Download Amit Anand, Stracuity World

Comprehensive Approach
to
Supply Chain Cost Reduction
Expectation Setting from this session
Cost
Optimization
Cost
Killing
Cost
Transformation
Cost
Sustainment
Know your cost & finances
Operating Profits
Logistics
Network
Design
Freight
Revenues
No. of
Warehouses
Cost reduction levers
Bulktruck/ less
Full
than truck load
Exports
Back haul
optimization
Housing
Transporter
negotiation
Infrastructure
Pilferage/
damage
Packaging
Truck loading
methods
Labor wages &
overtime
Demand supply
mismatch
Port handling
charges
Fragmentation
Cyclicality in
Automation
Material
Handling
Competition
Cost of depots/
RDCs/ FG
Stores
Packing quality GypsumTracking
Packing material
Coal technology –
to reduce
procurement Raw Material
Lignite RFID, GPS
damages
Insurance costs
Alternate
packing methods
Mode of
transport
Freight
Cost of material
handling
equipments
Packing costs
reduction
Damage
reduction
Power
controls
Damage in
material
handling
planning
Competition
Calamities
Efficiency
Incentives
Types of
vehicles used
Ash
Material
Handling
Rail
Road technology
Sea Storage and
retrieval
Fuel
technology
CPP cost
Grid supply
Castables
Liners & plates
Stores & spares
Bearings
Refractories
HEM
equipments
Source-
Regional Presence
destination
Technology
deployment
Lime stone
Cost
Type of labor
Bags
Transport
mode
e.g.
contract vs
optimization
RMC
permanent
Realization
Size / Scale of
warehouses
Storage
Less
Route/ distance
optimization
Multiplied
by
Location of
warehouses
Volumes
Domestic
Material
Handling
Government
Contracts
Packing
Cost of bags
Packing cost
Others
Demurrage
Handling
Labor
Pilferage
Key themes of cost saving
Network Optimization
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Transport Cost Optimization
Nodes Selection
Transportation Mode optimization
Route optimization
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Redefining Terms & Conditions
Negotiation with Service Providers
Selecting Alternate Sources
Key
Themes
Efficiency Improvement
►
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Turn Around Time Improvement
Material handling efficiency improvement
(Packing, Loading & Unloading)
Backhaul Optimization
Inventory Optimization
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Inventory at Plant RM & FG
Inventory at Depot FG
Cost Optimization Spectrum
Network Optimization
Wave1
Wave 2
Wave 3
Assets consolidation
Nodes Selection
Cost Optimization
Gamut
S&OP Integration with
financials statement
Modes Selection
Value Defination
Transport Cost Optimization
Reverse Auction
Route & Distance
Optimization
Technology Intervention
-
Load & Back haul
Optimization
Correct calculation
of inventory
A5: S&OP Channel
Pilot - Base
Improve TAT
Automation Degree
Efficiency Improvements
A3: Availability
Reduction of Based Order
RM / FG daysCommitment
Load & Back haul
Optimization
Inventory Improvement
Win- win- situation
Six different options of interpersonal interaction
3
Customer interest
1
Win/lose
Win/win
(only one partner wins)
(both partners win)
2
4
Lose/lose
Lose/win
(both are deprived)
(only one partner wins)
Supplier interest
‘Ten Commandments’ for successful Cost Optimisation tools
1
Prioritize clearly what you want to change (Focus)
2
Benchmark is only a reference but not a limit for excellence – Blank sheet
approach
3
Common vision of success… commercially compelling (scientific + stretch)
with complete leadership alignment
4
Most of the answers lie within the organization…All you need is a CATALYST
to unlock implicit wisdom – Inclusive approach
5
In God we trust, for everything else we need data! No gut feel!
Ten commandments contd..
6
No idea is a bad idea – Build an idea forward and not kill it
7
No holy cows – Intellectual irreverence for status quo
8
Integrated & syndicated approach
9
Clearly baselined and rigorous benefit tracking
10
It’s a process and not a project – Race to perfection is never- ending
Panel today is

Amit Anand, founder of

Gautam Nahata , co – founder Far Eye

Neeraj Balani, Director marketing, Mahindra Logistics

Shekhar Tiwari, Managing Director, Accenture Services

Afrid Patel,

Amit Kumar, Supply chain practitioner