“It is a very exciting and demanding job, like playing 20-20 cricket.” This is how Mr. Hitesh Athawasya, Business unit head, South India, DIESL does describe the job of Supply Chain Management. Drive India Enterprise Solution Ltd. (DIESL) is a TATA group of company, a leading provider of end-to-end logistics solution.
In fact describing the supply chain activity in India-a very challenging job, is not at all astonishing. The poor infrastructure, regulations, laws and also the fragmented industry structure are the real difficulties for Supply Chain. The lack of quality in Indian infrastructure lies everywhere, starting from ports to airports and from roadways to railways. Again lack of warehouses, cold storages and changing macro-economic conditions add pain to this. Now in an uncertain, unpredictable and extreme competitive environment it is very difficult for companies to maintain competitive advantage. And the demanding customers need more value at a lower price. It leads to year on year reduction of operating cost and resources for the companies.
“As products become equal & competitive, what will differentiae is organizations
Supply chain efficiencies & Strategies.”
Supply Chain plays a major role in the company strategy. So a lean, robust, agile and responsive supply chain can really transform the business. But managing supply chain is not so simple. It is many-to-many relationship. Sometimes it is not very wise to play with the supply chain system. A lot of hidden costs are there in the supply chain system. Now a days many companies are planning to concentrate in their core job and trying to outsource the non-core parts. So companies are looking for third party supply chain.
Outsourcing of supply chain is done in three levels, operational level, tactical level, strategic level. In case of operational level planning, execution and value addition is done by the 3PL. For tactical level asset and fleet management and vendor consolidation and in case of strategic level sourcing, partner management and network design is done by the 3PL. How companies like Nokia, Pizza hut, Maggi have leveraged their business by outsourcing the supply chain was also discussed.
Mr. Athawasya gave the insight about the supply chain segment. How pre-production, finished good, after market and Reverse logistics supply chain are managed in the industry. Apart from these technicalities he described how various other issues like trust, expertise, collaborative approach, ability to resolve disputes comes into picture in case of SC outsourcing. At the end he touched upon the company profile of DIESL.
Mr. Athawasya concluded the session with Q and A session. Students asked more queries about the supply chain outsourcing and future scope of this.
It was a very insightful sessions about Supply Chain Management and out sourcing of SC.