods and services they pay for. The companies are therefore under immense pressure to answer these questions in terms of the Green Supply Chain Management processes of it. Organisations continue to use toxic chemicals, wasteful packaging, and transportation practices that produce clouds of gases which contribute to global warming. However, from materials acquisition and manufacturing to packaging, logistics, and distribution, every stage of the supply chain offers opportunities to reduce waste. At every stage of the cycle there is pollution in terms of air and water. Here, recycling and effective use of the resources can significantly help in reducing the pollution. GSCM measures not only improves their performance levels but also help in protecting the environment. With the help of GSCM operational efficiencies can be achieved.

Some companies have found a very interesting opportunity in GSCM to fulfil the polemic goals of earning money and taking care of the planet at the same time. They have been able to attract consumersâ&#x20AC;&#x2122; attention to green products and services, thereby increasing their profits. In fact, several organizations have been able to demonstrate the existence of a strong link between upgraded environmental protection and positive gains. A few prominent examples are Maersk - It is almost impossible to believe that a container company can actually be green since they continuously face bad press.

But what exactly is GSCM? It can be explained as the integrated environmental logic into Supply Chain Management. It includes all aspects of the production process - design, raw material purchasing, manufacture and delivery. It also considers after the useful life or end-

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Green Supply Chain Management

But Maersk has been able to do something that no other container company has - the reviewing of its two thousand suppliers and the signing of fifteen-hundred of them to its Responsible Procurement. This company achieved the goal of reducing carbon dioxide emissions by 25% for every container. Even though shipping companies throughout the world have been suffering from a terrible decline, this company is still up in the rankings. Toyota - Toyota is hailed as the world’s Best Global Green Brand since 2010 by the 2013 Best Global Green Brands report. The secret lies in it's efforts to reduce emissions and green logistics processes, among others. Adobe Systems - In some of the areas of this software company, plastic is no longer used. Also, discs are packed with 1 cardboard layer overwrap instead of the traditional 3. Nestle - Nestle has strived for the same goal. This Swiss multinational food and beverage company tried to address the concerns related to rural communities, safety of soil, water and air through efficient use of water disposal techniques. Due to their sustainability efforts, around 35+ factories of Nestle have achieved the target of zero waste for disposal in 2012.

meets the customer expectations. It can rightfully be described as the best practice to be followed since it reduces inventory, saves space and energy. Hence, lean manufacturing also contributes to a greener environment. Some of the benefits that can be realized out of this initiative are • Continuous Innovations – It helps to reduce risk and gives momentum to innovations. • Continuous Improvements – Analysing GSCM activities generally leads to better processes and constant improvements. • Continuous Interactions – It entails negotiating policies with various stakeholders like suppliers and customers, resulting into better alignment of business processes and principles. There are a lot of challenges that are faced while implementing green supply chain management. These are issues which are faced especially by the value chain of companies that go green but don’t have a good plan ahead. The challenges include the first one is the high level of uncertainty or ambiguity about market position. Going green is not always a guarantee for improved income. On the other hand, suppliers and manufacturers are continually concerned about the basic risk of GSCM practices getting very expensive in comparison to other companies in the market. Subsequently, that means avoiding all kinds of costly GSCM practices. Nevertheless, governments all over the world are encouraging to get greener day by day in order to get tax exemptions, which is a very good incentive.

Supply chain managers can play a great role in developing innovative environment free technologies to address the problems faced by economies and communicating to every stake holder in the chain. Here, comes the concept of lean manufacturing. This essentially involves eliminating waste in every stage of supply chain. It primarily focuses on producing economically and environmentally friendly products which Momentum | Mar’ 20 Edition, Vol. XI

Green Supply Chain Management

Optimizing the supply chain of any company means giving customers what they ask and giving it when they need it, while making sure they pay as less as possible. In the industrial world, many businessmen consider this as counter intuitive to what it actually means. The truth is that more the supply chain of a company is environmental-friendly, greater is the attention it garners and better is the marketing it gets. When the end consumers become aware of the fact that a company is saving the planet a huge amount of plastic tons, tons of heavy metals in water and air, etc., they feel better when buying these products. They also talk about it and invite others to do it

Momentum | Marâ&#x20AC;&#x2122; 20 Edition, Vol. XI

through their social networks. People donâ&#x20AC;&#x2122;t like to be the ones responsible for destroying the planet. A company that gives them an opportunity to consume without harming the nature badly is always sought after. In the long term, designing and implementing a nature-friendly supply chain helps the companies, consumers and most importantly - the planet. Waste is driven from the company when GSCM is implemented and when that happens, there is always a cost reduction in all processes. Obviously, a well detailed plan is essential, with the wise advice of experts.

Green Supply Chain Management

Startups in the field of Operations

Cruz Foam Founded by John Felts, Xiaolin Zhang and Marco Rolandi, a US based company that came up with a unique idea of making bio version of Styrofoam using shrimp shell waste. They presented their idea in Spring Summit 2018, California.

Elevate Structure Founded in 2012, this company brought sustainability in real estate sector. It is based out of Hawaii where a few residential engineers came together with a dream of making real estate profitable through sustainable development. They planned on doing this by building eco friendly structures.

As per the report of World Economic Forum, by 2050 there will be more plastic in oceans than fishes. Standard Styrofoam is made from petroleum (oil) and is the second most common plastic found on beaches. Also, polystyrene foam takes 500 years to degrade

The building is designed in the shape of a tree i.e. from ground to a few feet height is a pillar (5 feet-by-8 feet pedestal) that looks like trunk of the tree and above the pillar is the house/structure. This reduces the utilization of ground for construction.

Hence, Cruz Foam came up with an idea of converting Chitin, a biopolymer found in shrimp shells, into foams. They have achieved the mechanical properties of polystyrene and polyurethane structural foams. They have planned to implement the new Styrofoam in making surfboards first, and then moving on to coolers for delivery market.

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The hollow pillar/trunk can be utilized as a void for water storage. The pedestal design also provide parking space underneath the structure. This design is ideal for cafes, offices, retail stores. Elevate Structures plans to bring more such innovative ideas in real estate sector and to grow internationally as a company. Below is a Elevate Structure construction.

Startups in the field of Operations

Bext360 Founded in 2016 and based out of Denver US, they provide comprehensive and measurable accountability for critical supply chains. Bext360 uses SaaS platform as it gives quantifiable measurements and blockchain traceability for sustainability. The major supply chains on which Bext360 focuses are coffee, seafood, timber, minerals, cotton and palm oil. The company also plans to implement it in Cobalt mining ( used in batteries ) to ensure transparency in process and to identify mines that use child labor.

goods and also sort them. The machines in which these sensors are installed are also describes as â&#x20AC;&#x153;coinstar-likeâ&#x20AC;?. The data obtained by these sensors are stored in block chain. It also includes data regarding quality. AI and machine vision take this data and confirm that the goods have the same quality when they reach customer as the ones shipped. This initiative is a boon to farmers and miners as they get the transparency in the process and also they can be paid immediately depending upon their product quality.

They take the help of sensors to assess

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Startups in the field of Operations

What’s New in Forse at SIMSR?

OpsQuest during Melange: Simulation Game and Treasure Hunt was treasure hunt round. Total 86 teams from all around the India registered for the quiz, out of which 8 teams were shortlisted for the simulation game and treasure hunt round.

The FORSE organized an event called Opsquest in annual college fest Melange, which was scheduled to be held on 1415th Feb, 2020. This event had been organized in association with The Rotaract Club of Smart City Navi Mumbai, an NGO called Seva aur Sahyog, Federation of Maharashtra Stationary Manufacturers and Traders Association and Ankur ELI (an initiative taken by the students of KJ SIMSR which looks after the education of underprivileged children).

The treasure hunt round of Opsquest was designed in a very unique way to implement concepts of procurement and supply chain in real-time on the streets of Mumbai with an objective to contribute to society. The participants were required to strategize their movement across the city of Mumbai with an aim to procure predecided items. The participants were provided with a map and a fixed budget for within the city movement. The route taken, the number of items procured, money spent will be some of the criteria for assessment. The teams competing would have to travel places by cracking various clues and collect the stationeries from the volunteers present at the clue points. There were also various fun-filled activities which would be performed by the teams in order to get the clues from the respective clue points. The event was big success. Participants found it very unique and challenging event.

This event was conceptualized and designed for the purpose of serving the society - procuring necessary stationeries like drawing books, story books, writing pads, water bottles, geometry boxes, etc. and distributing them to the children of Ankur ELI.

The first round was online quiz. It was followed by simulation game round in the campus. Simulation game was divided in four stages demand forecasting, procurement, handling and transportation. The game helped participants applying knowledge of operations concept practically. Final round Momentum | Mar’ 20 Edition, Vol. XI

What’s New in Forse at SIMSR?

OpsQuest (Prebuzz event of POMS): Simulation Game What’s a better way to learn than to implement the theoretical concepts learnt in class in real-life situations? To serve the said purpose, we at FORSE came up with our very own Simulation game wherein participants were made to put on their management hats and solve practical problems in order to progress to the next level.

A daunting task indeed, but the output was loved by one and all.

The basic plan was to replicate the Operations and Supply Chain scenario of a problem faced by managers today. Concerted efforts were undertaken to merge the simulated environment as closely as possible with the reality. The idea had to be curated from scratch, and required us to consider the various aspects of supply chain management as well as their feasibility. The game was divided in four stages namely • Demand • Forecasting • Procurement • Handling and transportation.

Let’s hear it from the Team (the “brains”) behind this EPIC “Coming from IT and technology background, both of us were very excited from the beginning with the whole idea of a simulation game. But little did we know that it was going to be a journey marred with sleepless nights and undivided attention. Finally, the D-Day arrived and we were quite nervous as so many participants would be playing our game in real time. Our minds were cluttered with thoughts, but luckily, everything went well, no hiccups encountered and excellent feedback from all made our day”. – Neha & Shrishti

Each stage came with its own individual complexity and logic, and required equal attention. The whole understanding of the “logic: behind the game, to make it as real as possible and the desired sync between Microsoft Excel, Visual Basic, and supply chain concepts was the real challenge. The goal was to take the participants through a journey of Forecasting, Procurement and Distribution, and come up with the most feasible solution in as little time as possible with minimal resources.

Momentum | Mar’ 20 Edition, Vol. XI

“Despite numerous hits and trails in order to make the game bug free, it was an amazing experience, right from the ideation to the execution and has helped me achieve something I never thought I could” – Sanket

What’s New in Forse at SIMSR?

FORSEdu – Our YouTube Initiative On December 14th FORSE launched its own YouTube channel FORSEdu. Being an Operations committee, we strive to create value for operations enthusiasts. The channel aims to explain complicated topics in Ops in one of the simplest ways.

so far. Series 1: Procurement • Episode 1: Introduction to Procurement. • Episode 2: Evolution of Procurement • Episode 3: Difference between Purchasing and Procurement • Episode 4: Recent trends in procurement

We embarked on our new journey with a series on Procurement. After completing four successful videos we are currently working on our second series relating to Total Quality Management. The videos are uploaded every Monday on our channel and thus require a continuous effort by our team. The videos and the content are created by our content and YouTube team themselves. Live examples are being used which explains important topics in the format of a story that helps to build the interest of viewers and also enables the audience to relate easily to the topic.

Series 2: Total Quality Management • Episode 1: TQM episode 1 • Episode 2: 7 QC tools of TQM • Episode 3: Introduction to Statistical Quality control • Episode 4: Statistical Process Control and Process Capability Index • Episode 5: FMEA: Failure Mode Effect Analysis. • Episode 6: Quality Function Deployment.

This is just the beginning of a long journey and a lot of improvements and work still needs to be done in this area, however the Forse team is excited to take up this challenge and execute to our best capability. Here’s a glimpse of our efforts

Momentum | Mar’ 20 Edition, Vol. XI

To learn more about our content watch out our videos here on our YouTube channel. http://www.youtube.com/c/FORSESIMSR Stay Tuned and keep Binge watching!

What’s New in Forse at SIMSR?

What’s exciting at FORSE in SIMSR?

discussion on Industry 4.0 and practices in Supply chain and Operational Excellence. The entire event was organized and managed by FORSE.

Entering into a new phase of pursuing MBA, internship is one of the important things hovering over the minds of the juniors. To guide and help them, FORSE conducted ‘Intern Diaries’, an interactive session wherein the senior students who interned at some of the well-known companies like RBI, L&T Financial Services, Hikal, HP, ITC, Colgate etc were invited to share their experience and give valuable insights about the process, the internship period and the way ahead. After the intern diaries, FORSE collaborated with KPMG to conduct Green Belt Six Sigma course for the students of SIMSR. The purpose of this certification was to enable students to understand and inculcate the importance of the precision and reduction of errors in the industry.

Three pre-buzz events for POMS were also conducted. The first one being ‘Sanrachna’, the flagship pre-buzz event, an in-house case study competition made by FORSE students in the field of operations. It was quite an engaging and challenging case which tested students. Another one being ‘The Walk of Green’, the first time ever that such a competition was conducted in SIMSR, wherein students had to come up with ideas to improve supply chains with a green and sustainable overview. The last event was ‘OpsQuest’, FORSE’s very own simulation game. This year a fish simulation game was conducted.

We all live the b-school life not just for the academics but for the extra and cocurriculars as well as it provides holistic development. SIMSR for the first time ever, conducted Production and Operations Management Society (POMS) International Conference with the theme of Supply Chain in Industrial 4.0 in 2019. The two day event involved insightful sessions on various topics like Statue of Unity - Difficulties faced (L&T), Panel Momentum | Mar’ 20 Edition, Vol. XI

What’s exciting at FORSE in SIMSR

For the POMS International Conference, this year we invited students from the German University of Stuttgart to attend the conference under Prof. Dirk Hartel. We all know that co-curricular and extra curricular along with academics are necessary, though all that should not be restricted to the four walls of a b-school. Hence, to imbibe practical exposure, FORSE students had the opportunity for four industrial visits to companies such as TechNova, The Times of India, Cheelizza and BPCL. After conducting these insightful Industrial Visits, the German students were taken for some leisure visits to some of the exciting places in Mumbai. They spent a fun-filled day in Colaba and visited a few temples while returning.

2019. International articles were received from Canada, Australia and USA, apart from various colleges in India for the magazine. This year, FORSE took a step ahead to provide knowledge to its readers and started its own YouTube Channel. The various important terms related to ‘Operations Management’ such as Procurement Planning and Total Quality Management are explained using lucid language and animations to make the videos simple, insightful and exciting. In the annual college fest of KJSIMSR ‘Melange’, FORSE organized Opquest Treasure Hunt on the roads of the Mumbai. This event was designed in a very unique way. Simulation game comprised of forecasting, procurement, handling and transportation. The treasure hunt round of Opsquest was designed in a very unique way to implement concepts of procurement and supply chain in real-time on the streets of Mumbai with an objective to contribute to society. This event had been organized in association with The Rotaract Club of Smart City Navi Mumbai, an NGO called Seva aur Sahyog, Federation of Maharashtra Stationery Manufacturers and Traders Association and Ankur ELI.

FORSE believes in valuing knowledge as well as sharing it. That is why FORSE conducts regular Knowledge Sharing Sessions on topics which will enable students to excel in their interviews as well as help them to gain skills like video making, stock analysis etc. FORSE also has a quarterly magazine which is Momentum which has a different theme in every edition. The International edition of Momentum was unveiled in POMS International Conference in December Momentum | Mar’ 20 Edition, Vol. XI

What’s exciting at FORSE in SIMSR

Article Writing Experience

 Ameya Marathe, Indian Institute of Management, Kozhikode “Blockchain is disrupting the way firms operate and has found numerous applications in supply chain management in multiple industries. Thank you FORSE for giving me the opportunity to explore such a pertinent topic and I look forward to future editions of MOMENTUM.” - Winner and Writer of Application of Blockchain in supply chain management

 Ajith Kumar B, Narsee Monjee Institute of Management Studies, Mumbai “Momentum, the article writing competition, was the perfect opportunity to deep dive into the world of Industry 4.0 which is the culmination of latest developments in the field of IoT and AI. The learnings from multiple white papers, business use cases and leadertalks will be beneficial as I enter the industry.” - First Runner Up and Writer of Digital Twins: Bringing Closer the Reality of the Present and the Future

 Hiral Mody & Pritham Shetty, K. J. Somaiya Institute of Management Studies and Research, Mumbai & Macquarie University, Australia “Being new to this experience of Article writing, I got a chance to actually share my knowledge and pen down my thoughts and views about the topic. It actually taught me how to present my views in a concise manner. Momentum provided me a chance to take some time and do what I like, because as they say “Always find time for the things that make you feel happy to be alive!.” ” - Writer of Application of Virtual Reality, Augmented Reality and Mixed Reality

 Parth Dedhia & Darshak Rairakhia, K. J. Somaiya Institute of Management Studies and Research, Mumbai & The University of Texas at Arlington, U.S.A. “In the process of writing an article, you learn so much more than just penning down few words. It's a collective of research, learning and developing writing skills. I inculcated new paths of acquiring knowledge and skills. Momentum Article Writing was the perfect launch pad for me coming into this world of MBA. Thank you for this experience FORSE.” - Writer of Get, Set, Drone - The New Mantra

Momentum | Mar’ 20 Edition, Vol. XI

Article Writing Experience

Brain teasers Brain Teasers â&#x20AC;˘

OpsWords

ACROSS 4. ________ Design is a four level (customer, functional, physical and process) design process that follows a scientific approach for the design of products, processes etc. 6. a charge payable to the owner of a chartered ship on failure to load or discharge the ship within the time agreed 7. It is a model for product development and customer satisfaction which classifies customer preferences into five categories 10. It is a Lean method for reducing the unevenness in a production process and minimizing the chance of overburden. 11. Japanese term that means workplace where day to day activities are performed 12. ______ Law is a theorem that determines the average number of items in a stationary queuing system based on the average waiting time of an item within a system and the average number of items arriving at the system per unit of time 14. A reflection on what went well and what could have been done better with regard to an event, mission, project, or situation

DOWN 1. ________is a hostile takeover defence whereby a friendly company purchases the target company instead of the unfriendly bidder 2. is an international trade term that describes when a seller makes a product available at a designated location, and the buyer of the product must cover the transport costs 3. is a step-by-step approach for collecting knowledge about possible points of failure in a design, manufacturing process, product or service 5. ____________ is a multi-dimensional research instrument, designed to capture consumer expectations and perceptions of a service along the five dimensions that are believed to represent service quality 8. Inventory created to protect against a possible future event or disruption in supply, such as a strike, major vendor shutdown 9. PERT/CPM was developed in the laboratory of which company 13. _________ is an inexact unit of cargo capacity often used to describe the capacity of container ships and container 1

Brain Teasers â&#x20AC;˘

Answer of OpsWords of December 2019 POMS International Edition

â&#x20AC;˘

Quiz

1. Which famous logistics model does this cartoon signify?

2. Guess the name of the person, he is also known as father of TPS

Brain Teasers 3. Guess the concepts

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Caselet

ABC chemicals Inc., produces a special oilbased material that is currently in short supply. Four of ABC’s customers have already placed orders that together exceed the combined capacity of ABC’s two plants. ABC’s management faces the problem of deciding how many units it should supply to each customer. Because the four customers are in different industries, different prices can be charged

because of the various industry pricing structures. However slightly different production costs at the two plants and varying transportation costs between the plants and customers make a “sell to the highest bidder” strategy unacceptable. After considering price, production costs, and transportation costs, ABC established the following profit per unit for each plant- customer alternative.

Customers Plant

Clifton

$32

$34

$32

$40

Danville

$34

$30

$28

$38

The plant capacities and customer orders are as follows Distributor Orders

Units

Plant Capacities

Units

2000

Clifton

5000

Danville

3000

2000

How many units should each plant produce for each customer to maximize profits? Which customer demands will not be met?

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