International Data Corporation (IDC), the premier global provider of market in-
telligence, advisory services, and events for the information technology, telecommunications and consumer technology markets and IDC predicts that IoT (Internet of Things) technologies will be materially affecting the way that all companies manage their supply chains by 2020, with estimations that the IoT market will reach $1.7 trillion. Future managers specializing in operations must stay competitive, and must embrace tomorrow's hottest innovations and also keep in pace in finding solutions to the present-day challenges thrown up in the
area of logistics and supply chain management. SIBM, Pune always motivates students to come up with out of box ideas to solve industry challenges. I take great pride in stating that our industry oriented curriculum not only sharpens the business acumen of the students but also helps bridge the gap between theory and practical aspects of business operations. In order to equip students with skills, they are encouraged to take certifications in specific
technologies. Also all our students specializing in operations are Six Sigma Green belt certified. I am privileged to present the sixth edition of "Co-Operate", an in-house magazine compiled by the students of our Operations Batch. I hope you enjoy the various perspectives put forth in the magazine.
Dr. R. Raman (Director, SIBM Pune) 01
Dear Readers, Team OpCellence, Operations club of SIBM Pune brings to you Co-Operate, the annual operations & supply chain magazine of SIBM Pune. Before we introduce you to the intriguing world of operations management we would like to confess that there always prevails a sense of anticipation when such a magazine is conceived, more so if it is still in its nascent stage in terms of legacy and we take this opportunity to thank each & every one of you for the overwhelming response. In this edition, we bring you five different sections dealing with various dimensions of this domain. We once again thank you for the Inscribe section where the canvas was quite wonderfully painted by the students and would always be open for all our readers. We acknowledge all your efforts in this regard with a bow. The prize winning entries from the junior operations batch will keep you hooked
on with the interesting concepts of supply chain sustainability. The Gurukul section brings forth another set write-ups describing the best practices followed in the industry that are crucial in providing a competitive edge to any organization. The concepts of Emerging Ports & Re-manufacturing have been brought to clarity by the students through lucidity of lan-
guage and exemplification of instances with the valuable guidance of the faculty, giving a chance to the students to not only explore their area of research but share the knowledge of the faculty as well in the domain. We also take you through a section of ‘Myths & Facts’ & ‘Did you know?’ which provides you dos-
siers of knowledge about the operations & supply chain domain which might not be well known to many and intrigue you to tickle your grey cells. Cooperate also brings you a newsletter which familiarizes the readers with the recent developments, compiled in a reverse chronological order in the year 2016 starting from November, in the field of
supply chain & operations management. So, get set to enter the world of operations management where a plethora of ideas & concepts await your perusal. Happy reading!!! Team OpCellence
02
Inscribe 1.
Disaster Management through Efficient Supply Chain ——————————————– 05
2.
Circular Economy and Sustainability ———————————————————————- 11
3.
Green Supply Chain Management in Automobile Industry ————————————— 15
4.
Optimization of Inbound Logistics to Improve Sustainability ——————————— 20
5.
Coordination in Supply Chain ———————————————————–——————— 25
Gurukul 1.
Emerging Ports in India —————————————————————————————- 29
2.
Remanufacturing: Cradle to Cradle ———————————————————————- 36
Get your Facts Straight! 42
Did you Know!
43
Supply Chain Newsletter 2016 44 03
Inscribe Inscribe is an initiative of OpCellence to provide a platform for the budding researchers and writers to showcase their talent in article writing and appreciate them. Through Inscribe, we promote article writing and help students to remain updated about the latest trends in the operations and supply chain industry.
Through Inscribe, we urge the students of SIBM Pune, to give their thoughts and inputs and present us with articles related to the theme. The theme of this year’s Inscribe is “Sustainability in Supply Chain”. From the Plethora of articles that we receive, top two articles are selected by an external judge, and the authors’ of these articles are awarded with winner certificate for their contribution in CoOperate. Also special mention is given to other noteworthy articles and they too get featured in this section. The winners for Inscribe 2016 are: 1st Position: Swaetha Krishnan. 2nd Position: Vivek Prabhakar The authors of other noteworthy articles are: 1.
Anshul C Singhe
2. Akshay Bijwe 3. Rohit Kapurkar We hope that you find all these articles interesting and enriching.
Swaetha Krishnan MBA—I (Operations)
Abstract Disaster management is gaining significant im-
portance in the recent years. In this paper, we will look into the different types of risks, introduce a resilient supply chain, examine Triple-A supply chain, Business Continuity Model (BCM) and also discusses two case studies- one of Ericson and the other of Toyota and explains how they rebuilt
Source:[1]
their supply chain after meeting with natural dis-
Fig 1: Risk Map/Matrix 1
asters.
Juttner et al. (2002) suggested that risk should be
Introduction
categorized into three categories
Supply chain encompasses the entire process of
External Risks
conversion of Raw materials to finished goods and also taking care of after-sales services. It is the heart of any organization. So it needs to take
care of mitigating disasters and to handle it if one occurs. This has become a very crucial part of any
The cause of the risk can be natural, political, and social and industry/market risks which depend on the demand of the customer. Internal Risks
industry. The disaster could be man-made or natu-
It can range from labour strike in a manufacturing
ral.
organization to machine failure leading to less
Risk Disaster management is basically risk-mitigation.
productivity in an IT industry. Network Related
Risk is quantitatively the occurrence of chance of
It arises due to the lack of proper interaction or
a defined hazard. It therefore combines a probabil-
coordination amongst the different players in the
istic measure of the occurrence of the primary
supply chain. These risks are taken care of by a
event(s) with a measure of the consequences of
special study called Supply Chain Risk Manage-
that/those event(s). So Risk addresses the range of
ment.
possible outcomes and there is a distribution of probability for each outcome.
Supply Chain Risk Management (SCRM) collaborates with partners in a supply chain apply
Quantitatively Risk = Probability of the event *
risk management process tools to deal with risks
Business Impact. This can be illustrated in a Risk
and uncertainties caused by, or impacting on,
Map. Inscribe
05
logistics related activities or resource. (Norrman
due to an earthquake in Taiwan, there was a delay
and Lindroth, 2002).
in the shipment of computer parts to US for
Building a Resilient Supply Chain
weeks. Due to this most companies like Apple, Compaq and Gateway could not deliver on time
Resilience is not just about managing risk. It is
with the exception of Dell. Dell could deliver suc-
also about being in a better position than its com-
cessfully because it got the information on earth
petitors to deal with disaster and also being able to
quake damage earlier and planned ahead to cope
get an advantage from the disaster. Put simply,
up with it. It became a market leader thereafter.
resilience is about the ability of a company to come back to its original position after meeting with a disaster. The three key steps of resilience are
Increase redundancy
Build flexibility
Change Corporate culture
In 2000, a supplier based out of Philippines for Nokia and Ericson in New Mexico went on flames. The plant manufactured a key component of mobile phones - Radio Frequency Chips. The approaches of both the companies were in two
different directions. Nokia made the design changes instantaneously so that similar RF chips could be manufactured at other facilities. The supplier in Japan and US
Change Corporate culture
icson on the other hand was cutting down its
One instance of this could be keeping the employ-
backup suppliers in an effort to reduce cost. This
ees aware of strategic, tactical as well the day-to-
led to the downfall of Ericson and Nokia went on
day activities of business.
to become the market leader. We will look later in
For instance, Dell employees have access to the
this article at how Ericson reorganized its supply
manufacture of product, shipment and other varie-
chain post this disaster to allay risks.
ty of data. So when a disaster comes they are able
These instances show us the importance of agility
to execute properly.
in a supply chain.
The other 2 concepts are discussed in the below
There are 6 rules of thumb to be followed to build
section under the 6 rules of thumb.
agility into the supply chain.
Disaster Management with Triple-A supply
Provide data on changes in supply and de-
chain
mand continuously to every level of supply
The Triple-A supply chain model addresses the
chain. This helps the individual departments
issue of Risk Management. It stands for Agility,
within the organization as well as the exter-
Adaptability and Alignment. The agility charac-
nal vendors to plan ahead properly. The ex-
teristic of supply chain takes care of disaster-
ternal vendors also feel more involved in the
management planning. Firms need to work to-
process.
wards creating a supply chain that responds quickly to the change in demand. In September 1999, 06
asked for just two days’ time each to respond. Er-
Develop a good relationship with suppliers by involving them in new design and also
Inscribe
risk-mitigation planning. For ex, Taiwan
been proposed by Helferich and Cook (2002) us-
Semiconductors manufacturing Company
ing FEMA’s guide as foundation
(TSMC) gives suppliers and customers the
Identify the emergency resources needed at
requisite tools and data so that they can in-
corporate design and engineering changes quickly.
Flexibility - Mass customization of products can save a lot of money for the company. Design products such that they share the common process initially and differ only towards the end. This way we can manufacture goods at the end after receiving orders
each secure location First a list of important items needed during a disaster needs to be identified. It can include having the contact list of key managers, government agencies, NGOs, medical supplies, generators,
water, back-up communications, etc. It will vary across industries and also depends on the type of industry.
from the customers. This has been followed
by Xilinx – a programmable logic chips manufacturer. In fact they customise their chips after the customers have purchased their product. The customers can program
chain
their ICs via internet. Intel also has a stand-
Each and every organization will have a critical
ard fabrication designs across different loca-
facility that needs special focus. It needs to be
tions. This helps them manage easily when a
identified and acted upon. The focal firm should
disaster occurs.
not concentrate only on itself. Supply chain is
Redundancy - Have an inventory of inex-
never a single-firm element. It is an inter-
pensive items that are the cause of bottle-
connection of different firms providing different
neck. For instance Zara, H&M and Mango
services/products. So the focus should be on the
maintain a stock of zippers hooks and snaps
elements of supply chain rather than the firms.
so that they can finish the manufacture of
Many a times the supplier/Logistics provider will
clothes even if their supply chain gets dis-
not be having the necessary resources to manage
rupted.
disasters themselves. The focal firm should bring
Have a reliable Logistics system. This can
those companies also under their arena and man-
be achieved by engaging with Third party
age well ahead.
logistics. Huge companies can also have
A continuity team comprising of managers from
4PL logistics service provider who can act
as consultants to improve the existing logistics.
Identify all critical facilities within supply
Have a separate team that can engage in disaster-management planning.
Disaster Management Process A four step Disaster Management Process has
Inscribe
all the key players within supply chain is an effective approach. Once a proper communication exists amongst these players, it is easy to implement disaster-management. Step 3 The number of storage locations needed to cover a disaster needs to be identified. This is critical as 07
each location is going to serve multiple areas and
set cover decision model helps to figure out the
finding the optimum location is a major step.
maximum number of locations needed as well as
Managers must also determine the minimum dis-
the minimum time.
tance each facility must be from secure site loca-
tion. Managers must try to balance cost-effect with the provision of materials quickly and effectively at times of disaster. Here again, a good relationship with every firm in the supply chain is a must to ensure proper planning.
Organizations with only one supplier will be worst hit in times of disaster. It is always advisable to have multiple suppliers at different locations (preferably not in the same zone) to tackle with disaster.
Risk Identification and Analysis
Proposed decision model- Set Cover Decision Model The decision model can help to locate appropriate sites for storing the emergency resources. It also helps to find out the minimum distance needed between the facility and the secure locations.
to be taken by any organization. Two commonly used methods are
Fault Tree Analysis
Event Tree Analysis
They are basically logical flow diagrams that rep-
It states that
resent the chain of failures. This visualisation
Min Σ Xj
makes it easy while trying to implement methods
Subject to condition ΣΣd(Xj , mi) >= Min distance
to alleviate the disaster. Fault Tree Analysis (FTA)
ΣΣd(Xj , mi) <= Max distance
FTA examines the list of events which caused the
ΣaijXj >=1
critical event. It is a graphical diagram that shows
Xj =0,1 for all j Xj =1 if we locate emergency resources at site
how a system can fail. The analysis starts with the most critical event first followed by the next and so on. The causes and contributing factors are determined by way of “backward logic”
=0 otherwise mi specifies the supply chain facilities to be covered. aij = 1 if candidate site j can cover demand
at supply chain i d(Xj , mi) represents distance between se-
Event Tree Analysis (ETA) The ETA is also a logical diagram. It finds out the events that can occur after a critical event has occurred. It looks at the potential causes and identi-
fies and quantifies possible outcomes. Business Continuity Management
cure supply chain storage facility j and supply
BCM provides the guidelines on how to deals
chain facility i.
with a disaster if one occurs. It is the development
The four step model helps the managers to systematically go about managing a disaster. The 08
Risk identification is one of the first steps
of strategies, plans and actions for the key business activities of an organization.
Inscribe
Risk Management adopted by Ericson
BCM includes
Crisis Management – overall process to
Post the disaster in Philippines, Ericson realised
manage the incident
the importance of a resilient supply chain. A sepa-
Disaster recovery – recovery of critical sys-
tems and applications
Business recovery – recovery of critical business processes
rate corporate function for Risk assessment was
set up and monitored continuously. Below diagram shows the functions of different teams involved in Risk management at Ericson.
Contingency Planning Source: [1] Identify material or service
Appoint manager to own process
Review criteria for each risk factor
Initiate Risk assessment scorecard
Source: [1] Fig 3: Organization of Risk Management
Corporate Risk management has the overall responsibility of taking the strategic decisions and oversees the entire operation. The manager mainCollect data for each risk factor
Assign Risk scores
tains optimal balance between risk exposure and cost of damage versus Protection of activities. Core Unit Supply is responsible for day-to-day operations with suppliers. The managers at this
Document Analysis and actions
Conduct impact analysis
level are responsible for securing the reliability and delivery of appropriate supply chain. System Business Area (SBA) owns the product. Core Unit Sourcing is responsible for evalua-
Monitoring
Determine to cease assessment
8 Risk factors: Design, cost, legal, availability, manufacturability, quality, supply base and Environmental, health and safety impacts.
tion of supplier when the disaster happens. Ericson also calculated the time taken for the recovery of each function after a disaster. This is expressed as Business Recovery Time (BRT).
of goods
3-8 months to get approval and delivery from alternative source.
Fig No 2: Supply Risk Assessment
Inscribe
Less than 3 months to get alternative supply
9-12 months – Redesign the only alter09
native.
changes in business model accordingly. This will
>12 months – Redesign highly complex
make it easier to include disaster management as a
product.
part of an organization.
Risk Management adopted by Toyota
REFERENCES
Toyota was forced to stop production due to the
Andreas Norrman., & Ulf Jansson. March
“Great East Japan Earthquake”. Toyota took six
2004. Ericson’s proactive supply chain risk
months to recover from this incident and it had
management approach after a serious sub-
incurred a loss of 160,000 vehicles in 2012. This
supplier accident. International Journal of
helped them identify the loop-holes in their supply
Physical Distribution & Logistics Manage-
chain and rectify the same.
ment, Vol. 34 Iss 5 pp. 434- 456. Emerald
Firstly the company used Analytics and visualiza-
Insight.
tion tools to identify 20 of its suppliers who occu-
D Clay Whybark. 21 May 2015. Co-creation
pied “at risk” locations and who supply the much
of improved quality in disaster response and
needed raw materials. This also helped these sup-
recovery. International Journal of Quality
pliers realise where they are lacking and work up-
Innovation20151:3
on them. Toyota mapped that its Tier-1 suppliers
were actually related to its Tier-2 suppliers and
17, 2014. From risk to resilience: Using ana-
this created inter-dependency. Thus a disturbance
lytics and visualization to reduce supply
at any of these Tier-2 suppliers could have a wide
chain vulnerability. Deloitte Review issue
impact on its Tier-1 suppliers. These suppliers
14. Lora Cecere. June 5 2013. How do you
were asked to distribute their production across
define a maturity supply chain organization.
multiple facilities. Secondly, in order to manage disaster in future
-supply-chain-planning-organization-part-1/
efficiently, Toyota used the analytics tool and tried to improve the supply-base to these risky supplier areas. These measures helped Toyota to reduce its re-
Kelly Marchese., & Jerry O’Dwyer. January
Supply chain Strategist. Harvard Business Review Specialist Publications.
Yossi Sheffi. October 2005. Building a resilient supply chain. Harvard Business School Publishing.
covery speed to a maximum of two weeks. CONCLUSION Thus we have looked at how incorporating disaster management helps in saving millions of dollars for a company. Not only that it helps the company to get its products delivered at times of natural calamities but also when people are in dire need of the product. We need to innovate even more to keep up with the changing trends. More flexibility should be incorporated at each level to make 10
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Vivek Prabhakar MBA—I (Operations)
Since the onset of the Industrial Revolution from
‘development’, this model has been continuously
the mid of 17th century till date, mankind has
used for about quarter of a century on the sole rea-
been following a linear economy model of "Take,
son that it delivered results. As a result of this
Make, Dispose" which has gradually led to the
practice, three key parameters are being affected
depletion of finite reserves to create products that
namely resources, money & most importantly,
end up in 'landfills' or in 'incinerators'. This global
environment.
waste generation is expected to continue at an ex-
The ideal example of a linear economy being
ponential rate to a figure of 6.5 million tons of solid waste by the end of 2025. As a result of the same in conjunction with the rising commodity prices, increasing populations & greater ambiguity, companies are faced with challenges in the lines of material shortages, increasing material prices and a serious threat to the continuity of operations & margins. These paved the way for the emergence of a new way of thought process which
can challenge and hence improve the conventional way of
stretched to its limit for the purpose of growth is the Chinese economy. Its magnificent rise from a vastly developing country to country which is nowadays branded as the rival of the US, can be
attributed to the fact that it excels at turning natural resources into cheap & marketable goods, completely turning a blind eye to the destructive trail it has been leaving behind. Consequently, it is no surprise that China finds a way into the top
ten in the list of countries who are major contributor to waste (533 million tonnes by 2030) as well
‘linear economy’.
as pollution (approx. 35 million kilo tonnes of
Linear Economy
CO2).
As defined by Wikipedia, a linear economy is an
Circular Economy
industrial economy that generates waste and pol-
The example of China by itself is indicative of the
lution, by design or intention. The linear economy
fact that it high time that the international econo-
follows a process of “Take, Make, Waste”. Elabo-
mies devise a new method to counter this issue.
rating the same, it essentially involves digging up
Even though China is just a projection of a major
things from the
contributor, it is the responsibility of each individ-
ground (take), convert them into products that
ual economy to re-think their strategy as to how
lasts a finite time (make) and sticking them back
they can reduce their share in the global carbon
into the ground as landfill (waste). The primary
footprint. This marked the birth of the concept of
objective of this type of an economic model is de-
a waste free growth model. The switch from linear
velopment, development & more development.
to the waste-free model is mainly aimed at pre-
Constantly ignoring the side effects of
serving & regenerating material value and natural
Inscribe
11
capital instead of losing it. The focus was on cre-
products produces & the services provided are
ating growth that preserves the resources & ex-
future-proof right from the raw material level up
pand without any limit to the monetary value of
to the customer expectations.
services that can be produced from a given physi-
Circular Economy Strategies
cal input. This type of a more ambitious & more
Circular Economy or rather a circular supply
marketing-friendly growth model is termed as
chain can be a key factor in making processes
Circular Economy.
such as product design, procurement & waste
What is it all about?
management, more efficient and productive.
As defined by Ella Jasmin of Ellen MacArthur
Hence to leverage the benefits of a circular econo-
Foundation, a circular economy is “fundamentally
my, the strategies to implement the same becomes
a model that decouples economic growth from
equally vital. The most popular strategy model for
resource constraints by reducing reliance on vir-
a circular economy is the ReSOLVE framework
gin materials. Instead, the goal is to keep materi-
developed by McKinsey. The framework basically
als functioning at their highest utility at all time,
includes Regenerate, Share, Optimise, Loop, Vir-
preventing would be waste from reaching land-
tualize and Exchange.
fills.”
1.
aimed at reclaiming, retaining & restore the
come from the work done & value created by han-
health of ecosystems. This can be achieved
dling resources with sufficient care that ecosys-
by exploring renewable energy & material
tems and total natural resources expand to meet
alternatives to the conventional options. The
the needs everywhere. It differs from the linear
main aim is to restore the balance in the bio-
model in the fact that the linear model targets
sphere by returning biological resources
growth on the basis of moving, shaping, selling
which were utilized in the beginning.
and dumping even more resources whereas the circular economy focuses more on the ‘cradle to
2.
relationships between organizations or with-
ing the loss of ecological productivity without ac-
in the same organization to share assets such
cumulative toxics and composting everywhere. A
as cars, rooms, appliances etc. This ensures
circular economy in literal terms can imagined as
life
connecting the loose ends of the linear model thus
prolongivity
of
various
resources
through maintenance, durability design, up-
providing a feedback system to the wastes pro-
gradability and ultimately contributing to
duced as a reliable feedstock of resources. Framing the definition of circular economy from a
Share: Another ver sion of the concept of ‘reuse’, sharing is all about collaborative
cradle’ design – doing more with less, i.e., revers-
12
Regenerate: This concept is basically
In a circular economy, profits, jobs & growth
sustainability. 3.
Optimise: As the name suggests, optimis-
strictly industrial perspective, it can be understood
ing is all about increasing productivity and
as the use of disruptive technology and business
efficiency of products as well as processes
models that are based on longevity, renewability,
by employing the concept of lean manage-
reuse, repair, upgrade, refurbishment, capacity
ment, which is basically about removing
sharing & dematerialization. This ensures that the
waste in production and supply chain. An-
Inscribe
4.
other important aspect of optimising in the
Sustainable Strategy Applications
current scenario would be leveraging big
Now companies are in the race to apply the con-
data, automation and remote sensing.
cepts of circular economy to gain strategic ad-
Loop: Probably the most fundamental concept of the circular economy, loop is all about recycling. It can be either an open loop or a closed loop. Open loop or down cycling, involves recovering materials that
have degraded in terms of quality. However, the closed loop concept, which is more apt for the circular economy model, involves using waste to produce new products without changing the inherent properties of the
material being recycled. The loop concept may also involve digesting anaerobic materials, extracting biochemical from organic waste etc.
5.
Virtualise: In an era wher e the transformation of physical to digital is the trend, virtualise acts more as a necessary strategy for survival rather than a differentiating one. It is basically advocating the exploitation of
resources & services such as books, music, online shopping etc. which can consequently lead to reduction in their physical counterparts which have the potential to be â&#x20AC;&#x2DC;dumpedâ&#x20AC;&#x2122;. 6.
vantage. The classic case being the Apple iPad vs.
the Google Nexus 7. To ensure one millimetre less of screen thickness, the screens of Apple iPad as well as those of MacBook are glued to the case. The result is that company visualises better profit in replacing the battery models when compared to its previous version. Google, on the other hand incorporates a similar sleek & attractive design with a millimetre more of thickness but ensuring that any repair or replacement can be done by the
customer themselves. Technically the difference might be that of a millimetre but in circular economy terms, itâ&#x20AC;&#x2122;s a trade-off between extending the life of the device through repair as opposed to tossing it in a landfill. Technology giants like Dell
have also incorporated the strategies of circular economy in their business model. For instance, they have effectively used the closed loop supply chains to extract more value out of their products by developing ways to prevent some of the plastic it uses from deteriorating, so it can continue to recycle these materials. This results in Dell saving money, reducing their carbon footprint in addition to branding their products as high quality & envi-
ronmental friendly at the same price. One of the
Exchange: Last but definitely not the
pioneers in the realm of waste management,
least in terms of significance, exchange
Call2Recycle, effectively employs the concept
strategy facilitates closing the ends of a line-
of Recycle on a significant scale in their effort to
ar economy transforming it into a circular
realise the circular economy in the practical sense.
one. Exchange concept involves replacing
They primarily focus on recycling rechargeable
the old and degraded product with an ad-
batteries, single-use batteries and cell phones to
vanced alternative by applying new technol-
transform them into new products. For instance,
ogies such as 3D printing and employing
the nickel based rechargeable batteries are recy-
new products & services such as multimodal
cled into pots, pans, golf clubs etc. and the alka-
transport, modular design phones etc.
line single-use batteries are recycled into new products such as sun screen & concrete aggregate.
Inscribe
13
As result, Call2Recycle have managed to divert
greenallianceblog.org.uk/2012/07/05/whats-the-
over 85 million lbs. of batteries from ending up as
difference-between-a-circular-and-a-linear-
landfill.
economy-1-mm/
Global Responsibility For the concept of circular economy to actualise, a global team effort is crucial. It is not just the businessesâ&#x20AC;&#x2122; responsibility; the government & consumers need to play their part as well. Governments
need to ensure that schemes are in place which not encourages circular economy initiatives but also ensure that sustainability remains the top priority. Consumers, need to understand & alter their consumption preferences making sure that ReSOLVE strategy is employed on a daily basis as well. References 1. Terence Tse, Mark Esposito, and Khaled Soufani (2016, February 1). How Businesses Can Support a Circular Economy. Retrieved from https://hbr.org/2016/02/how-businesses-cansupport-a-circular-economy 2. Terence Tse, Mark Esposito, and Khaled
Soufani (2015, November 4). How Companies Can Benefit from the Circular Economy. Retrieved
from
http://cmr.berkeley.edu/
blog/2015/11/circular_economy/
3. Lauren Hepler (2015, August 24). GreenBiz 101: Defining the circular economy. Retrieved from
https://www.greenbiz.com/article/defining-
circular-economy-beyond-recycling-materialreuse 4. James Greyson (2015, May 8). A Glance at Waste-Free Economy. Retrieved from http:// www.ecomena.org/tag/linear-economy/ 5. Dustin Benton (2012, July 5). W hatâ&#x20AC;&#x2122;s the differ-
ence between a circular and a linear economy? 1 mm.
14
Retrieved
from
https://
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Anshul C Singe MBAâ&#x20AC;&#x201D;I (Operations)
Introduction
last 6 years (Ford CSR, 2011). In 2011, Ford and
As environmental and social issues are becoming
Toyota had signed a MOU to develop advanced
more important, businesses need to adopt changes
hybrid system for light trucks and SUVs to bring
in their existing processes. Green Supply Chain
greater fuel efficiency that consumers demand in
Management (GSCM) is an approach to improve
their new vehicles.
performance of the processes and products according environmental regulations. It has emerged
GSCM vs conventional SCM
in the last few years and it covers all the stages of
GSCM takes considerations to ecology as well as
productâ&#x20AC;&#x2122;s life cycle from design, production and
economy as an objective, while Conventional
distribution to the use of products by the custom-
SCM is usually concentrated on economy as a sin-
ers and also its disposal at the end of product life
gle objective. GSCM are green, integrated and
cycle. GSCM is bringing environmental thinking
ecologically optimized, while Conventional SCM
together with Supply Chain Management (SCM).
does not take into consideration human toxicolog-
The awareness level of the customers about Green
ical effects (Beamon, 1999; Gilbert, 2000; Ho
practices is increasing at a sharp rate, so organisa-
Johnny, Shalishali, Maurice, Tseng, & Ang,
tions need to focus on the utilisation of energy and
2009). Conventional SCM concentrates more on
resources to make environmental friendly supply
controlling the final product; no matter harmful its
chain. Toyota is one of the leading organizations
effects are to the environment during production
in the green initiatives in automobile industry.
and distribution. Ecological requirements are key
Toyota has adopted its green principles in 1992 to
criteria for products and productions and at the
provide clean and safe products and enhancing the
same time the company must assure its economic
quality life of every one through their activities.
sustainability by staying competitive and profita-
Since year 1992, Toyota is working for the green,
ble (Ho Johnny, Shalishali, Maurice, Tseng,
green procurement, environmental action plans,
& Ang, 2009). Differences between GSCM and
Hybrid vehicles, Environmental campaign and
SCM are summarized in Table 1.
other best activities. According to the Environmental Leaders (ELs), ford has tripled its electrified vehicle production capacity and increased production of its efficient Eco-Boost engines. Ford has also reduced the
amount
of
energy
used
to produce one vehicle in its manufacturing faciliti es by 10% from 2010 to 2011 and by 22% in the Inscribe
15
S.
Characteristics
GSCM
Conventional SCM
Researcherâ&#x20AC;&#x2122;s
Objectives
Ecological and
Economic
Beamon (1999)
N. 1
Economic Gilbert (2000) 2
Ecological Optimization
High Ecological Impacts
Integrated Approach Low ecological impacts
3
Supplier Selection criteria
Eco logical Aspects Long
Price Switching suppliers quickly
Term relationship
Short term relationship
4
Cost Pressure
High
Low
5
Flexibility
Low
High
6
Speed
low
High
Ho
Johnny
et
al.
(2009)
Table 1. Difference between the GSCM and Conventional SCM Green Supply Chain Management
Source: C Ninlawan (2010),The implementation of green supply chain management practices in electronics industry.
16
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Green Procurement
sulting in higher efficiency and productivity.
Green procurement is defined as an environmental
Improve machine uptime.
purchasing consisting of involvement in activities
3Rs and waste minimization: Promoting re-
that include the reduction, reuse and recycling of
usability/ recycle of parts. Enhancing envi-
materials in the process of purchasing. Besides
ronmental consciousness via 3Rs activities.
green procurement is a solution for environmen-
Reducing indirect materials.
tally concerned and economically conservative business, and a concept of acquiring a selection of
Green Distribution
products and services that minimizes environmen-
Green distribution are consists of green packaging
tal impact.
and green logistics. Packaging characteristics such
Activities in Green Procurement are:
as size, shape, and materials have an impact on
Supplier selection: Purchasing materials or
distribution because of their effect on the transport
parts from only ‘Green Partners’ who satisfy
characteristics of the product. Better Packaging,
green partner environmental quality stand-
along with rearranged loading patterns, can reduce
ards and pass the audit processes related to
materials usage, increase space utilization in the
regulations for environmental substances or
warehouse and in the trailer, and reduce the
they have green certificate achievements.
amount of handling required.
Reuse or recycle- Paper, parts container
Activities in Green distribution are:
(Box)
Green packaging: -
Order via mail(Paperless)
1.
Downsize packaging
2.
Using “Green” packaging materials
Green Manufacturing
3.
Minimize material uses and time to unpack
Green manufacturing is defined as production pro-
Green logistics/transportation: Delivering
cesses which use inputs with relatively low envi-
directly to user site. Distribute products to-
ronmental impacts, which are highly efficient, and
gether, rather than in small batches.
which generate little or no waste or pollution. Green manufacturing can lead to lower raw material costs, production efficiency gains, reduced
Reverse Logistics & Network
environmental and occupational safety expenses, and improved corporate image. Activities in Green Manufacturing are:
Hazardous substance control: Lead free- re-
place them with other substances such as bismuth, silver, tin, copper. Rinse parts with
Collecting
Pre-processing
Location
clean water instead of using chemicals and reuse the water.
Inspection/Sorting
Energy-efficient technology: Reduce power
consumptions in products ramp load/ unload
Classification of GSCM practices (Srivastava, 2007)
technology. Increase product life-span re-
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17
Reverse Logistics
ment Implementation of GSCM in Automobile
Reverse logistics is known as the process of plan-
Industry. It may not be as easy as it sounds. These
ning, implementing, and controlling the efficient,
companies face various social, technological and
cost-effective process of unprocessed material,
economical obstructions while trying to imple-
latest inventory, finished goods and related infor-
ment this idea.
mation from the point of origin to the point of
Some of the major barriers faced in GSCM are:
consumption to recapture its value or proper dis-
Scarcity of IT implementation
posal. Initially, the products have to be recovered
Usage of out dated techniques
followed by segregating. Hence, to minimize op-
Bad quality of Human Resource
erations cost proper network design with redesign-
Less support from Government
ing and reuse should be implemented in as many
Less provision to implement Green ideas
processes as possible.
Cost
Unawareness of customers
Waste Management
Lack of support from top management
Waste Management is defined as supervision and
Uncertainty and competitiveness
reduction of chemically poisonous and harmful waste generated during processes or process of treatment, storage and disposition.
Some examples of GSCM in automobile industry include Ford motor’s requirement for all its suppliers to certify to the ISO14001, while others (e.g. Toyota, BMW) need the incorporation of
Conclusions Based on the analysis done above, it can be con-
cluded that Green Supply Chain Management is needed now more than ever. With increase in pollution levels, increase in global warming, depletion of the ozone layers, it has been realized that
“supplier activities”.
Earth is being pushed to its limits. Therefore in
Barriers in implementing GSCM in Automo-
plementing GSCM in Automobile industry would
order to preserve and protect the environment, im-
bile Industry in India
be helpful .Green Supply Chain Management is
The Automobile Industry is one of the biggest of
one of the most effective techniques which can
manufacturing sector. In order to match with the
reduce the impact on the environment without af-
ever increasing population of the world, the de-
fecting the quality, cost, performance and reliabil-
mand for automobiles has tremendously in-
ity.
creased. India is the second most populated coun-
Reusability/Recycling is one of the major process-
try in the world, their growing demand for auto-
es which would contribute largely in GSCM. Im-
mobiles is forcing the leading to open new manu-
plementation of GCSM may have many benefits
facturing hubs across the country or to increase
but there are few barriers in social, technical and
the existing capacity of the current hubs. Increase
economic form. Automobile companies have
in use of automobiles is directly proportional to
started to incorporate GSCM in their designs,
increase in pollution levels; therefore environmen-
manufacturing etc. for the better good of the
talists are trying to divert the attention of these
world.
companies towards Green Supply chain Manage18
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References
Framework for Green Supply Chain Management, 1st Olympus International Confer-
AlKhidir, T., & Zailani, S. (2009). Going
ence on Supply Chains, 1-2 October, Kateri-
Green in supply chain towards Environmen-
ni, Greece, 1-16.
tal Sustainability. Global Journal of Environmental Research, 3(3), 246-251.
Nunes and Bennett (2010), Green operations initiatives in the automotive industry: An
Beamon,
B.M.
(1999). Designing
the
environmental reports analysis and bench-
GreenSupply Chain. Logistics Information
marking study, Benchmarking: An Interna-
Management, 12(4), 332-342.
tional Journal, 17 (3), 396-420.
Borade, A.B.,& Bansod, S.V. (2007). Domain of Supply Chain Man-
Volpato and Stochetti (2008), Managing
agement –A state of Art. Journal of Tech-
product life cycle in the auto industry: eval-
nology Management and Innovation, 2(4),
uating carmakers effectiveness, Int. J. Auto-
109-121.
motive Technology and Management, 8 (1),
Chien, M.K., & Shih, L.H. (2007). An em-
22-41.
pirical study of the Implementation of Green
Supply Chain Management Practicesin the Electrical and Electronics industries and their relation to organizational behavior. International Journal of Science and Technology, 4(3), 383-394.
Mishra (2012), Information Technology as a Facilitator for Green Initiatives- A Sectoral Analysis, IJCSEITR, 2 (4), 105 113.
K. Srivastava (2007), Green supply-chain management: A state-of-the-art literature review, International Journal of Management Reviews, 9(1), 53-80.
R. Kumar and R. Chandrakar (2012), Overview of Green Supply Chain Management: Operation and Environmental Impact at Different Stages of the Supply Chain, International Journal of Engineering and Advanced
Technology, 1 (3), 1-6.
Ioannis Mallidis and Dimitrios Vlachos, A
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19
Akshay Bijwe MBAâ&#x20AC;&#x201D;I (Operations)
Abstract:
the handling, packaging, storing and transporting
Inbound logistics is an integral part of supply
of the required goods and raw materials that are
chain network but as this part of supply chain is
necessary for manufacturing or service. Inbound
not directly related to the consumer, they are least
logistics is one of the primary processes of logis-
concerned about the developments and changing
tics, concentrating on purchasing and arranging
technologies in this sector. However, from a
the inbound movement of materials, parts, and/or
firmâ&#x20AC;&#x2122;s objective, optimization of inbound logistics
finished inventory from suppliers. Inbound logis-
is an important task as it can help companies to
tics exists between suppliers and manufacturing
improve on the total production cost that increases
unit or between primary and secondary suppliers.
profitability, reduction in lead-time making an efficient system and reducing waste resulting in
reduction in wastage and pollution. It also contributes towards a greener supply chain improving the sustainability of the supply chain. Introduction:
Any supply chain network can be divided into three blocks depending on the activities and value
Source: http://smallbusiness.chron.com/ outbound-vs-inbound-logistics-77016.html
addition provided by the block. The main components of a supply chain are:
Sustainability: Sustainability is the endurance of the system or process and its ability to continue in the long run. Sustainability is directly proportional to the performance of the system, hence better the sustainability, and better is the overall performance.
1.
Inbound logistics.
2.
Operations.
3.
Outbound logistics. Inbound logistics:
Inbound logistics refers to the transport, storage
In supply chain and logistics operations, sustainability is a business issue affecting an organizationâ&#x20AC;&#x2122;s supply or logistics network in terms of environmental effects, risks, and waste costs. There
are three pillars of sustainability in operations and
and delivery of goods coming into a business. It is 20
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their location, arrival time, packaging details, and the cost involved, requires piecing together information collected
from
various
unorganized
sources such as internal paperwork, carrier web-
sites, and phone calls which result in unwanted time consuming, rendering the process ineffective. Information extraction and documentation belogistics management. They are referred as the
comes a lengthy process. This also affects the fu-
3P’s of sustainability;
ture planning, as no decisive information is availa-
People
ble for decision making adding to inefficiency. This lack of visibility creates ripple and distortion
People are the major contributors. So having the
throughout the supply chain, leading to accumula-
right kind of work force in the organization is im-
tion of excess inventory, generation of sales obsta-
portant for achieving sustainability.
cles, and high variances in the company’s perfor-
Profit
As sustainability is directly related to performance, improvement in sustainability will result in better profitability for the organization.
Planet.
mance of their supply chain. This is an inefficient and labor-intensive process, and ultimately, a costly way of dealing with inbound logistics.
Lack of control:
Most companies have developed an optimized route guide plans that specifies how a supplier
The world is becoming smaller and various re-
must ship the required material from various loca-
sources needed for an organization need to be
tions to the warehouse or the manufacturing unit.
shared. So preserving of these resources is im-
All the incurring logistics cost such as freight
portant for sustainability.
cost, taxes, etc. are taken care of while designing
Organizations try to achieve sustainability by
these guide plans and routes. However, there is
striving to achieve a balance between the three pillars. Inbound logistics is an integral part for
maintaining the equilibrium for sustainability. Problems related to inbound logistics:
Lack of visibility:
no feedback or check system that ensures that the guidelines are followed. They have to depend on
their suppliers and employees to execute the guidelines. The invisibility and lack of control makes it difficult to track the execution of the routes and the manufacturer have no means
The inability of the supply chain to have a real
to enforce these optimized plans.
time knowledge and data of the complete inbound
In this scenario, the buyer is dependent upon the
logistics is termed as lack of visibility. Logistics
supplier to follow the supplied routing instructions
executives are constantly requested by interde-
but due to real time situations and complications
partmental groups for a real time and accurate da-
involved in shipping products and material to
ta about the various inbound activities such as
multiple customers across various locations and
purchasing, inbound shipments, quality controls,
requirements suppliers do not follow routing in-
etc. Today, identifying the transit inventories,
structions.
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21
Additionally, the cost of failure of the supplier has to be taken care by the company as it pays for the additional logistics cost. In addition, the costs resulting from delays in receiving purchased items,
supply chain disruptions, and lack of visibility is managed by the organization. Once the suppliers on the respective route dispatch the items, the buyer has no means to make changes, preventing
Source: https://www.epa.gov/ghgemissions/ global-greenhouse-gas-emissions-data
it to make real time on field reacting to mishaps
Methods for optimization:
such as split of a shipment for separate delivery
destinations.
Transparency in the inbound logistics can be im-
Increasing carbon footprint:
Logistics transparency:
proved my using cloud and GPS technology
Advancement in technology and new modes of
which allows one to have a real time tracking and
physical connectivity has bridged the gap between
location of the logistics. Modern real time track-
suppliers and customers. It has led to creation of a
ing software for e.g. PolyOne, Celebriducks, etc.
global market enabling high quality products and
are used. This is where technology is having a sig-
drastic reduction in lead-time. However, high us-
nificant impact, as any transportation management
age of technology, increase in production capaci-
system (TMS) provider will explain. By using so-
ty, and global logistics has also increased the CO2
phisticated software, shippers can optimize modes
emission and footprint in the environment. The
and loads—shifting from over-the-road only to
carbon footprint globally is rising and transport
intermodal, or changing trucking equipment. This
and industy contribiure to 35% of the total foot-
also contributes to optimization of procurement
print globally .
process and improving sustainability.
Improving the delivery system:
Many companies try to procure different raw materials from different vendors. Each supplier needs
to deploy a dedicated resource for each individual manufacturer but this increases the lead-time required, which causes wastage of time, capital and capacity. Additionally, while returning back, the trucks return empty, reducing the overall efficiency of the supply chain. These effects are multiplied as the number of suppliers and companies Source: https://www.epa.gov/ghgemissions/ global-greenhouse-gas-emissions-data
increase. To avoid this wastage, multi procurement methods or common procurator method can be utilized. It is also known as the milk run model. This system similar to a milk delivery system. It ensures that different raw material required are
22
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collected and distributed with the help of mini-
new emerging techniques will in turn reduce the
mum transportation and reducing the overall lead-
impact of waste material on environment paving
time. This leads to better delivery system, reduce
path for sustainability. By using sustainable packaging materials and eliminating wasteful ele-
ments, many companies are finding that designing environmentally friendly packaging also makes good business.
Long term relations with supplier:
Maintaining long-term relation with the suppliers wastage, and improve efficiency resulting in better sustainability. Source:https:// anbinlogistics.wordpress.com/2011/03/30/themilkrun-concept/
Responsible packaging:
Huge amount of time is invested into packaging and formation of shipments for transportation. Excessive use of packaging material can add to cost and wastage of material whereas insufficient or
is an effective way of improving and optimizing the inbound logistics. Due to maintaining relationship with the supplier, the entity invests in itself to better extend the quality of the product. This leads to better quality of products manufactured and improving of profits. Example of this is McDonald’s farm. It takes complete care of all the crops grown inside the farm. This leads to better product
quality and changes whichever take place in the process.
improper packaging can lead to damage to goods.
Few other processes that can be used for optimiza-
Hence, a lot of importance is given to packaging
tion of inbound logistics
of material to improve sustainability. For normal
Understand Total Cost of Ownership.
goods with high durability, smaller compact pack-
Unbundle Your Purchase Orders
aging can be utilized which will result in better
Leverage Your Volume.
product quality and saving. "Packaging supply
Be Accurate.
chain efficiency is a mix of engineering, material
Automate
science, standardization and logistics," Sriman Banjeree, head of packaging development for
Sustainability due to optimization:
G.S.K, Parsipanny, NJ., presented 10 packaging
"Sustainability is not always to help the environ-
factors as they relate to manufacturing and supply
ment," says Patrick Penfield, professor of practice,
chain efficiency. According to the article, compa-
supply chain management, at Syracuse Universi-
nies can achieve long-term efficiency and sustain-
ty's Martin J. Whitman School of Management in
ability by using modern packaging techniques.
Syracuse, N.Y. "Every dollar saved through sup-
For example, the bag in container package which
ply chain sustainability efforts is a dollar for prof-
was redesigned to direct-fill rigid container. This
itability." Carbon footprint reduction is one of the
new container design reduced the size and space
common objective that all the industries are striv-
required also decreasing the material required and
ing towards giving way to better environment.
weight and increased shelf space saving. Such
Improvising on the packaging of goods, use of technology for better tacking and delivery,
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23
high employee and supplier relations, and improved global standards contribute to sustainability. An increasing number of companies see sustainability and profitability as mutual goals often
embracing green supply chain initiatives as a part of their long-term strategies to factor sustainability into practical business plans helping environment and contribute to the company's growth and success. If a company strives to achieve sustainability, it uses fewer resources and less energy, so it ultimately cuts costs. Conclusion: From the above discussion, it can be observed that there are various methods to improve the optimization of an inbound logistics and procurement process. In addition, improvisation and optimization leads to improving the sustainability of the
supply chain giving a better impact to product and eventually bringing profits for the companies in longer run.. References:
http://smallbusiness.chron.com/outbound-vs -inbound-logistics77016.htmlwww.cerasis.com
https://www.epa.gov/ghgemissions/globalgreenhouse-gas-emissions-data
http://www.inboundlogistics.com/cms/ article/sustainability-green-is-the-newblack/
http://www.inboundlogistics.com/cms/ article/supply-chain-sustainability-takesroot/
http://www.packworld.com
http://3rdpartylogistics.blogspot.in/2011/09/ what-is-milk-run-system-transportation.html
https:// anbinlogistics.wordpress.com/2011/03/30/ the-milkrun-concept/
24
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Rohit Kapurkar MBA—I (Operations)
Abstract:
izations to consider SCM constrained to these ca-
As worldwide markets become progressively pro-
pacities alone. Improved SCM capacities can
ficient, rivalry no longer happens between indi-
make cost effective process and enhances efficien-
vidual organizations, but between whole value
cy over an extensive variety of business proce-
chains. Joint effort through intelligent e‐business
dures. Correctly devised, SCM is a key activity
systems will give the advantage that empowers
that must be led over the whole undertaking, from
every one of the members in supply chain to sus-
promoting and item design and manufacturing
tain and prosper. Joint effort requires every mem-
completely through to the records receivable of-
ber to operate on standardized arrangements in
fice. Eventually, SCM must be led between organ-
view of basic structures and information architec-
izations, since streamlining whole supply chains
ture. Takt time to market is very important, and
will entail a high level of data sharing and coordi-
supply chain individual member will need to re-
nated effort among ventures already obscure in
nounce the opulence of alteration and customiza-
many organizations. Some of observations depend
tion that described the restrictive frameworks of
on both the present achievements and foreseen
the past.
future necessities reported to SAP Corp. by organizations running SAP's various SCM applications.
SAP presently serves more than 6,000-7,000 clients with around 30 SCM‐driven e‐business applications. These customers vary from a major car/ bike producer to a main daily paper publisher. The test for SAP is to successfully interpret the data
innovation prerequisites of this different customer base into key design applications that can traverse Source: https://www.epa.gov/ghgemissions/ global-greenhouse-gas-emissions-data
Introduction:
whole supply chains. SCM Offerings: The early advantages that organizations can antic-
Advanced supply chain abilities are now convey-
ipate from SCM are reduced risks related to stock
ing major strategic advantages to organizations as
and expenses, alongside decrease in warehousing,
PC producers, retailers, and real estate firms. Ad-
distribution, and carrying costs. Due course of the
vantages include such exemplary supply chain
time firms will become cost effective through en-
operations as stock control, procurement, and or-
hanced productivity and efficient business practic-
der satisfaction. However, it is a mix up for organ-
es in acquiring and purchasing, customer satisfac-
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25
tion satisfaction, records of sales and payable.
function and competency of each member organi-
More unpretentious advantages can incorporate
zation, but basic primary characteristics of an
reduced lead times, more proficient product ad-
SCM will be same. These consist of:
vancement endeavors, and reduced item produc-
ing costs. In the long haul, the most noteworthy
Cost efficient connectivity. Minor players must have the capacity to get to a shared
advantages to organizations with cutting edge
infrastructure with minimal investment in
SCM capacities will be drastically enhanced client
technology. These small players should be
responsiveness, expanded adaptability for chang-
able to access wide range of shared infor-
ing economic situations, enhanced service to cli-
mation system with whom they are associat-
ents and fulfillment, expanded retention of clients,
ed in SCM. The part of system administrator
and more compelling advertising and marketing
like SAP, Oracle, who provides services for
strategies.
use by others on license basis, will be im-
Organizations can utilize SCM abilities to oversee
portant in empowering littler players who
supply and also demand. To be sure the difference
can't indulge into the huge cost of invest-
between free market activity (demand and supply)
ment in building their own infrastructure
chains appears to be progressively discretionary.
system.
In reality there is one and only kind of chain, which is value chain. Supply and demand are
complementary to each other. Demand and supply
for the supply chain must have the capacity
are parameters of a company's position with re-
to hold and process substantial amounts of
spect to different members on a similar supply
information from various sources. Usage of
chain. Upper high end individual organizations
a typical information system model for in-
form their own supply chain. Lower end member
formation stockpiling may demonstrate easi-
organizations or individuals form demand chain.
er, speedier, more agile and significantly
The key characteristic of efficient SCM is co-
more effective than an endeavor to coordinate all the different information models
ordination. Efficient SCM demands co-ordination
being used over the chain.
among all member organization in the supply chain, whatever their capacity, operations, or market position. You cannot customize your own op-
dinate and access data irrespective of appli-
ments of your customers and demands of whole-
cation or channel used. Such channels could
salers and distributors as well as the limitations
be online sites, electronic business and digi-
for your suppliers at particular point of time when
tal transactions, online and offline store
you need their service.
stores.
Complexity increases in levels of co-ordination and data sharing in strategic SCM will demand a streamline form of technology infrastructure. The system attributes required will change with the
Framework and channel mix: Member organizations must have the capacity to coor-
erations until you understand the actual require-
26
Information storage capacities: The system
Individual administration abilities: Supply chains which involve high level of coordination must offer high level of self‐ Inscribe
services. To guarantee fast and agile re-
to individuals from the supply chain to work
sponse to client requirements, these new
together in the outlining and development of
abilities have to be less complex for utiliza-
items, manufacturing procedures, logistics
tion. Along with access to order tracing, lo-
strategies, and every single related type of
gistics and invoice data, it should include
demand forecasting and supply network
applications like customization in product
planning. SCM co-ordination efforts will
configuration, flexibility in payment op-
offer numerous value‐added abilities to the
tions, and various platforms for dispute res-
organization involved in it. Individual or-
olution.
ganization will gain by tried and tested solu-
Data collection and processing: Firms will
tions from industry pioneers.
require enhanced business information sys-
Implementing these new SCM capabilities must
tem capacities to analyze the data workflow.
itself become a collaborative process, requiring
Data drawn from the whole supply chain is
individual participants to adopt streamline, stand-
then analyzed, and hence organizations can
ardized methods based on common architectures
make improvements in functionalities and
and data models. After all, the objective of the
co-ordination. The ultimate aim of co-
SCM infrastructure is not to keep peer organiza-
operation does not lie in achieving pre‐
tions out, but to pull vital collaborative infor-
defined set of goals, but rather in empower-
mation in.
ing a firm to bolster incessant improvement.
Electronic business: To cut down expenses and speed up the operations, the system in-
References
indian-logistics-sector/
frastructure will inculcate inventive courses of action regarding payment of money, for
http://www.indiainfoline.com/article/news/
example, electronic payment gateway, auto-
challenges-faced-in-logistics-sector-in-india
matic installments (EMI) on costly products.
-deepak-baid-5651802541_1.html
Security abilities: Co-operation makes more and more prone to information theft, data
Management
tem administration should take quick and precise decisions about access to critical en-
gineering designs, financial and client information. New distinguishing technologies
like computerized accreditation and even
https://yourstory.com/2016/01/commercelogistics-2016/
http://www.ariba.com/solutions/buy/supplychain-collaboration
biometrics may assume an important role in guaranteeing security.
https://www.scribd.com/doc/38209458/ Scope-and-Importance-of-Logistics-
accessible to other major organizations. Sys-
http://projectvendor.com/challenges-facing-
http://www.tutorhelpdesk.com/
Supply chain co-ordination: Today's e‐
homeworkhelp/Computer-Science-/Supply-
business trades are basically restricted to
Chain-Management-Assignment-Help.html
purchasing and selling. Improved SCM will offer trades that extend new functionalities Inscribe
27
Gurukul “The best teachers are those who show you where to look but don’t tell you what to see.” Our faculty are our strength and the immense knowledge that they possess is available for all the ones who wish to learn. In Gurukul we try to bridge the gaps between faculty and students by creating a platform for the students to work on an article under the guidance of a faculty. This enables the students to understand the topic better by directly working under a professor and also learn the tricks of the trade! This year we have four students who worked in groups of two under the guidance of faculty and have written outstanding articles. We hope that these articles help you deepen your understanding and increase your knowledge.
A quick bite about our professors without whom Gurukul would not be possible. Dr . V. V. Ravi Kumar (Deputy Director)
Dr. Prabir Kumar Bandyopadhyay (Professor)
He has completed an MBA in Business Administration from Osmania University with 1st class. He secured his PhD in the field of Management from Birla Institute of Technology, Mesra. He is a certified associate of the Indian Institute of Bankers (CAIIB) and UGC NET qualified.
He completed his graduation (B.Sc) in textile technology, masters in industrial Engineering. He is PhD holder and his area of specialization is Risk Assessment in Process Industries. He has undergone training in Productivity and Quality Improvement in Japan and Singapore by Asian Productivity Council.
He is a person with over a decade of industry experience in the field of Logistics and Banking. He has over 9 years of experience teaching Management students. He has published papers which have amalgamation of corporate experience and academic knowledge.
He has industry experience of around 24 years. During his corporate tenure he worked with multiple companies such as:
His recent research papers are:
'Speeding up the trains on Indian Railways'
Yoga: A case of Reverse Innovation
A case study on migrating non-users to retail internet banking: evidence from India.
He has also contributed many articles to leading newspapers like The Business Line, Business Standard, Financial Express, Hindu etc.
He is active in the field of Corporate Training and he has trained executives of John Deere, Credit Suisse, HPCL, L&T, R&B, GE and CPCL. His overseas exposure include visits to Universities in Malaysia, Singapore and training students of KTI, Oman.
Hindusthan National Glass Industries Limited as General Manager (Systems) Balasore Alloys limited as Head Consulting National productivity Council as Regional Director
He is a qualified lead Auditor in ISO 9000, ISO 14000 and OHSAS 18000 and also a qualified Business Excellence Model assessor and Six sigma Black Belt holder.
He is a life member of Institution of Engineers (India), a life member of Indian Statistical Institute and a member of Institute of Management Consultants of India. He is also a Chartered Engineer and Certified Management Consultant (CMC). After his corporate stint he has teaching experience in institutes like ICFAI Business School and KIIT School of Management, Goa Institute of Management. Now he is working as professor in SIBM (Pune) For more information, about Sir and his work, please visit www.pkb.co.in
Mrudul Gosawi MBAâ&#x20AC;&#x201D;I (Operations)
Suyash Jire MBAâ&#x20AC;&#x201D;I (Operations)
Major ports of India play a fundamental role in
Ports play an indispensable part in the economy
the countryâ&#x20AC;&#x2122;s economy and their commitment to
and their commitment to the creating economies is
the improvement of country is reflected in the de-
huge because of the way that in the 21st century
veloping amounts of throughput done by them.
these countries have more prominent scope for
India has 13 major ports and the general payload
advancement. These nations have likewise under-
taken care of by every one of these ports remained
stood that to save their economies, they required
to the tune of 930 MT in 2011-12. In any case,
some assistance from outside sources, particularly
one of the significant focuses on administration
the created countries. So there existed a harmony
has been the business implementation models of
between the interest for ventures by the underde-
these ports which, sadly, are not in line of the nor-
veloped countries and the supply of assets from
mal productivity levels. Major ports in India are
the businesses of the created countries.
running under different requirements like clog,
India has 13 noteworthy ports and more than 187
obsolete innovation, improper hinterland availability, and higher reliance on manual cargo handling procedures. In the meantime, they are reliant on the government for their financing. It might be
non-significant minor ports that are spread more
than 7,517 km drift and reaching out into 10 states in the peninsular part of the nation.
observed that the government is slowly trying to
Significant ports in India go under the control of
privatize the major ports from grips of its control.
the central government and are set up in trusts.
Privatization of port administrations through PPP
There are 12 noteworthy ports in India. Each of
mode and giving of managerial self-governance to
the major ports in India was set up to handle a
the administration of the port trusts are two note-
specific devoted kind of freight. Later, as the in-
worthy strides taken by the government to en-
terest for shifted items from the shippers and ex-
hance the work efficiencies of the major ports.
porters expanded, every one of these ports were
Result oriented activities, for example, National
adjusted to handle distinctive and differing sort of
Maritime Development Program 2007-2012 and
payload. As time advanced, ports have upgraded
Maritime Agenda: 2010-20 have been organized
their efficiencies to handle extensive variety of
to enhance the infrastructural set-up at major ports
freight like POL (petroleum, oil and lubes), com-
are being actualized to build the efficiencies
partments, overwhelming gear, over measurement
among the real ports.
payload (ODC) aside from the conventional dry and break mass load.
Gurukul
29
Traffic Handled at major ports Based on the data shown in table below Kandla port has got the maximum traffic in the last year. This can be due to addition of manufacturing industries being set up in the past years. We also have Paradip port as one of major port in terms of traffic and capacity which is growing at tremendous pace. New Emerging Ports
Map of India showing Major Ports (Source: http://www.mapsofindia.com/maps/sea-ports/ Rest
trieved on 2016 November 21 )
Cargo traffic at major ports in India –
Stood at 606.37 MMT in FY16
Increased at a CAGR of 7.4 per cent during FY07–17E
Cargo traffic in 2017 at major ports is expected to reach 943.1 MMT
During April to September 2016, 12 major ports in India handled 315.4 MT (Million Tonnes) of cargo, showing a growth of 5.1
Against this background, India has seen the emergence of new Ports in the Private/Corporate sector which are gradually giving stiff competition to the
established Ports. We now focus on a few newly emerging Ports. Krishnapatnam Port As India's economy keeps on developing, its oce-
anic exchange and its global markets are developing at a quick pace. This exceptional development set off an interest for strategic port ability to manage exchange at lower costs in the best and productive way, subsequently expanding India’s par-
takes in worldwide markets.
per cent in comparison to the same time dur-
Consequently Krishnapatnam Port Company Ltd.
ing previous year.
(KPCL) was shaped by winning the order from the Govt. of Andhra Pradesh to build up the cur-
rent minor port into present day, profound water and high Productivity port, on BOST (Build– Operate-Share-Transfer) concession basis. Post the fruition of the primary stage in a record time of year and a half, Krishnapatnam Port was com-
mitted to the country on July 17, 2008. Right now the second period of improvement is in progress. The Port has various qualities like its territory, area, climate and the qualifications of CVR Group
30
Diagram showing YOY CAGR traffic at
that is advancing this port; it will soon be ready to
Major Ports (Source: Ministry of Shipping, TechSci
end up one of the major private ports in India. It is
Research, Retrieved on 2016 November 20th)
located 180 km north of Chennai. Gurukul
CAPACITY AS ON 31ST MARCH 2012
AS ON 31ST MARCH 2013
APRIL TO MARCH 2014
AS ON 31st MARCH 2014 (2+3)
APRIL TO MARCH 2015(*)
AS ON 31ST MARCH 2015 (4+5)
DURING YEAR UPTO THE MONTH MAR. 2016
TOTAL (UPTO MAR. 2016)
1 17.14
2 17.14
3
4 17.14
5 3.96
6 21.10
7
KOLKATA(KDS)
9 21.10
HALDIA (HDC)
50.75
46.75
3.00
49.75
49.75
16.14
65.89
PARADIP
80.30
102.30
6.50
108.80
11.00
119.80
7.14
126.94
VISAKHAPATNAM
66.33
67.33
21.59
88.92
7.84
96.76
10.99
107.75
ENNORE
31.00
31.00
31.00
6.00
37.00
8.00
45.00
CHENNAI
83.19
85.59
0.45
86.04
86.04
7.40
93.44
TUTICORIN
33.34
33.34
8.72
42.06
44.55
14.71
59.26
COCHIN
41.86
44.66
5.00
49.66
49.66
49.66
NEW MANGALORE
50.97
76.77
1.00
77.77
77.77
77.77
MORMUGAO
41.90
36.40
0.25
36.65
MUMBAI
44.53
44.53
44.53
JAWAHARLAL NEHRU
64.00
65.88
65.88
KANDLA
91.22
93.22
9.10
TOTAL
696.53
744.91
55.61
PORT
2.49
7.11
43.76
5.03
48.79
44.53
4.80
49.33
13.49
79.37
10.00
89.37
102.32
19.11
121.43
9.63
131.06
800.52
71.00
871.52
93.84
965.36
Table showing Capacity addition at Major Ports (Source: http://www.ipa.nic.in/index.cshtml?langid=1 Retrieved on 2016 November 20th)
Gurukul
31
Table showing Traffic Handled at Major Ports (Source: http://www.ipa.nic.in/index.cshtml?langid=1 Retrieved on 2016 November 21st)
32
Gurukul
175,000 sq. mtrs for storing sensitive cargos like Fertilizers, Agri commodities, etc.
Diagram showing Storage Facility at KrishnaMap of India showing Krishanpattnam Port (Source: http://www.krishnapatnamport.com/location.html trieved on 2016 November 20th)
Re-
pattnum Port Source : http://www.krishnapatnamport.com/storage-facilities.html Retrieved on 2016 November 21st)
Road Connectivity There is a dedicated 26 km four-lane road con-
necting the port to National Highway No. 5 (Chennai-Kolkata Highway) will be upgraded to six-lane road in the future for which the land acquisition is completed. It will also facilitate obstruction free passage for project cargo. Rail Connectivity Krishnapatnam Rail Company Limited (KRCL) is a Special Purpose Vehicle comprising the Government of Andhra Pradesh, Krishnapatnam Port
Company Limited and Rail Vikas Nigam Limited, formed to provide rail connectivity to the port.
Diagram showing Storage Facility at Krishnapattnum Port Source : http://www.krishnapatnamport.com/storage-facilities.html Retrieved on 2016 November 21st )
Air Connectivity
Cargo Handling Facilities
The port is located at 180 km from the Interna-
to 1,000 MT per hour per crane
tional Airport at Chennai.
Storage facilities There is a huge transit storage area of 6,800 acres
of varied sizes with a total covered area of
Gurukul
4 ship unloaders. Each ship unloader with a capacity of 2,000 TPH
Conveyor system with a capacity up to 4,000 TPH
with dedicated storage yards for coal & clean car-
gos respectively. The Port has closed warehouses
The cranes provide a discharge rate of 750
Presently 12 hoppers with a capacity of 120 CBU
33
Dedicated port owned cargo handling equip-
line vessels simultaneously. The development is
ment like tippers, loaders, excavators, doz-
relied upon to start by end of 2011 at a cost of
ers, etc.
£207 million, permitting the primary boats to be
21 weighbridges. 7 of 120 MT and 14 of 60
taken care of in 2013. The terminal for 6,000-to-
MT and 3 in-motion railway weighbridges
8,000 TEU vessels will have a quay length of
Dedicated railway sidings - 6 for Coal, 1 for
1,000 m with 15 m water profundity at the com-
Coal / Dolomite, 2 for Fertilizers, 2 for
partments and will have the capacity to handle
Limestone, 1 for Iron Ore, 1 for Granites
three holder vessels of up to 8,000 TEUs at the
and 1 for Containers
same time.
20 automatic bagging machines with a total
Kattupalli Port
capacity of 42,000 MT/day
Night navigation: Round-the-clock pilotage
Ennore Port
Ennore Port, authoritatively renamed Kamarajar Port Limited, is situated on the Coromandel Coast around 24 km north of Chennai Port, Chennai, it is the twelfth real port of India, and the primary port in India which is an open company. The Kamarajar Port Limited is the main corporatised significant port and is enrolled as an organization. The Center holds a stake of around 68% in the Kamarajar Port Limited and the balance 32% is
The Kattupalli Shipyard cum Captive Port Complex is an expansive shipyard extends at Kattupalli tow near Chennai developed by L&T Shipbuilding Ltd. together with TIDCO. L&T shipbuilding Kattupalli is having shipyard and a minor port. It aims to compete with Japanese and Korean shipyards in building "specific boats, for example,
vast size warships, auto bearers, submarines, maritime seaward watch vessels, quick watch vessels and corvettes. After Colombo and Singapore, Kattupalli will be the third real universal goal for ship repairs in the area.
held by the Chennai Port Trust. The port has dis-
The Integrated shipyard complex will have the
played the capacity to pull in business of ₹ 26,000
accompanying offices:
million by private business people on different
terminals and harbor craft. Kamarajar Port Lim-
payload bearers; specific load ships for flu-
ited, planned as Asia's vitality port, is the first corporatised port in India and has just 86 workers.
id/gas transportation and journey vessels
Conceived being a satellite port to decongest and enhance the ecological quality at the clamoring
called the Bay of Bengal Gateway Terminal, will
Off-shore stages and coasting creation cumstoreroom for oil and gas segment
extensive variety of items.
The Ennore Container Terminal (ECT), otherwise
Building of safeguard boats including submarines
Chennai Port, Kamarajar Port Limited is developing itself into a port with the ability to handle an
Commercial ship building including huge
Refitting and re-building of business and protection ships
Heavy designing creation and segments generation for ship building.
have an iarranged yearly limit of 2.4 million TEUs and will be fit for taking care of three main-
34
Gurukul
Adani Port
Petroleum Planning and Analysis Cell,
Adani Ports and Special Economic Zone Ltd
Available
(APSEZ) India;s biggest port operating firm has
at
https://rbi.org.in/scripts/
SearchResults.aspx?search=petroleum
sgned an agreement with L&T to take over the
Re-
st
trieved on 2016 November 21
operations and management of Kattupalli Port. The deal will help APSEZ to operate and manage
Handbook of Indian Statistics (RBI) (2016),
Indian Port Association (2014), “Bulk Han-
Kattupalli that has facilities including a container
dling Facility”, Available at
terminal with a capacity to load 1.2 million twenty
www.ipa.nic.in/ Retrieved on 2016 Novem-
-foot equivalent units (TEUs) a year. The APSEZ
ber 21st
group, which already operates the country's busi-
http://
Krishnapatnam Port, Available at http://
est port at Mundra in Gujarat, has bagged the or-
www.krishnapatnamport.com/
der with an estimated cost of Rs 4,089 crore with
corporate_profile.html Retrieved on 2016
4-year timeframe for commissioning of the pro-
November 21st
ject.
Kattupalli
Port,
Available
at
http://
www.lntkict.com Retrieved on 2016 No-
Conclusion:
vember 21st
The article concludes the brief of the Maritime Industry in India and the three functional and
Mundra
Port,
Available
at
http://
emerging ports. The Maritime Agenda mainly
www.adaniports.com Retrieved on 2016
highlights the development driven path that this
November 21st
sector has embarked upon. The major ports in In-
TechSci Research (2014), Ministry of Ship-
dia and their organisation is handled mainly by the
ping, Available at https://data.gov.in/search/
central government. The current scenario in the
site/port Retrieve on 2016 November 21 st
port sector highlights the growing trend of publicprivate partnerships and the expansion of the port sector in order to meet the escalating exportimport market. The advancement of the ports are
crucial to India in order to elevate its international
TechSci Research (2014), Ministry of Shipping,
Available
at
https://data.gov.in/
catalog/capacity-utilisation-ports
on 2016 November 21
Retrieve
st
trade transactions. Though the Indian ports are not as advanced when compared with their counterparts in the global market, these new emerging ports could transform themselves into world class Ports in the years to come. References:
Ennore Port, Available at
http://
www.ennoreport.gov.in/ Developmentplan.htm Retrieved on 2016 November 21st Gurukul
35
Pratik Pore MBA—I (Operations)
Pavan Gujar MBA—I (Operations)
Abstract
framework a genuine arrangement would keep on
This article explains about C2C concepts and var-
eluding us. For a genuine arrangement, we feel it
ious types of the wastes which can be reduced or
is basic to take a glance at the entire causal system
eliminated by implementing the design concept of
of the issue that our arrangement of generation
Cradle to Cradle. It also discusses about the vari-
and utilization postures. The mission of Cradle to
ous tools of C2C to use it in the remanufacturing
Cradle as a plan hypothesis is to create an in-
and redesigning the products in such a way that
ventive demeanour to configuration prompting to
the waste generated from the products can be
a total redesign of our way to deal with our associ-
used to develop the new products and rest can be
ation with nature.
graved into soil reducing carbon footprint and
Concept of Waste
environmental hazards. At last it gives some real life examples of firm like Puma and Go-Green
There are various methods for taking a glance at
which implemented C2C design principles which
waste. The direct idea of configuration, addition-
helps them achieve sustainability in there supply
ally called Cradle to Grave—brings about physi-
chain.
cal waste; a last item that is no more drawn out
Introduction
helpful and which is consequently disposed of and may well influence our surroundings unfavoura-
As long as planners and engineers stay oblivious
bly somehow. In attempting to take out waste in
of an outline hypothesis as convincing as Cradle
this sense Cradle to Cradle would oblige us to
to Cradle, our great goals as to the earth and the
overhaul items and procedures totally, so that ma-
improvement of a reasonable building society will
terials and procedures can be presented which to-
come to nothing: Less awful, which is the ethos of
ward the end of their helpful life as that item, es-
most current speculation concerning manageabil-
sentially offer themselves as crude material
ity, is not by definition great.
(specialized supplement) for another new item in
In Cradle to Cradle hypothesis, we see contempo-
the specialized cycle or as a natural supplement
rary ways to deal with sustainability as endeav-
for the organic cycle. Squander gets to be nourish-
ours bound to restricting the negative impacts of
ment. A representation of these two cycles is giv-
the mechanical upheaval, as approaches to up-
en in figure below.
grading a basically terrible framework. By attempting to bargain only with the outcomes of a 36
Gurukul
The
third
type
of
waste
concerns
the
"squandering" of our biodiversity as a by-result of agribusinesses self-vanquishing endeavour to amplify productivity through the serious advance-
ment of mono-refined scenes. To remain economically suitable, these moderately short-sighted man-made eco-frameworks are kept misleadingly stable through a procedure of concoction expansion. The occasional need to utilize ever more effective chemicals to kill the undeniably safe common adversaries of the widely-varied vegetation developed can, best case scenario accomplishes a fleeting dependability. These vaccinated scenes,
not at all like their characteristic and complex partners, can't get by independent from anyone else. Support to Cradle thinking puts a sympathy toward biodiversity at the very centre of its hypothesis. Neighbourhood surviving qualities with
reference to widely varied vegetation shape the purpose of take-off for any future mediation. The proverb think worldwide act nearby structures the In any case, waste is more than only a physical
very premise of Cradle to Cradle considering.
item. Another type of waste is the â&#x20AC;&#x153;clean slateâ&#x20AC;?
A fourth part of waste is the issue of concealed
coming about because of our disregard of the
added substances or additives. Right now, most
chronicled and social layering of a domain,
items should be portrayed as 'items +'. An item +
whereby connections amongst individuals and
is an item that contains shrouded added substanc-
their surroundings are irritated and tossed out of
es which might be destructive when discharged
adjustment. Amid the advancement of an urban
into the earth. Cuddly toys, backdrop and floor
arrangement concurring Cradle to Cradle stand-
coverings are not free of in addition to added sub-
ards, it would basic to assess the social and au-
stances. These constitute an undeniable issue for
thentic layering of a city in the plan; everything
reusing. Reusing is one of the crucial parts of con-
that is available should be considered as a state of
temporary ways to deal with sustainability, how-
take-off for future improvements. Squander in that
ever reusing such materials brings about the added
sense is the careless and unconcerned treatment of
substances being discharged into nature in a path
existing qualities which constitute sustenance for
for which they were not initially composed. This
the improvement of a culture. By being devastat-
makes their impact hard to control.
ed, much more is wrecked than simply the earth;
The C2C Revolution
our feeling of ourselves is demolished with it.
Gurukul
Our world is moving towards another plan task 37
where individuals and ventures set out to make the
mass.
accompanying:
Cradle to Cradle is inspired by Mother Nature it-
Structures that, similar to trees, are net vital-
self. Characteristic frameworks in their natural
ity exporters, create more vitality than they
knowledge, exhibit cycling of supplements, asso-
expend, accumulate and store sunlight based
ciation, plenitude, differences and force of recov-
vitality, and filter their own waste water and
ery. Like nature we ought to wind up eco-
discharge it gradually in a purer shape.
compelling, meet our own objectives while others
Manufacturing plant emanating water that is
flourish, instead of eco-effective, only minimizing
cleaner than the influent.
Items that, when their valuable life is over, don't get to be pointless waste, yet can be hurled onto the ground to break down and
C2C Tools
revamping soil; or, on the other hand, come
After dismantling, the item should be expended altogether by two cycles. The organic cycle reuses the materials by biodegradation; this heap will be
Billions, even trillions of dollars’ worth of
isolated in as few as could be allowed procedures
materials accumulated for human and regu-
of characteristic digestion system. In the special-
lar purposes every year.
ized cycle, the materials will be reused in as few
A universe of wealth, not one of points of confinement, contamination, and waste.
Instead of contaminating and draining the world, we can help it flourish through devouring. We re-
as could be allowed changing or reuse forms. Materials that cannot be dismantled effectively
should be had the same reuse handle. Design for Disassembly (DFD)
quire two cycles of materials: a specialized cycle,
A product is defined in this method by successive
metabolizing specialized supplements (inorganic
manipulations of parts, calculating and optimising
materials) and a natural cycle, metabolizing or-
the time it takes for the product to be put together.
ganic supplements (biodegradable materials). The
Because the manipulations are largely the same
materials meet in items, and after the item's valua-
for assembly and disassembly, this method seems
ble life is over, the materials are recovered and
suitable for DFD.
came back to their cycles. This is unique in rela-
Products of service brainstorm
tion to reusing, where materials corrupt all the while. In the event that we outline for dismantling, we can recover the supplements (as opposed to squander) in light of the fact that there are no 'colossal half breeds', involving both of specialized and natural supplements that cannot be isolated, or of significant minerals caught in low quality 38
great, when we make our waste our sustenance.
The two-cycle wall
crude materials for new items.
ishes. Instead of being less terrible, we can be
get to be sustenance for plants and creatures, back to mechanical cycles to supply superb
our effect and taking the briefest course to our fin-
Toward the start of the outline procedure we need to ask whether the item, or parts of it, can be supplanted by administrations. In the first place, we need to set up the requirements of the objective
gathering that are currently satisfied with unsustainable items, and the social limits that farthest
Gurukul
point the scope of options. This will be finished
discovering choices and assessing them. LCA is a
by method for social examining. The requirements
required instrument for C2C affirmation. In the
will be isolated into HCY's; How Can You's
outlined procedure (not in an upgrade procedure)
(HKJ's in Dutch). For some intriguing HCY's we
a brisk appraisal of an option existing item would
will attempt and imagine administrations. The ad-
be performed in the examination stage, an exhaus-
ministrations may supplant (parts of) the item or
tive LCA is done on the last item in detail plan.
add to its esteem. In later plan stages, we will de-
Design chemistry (DC)
tail the item close by the administrations.
Eco-effectiveness brainstorm
Here it means that we use such type of materials
so that once the product is no longer usable, if not
Instead of minimizing the effect of our item, we
the product, at least its parts can be reused.
ought to inquire as to whether it can add to organ-
Cradle To Cradle Product Innovations
ic or innovative procedures, while doing what it does. The alternatives ought not to be extra, similar to a camera with a CO2 channel, yet basic, similar to a copier making O3 (Ozone), implying that the helpful capacity is identified with the pro-
Let us see various Industries who applied cradle-
to-cradle design theory and achieved sustainability in throughout their supply chain and manufacturing .
posed work.
One choice is 'squander = nourishment'; a T-shirt
It is very much important for the organisation to
turns into a manure and a casing turns into a clear.
prepare sustainable packaging so that the disposal
Another alternative is 'upcycling'; PET is filtered
of the product should be done effectively it ad-
through softening; an auto is overhauled with an-
dressing the most important concept of the reduc-
other motor. More alternatives may develop.
ing waste and carbon foot print in sustainability in
Begin by posting the essential and auxiliary ele-
the supply chain.
ments of the item and similarly for the principle parts of sub-congregations. For every capacity, ask who can profit by it and how. Pick fascinating
alternatives to expand in the following plan stage. This conceptualize is ideally a multidisciplinary one as scholars, scientific experts, materials architects, physicists and advertisers know better what is helpful for them or the procedures they know than designers do. Life Cycle Assessment (LCA) Operations incorporate portraying materials and
So Actually Go Green completes the above cycle.
procedures for the support to grave existence of the item and every one of its materials, appraisal
Be Green is company is all about designing and
trough programming like Ecoscan and Idemat,
producing food service plates, bowls and platters
Gurukul
39
using sustainable packaging compostable. The
and sweatshirts and a completely recyclable ruck-
innovation they are doing is to make paper plates
sack and shoulder pack. They innovated these
and other food service items from renewable, tree-
products both at Macro and Micro level. At the
free plant fibres. So Go Green Company achiev-
micro level, Puma took a gander at what sorts of
ing sustainability in there supply chain by creating
colours and dyestuffs we utilized as a part of our
decomposable products which eliminates the
items. At the Macro level, they built up a frame-
wastages including hazardous chemical which
work inside our stores that could reclaim items
could be generated if they had not redesigned their
and place them into a framework where they
product.
could recycled or reused. Puma collaborate with
Be Green Packaging outlines, fabricates, and con-
associations like EPEA in Germany, who have the
veys Cradle to Cradle Certified Silver, tree free, compostable and recyclable bundling for the sustenance and purchaser bundling ventures that is
alright for individuals and sound for the planet. Be
science information and could work with our supply base and enhance inside our store network. They likewise joined firm which can introduce
Bring Back Bins in the lion's share of our stores
Green Packaging's plan of action has been made
that can take items back.
to address the worldwide worry of overflowing
The PUMA Bring Me Back program is an item
landfills and poor waste administration. As a dy-
reusing activity that makes a shut circle frame-
namic, socially cognizant and revenue driven or-
work went for occupying items from the landfill.
ganization, Go Green make and offer really man-
The greater part of PUMA areas now have Bring
ageable other options to conventional bundling, as
Back Bins that can acknowledge garments, shoes
well as to instruct their partners, representatives,
and packs. After an InCycle item proprietor has
providers and groups about their effect on nature.
worn the thing to his or her heart's substance, they
Firm is focused on the full life cycle of our items.
can return it to a PUMA Bring Back Bin to close
Our bundling uses yearly renewable plant strands,
the circle. With our reusing accomplice, I:CO, we
reuses water, reuses general waste and scraps, en-
handle the rest.
sures nature, and returns healthy, fertile soil back
In this journey, Puma innovate the design for their
to mother earth through the way toward fertilizing
the soil. The greater part of our conventions rotate around Cradle to Cradle rationality and goals.
new products from the beginning. For example an InCycle tee shirt has been somewhat changed (slightly tweaked) to make it work inside the Cradle to Cradle Biological Cycle, swapping a polyester sewing string for cotton. It is a little change,
Another example of firm who developed the prod-
yet something we have needed to do to hold fast
ucts which are perfect fit for Cradle to Cradle.
to the criteria â&#x20AC;&#x201D; a trip that we have brought to-
They launched two new collections of lifestyle apparel, footwear and accessories. The accumulations incorporate re-issues of notable PUMA styles, for example, the PUMA Suede and T7 Track Jacket, along with recently composed coats 40
gether with our thread supplier. References
1. Prof. Dr. Michael Braungart (2012, September 11). Cradle to Cradle Design.
Gurukul
Retrieved
from
http://ecoconception.be/
upload/5_Michael_Braungart__Cradle_to_Cradle_D esign.pdf 2. Terence Tse, Mark Esposito, and Khaled Soufani (2015, November 4). Cradle to Cradle: Remaking the Way We Make Things
Retrieved from http://res.cloudinary.com/lisbook/raw/ upload/Read-and-Download-Cradle-Remaking -Way-Make-Things.pdf 3. Anne-Marie Bor (NL Agency), Katja Hansen (EPEA), Mark Goedkoop (PRe Consultants), Alain Riviere (EPEA), Carmen Alvarado (PRe
Consultants), Walter van den Wittenboer (NL Agency) (2012, August 14): Usability of Life Cycle Assessment for Cradle to Cradle purposes. Retrieved from https://www.rvo.nl/sites/default/files/ bijlagen/ Position_paper_Usability_of_Life_Cycle_Assessment _for_Cradle_to_Cradle_purposes_W.pdf 4. Douglas Mulhall, Michael Braungart, Katja Hansen (2011, May 8). How to Plan Benefcial
footprint Retrieved from https://www.rsm.nl/fileadmin/Images/ PhD_Faculty_and_Research/C2C/
Gurukul
41
Remote collaboration is unproductive
Remote work makes happy employees and increases performance by 13%
Frequent meetings are necessary to keep
Project management is pure paperwork
Project manager spends 90% of their time communicating
An organized supply chain will keep my operations running
Supply chain management is dynamic and constantly subjected to new opportunities and adverse changes
Supply chain is all about Low cost
Supply Chain manager must be exceptional technical expert.
In fact, 47% of workers called meetings the #1 time-waster at the office
Quality to customer is the priority in supply chain.
The scope of the SC manager extend beyond technical skills and incorporate functional and soft skills.
Right forecasting is the only way to have a correct supply chain
Technology is the best source of Supply chain improvement
Itâ&#x20AC;&#x2122;s all about number of trucks for transportation
Forecasting is one of the contributor of many that ensure high productivity.
Supply chain capabilities can be conceptualized in terms of people, process, Systems and data.
Rather focusing on supply chain capability, analyze the delivery, order fulfillment task that matters
everyone in the loop
Logistics operations deliver
Logistics operations deliver over 4
the equivalent of 16,000 swim-
billion meals to pubs every year in
ming pools of milk every year
the UK - that’s enough to feed two
thirds of the world’s population The biggest lorry in the
The biggest ship in the world
world carries 300 tons of
can carry the Eiffel Tower
material - that’s 43 elephants
and an Airbus comfortably
Every year logistics operations deliver enough beer to fill Wembley Stadium For every truck of goods delivered to our supermarkets, 400 If Wal-Mart were a coun-
cars are needed to transport the
try, it would be 26th larg-
goods to our homes
est economy in the world The concept of logistics man-
agement was evolved during Amazon's warehouses have more
the Second World War.
square footage than 700 Madison Square Gardens and could hold more water than 10,000 Olympic Pools
The
mastermind
behind
MRP
(material requirement planning) was IBM’s Gene Thomas who
later
founded the company, Emeritus. The
second
“disruptive
highest and
rated
important”
technology among respondents is digital supply chain.
The total market share of global logistics industries has crossed $4 trillion mark
Supply Chain Newsletter 2016 A glimpse into the world of Operations Trump Wins: Supply Chain Implications of Stated Policies The surprise victory for Donald Trump in the US presidential election is roiling markets. The path ahead is
all about working within the world that Americans have just voted for. Trumpâ&#x20AC;&#x2122;s stated policies include several with significant implications for supply network design, manufacturing strategy and resource planning. While guessing which will take effect is a political question, the four points bear consideration Trade, Immigration, Energy and Taxes. http://www.forbes.com/sites/kevinomarah/2016/11/10/trump-wins-supply-chain-implications-of-stated-
policies/2/#53c3c0694a66 Note ban hits consumer packaged goods sales, supply chain The cash shortage is breaking down the supply chains of packaged consumer goods companies. As consumers hold on to their Rs 100 and Rs 50 notes to make only the most essential of purchases, sales have slowed to a trickle in several areas, retailers, distributors and stockists say. http://www.livemint.com/Industry/30rv45zcmeFG2nwfbldhVM/Note-ban-hits-consumer-packaged-goodssales-supply-chain.html
Cash effect: Rs 67,000 cr worth of credit to be delayed for traders, logistics firms Demonetisation has found its way to almost every nook of every supply chain in the country. In addition to the turmoil caused to the common man, it has also managed to cripple the traders as well as the logistics firms as it is reported that a whopping amount of Rs 67,000 cr of credit will be delayed until the new currencies come into full circulation.
https://m.yourstory.com/2016/11/cash-credit-500-1000-rupee-notes-india-wholesale-market-fmcg/ Is the End of "Made in China" Truly on the Horizon? Reports that Apple and Foxconn Again Looking at US Production, but How Much More will the US Consumer be willing to Pay for Goods? It seems clear the era of extreme Chinese manufacturing dominance is waning, and will be reflected in the numbers soon enough. http://www.scdigest.com/ontarget/16-11-29-1.php?cid=11595 44
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Walmart is jumping on the Block chain Bandwagon Company Testing Technology in US and China to Improve Product Recall Process in Food. The blockchain data may not only improve recall processes, it may allow analysis of when there are delays in the flow of goods across the supply chain to the store shelf.
http://www.scdigest.com/ontarget/16-11-22-1.php?cid=11572 GE Makes Major Strides in 3D Printing, as Advances in Metals-Based Composition Opens Many New Applications GE's Success and Acquisitions Likely has Other Manufacturers Scrambling to Build their Own Capabilities; Printing Process is Slow, but Still Often Much Faster than Casting and Machining. GE says it takes five days to print a set of nine fuel nozzle injectors at its Alabama facility - but that a similar design would take several weeks to build using traditional methods. http://www.scdigest.com/ontarget/16-11-15-2.php?cid=11539 Procter & Gamble plans Walmart-like pact with Future Group Procter & Gamble (P&G), the world’s biggest consumer goods company, is exploring a long-term partnership with Kishore Biyani’s Future Group akin to the one it has with Walmart in the US, that could involve joint sales forecasting and planning, exclusive product releases, embedding officials at each other’s head-
quarters and even supply-chain initiatives. http://economictimes.indiatimes.com/industry/cons-products/fmcg/procter-gamble-plans-walmart-like-pact -with-future-group/articleshow/55020562.cms India’s tiger unleashed: Supply chain design under GST Once the GST is fully implemented, transportation between India’s states will be instantly transformed from a bureaucratic nightmare to a simple border crossing. The breakdown of inter-state borders will help companies optimize their supply chain networks based on operational efficiency instead of political red tape. Most companies can expect to realize significant efficiency as they begin moving products throughout India freely, but the ability to massively reduce distribution centre infrastructure is unlikely. http://www.logasiamag.com/2016/10/indias-tiger-unleashed-supply-chain-design-gst/ Walmart, IBM and Tsinghua University Explore the Use of Blockchain in the Supply Chain Advanced technology has reached into so many aspects of modern life but it has lagged in food traceabil-
ity, and in creating more secure food supply chains. The collaboration with Walmart and Tsinghua University is a step of global significance to change that. http://www.supplychain247.com/article/ walmart_ibm_and_tsinghua_university_explore_the_use_of_blockchain Paytm to replicate Alibaba’s logistics strategy with LogiNext Launched in 2014, Paytm is backed by investors such as Alibaba Group, SAIF Partners and Sapphire Ven-
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ture. Paytm wallet claims to have over 130 million users, with over 90 million transactions every month. While Paytm’s core business is mobile payments and mobile recharges, it has aggressively built its ecommerce marketplace over the past two years, selling apparel, footwear, smartphones, laptops and other products.
Paytm marketplace currently has about 130,000 merchants, and the company expects it to double by fiscal 2017. Now Paytm replicates Alibaba's logistics strategy and there is a possibility of merger as well. http://www.thehindubusinessline.com/info-tech/paytm-to-replicate-alibabas-logistics-strategy-withloginext/article9272248.ece A Look at Dragon Boat: Amazon’s Plan to Disrupt the Shipping Industry Perhaps many of us have heard about the Amazon’s Dragon Boat Project. Bloomberg News reported it first back in February. Doesn’t matter what but it sounds like coming straight out of a James Bond Movie: Cov-
et Operation ‘Dragon Boat’ kept under wraps from the public. Amazon keeps on amazing the enthusiasts; has more tricks up its sleeves than the magician P C Sorkar. Dragon Boat is Amazon’s way of cutting down on middleman; an expansion to “Fulfilled by Amazon” service, that stores, picks, packs, ships and support products to help retailers grow their business. It’s a way to take control of its end-to-end supply chain. This article gives an idea of this project and what Amazon might be looking forward to through this
'coveted' project: Dragon Boat! http://www.supplychain247.com/article/ a_look_at_dragon_boat_amazons_plan_to_disrupt_the_shipping_industry/news UK car industry fears effects of Brexit tariffs on supply chain Before the new Bentley SUV purrs away from the showroom, its bumper will have already travelled 2,200 miles, crossing the English Channel three times. While the final assembly of each Bentley remains in Britain, the components that make up the cars are drawn from across the world and often zigzag back and forth between factories in the UK and the continent
before arriving at Crewe. That leaves Bentley’s supply chain, in common with that of almost every other car manufacturer in Britain, at risk of being hit by tariffs if Britain leaves the European single market. https://www.ft.com/content/c397f174-9205-11e6-a72e-b428cb934b78
Major supply chain revamp pays dividends for Unilever across Europe Faced with declining sales and dwindling margins in the aftermath of the 2008 global recession, FMCG giant Unilever completely revamped its European supply chain. A five-year supply chain transformation project, which concluded earlier this year, resulted in a 20% reduction in trucking, around €1.1bn in cost savings, a €750m cash contribution to the parent business and a 40% reduction in capital expenditure (capex). http://theloadstar.co.uk/major-supply-chain-revamp-pays-dividends-unilever-across-europe 46
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PepsiCo's Practical Application of Supply Chain Resilience Strategies PepsiCo, the food and beverage behemoth with $63 billion in annual revenues, is best known for their car-
bonated soft drinks. But consumersâ&#x20AC;&#x2122; preferences have shifted toward more nutritious foods. 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. PepsiCo responded by leveraging its premier health & wellness brands such as Naked Juice and O.N.E. Coconut Water. Tim Rowell, a Senior Manager of Supply Chain Planning working in the chilled supply chain portion for PepsiCoâ&#x20AC;&#x2122;s global nutrition segment, spoke about how his company has adapted to these changes. http://www.forbes.com/sites/stevebanker/2016/10/01/pepsicos-practical-application-of-supply-chainresilience-strategies/#689006b876c9
Zomato acquires logistics tech start up Sparse Labs Online restaurant ordering and discovery portal Zomato acquired logistics technology start up Sparse Labs, as it looks to improve the delivery experience. The financial details of the transaction were not disclosed. Sparse Labs has developed an Android-based mobile application which transmits delivery executivesâ&#x20AC;&#x2122; location to both the restaurant and the consumer in real time. The company said that Sparse Labs would be
renamed as Zomato Trace and that it would give free of cost to restaurants on Zomato's food delivery network. http://economictimes.indiatimes.com/small-biz/startups/zomato-acquires-logistics-tech-startup-sparse-labs/ articleshow/54521541.cms Amazon's newest ambition: competing directly with UPS & FedEx "The brands that will thrive in coming years are the ones that have a purpose beyond profit." - Richard Branson Amazon is already in the business of delivering packages to your door as quickly as possible, but now the
company seems intent on cutting out shipping middlemen. A report by The Wall Street Journal claims that Amazon is building its own shipping service to replace FedEx and UPS, giving it more control over its packages and possibly allowing it to ship packages from other retailers. Amazon has said its own delivery services would be meant to increase its capacity during busier times of the year, like the upcoming holiday season. However, "current and former Amazon managers and business
partners" claim that the company's plans are bigger than that. The initiative dubbed "Consume the City" will eventually let Amazon "haul and deliver" its own packages and those of other retailers and consumers. That delivery network would also directly compete with the likes of UPS and FedEx. http://www.wsj.com/articles/amazons-newest-ambitioncompeting-directly-with-ups-and-fedex1474994758
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DHL Supply Chain eyes new augmented reality as it expands use of Smart Glasses "From science fiction to real life industry applications - Augmented Reality in logistics - Changing the way we see logistics."
DHL, the world's leading logistics company, has successfully carried out a pilot project testing smart glasses in the Netherlands as a first step in their Augmented reality journey. In cooperation with DHL customer Ricoh and leading wearable computing solution expert Ubimax, the technology was used to implement 'vision picking' in warehousing operations. http://theloadstar.co.uk/dhl-supply-chain-augmented-reality/ Rethinking the ASEAN automotive supply chain Time has now come to rethink about the ASEAN automotive supply chain as supply chain is no longer limited to what to produce and where to produce and especially when service is emerging as the high po-
tential area. There is a need for the automobile industry to think beyond the ASEAN. http://www.bangkokpost.com/archive/rethinking-the-asean-automotive-supply-chain/1078664 Can drones be taken seriously in the supply chain? Drone strategies have been taken to the next level, with Amazon announcing a partnership with the British
government to run tests to explore the feasibility of using drones to deliver small parcels. The implications of this are significant, given that 90% of Amazonâ&#x20AC;&#x2122;s sales involve products weighing less than five pounds. For users, it is expected that drones will reduce costs and speed up traditional supply chains, deliver an additional source of data gathering and provide added convenience because they are not restricted to postcodes. http://www.information-age.com/can-drones-taken-seriously-supply-chain-123461906/ Nike Partners with Private Equity Firm to Develop New Age, Outsourced Manufacturing and Supply Chain in the Americas Sports apparel giant Nike has signed a contract with giant private equity firm Apollo Global Management to create a new generation supply chain, including production facilities, in the Americas. The new business has already acquired apparel maker New Holland as well as embellishment, warehousing and logistics business ArtFX. The new Nike facilities are expected to be largely automated and will allow
other apparel firms to get products delivered to consumers quicker and cheaper than shipping merchandise from Southeast Asia. http://www.scdigest.com/ontarget/16-08-23-2.php?cid=11145 Government delves into E-tailers' GST gripe The draft GST law does not provide for credit on tax paid on returned goods, potentially imposing double taxes on sellers -tax paid on returned goods and again when replacements are provided. 48
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http://retail.economictimes.indiatimes.com/news/industry/government-delves-into-e-tailers-gstgripe/53804256 Is the Future Autonomous Trucks Combined with Uber-based Load Tendering?
Uber Buys Self-Driving Truck Technology Firm Otto for $680 Million. The vision: a shipper books a freight move on a mobile app, and a self-driving truck shows up not much later to pick up the load. http://www.scdigest.com/ontarget/16-08-22-1.php?cid=11136 Walmart Goes All in on eCommerce with Jet.com Acquisition $3.3 Billion Price Tag for 18-Month Old Company - an attempt to catch Amazon. Vies for second place. Charlie O'Shea, lead retail analyst for Moody's, added that "No one catches Amazon on-line. The key is to be No. 2.
http://www.scdigest.com/ontarget/16-08-10-2.php?cid=11083 Apple Finds Potential New Factory Hub in India After all, companies want to be where their markets are. And when one of your markets is a massive low
cost producer like India, it only makes sense to mass produce there. http://www.forbes.com/sites/kenrapoza/2016/05/22/apple-finds-potential-new-factory-hub-in-india/ #61f6c3814a0b Reducing logistics costs could save India $50 billion According to a joint study by industry chamber Assocham and Resurgent India, India can save as much as $50 billion if it implements measures to bring its logistics costs down from 14 percent of the country's GDP to 9 percent.
http://www.supplychaindigital.com/logistics/4287/Reducing-logistics-costs-could-save-India-50-billion
Invested $300mn in supply chain, logistics in 18 months E-commerce major Snapdeal has pumped in USD 300 million (about Rs 1,990 crore) over the last 18
months to strengthen its supply chain and logistics and facilitate the increase in shipment volumes. https://yourstory.com/2016/05/investment-supply-chain-logistics-snapdeal/ From Unorganized Retail To Controlled Fulfillment - How Indian E-Commerce Is Evolving India’s retail market is currently worth $600 billion (US), and estimated to grow to $1 trillion over the next three years. Of that, however, only 7% is currently what could be considered “organized retail” (largely meaning chain or department stores), the other 93% belongs to small, local businesses, many of which SCN
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don’t have any formal distribution. http://www.forbes.com/sites/rachelarthur/2016/05/16/from-unorganized-retail-to-controlled-fulfillmenthow-indian-e-commerce-is-evolving/#17cfe2123060
FDI tide turns in India’s favour Foreign direct investment (FDI) inflows into India are on the rise. According to the IMF, FDI refers to “an investment made to acquire lasting interest in enterprises operating outside of the economy of the investor.” FDI is considered one of the most stable forms of non-debt creating capital inflows, with significant positive effects on the economy. http://www.thehindubusinessline.com/portfolio/macro-view/fdi-tide-turns-in-indias-favour/ article8573044.ece Nike Expansion Cuts Supply Chain’s Carbon Footprint Nike has expanded its European Logistics Campus in Belgium and implemented several new environmen-
tal sustainability aspects as part the company’s efforts to reduce the carbon footprint of its supply chain. http://www.environmentalleader.com/2016/05/27/nike-expansion-cuts-supply-chains-carbon-footprint/ Tech Mahindra and SAP create fresh produce supply chain platform
Mumbai’s Tech Mahindra has created a platform designed to manage the supply chain for fresh produce in collaboration with German software giant SAP.The platform, called FEEDS, will create a connected supply chain capable of tracking and maintaining food freshness during each step in the supply process. Tech Mahindra has cited a “lack of real time visibility and traceability” in the current produce supply chain.
http://www.supplychaindigital.com/supplychainmanagement/4301/Tech-Mahindra-and-SAP-create-freshproduce-supply-chain-platform How To Make Your Supply Chain More Resilient
Last year, FM Global CFO Jeff Burchill and I discussed the integral role CFOs play in managing supply chains. With supply chain disruption rampant, it’s more important than ever for CFOs to proactively identify and mitigate risks to ensure stability, thereby creating long-term business value. This week, FM Global released its 2016 Resilience Index, and I checked back in with Jeff to see how supply chains in the United States and abroad are faring as well as to discuss how CFOs can create more resilient supply chains. http://www.forbes.com/sites/jeffthomson/2016/05/11/how-to-make-your-supply-chain-more-resilient/ #1800d7266dc2 50
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Food sector will get foreign investment only if FDI is allowed unconditionally The food supply chain sector will not get the desired foreign investments unless foreign direct investment (FDI) is allowed in multi-brand retail and rigid conditions removed, according to a report by research body
ICRIER and D&B Tangram. http://www.thehindubusinessline.com/economy/food-sector-will-get-foreign-investment-only-if-fdi-isallowed-unconditionally-report/article8528144.ece
Tesla is not the next Apple Just because Apple can sell hundreds of thousands of $500 phones on faith, purely on the strength of the firm’s design credentials, is not an indicator that Tesla or any other automaker can. Tesla has proven it can create massive hype, but it has yet to show it can embrace the unsexy and extremely challenging task of building complex cars at mainstream scale with competitive quality. Instead of trying to be Apple, Tesla should be focused on developing the skills that will allow it to thrive in the brutally competitive, 90 million car-per-year market for boring, reliable transportation. http://www.oprules.com/2016/04/tesla-is-not-the-next-apple/
Hands, heads and robots work in sync at Amazon warehouses Amazon’s DuPont fulfillment center is a sort of laboratory for how the company is using robots to do much of its heavy lifting. But it also shows how the human workforce is not only necessary but superior in some respects. http://www.oprules.com/2016/04/hands-heads-and-robots-work-in-sync-at-amazon-warehouses/
More Companies Turning to Sensors For Supply Chain Visibility (Spendmatters)
Sensors are proving to be one of the most widely adopted emerging technologies impacting supply chains today. The sensors provide data on the location and the condition of a company’s supplies and products as they are transported around the globe. They allow companies to gain end-to-end visibility of their supply chains and reduce risk. It’s a benefit more organizations are taking note of and continuing to drive adoption rates up. http://www.oprules.com/2016/04/more-companies-turning-to-sensors-for-supply-chain-visibilityspendmatters/ Toyota, other major Japanese firms hit by quake damage, supply disruptions Toyota Motor said it would suspend much of its production at plants across Japan this week after earth-
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quakes in the country’s south led to a shortage of parts, while some other manufacturers extended stoppages due to damage to factories. The earthquakes on Thursday and Saturday, which killed at least 41 people, reflected the vulnerability of Japanese companies to supply chain disruptions caused by natural disasters, and also highlighted the “just in time” philosophy pioneered by Toyota and followed by many others.
http://www.oprules.com/2016/04/toyota-other-major-japanese-firms-hit-by-quake-damage-supplydisruptions/ Toyota’s ‘Quake-Proof’ Supply Chain That Never Was (Fortune)
You don’t need to build an earthquake-proof supply chain, to secure this, only a network that bounces back from shocks faster than competitors. http://www.oprules.com/2016/04/toyotas-quake-proof-supply-chain-that-never-was-fortune/
Annual procurement from India exceeds $500 million in 2015: Airbus Group India chief In a first for any foreign aerospace and defence original equipment manufacturer (OEM) in India, Airbus Group exceeded the $500 million annual procurement mark from India in 2015. Narendra Modi’s ‘Make in India’ campaign has received a shot in its arm with Airbus Group’s annual procurement from India in 2015, said Pierre de Bausset.
http://www.livemint.com/Companies/OnYTnhAK0NinqQ5IJ8s0TM/Annual-procurement-from-Indiaexceeds-500-mn-in-2015-Airbu.html
GE plans to double sourcing from India American multinational conglomerate General Electric (GE) plans to nearly double its sourcing of components and manufactured products from India to over $ 4 billion by 2020. http://www.thehindubusinessline.com/companies/ge-plans-to-double-sourcing-from-india/ article8361210.ece
Cisco Selects Pune as Site for Its India Manufacturing Unit US-tech giant Cisco has zeroed in on Pune for its manufacturing a unit in the country as it looks to scale up its presence here, eventually making India an export hub. The company, which has over 10,000 headcount
in India, had last year said it will commence manufacturing in India. http://gadgets.ndtv.com/internet/news/cisco-selects-pune-as-site-for-its-india-manufacturing-unit-814947 Careful analysis and coalition building will allow India to influence the global agenda The global economy is finding it hard to restore pre-Great Recession growth rates – every report of the
IMF seemingly downgrades its previous growth forecasts http://scroll.in/article/805042/careful-analysis-and-coalition-building-we-allow-india-to-influence-the-
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global-agenda-raghuram-rajan Defence procurement policy pushes ‘Make in India’ Indigenously Designed Developed and Manufactured (IDDM) — under which indigenously designed, de-
veloped and manufactured equipment must have at least 60 per cent of the components locally sourced if the design is not Indian. If the design is Indian, at least 40 per cent needs to be locally sourced. http://www.thehindubusinessline.com/economy/defence-procurement-policy-pushes-make-in-india/ article8406205.ece
E-Commerce Pushes Supply Chain Technology Consolidation Software provider E2open is trying to bridge a gap between planning and execution in managing supply chains for retailers with its acquisition of Terra Technology. E2open wants to both forecast and help man-
age the flow of goods through retailers’ supply chains with its acquisition of Terra Technology. http://www.wsj.com/articles/e-commerce-pushes-supply-chain-technology-consolidation-1457382074
Make in India: We'll create best ecosystem for our young entrepreneurs
For over a year now Amitabh Kant , secretary, Department of Industrial Policy and Promotion, has put his energy behind Prime Minister Narendra Modi's vision of Make in India and is now ready to take the campaign to the next level with a thrust on domestic investment, quality infrastructure and a stronger policy regime. In an interview with ET , Kant spells out details of the plan that aims to take Make in India centrestage http://economictimes.indiatimes.com/opinion/interviews/make-in-india-well-create-best-ecosystem-for-our -young-entrepreneurs-says-amitabh-kant/articleshow/51002221.cms IndoSpace to invest close to $1B in India over 5 years
IndoSpace Logistics Parks, a joint private equity investment platform floated by Everstone Capital and American investment group Realterm Global, is looking to invest $1 billion in the country over the next five years, according to a press statement. http://www.vccircle.com/news/real-estate/2016/02/15/indospace-invest-over-1b-india-over-next-5-years
GST, competitive logistics, e-mandis and food processing parks may The population of India has more than doubled from 684 million in 1981 to 1.25 billion in 2011 in just 30 years. This is a frightening pace of growth. http://economictimes.indiatimes.com/industry/cons-products/food/gst-competitive-logistics-e-mandis-andfood-processing-parks-may-integrate-to-sell-daal-at-rs-20/kg-and-mangoes-at-rs-10/kg/ articleshow/50808101.cms
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Blockchain has the potential to revolutionize the supply chain (TechCrunch) Blockchain has the potential to transform the supply chain and disrupt the way we produce, market, pur-
chase and consume our goods. The added transparency, traceability and security to the supply chain can go a long way toward making our economies safer and much more reliable by promoting trust and honesty, and preventing the implementation of questionable practices. http://www.oprules.com/2016/11/blockchain-has-the-potential-to-revolutionize-the-supply-chaintechcrunch/
Zara’s Recipe for Success: More Data, Fewer Bosses (BusinessWeek) Zara has unique practices that may account for its success. Unlike rivals such as Gap, H&M, and Primark,
Zara has no chief designer, and there’s little discernible hierarchy. Its 350 designers are given unparalleled independence in approving products and campaigns, shipping fresh styles to stores twice a week. Guided by daily data feeds showing what’s selling and what’s stalling, the teams develop fashions for the coming weeks. It “pulls” ideas from consumers, rather than designing collections months in advance and “pushing” goods on shoppers with ads. Its supply chain which consists of a network of factories in Spain, Portugal,
and Morocco that produces 60 percent of its merchandise. With production nearby, it can quickly switch gears if weather or fashion trends change, getting designs into stores in as little as two or three weeks, while rivals’ orders slowly make their way across the ocean on container ships. http://www.oprules.com/2016/11/zaras-recipe-for-success-more-data-fewer-bosses-businessweek/ Make in India: For manufacturing, a focus on research and brand is vital One of the earlier movers in technology manufacturing in India, Moser BaerBSE 3.89 %, had a global share of 20% for its optical media business. The company has constantly re-invented itself and now makes solar cells and LED lighting products as well. In an e-mail interview with ET, Deepak Puri , chairman & managing director, Moser Baer India, discusses the manufacturing landscape in India, how the government's make in India initiative will help and more. http://economictimes.indiatimes.com/opinion/interviews/make-in-india-for-manufacturing-a-focus-onresearch-and-brand-is-vital-says-deepak-puri-moser-baer/articleshow/51067855.cms
Are top Indian companies interested in greening the supply chain? Corporate supply chains have been opaque for a long time. This is now changing with greater focus coming on traceability. Coupled with companies becoming more transparent, supply chains are getting the right attention.
http://blogs.economictimes.indiatimes.com/ResponsibleFuture/are-top-indian-companies-interested-ingreening-the-supply-chain/
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Retail giants Amazon, Walmart to invest more than Rs 2,000 crore in India Two of the world's largest retailers, Walmart Stores Inc and Amazon, will invest more than Rs 2,000 crore to build their networks and gain a share of the Indian retail market that's expected to cross $1 trillion by 2020.
http://economictimes.indiatimes.com/industry/services/retail/retail-giants-amazon-walmart-to-invest-morethan-rs-2000-crore-in-india/articleshow/50690224.cms Supply Chain Thwarts Coca-Cola, Goldman Sachs Action on Climate Goldman Sachs Group Inc., Coca-Cola Co. and 73 other companies that together buy more than $2 trillion of goods and services are unprepared for climate shocks because suppliers are ignoring requests for data on their exposure to rising temperatures and climate regulation. http://www.bloomberg.com/news/articles/2016-01-26/supply-chain-thwarts-coca-cola-goldman-sachsaction-on-climate How to Better Manage Supply Chain Climate Risks Supply chains are responsible for up to four times the greenhouse gas emissions of a companyâ&#x20AC;&#x2122;s direct operations and yet half of major companiesâ&#x20AC;&#x2122; key suppliers donâ&#x20AC;&#x2122;t provide requested climate data to their corporate customers, according to a study produced by CDP and written in partnership with BSR.
http://www.environmentalleader.com/2016/01/27/how-to-better-manage-supply-chain-climate-risks/ The Logistics of Efficient and Effective Purchasing While the integration of your external supply chain is critical, companies should first make sure that their
internal supply chain is truly integrated and collaborative to reach the full benefits of a lean supply chain. http://www.industryweek.com/procurement/logistics-efficient-and-effective-purchasing Logistics to be the game changer for e-commerce in 2016
E-commerce
has
seen
an
unprecedented
rise
in
business
in
the
past
year,
with Paytmjoining Flipkart and Snapdeal in the eight-member unicorn club. A report by Bank of America Merrill Lynch in 2015 stated that the e-commerce market in India will be worth $220 billion by 2025. Yet, e-commerce is beyond just sales and GMV numbers. Speed of delivery is as important as the product quality for a customer. It would not be wrong to say that logistics could be the defining factor for success of ecommerce companies in retaining their customers. https://yourstory.com/2016/01/commerce-logistics-2016/
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Senior Team Natesh Kaarthik
Nitin K. Nandan
Parvathy Sundaresan
Vivek Prabhakar
Junior Team Akshay Bijwe
Rohit Kapurkar
NOTES