Cover June 2016 Pesting

Materials Management Review 3June 2016

From the Desk of The National PresidentFrom the Desk of The National PresidentFrom the Desk of The National PresidentFrom the Desk of The National PresidentFrom the Desk of The National President

Dear Professional Colleagues & Members,

Greetings of the day from your National President.

I am sure that each Member of this large family – IIMM, is enjoying good health

irrespective of the fact that some of the areas of our country are passing through

the unprecedented water shortage and abnormally high temperature this summer. Anyway, passing through

all trajectory, we have to go on, Crescendo!

Colleagues, I keep on talking many of you telephonically. At times, I get shocks also from the Members.

Talking to a few Senior and active Members or Former National Presidents or otherwise IIMM’s award

winner I come across to know that they are not aware of as to what is MISSION-100. It, really shocks me

and I, therefore, take this an opportunity to explain this to you with a request to kindly help us in achieving

our target.

MISSION-100 is nothing but recognition of our flagship courses GDMM & PGDMM by 100 Industrial

Houses / groups for their Materials & SCM Professionals. By doing so, this will benefit IIMM in several

ways such as, enhanced visibility in the Industry, increased number of students to our academic courses,

scope for Institutional Membership & regular Membership. Since our visibility in the industry will increase,

consequently interaction with industry would go up. This will give us leverage for exploring possibilities

for more Training and Consultancy Projects.

Achieving the MISSION is not difficult as 50 Branch throughout the country each branch has to interact

with 2 Industrial Groups only. Bangalore Branch has already melted the ice with an excellent start by

obtaining recognition from Hindustan Aeronautics Ltd (HAL). Chandigarh has lined up behind Bangalore

by getting 2nd recognition from a Manesar based Company.

I wish you all to support us in our endeavour to accomplish the MISSION-100

Best of luck and sincere regards,

O.P. LONGIANational President – IIMM

e.mail :[email protected]

Cell No.9878601408

Materials Management Review4 June 2016

From the Desk of Editor-in-ChiefFrom the Desk of Editor-in-ChiefFrom the Desk of Editor-in-ChiefFrom the Desk of Editor-in-ChiefFrom the Desk of Editor-in-Chief

Dear Members,

World Environment Day, is celebrated on 5th June, which aims to personaliseenvironmentalissues, to take care of the environment and become actively involved in making lifestylechoices and changes to support sustainable and equitable development.

Anything we use or consume right from the clothes, vehicles, furniture up to food, water& petrol etc. depletes our resources driven from the earth except the sunlight.

In developing a visionfor future Generation, Businesses, Economic Activities, and TechnologicalImprovementsalong with societalsettings require thorough and deep understanding of managing our valuable but finiteresources. The recent studies have clearly shown many fold increase in population in last few decades and sois the exploitation of natural resources.

Global Consumption of Materials is increasing at a rapid pace. People have consumed more resources in last 25year than previous 50 years and this consumption of resources comes at a cost to Environment, Biodiversityloss, Desertification etc. Excessive use of Material resources lead to environmental destruction in the form ofwaste, green house gas emissions, global warming. Failure to understand the life cycle concept of a productand relationship between consumption & growth will have a grave impact on our ecosystem, economy andsociety.

Sustainable Materials Management is one such systematic approach of using and reusing materials moreefficiently and productively over the entire life cycle of a product.Materials have environmental impactsthroughout their lifecycles. The major stages in a material’s lifecycle are raw material acquisition, manufacturing,production, use/reuse/maintenance, and waste management.By examining how materials are used throughouttheir lifecycle, we can find new opportunities to reduce environmental impacts, conserve resources and reducecosts. The manufacturer must keep a healthy relationship with their customers so that he can ensure best useof the product, its maintenance and return at the end of its life. This will help manufacturer to identify thechanging needs of the customers and reduction in waste &environmental degradation.

Green Supply Chain Management is another emerging approach to improve upon the supply chain processand products to meet the environmental guidelines with an aim of preserving scarce resources. The idea ofgreen supply chain management is to eliminate or minimize waste by employing green procurement, greenmanufacturing, green distribution and reverse logistics as well as achieving profit, efficiency and societalobjectives. It also aims at reducing the industrial wastes, conserve energy and prevent dispersion of hazardousmaterial components in to the environment.

The supply chain managers have to play a pivotal role in this direction. They must keep in mind three worldsi.e. Reduce, Reuse and Recycle. They have to find out the ways and means to how to reduce the input cost ofraw material and reduce the wastages. Any degree of savings accrued in the resources would mean contributionfor the community.

Recognizing the global and national imperatives for conserving and regenerating natural resources, Governmenthas introduced many concepts likeuse of Energy Efficient products, Rain Water Harvesting, use of Eco-friendlyproducts etc. as a part of Corporate Social Responsibility.

We need to move towards a Greener Economy whose growth in income and employment is driven by publicand private investments that reduce carbon emissions and pollution, enhance energy and resource efficiency,and prevent the loss of biodiversity and ecosystem services. These investments need to be catalysed andsupported by targeted public expenditure, policy reforms and regulation changes. How we use our resources ishow we design our economic and environmental future.

(M.K. BHARDWAJ)


MATERIALS MANAGEMENT

REVIEW

Volume 12 - Issue 8 (June 2016)

C O N T E N T S

� COST OF QUALITY 6

� CUSTOM EXCHANGE RATES 9

� RELIANCE TRENDS: WAREHOUSING STRATEGIES ANDINVENTORY CONTROL 10

� HOW TECHNOLOGY CAN EASE SUPPLY CHAINMANAGEMENT 14

� APPROACHES TO HARNESS THE CAPABILITIES OFPROCUREMENT TEAM AND ITS EFFECTIVENESS ONPROCUREMENT FUNCTION 15

� DRIVING THE INVENTORY CYCLE IN SUPPLY CHAIN: ABALANCING ACT 16

� MAKE IN INDIA: REINVENTING INDIA’S SUPPLY CHAIN 19

� COMMODITY INDEX 20

� WAY FORWARD GREEN LOGISTICS SUPPLY CHAIN ININDIA - FOR A SUSTAINABLE FUTURE 21

� SUPPLY CHAIN - YESTERDAY, TODAY AND TOMORROWA PRACTITIONER’S PERSPECTIVE 24

� A LEAN AND AGILE SUPPLY CHAIN : NOT AN OPTION,BUT A NECESSITY 26

� E-TENDERING MUST FROM APRIL 1ST 2016 FOR GOVT.PURCHASES ABOVE RS. 2 LAKHS. 26

� INTERNATIONAL NEWS 27

� BRIEF ON SIGNATURE EVENT OF IIMM

MUMBAI BRANCH 29

� BRANCH NEWS 34

� EXECUTIVE HEALTH 58

PAGE NO.IIMM is a charter member ofInternational Federation ofPurchasing & Supply Management

Editor in Chief & Publisher:Dr. M. K. BhardwajPast President, IIMM &Former Director Ministry of Defence

Core Committee :Mr. Ashok Sharma, President 5M IndiaMr. V. K. Jain, Former ED, Air IndiaMr. Tej K Magazine, Management Advisor

National President :Mr. O. P. Longia

Editors :Mr. G.K. Singh (Sr. Vice President)Prof.(Dr.) A.K.Saihjpal, VP (North)Mr. Amal Chakraborty, VP (East)Mr. Malay Chandan Mazumdar,VP (West)Mr. D. Subramani, VP (South)Dr. Avinash S. Desai, VP (Central)Mr. A.K.Mehra, NS&TMr. Lalbhai Patel, IPPProf.(Dr.) V. K. Gupta - IMT, Ghaziabad

Correspondence :MATERIALS MANAGEMENT REVIEW

Indian Institute of MaterialsManagement4598/12 B, Ist Floor, Ansari Road,Darya Ganj, New Delhi - 110 002.Phones : 011-43615373Fax: 91-11-43575373E-mail: [email protected] & [email protected] : iimm.org

Printed at :Power Printers,4249/82, 2 Ansari Road, Daryaganj,New Delhi - 110002

Edited, Printed & Published by :INDIAN INSTITUTE OF MATERIALS MANAGEMENT4598/12 B, Ist Floor, Ansari Road, Darya Ganj, New Delhi - 110 002.Phones : 011-43615373 Fax: 91-11-43575373E-mail: [email protected] & [email protected] : iimm.org

(Published material has been compiled from several sources, IIMM disowns any responsibilityfor the use of any information from the Magazine if published anywhere by anyone.)


Cost of Quality (COQ) can be defined as Costsassociated with quality-related efforts anddeficiencies – these include assuring, preventing,

detecting, and remediating product issues related toquality.Quality involves in creating, maintaining,upgrading and delivering a product having somestandards that meets or exceeds the expectations of thecustomers.

In doing so, certain costs are incurred to perform qualityrelated activities such as quality planning &management; Statistical Process Control; investmentsin quality related information systems; Inspection &Testing; Tracking the causes and effects of the problem;quality improvements; Monitoring Progress; Scrap andRework Costs; Complaints & Warranty Costs etc.

Broadly Cost of Quality (COQ) can be classified into twocategories –

� Cost of Conformance (COC) or Cost of Good Quality(COGQ) and

� Cost of Non-Conformance (CONC) or Cost of PoorQuality (COPQ).

Cost of Conformance (COC)or Cost of Good Quality(COGQ) can be defined as Costs associated with doingquality job, conducting quality improvements, andachieving quality goals. These are the costs that aim atassurance of quality and prevention of bad quality. Thatmeans Cost of Conformance has two sub-divisions : Costof Assurance and Cost of Prevention.

Cost of Assurance: These costs are associated with thequality requirements, systems and procedures, controlmeasures and audits to ensure appropriate qualitystandards are usedand complied such as money spenton establishing methods and procedures; ProcessCapability Studies; robust Product Design; properemployee training in performing good quality job;supplier rating / supplier certification (assessment andapproval of suppliers of products and services), Qualityaudits (confirmation that the quality system isfunctioning correctly)acquiring tools, and planning forquality.Quality assurance provides confidence in thesystem that ensures quality of deliverables.

. Cost of Prevention:The costs that arise fromefforts to keep defects from occurring at all - preventerrors to happen and to do the job right the first time.Prevention costs may include Costs of Verifications -

COST OF QUALITY

S.N.PANIGRAHI

[email protected]

checking of incoming material, processes, products, andservices to ensure that they conform to agreedspecifications; Preventive Maintenance.These areplanned and incurred before actual operationandmoney is all spent before the product is actuallybuilt.The focus on prevention tends to reducepreventable costs of bad quality.

Cost of Non-Conformance (CONC) or Cost of PoorQuality (COPQ) is the costs associated with all activitiesand processes that do not meet agreed performanceand/or expected outcomes. These costs would disappearif every task were always performed without deficiency.These costs have two sub-divisions : Cost of Appraisaland Cost of Failure.

Cost of Appraisal:Money spent to review completedproducts against requirements. Appraisal includes thecost of inspections, testing, and reviews. This money isspent after the product is built but before it is shippedto the user or moved into customers place. They couldinclude:

Cost of Failure:All costs associated with defectiveproducts produced and or that have been delivered tothe user. These costs are further sub-divided into InternalFailure Costs and External Failure Costs.

Internal Failure Costs– These are the Costs generatedbefore a product is shipped but after a product is madeand inspectedand found non-conformance torequirements, such as - Product/service design failurecosts (internal - Design corrective action; Rework dueto design changes; Scrap due to design changes);


Purchasing failure costs (Purchased material rejectdisposition costs; Purchased material replacement costs;Supplier corrective action; Rework of supplier rejects;Uncontrolled material losses); Operations (product orservice) failure costs (Material review and correctiveaction costs - Disposition costs - Troubleshooting orfailure analysis costs (operations) - Investigation supportcosts - Operations corrective action; Operations reworkand repair costs – Rework – Repair; Re-inspection / retestcosts; Extra operations; costs of Scrap (operations);Downgraded end product or service; Internal failure -labour losses; Other internal failure costs

External Failure Costs—Costs generated after a productis shipped as a result of non-conformance torequirements, such as Complaint investigation/customeror user service; Returned goods; Retrofit costs; Recallcosts; Warranty claims; Liability costs; Penalties;Customer/user goodwill; Lost sales; Other externalfailure costs

Cost of Quality as % of Sales: Quality costs may arise inmany ways and anywhere in a company. For Examplethe procurement department may acquire substandardcomponents that may result in unacceptable finalproducts. There may be product design issues that beginin the engineering department, as well as manufacturingproblems that can create product flaws. In addition, thedispatch department may have incorrectly entered acustomer order, so that the customer receives the wrongproduct. The accounts department may enter wrongcredit to a different supplier’s account that may resultin un-recoverable amount. These issues all result inquality costs.

These apart there are some costs incurred towardsquality improvement efforts like streamlining processesfor consistently delivering defect-free products orservices on time; training people for qualityconsciousness; improve productivity levels; coststowards investments in quality related infrastructure &equipments.

Put together the Total Quality Costs may comprise amajor portion of the total expenses of a business, manyorganizations have true quality-related costs as high as15 to 25 percent of sales revenue, though mostly theyare hidden within the normal cost and may not be visiblefully and may not be recorded specifically.

Quality’s Effect on Income and Expenses

Tangible & In-tangible – Visible & Hidden Costs ofQuality: There are some costs which are very visible andrecorded in normal accounting systems like costcustomer rejections, cost of returns, inspection costs,cost of waste and scrap, testing costs, inspection costs,customer visits to resolve quality issues, discounts ondefects; cost re-work, cost of recalls and reverse logisticsetc. These are tangible costs.

However there are many hidden costs which are invisible(mostly un-recorded or un-estimated or un-measurable)like delays and stoppages caused by defectives; customergoodwill / reputation; strained customer relationshipsand loss of future sales orders; loss of morale due tofrictions between departments; cost of complaintshandling; un-used or idle capacity due to faults; excessiveemployee turnover; incomplete sales order;development costs of failed products etc.

Major “ICEBERG Costs” are hidden. We need to findout and minimize those costs

Cost of Quality & Time of Incidence : From the belowchart we may observe that the cost due to quality relatedfailure go on increasing as the failure is found in laterstages of process or product cycle. Cost of prevention islowest and the cost is going on increasing as the failureis found subsequently in design phase or manufactureor final product inspection or at customers place orclaims arise. Therefore it is better to prevent qualityrelated problems at the early stages otherwise the costof non-compliances shall go high.


COQ Model: Quality is an investment and thereforequality efforts must be financially accountable. It is notthe measurement, but the analysis and comparison formonitoring, control and strategic decisions that we canuse the measured COQ. Applying the concepts of COQmeasurement, analysis and corrections consistently canhelp reduce the cost of quality.

The Cost of Quality (COQ) model constructs a chartdisplaying prevention, appraisal, and failure costs overtime in order to demonstrate the cost of poor quality.The model is based on the theme that prevention isbetter than cure. As we make more investments in qualityassurance and prevention activities, then the incidentsof failures will come down resulting in drastic reductionin total cost of failure.Cost of failure will not incur if thequality is free from faults. At this point the total cost ofquality becomes equal to cost of quality assurance pluscost of prevention. Therefore it is worth to makeinvestments in quality assurance and prevention effortswhich yield more benefits by reducing quality faults. Thismodel provide better clarity on the CoQ-metric and it’sconstituents – the understanding of which is essentialfor establishing a quality management strategy for theorganization to improve quality of products, servicesand ultimately the brand image.

The 1-10-100 Rule : As per this rule one dollar spent onprevention will save $10 on appraisal and $100 on failurecosts.This rule helps one to prioritize expenditure onprevention, which is sure to bring in greater returns.

Measuring Cost of Quality: The mitigation of qualityissues can greatly increase the profitability of a business,as well as enhance the level of customer satisfaction.However the moot questions are how to measure costof quality or failure?; How to measure Return on Qualitywhen business is spending money on quality? To answerthese we have to apply fundamental businessmanagement concepts, including financial principles, tothe measurement of quality.

Steps in measurement of Cost of Quality :

� Determine Categories of Quality Costs

� Create Measurement System that capturescategories of quality costs

� Collect the Data

� Analyse the Data

� Take Strategic Decisions about Investments onquality improvements with the objective ofmaximizing benefits.

The quality cost can be measured through various qualityindicators and expressed in cost terms like value/cost,time (usually linked to cost of labor) and quality of workresults etc. For example cost of rework can be measuredby multiplying number of man hours spent for therework by labour rate and material cost if any may beadded.

Cost of customer rejected and returned material can becalculated by adding all costs associated with material,transactional &logistics and other miscellaneous costs.Similarly quality related training cost can be worked outby assigning all costs related to such training. In thisfashion category wise costs can be worked out andassigned.

Analysis of Cost of Quality provides insight into theeffectiveness of the management of quality and a meansof determining problem areas, opportunities, savings,and action priorities.

Return on Quality (ROQ) :Minimizing Cost of Quality :Maximizing Profits

ROQ - an approach that evaluates the financial return ofinvestments in quality. Poor quality causes higher costsof products or services and at the same time also leadsto customer dissatisfaction and loss of business.


CUSTOM EXCHANGE RATES

CUSTOM EXCHANGE RATES (All rates per unit)w.e.f. 20th May 2016

CURRENCY IMPORT EXPORT

Australian Dollar 49.35 47.60

Bahraini Dinar 184.50 172.20

Canadian Dollar 52.25 50.65

Danish Kroner 10.35 9.95

EURO 76.70 74.15

Hong Kong Dollar 8.75 8.55

Kuwait Dinar 230.15 215.35

Newzealand Dollar 46.10 44.45

Norwegian Kroner 8.20 7.90

Pound Sterling 99.50 96.35

Singapore Dollar 49.40 47.90

South African Rand 4.35 4.10

South Arabian Riyal 18.50 17.35

Swedish Kroner 8.20 7.90

Swiss Franc 69.25 66.85

UAE Dirham 18.90 17.70

US Dollar 68.05 66.35

Chinese Yuan 10.45 10.10

Japanese Yen (100 Units) 62.10 60.10

Kenya Shilling (100 Units) 68.75 64.30

Source : www.dailyshippingtimes.com/custom-exchange-rates.php

Reducing or eliminating the cost of poor quality is oneof the best ways to increase a company’s profit.

W. Edwards Deming proposed that improving qualityreduces cost and improves profitability.

Therefore investments on improving quality has greaterpositive returns in terms of increased sales, gettingRepeat Orders, expanding Customers base, Commandingbetter Prices, gaining Competitive Advantage, gettingopportunity in Business Expansion.

Returns on Quality is maximized when benefits ofimproved quality is more with minimal investments onquality.

From the chart below it is evident that by improvingquality efforts of Assurance and Prevention, thoughthere is small increase in these costs, the associated costsof quality failure and appraisal are drastically fallen downand therefore sharp fall in total quality costresulting innet benefits.

Quality improvements can lead to benefits of net costreductions. Net Cost of Quality is the difference of costconformance and savings by avoiding non-conformance.

That is by making investments in quality assurance andprevention efforts lead to net cost savings as costreductions on account of quality non-compliance is muchmore than the cost incurred on assurance and preventionactivities.

Conclusion : An important conclusion drawn from thispaper is that understanding of the cost of quality isextremely important for any business in establishing anorganizational quality management strategy and makingcalculated decisions of investing on quality relatedinvestments.

��


Abstract : This paper attempts to understand thedifferent warehousing strategies implemented byReliance Trends,a subsidiary of Reliance Retail

Limited, to attain the overall objectives of the company’slogistical supply chain system. An extensive study is madeto analyze the inventory management and importanceof decentralized warehousing. A model is framed tounderstand the functioning of warehouse.The differentissues related to inventory control are discussed. It isfurther examined whether Reliance Trends has been ableto achieve economies of scale through its warehousingstrategies.

Keywords: Warehousing, Inventory, Transportation,Logistics, Strategy

Introduction : Modern warehousing is in the process ofevolutionary change from an emphasis on storage toemphasis on flow through, from inventories at rest toinventories at motion. In logistical systems, warehousesare viewed as switching facilities rather than storagefacilities. The effectiveness of supply chain can beconsiderably enhanced through proper decision-makingregarding warehousing. This study attempts tounderstand the different strategic inputs framed byReliance Trends, a subsidiary of Reliance Retail Limited,and a leading apparel retail store operating in India, toachieve its polemic goals of warehouse management andinventory control.

Reliance Trends is a specialty apparel standalone storethat offers men, women and children garments,fashionable wearing and accessories. The Store carriesan approx of more than 200 best national andinternational brands such as John Players, Peter England,Indigo Nation, Wrangler, Lee apart from in-house brands.The Store layout is designed in a manner so as tocompliment the evolving taste and preference of fashionsavvy consumers, giving them an opportunity to view andshop with comfort and convenience, along with welltrained customer service associates, to compliment theentire shopping process and make it a pleasant shoppingspree. By 2015, Reliance has successfully opened 202stores across the country with focus on major cities.

Reliance Trends has designed progressive strategies forwarehousing, product availability and assortment.

Through these strategies it aims to meet the productdemands effectively. In this paper,an exhaustive approachis made to analyze the decentralized warehousing andinventory maintenance at Reliance Trends. A detailedinvestigation is made to examine the underlying factorsinstrumental in transforming the effective supply chaininto a value generating revenue chain. An overall analysisis carried on focusing on the operational mechanismssuch as cross-docking, buffer stock maintenance,approaching to Just In Time (JIT) and meeting uncertaindemand. The study has been limited to the city ofBhubaneswar, the capital city of Odisha, which is aneastern state of India.

The value chain functions : The procurement andmerchandising team find the suitable manufacturers orbrand suppliers of garments and other non-garmentsgoods such as footwear. These suppliers then supply theirgoods to the organization. This supply activity ismonitored by the Supply chain and category managementdivisions. Then the goods are directly stored at respectiveDistribution Center (DC’s). Private label goods aremanufactured and brought to the DC’s and the valueaddition is done. Thereafter it is dispatched to the stores.Non private labels or branded items such as Levis, LeeCooper etc are received directly from the vendor. Themarketing and promotions division of Reliance TrendsLimited renders possible activities for all these goods andservices to be delivered at the stores. Store act as thetrue interface between the customers and theorganization. Here the customers get their requirementand also give their feedback. Supporting activities helpthis value chain to work smoothly. Human ResourceManagement division takes care of the employeesatisfaction and also acts as the allocation of requiredstaff at various points in this value chain. InformationTechnology department provides the requisite softwareand hardware support to the teams involved in primaryactivities. Other Functional departments like admin,finance look after the secondary process of thissystem.The company does not have a presence in twoother sections of the retail value chain: raw materials andmanufacturing.

Sourcing : The category manager controls quantities tobe purchased as per the sales forecast. The purchasing is

RELIANCE TRENDS: WAREHOUSING STRATEGIES AND

INVENTORY CONTROL

Panchanan Behera - Research Scholar, Siksha ‘O’ Anusandhan University

Bhubaneswar, Odisha. [email protected]

Monalisha Pattnaik & Padmabati Gahan - Dept. of Business Administration,

Sambalpur University, Jyotivihar, Burla

[email protected], [email protected]


done based on range plan made for the season and re-orders been place based on sales and stock levels. TheCategory Manager reviews the actual sales versusplanned sales and source the material based on feedbackfrom storefront.

Logistics : Reliance Trends Limited, has created a strongdistribution and logistics network, with 4 DistributionCenters covering 80,000 Sq. ft. handling over 10,000 StockKeeping Unit (SKU’s) and working 24 hours a day and 7days a week. The distribution and logistics set up isnetworked and are on line allowing to delivermerchandise to the store within 24 hours of receipt /generation of auto replenishment order, which has helpedoptimize in store availability of merchandise. TheCompany believes that their existing Distribution Centers,which have been designed to scale up, will be able tomeet our growth requirements as we expand the numberof our stores. The above initiatives have helped inimproving the efficiencies of the supply chain, whichbelieve is critical for any retailer. These aim at meetingthe conflicting requirements of reducing inventory whileensuring availability of products at all stores as percustomer needs, as well as reducing the operational costs.They have in place the distribution and logisticsinfrastructure which can handle larger business volumesat marginal addition to costs. Higher business volumeswill also improve the negotiating powers and help getfurther economics of scale in their buying withopportunities of incremental margins. Reliance TrendsLimited has one central warehouse and 3 regionalwarehouses. These warehouses are located in Gurgaon,Bangalore, Kolkata, Bhubaneswar (Pahala DC) etc. Thedifferent zones across India has collaboration withdifferent logistics companies such as TNT logisticssolutions in eastern zones. These companies help intransportation of merchandise to the store.

Warehousing : Warehousing is an important componentin the supply chain management and logistics. Thewarehouse serves as a storage place for inventories andbased on which the different processes are carried out.Figure 1 and Figure 2 show the racking system and layoutdesign of warehouse in Reliance Trends. The differentroles in Reliance Trends limited warehouses include In-warding, Out-warding and Documentation.The differenttypes of In-warding includes : In-warding of inventoriesreceived from: Vendors and DC.Out warding is done inorder to move the goods from their typical finaldestination to another point, for the purpose of capturingvalue otherwise unavailable, or for the purpose ofdisposal of products. Out warding is done basically fornon moving stock and defective and damaged stock.Figure 3 and Figure 4 display the racking of garments withrequired size and brands accordingly.

Store Operations : Managing Stocks on floor: Managingstocks on the floor refers to effective and cautions wayof moving the merchandise from Store Warehouse to therespective section where the merchandise has to bedisplayed and sold to the customers. Merchandise

received from Central Warehouse or Vendors are takento the floor after undergoing the In warding process. Theexcess or additional merchandise is stored at thewarehouse till the time the merchandise displayed onthe floor gets sold out.

General Guidelines : Merchandise would only be movedfrom morning till 1 PM in the afternoon. In no case thereshould be merchandise movement on the floor duringpeak hours (esp. evenings). The Team Leader / TeamMember to decide the stock to be moved to the floor,considering the stock carrying capacity of the shelves &minimum base quantities. Merchandise would be movedto the floor by the respective housekeepers, promotersor team members. Heavier merchandise to be moved inbigger trolleys and lighter ones in the smaller trolleys.Merchandise to be loaded and unloaded from the trolleyscarefully preventing any damages The stocks should notbe dumped on the floor or aisles. Empty cartons andplastic covers to be immediately cleared by thehousekeeping staff. No such staff should be stuffedbehind shelves and trial rooms. Trolleys used for movingthe stock to be immediately removed from the aisles.Merchandise received from the warehouse to be stackedimmediately by the section staff.

Inventory Management : As part of the logistics effortsa retailer utilizes inventory management to acquire andmaintain a proper merchandise assortment whileordering, transportation, handling, storing, displayingand selling cost are kept in check. To be more costeffective Reliance Trends Limited expects suppliers toperform more tasks for their inventory managementactivities such as floor ready merchandise i.e. thesuppliers ship products that are already been packagedand prepared for immediate movement to the sales floor.

Inventory Levels : Having the proper inventory on handis a difficult balancing act. Self space allocations are linkedto current revenues so that allocations are regularlyreviewed and adjusted. Reliance Trends Limited, believesthat customers demand is not completely predictable,so proper inventory of different varieties have to bemaintained so that every customer gets, what he wants.Reliance Trends Limited does not carry huge inventory atstore rather every weekthe stores receives inventory fromthe DC or from the vendor based on the sales. This waythe cost of carrying inventory is reduced. Minimuminventory levels are maintained in the store and specialcare is taken by the Distribution Manager’s so that thereis no Stock out. Inventories can be checked by categorymanager and other managers through SAP in the optionMB51 at any given point of time. Regular stock takeprocess is carried out in all the stores. The objective ofthe stock take process is to count all the valued saleablestock at store, in order to match physical and system stockand estimate shrinkage.

Back of House Management (BOH)

Table 1 describes the back house management of RelianceTrends in detail.


Table 1: Back House Management in Reliance TrendsSl. No.

Component Details

1 Stock Receiving Process from DC

• Box Cou nting All Boxes to land at the entrance of the BO H, Boxes to be counted in prese nce of the Delivery boy

• Total boxes matc hes To provide acknowledgment on the duplica te packing sheet mentioning the boxes received & s ign with name Carry the boxes ins ide the BOH area for further processing

• Boxes are short Recounting in presence of the De livery boy & securi ty guard. Allowing up to 30 minutes time to the delivery person to confirm from his office. Consignment to be counted in presence of Delivery boy. If the delivery persons acknowledges - mentioning the number of boxes short on the docket. Asing the DC/Courier for a short de livery certificate. Taking the driver License. No/X erox of the RC book Taking the consignment in the BOH for further process ing

• Boxes are damaged and Garmen ts are open All boxes perta ining to that delivery no. should be segregated at the gate. Open Delivery certificate to be obtained from the transporter, photograph to be taken for the consignment. Bad da mage - not to accept consignment Otherwise, unload, not to acknowledge and inform DC. Waiting for response for resolution. If material taken in a global count should be done in presence of the security guard. If there is a mismatch - not to accept the consignment. Consignments returned for bad del ivery should be documented, signed by security guard/transporter.

2 Stock Receiving Process from vendors

Stock Receiving Process from Vendors: Stock will arrive at the entrance by the transport er. The security guard at the basement will give permission to enter the warehouse. The delivery boy will come to the warehouse with the stocksThen the BOH incharge will check the fol lowing things before receiving the goods; PO N umber and whether it is released or not.Original Invoice, Tin No, Consignee and Consignors correct Address , Whether the stock is defective or not.Whether the Cartoon is defect ive or not. Wa y Bill if it is not a loca l vendor. W hether the invoice value matches with the way bill value. Authorizat ion Signature, Util izat ion Signature, Then the BOH in charge puts his signature and Finally the security guard maintains the records. Then stock is rece ived.

3 Goods Return to DC

Goods Return to DC Paper - GRDC to set off (Stock-in-transit ). For shortages within consignment received refer in t he rece iving procedure. For block deliveries pending – For deliveries in between 1st to 15th - start closing procedure on 20th. For deliveries in between 16th to 31st - start closing procedure on 5th. Closing procedure here means mailing respective DC's, obtaining POD's if required, and setting off in-transit. Material GRDC. Forward G RDC mails by categories to the D&L team.If disc ussed on phone then write a mail marking to both - D&L & Category Coll ect all merchandise in the BOH.Ensure that hard tags have bee n taken out. If not in saleable condition - classify as defect ive - cal l to be taken by BOH DM Replace the poly pack cover if required, merchandise to be repacked if necessary.P iece wise scanning to be completed for each box. Ensure that the recycled carton is not damaged.Box to be sealed with brow n tape, Releva nt Mat. Doc to be pas ted on eac h box with a clear cello tape. Destination DC number. Should be pasted on the box in bold. In case the boxes are to be ha nded over to outside courier a gency. The external area should be poly wra pped and either stitc hed or taped properly with the markings vis ible.

4 Goods Return to vendor

Return to Vendor For Merchandise Inward ed: Inform cate gory about qty to be returned. Remove Hard tags. Bra nd Staff to do a global count and BOH staff scan-out the merchandise. Both should tally. Box to be sealed properly and Doc.No to be pasted on the box with clear cello tape. Consignment to be shipped on a to-pay basis.

5 Process for Replenishment

Dynamic Replenish ment Dyna mic Replenishment is the process of replenishment of products whose size is not available on the floor.Ex- XXL s ize is not available on the floor so immediately XXL size will be replenished from the warehouse. New option should be replenished immediately from the warehouse. Suppose 5000 pieces of stock is available on the floor and 50 pieces were sold. It is t hen checked and the stock and the s izes which were sold would be replenished. There is no speci fic time for Dyna mic Reple nishment. It is done throughout the day. While replenishing product s, the s ize and option of the products must be taken ca re of. With the help of Dynamic Replenishment we can track record of products available on the floor as well as warehouse.

6 Handling Defect ives at BOH - Pvt Label & opportunity buying. Handling Defect ives at Store - External Brands

In case any defect ives are found for the private label brands or exte rnal brands immediate decisions and actions are executed for immediate return of the same to the respective source points. This ensures zero dumping.

7 Back of House administration

Back of House administ ration is effectively carried out by efficient a nd trained professionals. They also ass ist in monitoring the inventory flow and demand predict ion.

Findings : It is found that Reliance Trends, Bhubaneswaris not able to come up to the expectation level of majorpercentage of the respondents fully. Hence it can be saidthat concrete measure should be taken by the companyto come up to the customer expectation. Most of thepeople are satisfied with the ambience and cleanlinessof the store. Customers are also satisfied with thedisplay’s, layout, visual merchandising which helps themnavigating the store comfortably. Regarding pricedifferent respondents have different feeling but majorpercentage of respondents feel that price is nominal here.Most of the respondents are dissatisfied with the billingprocess as they are having grievances there is long queue

and sometimes there is no attendant on one or two POS(Billing counter). Promotion are attractive but not so incomparison with others like Big Bazaar something moreis needed to be done regarding promotions. Majorpercentage of respondents say what every product theyrequire it is available in Reliance Trends. The sale ofReliance Trends, Bhubaneswar increased due topromotional event gradually. BOH is not properlymaintained. Racking, Segregation is not done properly.Cartoons were lying in the BOH. Replenishment team isnot there in the BOH. External Brands were lying in theBOH for more than 2 days after tagging also. Atlast BOHshould be bigger than what it is. As compared to the stocks


received and store size BOH is much smaller than what ithas to be.

Recommendations : Reliance Trends, Bhubaneswarshould give those offers which can facilitate more moneysaving as the customers are price sensitive. RelianceTrends, Bhubaneswar should give credit facility at leastto their loyal customer as it is also the reason behindcustomer dissatisfaction because they always get facilityfrom local Kirana store. Reliance Trends, Bhubaneswarshould also use Hoarding for advertisement. Supply chainmust be more efficient, especially in case of logistics.

Racking of products, Segregation should be done as it isnot done properly in Reliance Trends. Cartoons shouldbe immediately cleared from the BOH. No cartoon shouldlie in the BOH. DR report is not given in time so,Replenishment team atleast one from each floor shouldbe there. External Brand staff should immediately tag hisproduct and take it to the floor after in-warding processis done. It should not be kept in the BOH. Warehouse is amajor concern of what we have noticed. The BOH is verysmall as compared to the store size and transactions.

Figure 1: Rack Numbering in Warehouse

Figure 2: Layout Design in Warehouse

Figure 3: Sorting of

Garments

Figure 4: Racking of Garments According toSize and Brand

References1. Agrawal, D.K., Text Book of Logistics and Supply Chain

Management, Macmillan, India, 2003.2. Austin, Robert, D. (2001). Ford Motor Company: Supply

Chain Strategy, Harvard Business School Publishing(December 21): 9-699-198.

3. Bhutman, J. (2002). A Pain in the (Supply) Chain, HarvardBusiness Review (may): 1-5.

4. Chopra, S., Meindl, P., Kalra, D.V., Supply ChainManagement, Pearson, Prentice Hall, India, 2009.

5. Collins, jim. (2003). The ten greatest CEOs of all time.Fortune (21 July): 54-69.

6. Deloitte, Touch, T. (2003). The Challenge of Complexity inGlobal Manufacturing. @www.deloitte.com/dtt/cda/doc/content/challenge%20of%20complexity%20FINAL.pdf.

7. en.wikipedia.org/wiki/Reliance_Fresh.8. Fawcett, Stanely, E., and Magnan, N. Gregory. (2004). Ten

guiding principles for high-impact SCM, Indiana UniversityKelly school of Business, Harvard Business SchoolPublishing: 67-74.

9. Fawcett, Stanley E., and Gregory, N. Magnan. (2001).Achieving World Class Supply Chain Alignment: Benefits,Barriers, and Bridges, Harvard Business School Publishing.

10. Fine, Charles, H. (1998). Clockspeed. Reading, MA: PerseusBooks.

11. Goldberg, Ray A., and Yagan, Jessica D. (2007). Mc.Donald’sCorporation: Managing a Sustainable Supply Chain,Harvard Business School Publishing (April 16): 9-907-414.

12. http://www.sz-13. https://log.logcluster.org/mobile/response/warehouse-14. https://sites.google.com/a/g.r it .edu/auknotes/

introduction-to-logistics-15. management/index.html16. Nargundkar, R. Marketing Research, TMH, India, 2011.17. Pattnaik, M. (2012), Models of Inventory Control, Lambart

Academy Publishing, Germany.18. Pattnaik, M. (2013), “Kesoram Industries Ltd. Managing a

Sustainable Supply Chain: A Case Study of Birla Tyres”,Research Journal of Social Science and Management, vol.3(2),8-15.

19. Pattnaik, M. (2013), “Kesoram Industries Ltd. Managing aSustainable Supply Chain: A Case Study of Birla Tyres”,Parikalpana, KIIT Journal of Management, vol. 9(II), 65-75.

20. Pattnaik, M. (2014), Inventory Models: A ManagementPerspective, Lambart Academy Publishing, Germany.

21. Pattnaik, M. (2015), “Product Designing through ConjointAnalysis and Curve Fitting of Financial Data: A Case of BirlaTyres”, Journal of Business and Management Sciences:Special Issue, vol. 3(1), 32-44.

22. Pattnaik, M. “Multivariate Techniques and ForecastingTechniques with Data Interpretations in Business Models:Applications and Cases”, Journal of Business andManagement, 2014, Science and Education Publishing,


USA.23. Pattnaik, M., Roy, G.P., Nayak, P. “Emerging Trends in

Production Research: Concepts and Cases”, Journal ofBusiness and Management, 2014, Science and EducationPublishing, USA.

24. Raman, A., and Fisher, M. (2001). Supply ChainManagement at World Co., Ltd. Harvard Business SchoolPublishing (November 19): 9-601-072.

25. r f i d . c o m / E n g l i s h /solutiondetail.aspx?proid=152&typeid=19

26. Sople, V.V., Logistics Management, Pearson Education,India, 2009.

As recently as 20 years ago, Supply ChainManagement was seen as something that tookplace behind the scenes with no upgradation,

boring job & theoretical one. It was only seen as supplyof material from one source to other source i.e. basicallythe movement of material. Later on, it is broken intoseveral component like Packaging, Handling, Loading,Shipment mode, Warehouse Management, Unloadingetc. These components were not keenly studied &analyzed during the era of Twenties. The reasons werequiet obvious like In those days consumers were lessdemanding, less aware and certainly more patient.Everything was moving at different pace at that time.

With the pace of time, their awareness level gotincreased & so the need of latest technology. They werenot familiar with online ordering with the ability to trackshipments to a timely and expected delivery date. Themajor thing in SCM is lead time & the all innovations inthis field revolve around this. This is the kind of universaltruth for this field, how to reduce the time, even thebest possible time.

Hence this is why now the role of Material ManagementOffice is seen as a highly strategic one that is increasinglyvaluable from both a customer service and a businessperspective. As the role has evolved it’s become a criticalone, as managing a supply chain is complex, fraught withrisk, subject to complex regulations, fines, competition,international shipping restrictions, and many more. Themain area of focus is Transparency, visibi lity &accountability. As the internet, email and othertechnologies have become ubiquitous, the expectationsof consumers have grown correspondingly.

Technology has crept into SCM step by step, beginning

HOW TECHNOLOGY CAN EASE

SUPPLY CHAIN MANAGEMENT

PRADEEP KUMAR BARNWAL

OFFICER-MATERIAL, HALDIA PETROCHEMICALS LTD

[email protected]

with electronic invoicing, computerized shipping andtracking and automated notifications etc. In now a days,when one places order to any party, then it goes throughtheir internal system for processing it further like theywill first cross-check all the terms then it will be send totheir production team, once the material is ready, it willbe send to their quality team & once they approve it, itwill go to their marketing team for creation of invoice &accordingly material is shipped. So, here we can make itmore transparent & visible. Like in E-Commerce, whenone Order is placed, one gets information of each & everystep like Invoice creation, Shipment, Order placementetc. That same kind of tracking and accountability canbe applied to virtually every link in the supply chain toprovide a moment-by-moment snapshot of how goodsare moving around the planet. Like after getting theOrder, Party will place it on their online portal & generatea link for it & share it with the customer & customer caneasily view the status of material & it’s expectedshipment. Key to this kind of efficiency is the ability tonotify everyone along the supply chain when thingsaren’t going exactly as planned. Notification technologyhas adapted along with SCM to provide an easy way tosend one message to many at once, by a wide variety ofdevices.

As business complexity and global competition increasesand consumer loyalty becomes more tenuous, more andmore companies are exploring SCM technology to gainoperational efficiencies. Using technologycomplemented with a reliable notification solution, theycan establish a foundation for consistent leadership andsecure a strong competitive edge.

��

27. Swarup, K., Gupta, P.K., Manmohan, Operations Research,Sultan Chand & Sons, India, 2003.

28. Thomas, E. Vollmann, William, L. Berry, Whybark, D. Clay,and Jacobs, F. Robert. (2013). Manufacturing PlanningControl for Supply Chain Management, McGraw HillEducation, India.

29. Wietfeildt, P. (2001). Achieving the Next Level of World

Class Supply Chain Performance. Presentation, Annual

Conference of the Council of Logistics Management,

Toronto (September).

30. www.ril.com��


It is said that‘Actions Speak Louder Than Words’. Inorder to harness the capabilities of the team, a

Procurement Leader needs to demonstrate developing

and sustaining the processes, taking critical decisions,

planning ahead & seamless execution, openness &

adaptability to change and exceeding results & owning

outcomes. Mutual trust among the team members isrequired to be developed by understanding their future

plans & goals and further counseling them as and when

needed. Team and family outing also strengthens the

trust and helps in breaking the psychological barriers

within the team.

Further casual conversations on a wide range of topics

help to know the team better in terms of comprehending

their mindset and approach of an individual towards

various situations. Direct contribution to growth, new

initiatives taken, collaboration with other team membersand the challenges to overcome are required to be

discussed in detailwhich helps to evaluate with respect

to established objectives, strengths, areas of

improvement, opportunities and threats addressed over

a fixed timeline.

It is emphasized that procurement function is rewarded

based on the total value it delivers – this includes year-

on-year savings as well as cost avoidance, working capital

and innovation. The technical, behavioral and contextualcompetences of an individual membershould be kept in

mind while making an approach to harness the

capabilities of the team.Appreciation and giving credit

to the team in public booststhem like a kite flying high

in the sky.

The performance increases many folds and they realize

their importance in the growth of the organization and

are dedicatedtowards success of the organization. The

team should also be encouraged to participate in web-discussions,in reading books & articles, to visit seminars,

similar industries and attending procurement

development programs. This will enable them to have

up-to-date and in-depth knowledge of the industry and

enhance their competency level on the global platform.

The team should be explained that in the present world,procurement executives are the ‘Brand Ambassador’ of

the organization. As buyers in a primary position are the

first face to interact on behalf of the company with the

suppliers and therefore their behavior, attitude, fairness

APPROACHES TO HARNESS THE CAPABILITIES

OF PROCUREMENT TEAM AND ITS

EFFECTIVENESS ON PROCUREMENT FUNCTIONASHISH NARAIN AGRAWAL

LIFE MEMBER - IIMM & AGM - HMEL (HPCL - MITTAL ENERGY LTD.)

[email protected]

in treatment, honesty, openness, co-operation,relationships etc. reflects the company’s image and

reputation.

It is said that ‘Coming together is beginning, keeping

together is progress, and working together is success’.

Taking, this as principle,the team must be encourage to

work collaboratively by demonstrating patience and

mutual respect for stakeholders across levels even

during pressure situations and stressful times.. The team

should be motivated to achieve higher results by

providing continuous and constructive feedback anddeveloping the feeling of ownership. A proven principle

of 70/20/10 may be invoked to harness the potential of

the team i.e. ….. 10% training, 20%mentoring / coaching

and 70% on the job learning. This may resultin

unbelievable positive outcomes from the team. The

teambecomes capable to work in multi-taskingenvironment, able to handle a large workload, work

under pressure, independently and with limited

supervision.

Since the team members are able to manage day to day

procurement activities, the team leader is having time

to focus on strategic matters and building up long term

visions for the function. Believing the strategic position,

the procurement leader needs toestablish constant

communication with cross functional teamleaders,senior management and stake holders of the

organization . A large amount of time should be spent

trying to understand their challenges and priorities and

adapting the content strategy of the business to deliver

values to the company. At all meetings between

procurement and the company’s top suppliers,procurementmust talk the need for fresh ideas and

should gathered market intelligence for reducing total

cost of ownership (TCO).

In a nutshell, it can be said that through enthusiastic,

motivated and innovative procurement team, the

procurement function delivers all sorts of excellency

applying various strategies and techniques. The team

becomes well capable in transforming the traditional

procurement into Smart Procurement resulting intheorganization becomes a ‘Customer of Choice’ for many

suppliers and contractors indigenous as well as globally.

��


Introduction : Inventory is a significant and visible assetin most companies - often the largest. Executives andshareholders have focused on inventory levels for

years, but it has frequently been reduced arbitrarily,without a full understanding of supply chainimplications.

At the outset , let us clarify the significance of a stock-out situation and that of a stock-in-surplus situationin business. A stock-out occurs when a requisite item ismissing in the stock. As a consequence there may be abreakdown or shutdown resulting in loss of machinetime and man hours which are costly .Id forest sales areconcerned ,a stock out of a good mat result in loss ofgoodwill ,market share and profits. So it is essential tocarry stocks and spares so as to minimise the chancesof shortage and stock-outs..

On the other hand ,it is uneconomical to carry surplusstocks. Accumulation of stock is certainly a safe andeasy option for a supply chain manager vis-à-visuninterrupted supply of raw materials, spares etc..so asto eliminate disruptions in production.. This option doesnot call for any ingenuity or skill on the part of the supplychain manager. The manager may as well overstock allitems which are vital to production activity with a totaldisregard to the various parameters like availability,price, supplier reliability ,lead time ,operational criticalityand expected service level. Shortages and surplusesare costly and as such the role of the supply chainmanager is too balance one against the other. Thisobjective must be achieved with minimum investmentin reserve inventory. High inventory carrying costsshould deter one from getting carried away to carryinventory in excess. It is hence essential to know whatto carry in stock and what not to. The usual tendency isto keep surplus because a stock-out situation creates ascare and is subject to severe criticism. Excessive stockmay not attract attention and it is not surprising to seethat a business has a tendency to accumulate surplusstocks.

Key Focus Areas : The following are a few importantareas in a typical manufacturing firm which demandattention in order to achieve effective control ofraw materials, consumables and maintenance sparesinventory.

Codification : Proper codification is absolutely essentialto avoid accumulation of stocks. Eg: In case ofmaintenance spares, the part number in themanufacturers spare part catalogue should be

DRIVING THE INVENTORY CYCLE IN SUPPLY CHAIN:

A BALANCING ACTC.G.PRAKASH

ASSOCIATE DEAN - VESIM , MUMBAI

[email protected]

deciphered and dimensional specifications need to beclearly understood , checked and verified for existencein the company item code master before a new code iscreated . Items coded in an arbitrary manner will onlylead to duplication of codes and increase the confusionand inventory of the same item. The code should sodesigned that he length of the code is optimum anddecrypting should be possible i.e there has to be an in-built logic in the structure of the code itself. In adecentralised set-up it is preferred to have a centralisedcodification system so that the common items areuniquely coded and stocked centrally and easilydistinguished from the specific items , consumables orspares. Such as step would definitely result in substantialreduction of inventory of common items.

Standardisation : This activity can be looked upon as anendeavour of a company to communicate with theoutside world or with the immediate externalenvironment i.e say local markets. This aspect is also ofutmost importance to a company for deriving thebenefits of interchange ability among items. Concertedeffort has to be made to standardise , if need be evenre-design the sub-assembly of which the item is a partof after analysing the cost to benefit aspect of theproposition. The main objective behind conducting suchan exercise is the prospect of reduction of iteminventory to be carried in stock and the related costs.

Simplification : Simplification or variety reduction is aneffort of the company to communicate with the insideworld . Eg In a proper study conducted in amanufacturing firm can result in the discovery of alarge number of common spares eg pipes,hoses,fasteners, pressure gauges and a host of othermechanical and electrical items, in various sizes andcapacities being used at several places in the company.A variety reduction exercise which would take intoaccount and analyse the design parameters like rating,capacity, size, type of material being presently used tothe actual requirement can lead to a significant reductionin variety and in turn benefit the company in terms ofreduced inventory.

Value Analysis : Value analysis should be an on-goingexercise and the value engineering team of a companyhas a significant role in development of alternate andcheaper materials and methods which would ultimatelymatch the end use . Such an effort would not only bringdown the cost of the item as such but also bring about areduction in the inventory carrying costs.


Import Substitution : The activity of import substitutionif undertaken in right earnest will supplement as well ascomplement the effort towards standardisation. Eg : Inall cases ,wherein machinery is imported ,the catalogueof spares which accompany it needs to be studied ingreat detail . An engineering drawing of a particular spareneed to be created ,if not readily available. The typeand nature of raw material , process of manufacture ,dimensional tolerance ,operational criticality and costbenefit analysis of the item under consideration willhave to be ascertained before contemplating a substitute

Insurance Items : Costly spares accompany the newequipment and machinery which may not then be usedin its own life time but which will ever remain in stock asinsurance spares. In all such cases wherein theequipment /machinery is imported the buyer must beextremely cautious while negotiating the deal andrefrain from being exploited and forced to carry needlessinventory in stock. A buy back arrangement with thesupplier i.e in case the spare does not find use over aperiod of time can be definitely thought of.

Captive Capacity : Captive tool room facilities andrequisite skill if available in a company ,needs to be fullyutilised so that maintenance spares ,which are costly orwhich otherwise entail long lead time are gotmanufactured ‘in-house ‘ and which would result inreduction of inventory .

Salvage Spares : Salvaging of costly spares ,if possible,is an effective method to counter an otherwiseundesirable situation of paying and then carrying theconcerned high value spares in stock . The salvagingoperation can be effected either by repairing or re-working the damaged spare. On the maintenance shop-floor ,this can always be achieved by a fair degree ofinnovation and application tot eh rapier work at hand.

Inventory Indents : A constant vigil and close monitoringof high and medium value indents after a thoroughstudy of the indenting and consumption pattern willdefinitely go a long way in controlling and further alsonecessitate appropriate corrective measures to be taken.

Inventory Review : Weekly /monthly inventory reviewmeetings on an inter-department level will automaticallyfocus attention on the latest inventory position on acontinuous basis and further also necessitateappropriate corrective measures to be taken .

Inventory Visibility Management

Better visibility of inventory across the supply chaincan help reduce overall inventory by 10 percent : Supplychain complexity—due to global organizational footprint,variable demand, complex supplier landscape andoperational cost pressures—invariably adds invisiblelayers of inventory. Manufacturing organizations that donot have enterprise-level dashboards that provide clear,real-time inventory visibility are at a disadvantage in theglobal marketplace.Eg: Genpact’s experience shows thatinventory can be reduced by as much as 10 percentthrough clear visibility across the supply chain and

inventory forecasts based on planned demand.

Case Study : A global aviation company reduced its rawmaterial inventory levels by close to 50 percent andimproved its inventory turns from 12 to 17 by increasingvisibility into its global inventory levels. A web-basedinventory analysis tool was developed and deployed byGenpact to provide a comprehensive view of part levelinventory in a centralized system. The increased visibilityhelped enable better segmentation of inventory andhelped prioritize remedial actions.

Material Scheduling Visibility : Better visibility ofmaterial scheduling can bring down inventory levels by6-8 percent during supplier/part configuration changes

Traditionally, organizations face an inventorymanagement challenge during a change in supplier/partsconfiguration. The risks involved in such transitions arehigh and can result in an inventory stockpile that isredundant or not required, trapping valuable cash. Thebest-in-class organizations have excellent visibility ofmaterial scheduling that allows them to make informeddecisions and better manage the interplay between riskand inventory. This can bring down inventory build-upby 6-8 percent.

Case Study : A major industrial company reduced rawmaterial inventory by 10 percent by implementing asmarter process to manage supplier/parts configurationtransition. Eg : Genpact developed an automated andintelligent workflow-based tool to enable all thestakeholders to rigorously follow a sequential processand establish accountability. This ultimately led to betterand more streamlined coordination among the materialplanning, sourcing, scheduling and engineering teams,reducing the transition risk and thereby reducinginventory build-up.

Inventory Classification and Segmentation

Multi-criteria inventory classification can lead tosignificant inventory reduction, typically in the rangeof 20-50 percent, resulting in inventory turnsimprovement : Unlike the traditional way of using justone dimension—typically a revenue-based method—forranking inventory, a multi-criteria approach to inventoryclassification accounts for financial (e.g., gross margin),operational (e.g., velocity of movement) and customercriticality factors (e.g., high volume products).Customized business policies and strategies should bebased on effective inventory classification, such as highersafety stock for top-ranked products and relatively lowersafety stock for low-ranked products. This helps reduceexcess inventory and/or re-deploy investment in highperforming inventory.

Case Study : A global industrial company reduced itson-hand inventory by 27 percent and improved itsinventory turns from 8 to 9 by using a multi-criteriaapproach to inventory classification. Rule-of-thumbapproach to setting safety stocks and determining orderquantities were replaced with smarter processes likestatistical safety stock setting and order quantity


calculation procedures. Service levels were set based oninventory classification ranks to avoid a one-size-fits-allapproach.

Demand Forecasting

Proper selection of forecasting models andincorporating market intelligence for various demandpatterns can improve forecasting accuracy by 20-35percentage points ; Use of advanced forecasting modelsto handle dynamic and intermittent demand plays a keyrole in reducing forecasting errors and hence, inventorylevel requirements. Incorporating market intelligence inthe forecasting models enables organizations to forecastaccurately and becomes a key differentiator in themarketplace, where the sophistication of forecastingmath models is typically more important thansupplementing the quantitative results with expertopinions and judgments (e.g., promotional activities andsales targets, budget constraints, changes in businessconditions, etc).

Case Study : A retail company improved its forecastingaccuracy by 23 percent by enabling effective forecastingmodel selection based on SKU-level demand patternanalysis; for example, using the Croston method forintermittent demand parts. Custom velocity indices (dayof the week and week of the month) were developed tocapture and address predictable demand variations (e.g.,promotions, discounts) and were applied on the weeklybase forecast to convert into daily forecast.

Service Level Planning

Customized replenishment policies along with periodicreview of supplier lead times can result in service-levelimprovement of 20 percent :

Manufacturing organizations usually follow a sub-optimal approach for reducing inventory carrying costsat the expense of increasing ordering and/or stock-outcost. They should instead take a holistic approach tominimizing the overall total inventory relevant costs,namely carrying cost, stock-out cost, and ordering cost,while setting service levels.

Instead of following a single replenishment strategy forall products, a hybrid approach to customizereplenishment policies yields superior results byaccounting for inventory classification, demand pattern,customer criticality and other business-specificparameters. Lead time data analysis of actual supplyshipments and any necessary adjustments based onsupplier inputs on a continuous basis is another key toeffective service level planning.

Case Study : By assigning different service level strategiesfor various types of products, a global healthcaremanufacturer improved its service level from 74 percentto 90 percent. A robust forecasting and safety stockmodel was developed at both an individual product leveland a higher assembly level, incorporating both demandand supply variations in the supply chain. Lead timeanalysis and standardization for safety stock calculations

were also performed.

Conclusion : The decision maker controls inventory bydeciding two critical questions: How much to order andWhen to order. Even if inventory shortages occur , undernormal business conditions the risk is not unduly serious.For, most industrial materials and supplies it is notespecially difficult to correct a shortage with but slightinconsequential delay. The additional costs are likely tobe small compared with the continuing costs and riskentailed in regularly carrying excessive inventories.

Every item that has been decided to be carried in stockmust be considered an investment of company’s fundsand in making such a decision the use of funds for otherpurchases is denied. Valuable working capital is thusobligated upon which there are always many demands.

Organizations should use the concept of zero-basedinventory planning to improve their performance on theinventory front. Uncontrolled inventory is dangerous asit affects the operational efficiency of business .After apoint ,units added to the inventory contribute less tosecurity against stock-out and add more to costs suchas interest ,depreciation and obsolescence.

Inventory is the measuring stick of the entire supplychain. It reflects the agility of the supply chain. The onlysustainable way to reduce inventory is to improve thesupply chain processes. In long run the firm should tryand influence some relevant parameters so that it canreduce inventory-related costs, improve inventoryturnover ratio and simultaneously improve customerservice. The various inventory strategies likeperforming periodic inventory review, providing tightmanagement of usage rates, lead times and safety stock,reducing safety stock levels, introducing or enhancingcycle counting practice, following ABC, VED, FSNapproach, shifting more inventory or inventoryownership to suppliers and following quantitativeapproaches may be adopted to achieve this objective.

As such a supply chain manager should aim atmaintaining the ideal level holding of inventory at everystage in the supply chain whereby the cost of storingan additional unit is balanced by expected savingsthrough avoidance of stock-outs.

References

Best practices @ TATA CRM plant , Boisar

Functions and Drivers of Inventory : InventoryManagement Models - Cecil Bozarth, PhD

Supply Chain management : Text and Cases - JanatShah

Best practices @ Chuck LaMacchia, The Progress Group,LLC

http://www.genpact.com/insight/driving-effective-inventory-manangement

Materials Management – Dean S Ammer

��


Whether or not Narendra Modi’s ambitious “Make

In India” campaign successfully draws foreign

manufacturing to India, the proposed infastrucure

investments will have a significant impact and

lasting consequences for the subcontinent’s supply

chain.

The “Make in India” Initiative: A Growth Story of

Potentials and Challenges

With newly elected Prime Minister NarendraModi at the helm, India is seeking to emulatethe success of Japan, China, and other “Asian

Tiger” economies by doubling down on domesticmanufacturing with its “Make In India” campaign.Launched on the eve of PM Modi’s landmark visit to theUnited States last year, the campaign seeks to encouragemanufacturing in the country and attract internationalinvestors and industrialists. The ultimate goal of “MakeIn India” is to raise manufacturing’s contribution to thecountry’s GDP from 15 percent to 25 percent, bringingit more in line with other developing countries like China(31%) and Korea (35%).

PM Modi’s government is calling on all of India’sministries related to manufacturing, from heavyindustries to telecommunications, in a collective pushto make the country more attractive and accessible toforeign investmentors. Currently India is ranked 139thout of 189 countries on the World Bank’s Ease of DoingBusiness Index. The proposed investments are largelyfocused on reinforcing — and in some geographiesbuilding — a reliable infrastructure to handle the supplychain challenges that will accompany a massive influx inmanufactured goods.

“My definition of FDI is ‘First Develop India’ “

— PM Narendra Modi

MAKE IN INDIA : REINVENTING INDIA’S SUPPLY CHAIN

KALVIN FADAKAR

MARKETER, WRITER & DESIGNER - ELEMENTUM

[email protected], [email protected]

Though in its early stages, the campaign has alreadyattracted notable participants. Electronics giantsSamsung and Sony have recently announced plans toset up manufacturing bases in India. Samsung isreportedly establishing manufacturing units in thecountry to produce smartphones and tablets, withinvestments estimated to be between US $500M andUS $1B, while Japanese multinational conglomerate Sonyis launching an Indian manufacturing unit “very soon,”according to Sony’s Indian operations headKenichiroHibi. China’s Ambassador to India Le Yuchenghas also said that Chinese firms are expressing interestin setting up manufacturing facilities in India; Chinese e-commerce conglomerate Alibaba Group has alreadymade commitments to serve the Indian market.

The Caution and Challenges of Becoming a GlobalExport Powerhouse

As the “Make in India” campaign begins to pick up steamwith foreign investors, international analysts arebeginning to voice concerns about how high the ceilingreally is for domestic Indian manufacturing and theexport economy. Aashish Mehta, associate professor atthe Global and International Studies Program at theUniversity of California, Santa Barbara, cautions that “thesweeping changes in labor laws, land rules, environmentregulations, and education policy unleashed by thegovernment come with significant social costs andultimately may not result in enough good jobs.” He citesthe reality that mechanization and greater competitionfrom other developing countries should also be takeninto consideration. If the economic climate surrounding“Make In India” changes, foreign companies will be sureto relocate quickly. “Investors seem to get this short-termism,” Mehta quipped. He acknowledges the vitalimportance of having a solid manufacturing base butadds that, “It is just too costly to get wrong.”

Indeed international and domestic factors may conspireto scuttle Modi’s high hopes for “Make In India” overthe next decade. Large scale manufacturing pushes like“Make In India” require a young population willing towork long hours on factory floors. The population ofworkers aged 15–24 in India and the other BRIC countriesis projected to fall by 61 million by 2030 and the over-65-year-old population is expected to rise almost 50%by 2020. Foreign manufacturing companies are morelikely to set up shop in other fledgling economies likeIndonesia and Mexico where the population of youngpeople is projected to grow rapidly.


Logistical Impacts

Irrespective of the ultimate outcome of Modi’s “MakeIn India,” the nature of the subcontinent’s supply chainis guaranteed a makeover. The urgency behind Modi’sinfrastructure initiatives will inspire rapid expansion andhardening of the nation’s freight transportation networkto accommodate the projected increase in traffic. India’snational railway budget was approved earlier this yearand included expansions to the nation’s total rail freightcapacity by 50% to 1.5 billion tons per year.

The supply chain makeover is a much needed one forIndia. The 7th largest country in the world in terms of land area presents a unique logistical challenge fordomestic and international manufacturers. Before anyof the planned and proposed improvements to India’sinfrastructure and domestic bureaucracy are enacted,those considering business involving the Indian supplychain should consider several factors:

� A 2014 World Bank survey ranked India 46th inglobal trade logistics performance, placing it behindsome of its biggest competitors for foreignmanufacturing investment like Mexico and Turkey

� Planned domestic infrastructure improvements willbe costly, especially freight rail expansion — expectthose costs to lead to higher freight tariffs

� Perishable and cold supply chains face a 20%spoilage rate on average due to inefficiencies inIndia’s domestic freight infrastructure*

� India is approximately two weeks farther from theUnited States by shipping line than China

� Frequent power outages may cause delays inmanufacturing schedules and an increasedlikelihood of defective parts

� The Indian bureaucracy itself poses a challenge:government processes are complex and confusing,and have the potential to cause further delays andfrustrations

� India lacks a developed supply base: raw materialsand parts are still often imported for production

� The import process to the country remainscomplicated and non-standardized, causing higherthan normal requirements for inventory to offsetunpredictable delays

The lingering question remains: will Modi’s manyinfrastructure investments bear fruit in time to attractenough foreign manufacturers to call “Make In India” asuccess? As the country enters into this period of rapidindustrial growth, the already struggling logisticalperformance of India is almost guaranteed to suffer inthe short term . Public works projects on existing raillines and roads are sure to cause delays in an alreadyheavily backlogged transportation system. Congestionat major ports is also likely to worsen due to an inabilityto quickly acclimate to increased traffic as moreinternational manufacturers move to India. Until Indiabegins to see returns on its domestic investments, theunavoidable headaches, bureaucracy, and delays thatcome from gambling on the Indian Supply Chain threatento eliminate any savings foreign manufacturers may seefrom moving to India.

(For more visit news.elementum.com)

��

COMMODITY INDEXCommodities Days’s Index Prev. Index Week Ago Month Ago

Index 2396.0 2398.1 2394.6 2358.3

Bullion 4641.4 4655.1 4712.2 4500.0

Cement 1961.2 1961.2 1885.1 1941.3

Chemicals 2203.6 2224.7 2218.0 2175.9

Edible Oil 1579.1 1580.4 1596.5 1590.3

Foodgrains 2314.3 2317.9 2309.4 2347.3

Fuel 2154.3 2154.3 2140.8 2049.0

Indl Metals 1523.4 1523.4 1527.7 1561.7

Other Agricom 2136.5 2136.5 2126.1 2143.9

Plastics 1938.8 1932.0 1938.8 1969.4

Source: ETIG Database dated 20th May 2016


Abstract: Supply chain management hastraditionally been viewed as a process whereinraw materials are converted into final products,

then delivered to the end-consumer . This processinvolves extraction and exploitation of the naturalresources. It is important to note however that we livein a decade where environmental sustainability has beenan important issue to business practice. Since the early1990’s, manufacturers have been faced with pressure toaddress Environmental Management (EM) in theirsupply chains. This is not an easy task to do however.Adding the ‘green’ concept to the ‘supply chain’ conceptadds a new paradigm where the supply chain will have adirect relation to the environment. This is interestingbecause, in history, these two paradigms were once inhead-on collision with each other.

Eco-efficiency and remanufacturing processes are nowimportant assets to achieve best Green Logistics practice.Global market demands and governmental pressures arepushing businesses to become more sustainable evenclaim that “increasing government regulation andstronger public mandates for environmentalaccountability have brought these issues into theexecutive suites, and onto strategic planning agendas.”

Key Words: ( Green, Logistics, Supply Chain,Environment, Sustainable )

What is Green Logistics and Supply Chan Management?Supply chain management has traditionally been viewedas a process wherein raw materials are converted intofinal products, then delivered to the end-consumer . Thisprocess involves extraction and exploitation of thenatural resources. It is important to note however thatwe live in a decade where environmental sustainabilityhas been an important issue to business practice. Sincethe early 1990’s, manufacturers have been faced withpressure to address Environmental Management (EM)in their supply chains. This is not an easy task to dohowever. Adding the ‘green’ concept to the ‘supplychain’ concept adds a new paradigm where the supplychain will have a direct relation to the environment. Thisis interesting because, in history, these two paradigmswere once in head-on collision with each other.

WAY FORWARD GREEN LOGISTICS SUPPLY CHAIN IN

INDIA– FOR A SUSTAINABLE FUTURERABI NARAYAN PADHI

Fellow in Research Materials Management

Life Member IIMM VIZAG Br, [email protected]

Supply chains, in an operational sense, are aboutextracting and exploiting raw materials from the naturalenvironment. This paper will provide an overview of theGreen Supply Chain Management (GrSCM) literature.Knowing the wider perspective of the Green supply chainis an important step in knowing the branch ofenvironmental sustainability. There are large amountsof literatures that surround GrSCM, especially from 1989to the present. But the key themes that came out of theGrSCM literature over the last twenty years are theconcepts of green design,

Green Operations, Reverse Logistics, WasteManagement And Green Manufacturing. The purposeof this paper, however, is to discuss some of these issuesand provide an overview of the academic perspective ofthe GrSCM literature. This paper will provide a briefintroduction to traditional supply chain managementand the chronology of GrSCM. This paper will thendiscuss the concepts of Green Design and GreenOperations. At the end, this paper will briefly mentionwhy organisations opt for a Green supply chain. Thispaper will mention some of the key academics in thefield and their arguments around green operations.

Green Supply Chain Management (GrSCM) Arena:Green supply chain management (GrSCM) is an emergingfield that strands out of the traditional supply chainperspective. The “quality revolution in the late 1980’sand the supply chain revolution in the early 1990’s” havesparked businesses to become environmentallyconscious. GrSCM has gained popularity with bothacademics and practitioners to aim in reducing wasteand preserving the quality of product-life and the naturalresources. Eco-efficiency and remanufacturing processesare now important assets to achieve best practice. Globalmarket demands and governmental pressures arepushing businesses to become more sustainable evenclaim that “ increasing government regulation andstronger public mandates for environmentalaccountability have brought these issues into theexecutive suites, and onto strategic planning agendas.”

The key themes that came out in the literature over thelast twenty years are the concepts of: green design,green operations, reverse logistics, waste managementand green manufacturing .The very first green supplychain came into context in


Green Design: Green design is an important sub-topicto Green supply chain management. It is about designinga product or a service that encourages environmentalawareness. argues that organisations have definitepotential to become eco-friendly towards product re-manufacturing. Heavy industries that have complexsupply chains should take into consideration the benefitsof reverse logistics (RL). acknowledged the developmentof ISO14000. This was introduced as a result of the RioSummit on the Environment in 1992. There are growingpressure groups that calls for firms to encourage‘greening’ in the supply chain.

Life-cycle Analysis: Life-cycle analysis is an importantsub-concept to Green Design. Life-cycle analysis wasintroduced to measure environmental and resourcerelated products to the production process. Thismeasurement involves in stages from extraction of rawmaterials, production, distribution, andremanufacturing, recycling and final disposal. that lifecycle analysis “examines and quantifies the energy andmaterials used and wasted and assesses the impact ofthe product on the environment.” Governmentregulations are also an added factor for organisations towork towards life-cycle analysis.

Green Operations :

Reverse logistics: Reverse Logistics (RL) is the oppositeof traditional or forward logistics (reverse logistics as aprocess where a manufacturer accepts previouslyshipped products from the point for consumption forpossible recycling and re-manufacturing. illustrates thefundamentals of reverse logistics. Green Supply ChainManagement (GrSCM) works around RL involvingmanaging the flow of materials towards remanufacturingand recycling, which in this sense reduces the costs ofmaking new products. that reverse logistics have beenwidely used in automobile industries such as BMW andGeneral Motors. Other companies such as HewlettPackard, Storage Tek and TRW are also using reverselogistics as a supply chain process. Doing this wouldeventually help firms become more competitive in theirown industry.

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

AGreenerSupplyChain

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

AGreenerSupplyChain

��

��

��

NetworkDistributionOptimization

��

��

��

TransportMode

Optimization

��

��

��

TransportMode

Optimization

��

��

TransportCarrier

Selection

��

��

TransportCarrier

Selection

��

��

EquipmentUtilization

Improvement

��

��

EquipmentUtilization

Improvement

A business gain can gain the following benefits fromgetting into ‘green logistics’ -

1. Reduction in CO2 emissions2. Unlocking significant cost savings3. Heightened supply chain optimization4. Boosted business performance

When adapting green logistics there could be someinconsistencies that might arise. The issue is that green

logistics is supposed to be environmental friendly, butlogistics in itself is not very green because of pollutionand waste that it creates. So when adapting greenlogistics there are some paradoxes that arise as givenbelow:

Cost: Companies wants to get the cheapest way to dothings but at the same time they should choose optionsthat are green, which sometimes are more costly to thecompany. The purpose of logistics is to minimize costs,notably transport costs. The cost-saving strategies thatare pursued by logistics operators are often at variancewith environmental considerations.

Time/Flexibility : The modern integrated supply chainsand JIT provide adjustable and competent physicaldistribution systems but on the other hand extendedproduction, distribution and retailing models areconsuming more space, energy and generate moreemissions (CO2, particulates, NOx, etc.).

Reliability: At the heart of logistics is the overridingimportance of service reliability. Its success is based uponthe ability to deliver freight on time with the least threatof breakage or damage while the least polluting modesare generally regarded as being the least reliable in termsof on-time delivery, lack of breakage and safety. Shipsand railways have inherited a reputation for poorcustomer satisfaction, and the logistics industry is builtaround air and truck shipments... the two leastenvironmentally-friendly modes.

Warehousing: A reduction in warehousing demands isone of the advantages of logistics. This means however,that inventories have been transferred to a certaindegree to the transport system, especially the roads.Inventories are actually in transit, contributing stillfurther to congestion and pollution. The environmentand society, not the logistical operators, are assumingthe external costs.

E-commerce: The explosion of the informationtechnology has led to new dimensions in retailing - e-commerce. However, changes in physical distributionsystems by e-commerce have led to higher levels ofenergy consumption.

Globalization and Greening the Supply Chain: Today’sGlobalization increases the opportunities for buyers. Asbuyers increase their focus on environmentimprovement, which increases the supplierenvironmental performance. It is true for organizationsthat regard environmental improvement as a social goal,not just an issue cost, risk and public image.

Manufacturers need to work with their suppliers of rawmaterial and component, in order to produceenvironment friendly products. By using their purchasingpower, the industries can set up environment criteriafor their suppliers upstream in supply chain. Ultimatelyit can result in the greening of the supply chain.

GSCM = Green Purchasing + Green Manufacturing/Materials Management + Green Distribution /Marketing + Reverse Logistics.

The concept of green supply chain is new concept,appearing in recent literatures. though this has been veryimportant in business, it is introduced recently and now


also literature for environment friendly supply chain isstill limited.

“Sustainable Development” is the key concept asdiscussed in 1992 Earth Summit in Rio, in this,governments and other international organizationsdecided to take useful measures to protect environmentfor long term economic development. Today’shighlighted agenda is to raise environmentallyresponsible consumption and production to recoverenvironmental quality, reduce poverty and bring abouteconomic growth, with resultant improvements inhealth, working conditions, and sustainability .

green supply chain management, it includes pressurepractice and performance within the Chinese automobileindustry in which they observed that on increasingpressure from a variety of directions have caused theChinese automobile supply chain manages to initiatecarrying out of green supply chain management (GSCM)practices to improve both their economic andenvironment performance.

Green Purchasing : Environmental issues are becomingimportant part of business today, while there areenvironmental regulations as well as the increasingdemand of environmental friendly goods from buyers,the environmental issues are becoming non-tariffbarriers for export though Europe and Japan are shiftingto eco-friendly products but presently there is a limitedmarket for eco products, there are definite sign that thiswould grow big way. In many countries, governmentwith industries and civil society organizations areworking together to purchase eco-products.Environmentally preferable purchasing (EPP) or greenpurchasing is process of selection and acquisition ofproduct and services which minimise negative impactover the life cycle of manufacturing, transportation, useand recycling.

DIFFERENCES BETWEEN THE CONVENTIONAL ANDGREEN SCM

Characteristics Conventional SCM Green SCM

Objectives and Economic Economic andvalues ecological

Ecological High Ecological Integrated approachoptimization impacts Low ecological impacts

Supplier selection Price switching Ecological aspects (andcriteria suppliers quickly price) Long-term

Short-term relationshipsrelationships

Cost pressure High cost pressure High cost pressureand prices Low prices High prices

Speed and flexibility High Low

Conclusion: Cost and complexity are perceived as thebiggest barriers to implementing Green SCM, whichhighlights the need for cost effective and easy toimplement solutions. Brand building is one of the topincentives for green SCM, highlighting the importanceof public perception of how companies operate.Recycling of raw materials and component parts are thetop green manufacturing and production focusedinitiatives Adoption of green practices is highest in thoseareas of the supply chain where there is a direct relationto cost savings and efficiency, for example in inventoryreduction, recycling of raw materials. Almost a third ofrespondents are not collaborating with their extendedsupply chain on green practices.

Most of the Indian manufacturing small and mediumenterprises like cutting and hand tools and auto partsand spare parts and industrial equipments andmachinery manufacturer and various other productsmanufacturer are seem to be quite advanced in theimplementation of green warehousing and distributioninitiatives, most likely because these initiatives often alsomean added efficiency. While green supply chainmanagement shows direct cost and efficiency benefits,then why more companies have not adopted them upto now?

EPI-2012 rank of India is worst, this also shows thatawareness of green supply chain management andgreening in India is poor, so there will be need to spreadthe knowledge of green supply chain management, withthe help of this green supply chain management, Indianmanufacturing enterprises get their cost and efficiencybenefits.

References1. Green K., Morton B., and New S., Green purchasing

and supply policies: Do they improve companies’environmental performance? Supply ChainManagement, 3(2), 89-95 (1998)

2. Narasimhan R. and Carter J.R., Environmental SupplyChain Management, The Centre for AdvancedPurchasing Studies, Arizona State University, Tempe,AZ, (1998)

3. Godfrey R., Ethical purchasing: Developing thesupply chain beyond the environment, in GreenerPurchasing: Opportunities and Innovations, editedby T. Russel, Sheffield, England: GreenleafPublishing, 244-251 (1998)

4. Srivastava S.K., Green supply chain management: Astate of the art literature review, Internationaljournal of management reviews, 9(1), 53-80 (2007)

5. Qinghua Zhu, Joseph Sarkis and Kee-hung Lai, Greensupply chain management: pressures, practices andperformance within the Chinese automobileindustry, (2006)

6. Chung-Hsiao, The Green supply chain managementin the electronic industry, (2008)

7. Fengfei Zhou, Study on the Implementation of GreenSupply Chain Management in Textile Enterprises,(2009)

8. Ninlawan and Tossapol, The Implementation ofGreen Supply Chain Management Practices inElectronics Industry, (2010)

9. Robert and Benjamin, Introducing GreenTransportation Costs in Supply Chain Modelling,(2010)

10. www.cleanerproduction.com11. www.igpn.org

��


Managing the Material is one of the fundamental

job of all human beings. All materials have value

in this universe. Every home and every home

maker manages the material with the same concepts

which modern professionals have coined some words and

went on giving buzz words for better understanding.

Home maker are always good material managers. They

know how much milk to buy and how much vegetables

to buy or how much rice or wheat to buy. Hence Material

Management is as old as existence of human beings.

However, in the business context, every stake holders

would like to optimise the usage of material and spend

as low as possible on materials and increase their profit.

They realised that material constitute a major

components in their derivation of profit. Then they

started to focus on materials and their spending money.

This is how materials management started professionally.

In any industry of any sector of business, maximum

money is spent on Materials is well known. Then they

started to plan for buying and plan for storing and plan

for issuing and plan for calculating the value of unutilised

material .

Initially Industries first integrated all the functions of

Material Planning, Procurement, Receiving and storing,

transportation, Inventory management and all other

related activities of acquiring and distribution of material.

The main purpose was to reduce spending on materials

to maximise profit. This is because the money is a

borrowed money and accrue interest charges and some

time money is scarce and need to utilise very presently.

Real Industrial Revolution regarding the materials

management started in the year 1945 after the World

War II. The world witnessed the shortage of material,

increase in production with the advent of technology,

increased population, increase in demand , gave birth to

an entirely new approach and idea in the management

field that is Materials Management in all sectors of

Industries. Extensive study in Industrial Purchasing

practices was made by Prof. Howard Lewis and made

recommendations in his time itself for a Head of Materials

including Purchasing, Receiving. Inspection, Storing,

Issuing, Inventory control, transportation etc. Slowly

SUPPLY CHAIN - YESTERDAY, TODAY AND TOMORROW

A PRACTITIONER’S PERSPECTIVE

C. SUBBAKRISHNA

FORMER NATIONAL PRESIDENT

[email protected]

Materials Management evolved into an Independent

function in the integrated form.

Shortage during War and heavy inventories build up

helped to understand the importance of Materials

Management and with the event of Industrial revolution

and also as a result of improved technology coupled with

economic prosperity , the focus was shifted to mass

production and particularly on materials management.

There was a premium on resources which made a

significant changes in the character of materials

management.

The Indian industries including the Govt. dept. Like

Defence and Railways adopting the materials

Management was comparatively slower and cost

conscious was not given high importance in majority of

industries. However, DGS& D (Director General of

Supplies and Disposals) was established and in the

corporate sector which started giving the direction for

improved materials management function.

With the liberalisation and opening up of Indian economy

and globalisation, country was thrown open to lethal

competition around the world and subjected to market

forces. However, this also gave tremendous opportunity

to adopt best global practices.

In most business operations the cost of material is the

last remaining cost that is mostly variable where as all

other cost is either fixed or tend to be semi fixed. Hence

a reduction in the cost of material per se clearly offers an

unusual opportunity for profit improvement. The cost

of material in a typical manufacturing firm is Appx 50 per

cent of the total cost. The opportunity for profit

improvement in the materials area is virtually impossible

to match in any other area of business operation.

In India, many progressive manufacturing companies

realise that materials availability, engineering and

purchasing specifications, fabrication cost and

distribution cost are all factors which impinge on total

material cost. Firms have also realised that all material

cost factors must be coordinated and controlled by a

system oriented Materials Management department and

the total material cost is to be optimised. Buying well is


as important as selling well and most efficient marketing

cannot compensate poor purchasing function. If we

have to add value to the products by reducing cost or by

improving the quality or by reducing the cycle time, it is

the Materials Management which is to be approached.

This alone can gain the competitive advantage.

Having realised this , Industries of all sectors started

separate Integrated Materials Management department

and reaped the benefit with deep diving into all functions

of Materials Management like Material Planning, Material

Procurement, Material Storing, Material issuing etc., for

improved and efficient managing of materials.

However, world over, soon they also realised that there

is a limitation to add value to the product within their

compound or premises. Then Industries extended their

vision to their suppliers who are supporting them with

their inputs.

Procurement managers started asking their suppliers the

details of their buying raw materials and inputs such as ,

their source of buying and also the logistics details of

their suppliers supplier. Thus the opportunity was opened

to look for their suppliers procurement details and even

their suppliers supplier procurement details. The chain

extended till the production of original Raw materials

which they referred to as upstream suppliers. Then it

was found that there is an unending opportunity to

improve their products with reduced cost, faster delivery

and improved quality. Similarly, Industries also looked

towards their finished products movement through the

channels of warehousers, dealers, distributors, stockists,

retailers and final consumers/customers.

Thus gave a tremendous opportunities to enhance their

competitive advantage by focusing on their upstream

suppliers and down stream customers. The movement

of raw materials onwards to different entities for different

operations in different forms till it reach the final product

manufactures is by logistics. The linking chain is the

logistics. The supply chain reflects the the movement of

material in different transformed form from one unit to

another seamlessly till it reaches final consumer. Then

Industries started practicing Supply Chain Management

for gaining global competitive edge. This is the ongoing

endeavour of all sectors of industries across the globe. It

is a proven efforts of all the industries. Among industries,

it is competition between two SCM Dept., to win the heart

of the customers and not between two Marketing Dept.,

This is reverberating internationally.

In a dynamic global business scenario, supply chain has

been extended to new and innovative level. Some of

them are Vendor Managed Inventory, Module sourcing,

Green sourcing, E sourcing, Outsourcing, Strategic

Sourcing, Lean supply chain, Early Vendor Involvement,

Just in Time and Virtual Supply chain etc.,

Supply chain has become the backbone of any business.

50% cost of production is depending on supply chain.

SCM is the growth engine in the competitive world of

business has ocean of opportunities in the global market.

In future, as we have already witnessing, service supply

chain will out beat product supply chain. Customers are

looking for service only and the product is a component

in the service supply chain. Even in India, the service has

higher GDP growth than product.

The supply chain management has to be designed to

address all sectors and levels of business like Corporates,

Govt. departments and MSME. The same analogy to

target "Bottom of the Pyramid" which prompted to bring

out Nano Car and Ginger Hotels by TATA will apply here

also. Scm will be a key tool even in a small restaurant or

7 star Hotels.

SCM knowledge and skill will empower professionals to

become global in nature. Incidentally all of us are aware

that India is the youngest country in the world. 65% of

India s population is less than 35 years old. The average

age of Indian is 26 years old. Other parts of globe may

look for Indian youth work force for knowledge workers

especially in supply chain management.

Future supply chain professionals shall have to acquire

knowledge and skill with authenticated Certification In

supply chain and logistics since organisations will look

for such qualified professionals only. This was one of the

key points that came up in one of the international

seminar. This function will be a potent technical tool to

gain the competitive advantage.

The usage of advanced tools like RFID, SAP, ERP , drone,

digitisation and apps for each and every family of items

will be the order of the day even for industries. The

professionals will be the supply chain engineers and the

activities will be a technical oriented function.

The present E commerce, in my opinion, should have been

called E supply chain since the E commerce companies

are doing none other than Supply Chain and Logistic

function. Pick up and drop to the customer include only

the sourcing, negotiating, contracting, paying, picking and

dropping to on line buyers. Nothing other than Supply

Chain and Logistic function. This has already

encompassed all areas of human needs including all

industry segments. Progressively this E Supply Chain will

be the E Commerce activity across the globe.

The major mega trend is Artificial Intelligence will be

embedded in mainstream supply chain activities.

Note. The opinion expressed is purely personal and stray

thought of the author.

��


In today’s global, dynamic economy, it is beneficial forcompanies to operate a supply chain that is both Leanand agile. Using Lean and agile in combination is

known as having a hybrid supply chain strategy.

A hybrid supply chain strategy may be appropriate for acompany attempting to become a “mass customizer”—producing progressively smaller batch sizes (sometimesas little as one item) specific to customers’ sometimesunique needs.

A Lean supply chain focuses on adding value forcustomers, while identifying and eliminating waste—anything that doesn’t add that value. Being agile andresponsive, on the other hand, implies that your supplychain can handle unpredictability—and a constantstream of new, innovative products—with speed andflexibility.

An agile strategy uses a wait-and-see approach tocustomer demand by not committing to the final productuntil actual demand becomes known (also referred toas postponement). For example, this might involve thesubassembly of components into modules in a lower-cost process, with final assembly done close to the pointof demand in order to localize the product.

An agile supply chain must be responsive to actualdemand, and capable of using information as a substitute(to some degree) for inventory through collaboration andintegration with key customers and suppliers.

EITHER, OR, OR BOTH

On some occasions, either an agile or a Lean strategymight be appropriate for a supply chain. But manycompanies will probably face situations where a hybridstrategy is a better fit. If so, they need to carefully planand execute the combined strategy with excellence,which is often easier said than done because it involvesa lot of moving parts. As in so many aspects of supplychain and operations management, there is more thanone way to accomplish this goal.

One example of a company using a hybrid strategy in itssupply chain is Zara, a Spanish fashion designer andretailer. Zara directly manufactures most of the productsit designs and sells, and performs activities such ascutting, dying, labeling, and packaging in-house to gaineconomies of scale. A network of dedicatedsubcontractors performs other finishing operations thatcannot be completed in-house.

As a result, Zara has a supply chain that is not only agileand flexible, but incorporates many Lean characteristicsinto its processes.

A LEAN AND AGILE SUPPLY CHAIN:

NOT AN OPTION, BUT A NECESSITYPAUL A. MYERSON- Professor of Practice in Supply Chain Management at Lehigh

University and Author of books on Lean for McGraw-Hill

[email protected]

Some semiconductor manufacturers incorporate ahybrid strategy using a flexible manufacturing anddistribution model. Subcontractors perform distinctmanufacturing processes at separate physical locations.This hybrid approach taps a virtual network ofmanufacturing partners and requires responsive, flexible,and information-driven sourcing, manufacturing, anddistribution functions—in many ways, the opposite ofZara’s strategy of shifting processes in-house.

Many organizations can find some form of hybrid supplychain that works well for them. In today’s ever-changing,volatile, and competitive global economy, it may oftenbe in a company’s best interest to operate a supply chainthat is both Lean and agile.

Source : Inbound Logistics

��

E-TENDER MUST FROM APRIL 1 FOR

GOVT PURCHASES ABOVE RS 2 LAKH

Come April 1, all central ministries and public sectorunits will have to float e-tenders for procuringgoods and services exceeding Rs 2 lakh, a move

aimed at bringing transparency in governmentpurchases. At present, e-procurement is mandatoryfor purchases of Rs 5 lakh or more. Government procuresgoods, services and work contracts. In January, theExpenditure Department had decided the tender valuelimit of Rs 10 lakh spent in respect of e-procurementwould be brought down to Rs 5 lakh from April 1, 2015and further down to Rs 2 lakh from April 1, 2016.

As per its instructions it is mandatory for all centralministries, departments and Central Public SectorEnterprises, and autonomous/statutory bodies topublish their tenders on the Central Procurement Portal(CPP) after a certain threshold limit. In 2014-15, about3.81 lakh e-tenders were floated worth Rs 2.12 lakhcrore. As per the latest data, in 2015-16 so far, 471,826e-tenders have been floated entailing an amount aboutRs 3.49 lakh crore. Bulk of the tenders are floated byRailways followed by Central Public Works Department(PWD) and defence PSUs. In the current fiscal so far, 3.56lakh tenders were floated for goods, about 93,000 forwork contracts and 22,342 for services.

Source: PTI, 26th Jan. 2016

��


IFPSM Summer School takes place on 20 – 24 June

2016 in the Netherlands. Details will follow shortly

Tanzania: Global Recognition of Procurement

Professionals Welcome : Through the just acquired

Purchasing and Supply Global Standard, the country’s

procurement and supplies professional regulator says it’s

determined to elevate the profession and professionals

to international level.

Procurement and Supplies Professionals and Technicians

Board (PSPTB), having passed the rigorous scrutiny by

the International Federation of Purchasing and Supply

Management (IFPSM), qualified for the global

professional standard last month.

That means the board has demonstrated its ability to

produce competent and highly skilled graduates of

international repute.

“PSPTB has joined IFPSM to unleash the potential and

power of global synergies for expansion of our advocacy

in services and professionalism worldwide,” says PSPTB

Executive Director ClemenceTesha, describing the Supply

Chain Management (SCM) as a global profession where

all practitioners can gain experience from each other.

The board’s affiliate membership to the federation

implies that its learning programmes—certifications,

credentials or qualifications—have met the

comprehensive standard prescriptions.

And, the global recognition equips students and

candidates with the requisite professional knowledge,

skills, attributes and characteristics to compete in the

labour market, anywhere. According to DrTesha, the

PSPTB newly revised syllabus has passed the test to

qualify for the standard certification by the global

international standard body.

“We have secured IFPSM affiliate membership, which

makes our programmes and professionals recognisable

globally,” says DrTesha, challenging potential

professionals to study locally but aim at practicing their

profession internationally.

IFPSM Chief Executive Officer Malcolm Youngson, in his

congratulatory message to PSPTB management, says the

board is now free to use the federation mark in its

marketing and promotional materials.

INTERNAIONAL NEWS

M.K.BHARDWAJ

Chief Editor – MMR

[email protected]

“Programmes that have met the standard may refer to

this recognition in marketing and promotional

activities...they only need to abide by the style and usage

guidelines as determined by the (governing) board,” says

MrYoungson.

To qualify for membership, applicants submit their

learning programmes that are at intellectual equivalence

of a first degree with sufficient breadth and depth to

demonstrate a degree level standard. Typically, the

programmes are of three or four years, depending on

the delivery mechanism used and intellectual entry

requirements to the programme.

The IFPSM accredited competence-based syllabus will

come for the first testing in PSPTB professional board

examinations in November, 2016. Under the new

curriculum, students will have the entire world to market

their professional competence and skills, thanks to the

standard recognition.

The improved quality of procurement professionals in

the country has a positive impact on the domestic

economy, as well. Procurement and supplies—among

the sensitive professions in the country—handle over

80 per cent of the country’s budget, which stands at over

20trn/-.

Source: Tanzania Daily News

IFPSM Upcoming Events

� IFPSM/Kogan Page Joint Webinar 18 April 2016 at

09.00 & 16.00 UK time: Topic TBC

� IFPSM Asia Pacific meeting – 21 June 2016

(venue tbc)

� IFPSM Board meeting – 5 September 2016, Kenya

� IFPSM Asia Pacific Virtual meeting – 20 September

2016

� IFPSM Asia Pacific meeting – 4 November – Kuala

Lumpur, Malaysia 2017

� IFPSM Board meeting – 20 September 2017 Taipei,

Taiwan

� IFPSM Council Meeting – 21 September 2017,

Taipei, Taiwan

� IFPSM World Summit – 22 & 23 September 2017,

Taipei, Taiwan

��


“Disha” is the signature program of IIMM MumbaiBranch and is conducted every year with the theme beingchosen as relevant to the time. Disha 2016 is the eighthedition of this event and the theme chosen for this year’sevent is

Indian Business – Resilient and Surging-Supply Strategies to sustain growth momentum

The event was held on 22nd& 23rd April 2016 at HotelWestin, Goregaon (E), Mumbai. It focused on currentbusiness challenges as well as opportunities available toIndian Industry and deliberated on the issues ofSuccessful Supply Management Strategies for sustainingthe Growth Momentum and addressed issues such asLogistics Transformation, Improvements in Connectivitythrough Road and Rail Networks which is essential for“Make in India”, Development of Agro Industry,Challenges in Rural Supply Management, Innovationacross Supply Networks for Quality, Responsiveness, andCompetitiveness.

A galaxy of eminent Speakers from reputed Corporate.Private & public Sectors, having the expertise to dwellon various aspects of the theme of the seminaraddressed audience on related topics including PanelDiscussions. Supply Management Professionals fromvarious sectors of industry including sourcing,warehousing, logistics, manufacturing and other sectorsparticipated in the program and benefitted immenselyfrom the proceedings.

Mr. Seshadri Chari was the Key Note Speaker and Mr. BNarayan was the guest of honor for the program.

The program started with lighting of the holy lamp andGanapati Vandana.

At the outset, Mr. Ashok Mhatre, Chairman MumbaiBranch welcomed the guests Mr. Seshadri Chari and Mr.B Narayan as well as the participants.

In his welcome speech Chairman Mr. Ashok Mhatreinformed the participants about the IIMM and itsfunctioning and how Mumbai branch is contributing tothe mission of IIMM through its various activities likeMDPs, Conferences, In House Training Programs, CPORound tables, Public Procurement Programs and BranchAward Functions, MATQUIZ and educational courses inIIMM i.e. GDMM & PGDMM etc. He appealed all theparticipants to take advantage of all the facilities andservices being offered by the Mumbai Branch.

Mr. BalaIyer, Ex. President, IIMM and convener of theprogram DISHA 2016, shared his views and welcomedthe guests.

In his key note speech Mr. Charigave an overall view ofthe evolution in Indian Economy and the Govt. of India’sfocused commitment for ease of business by removingthe hurdles in the way, skill development program ,Capital formation etc. Mr. SeshadriChari set a perfecttone for the conference dedicated to the topic ‘IndianBusiness- Resilient and surging- Supply ManagementStrategies for Sustaining the Momentum’.

In his speech Mr. B Narayan, gave excellent inputs onmanaging in turbulent times by giving ample illustrativeexamples to the delight of participants for taking backhome.

After the inaugural session , the other experts speakerslike Mr. Amitava Baksi,CPO-Tata Steel, Mr. PierreAlexandre De Lavallaz, CPO Lafarge Holcim India, Mr.Lalit Varma, Sr. VP, Mahindra & Mahindraetc spoke ontopics like Managing Supply in Difficult T imes,Procurement Transformation in ACC-Ambuja Cementand Managing Supply Chains in New productdevelopment respectively.

The talk by Mr. Baksi gave a new insight into global steelindustry. Mr. Alexandre provided valuable inputs onprocurement excellence adopted by them whilemergering the two giants and how they transformed theprocurement process in Ambuja Cement , Mr. LalitVermaspoke on new product development in Mahindra &Mahindra wherein he mentioned that the companieswho did not innovate and change as per the time, didnot grow and vice versa. So his mantra was adopt andadapt new changes and grow in business and try tounderstand the expectations of the fast changing newgeneration and provide them as per their needs.

This was followed by a panel discussion led by Mr. PradipSaha, Associate Director-Colgate India Ltd on the themeof the conference i.e. ‘Indian Business Resilient andSurging- Successful Supply Management Strategies forSustaining the Momentum.’ The panelists were Mr. T KDutta, DGM Materials from IOCL, Mr. Pramod Sant, VP(Imports & Exports). South Asia Cluster, Siemens Ltd.,Mr. Umesh Malik, Head P & C Academy, RelianceIndustries Ltd. The entire proceeding was highlyinteractive and was well appreciated by the participants.

Mr. Ravindra Sharma, VP-Business Development, AsiaPacific & Japan from SAPA riba spoke on Enhancingefficiency in Business Performance with use ofTechnology. He narrated very well with ample ofexamples how the technology helped many companiesin enhancing their businessperformance and those whoare not using advanced technology are lagging behind.His speech was very interactive and well appreciated byall.

BRIEF ON SIGNATURE EVENT OF IIMM MUMBAI BRANCH

DISHA 2016


Mr. Anil Tari, Diorector-SAP CoE from Ingram Microthrew light on use of eCommerce and how it is redefiningthe supply chain in all fields. He emphasized on use oftechnology and digitalization in SCM with examples. Heinformed that Companies like Flipcarts, Amazon,Snapdeal etc. are having multiple warehouses all overthe world and they manage their supply through thesewarehouses with a minimum time and maximumdeliveries (results). Today, these companies areflourishing and growing faster than other companies. Hisspeech was very informative and well appreciated.

The second day being 23rdApril was a special day for allin IIMM. Mumbai Branch celebrated the MM Day bycutting a cake in 5 star hotel and celebrated the daywith nearly 200 participants in the program. ChairmanMr. Ashok Mhatre and Ex. Chairman Mr. SurendraDeodhar briefed the participants about the importanceof MM Day on 23rd April and the history of emergenceof IIMM.

Mr. Ramesh Krishnamurthy, Director –(Procurement-South Africa), HUL spoke on delivering Procurementvalues where as Dr. Prince Augustine, EVP (GroupHuman Capital & Leadership development), Mahindra& Mahindra threw light on the journey of HumanResources to Human Resource Development and toHuman Capital with proper leadership in Mahindra &Mahindra..

Mr. V Rangarajan, Principal-Boston Consulting Groupvery nicely explained the best practices in manufacturingand Supply Chain with live examples.

Mr. S Kartik, SVP (Corporate Sourcing) from DeepakFertilizers and Petrochemicals Ltd shared his views onthe facilities made available by the Indian Railways inthe recently announced Rail Budget and how it is helpingthe business in supply chain in a big way as the cost oftransportation is being reduced to a large extent. . Theuse of railways for transporting of the material, trucksfrom one end to other end of the country , the RO ROfacility, the changed shape of wagons, the affordablefares of transportation by rail etc.are boosting thebusiness and industries in India.

Mr. Shankar Head of Innovation from AnandAutomotive group spoke on Innovation in Business andIndustry. His enthusiasm and aggressive style ofpresentation made a high impact on the participants andthey appreciated his innovative ideas.

Mr. ChittaranjanMohanty, ED & Chief Of MM-ONGCspoke on excellence in Public Sector Procurement wrtONGC and the procedure being followed in ONGC.inbidding and auction, reverse auction etc. He informedthat in ONGC they follow the CVC Guidelines and followthe same for all purposes. His speech was veryinformative to all the participants.

Mr. Manoj Junnarkar, Global Procurement Head, CIPLALtd. Spoke on managing supplier value. He shared thatthe suppliers are the business partners to CIPLA andhence they want the suppliers too need to grow alongwith them (CIPLA). Unless the suppliers are grown, they

won’t be able to offer world class services.

At the end, Mr. Satish Palekar, Vice Chairman IIMM,Mumbai branch and VP L & T HydrocarbonSummarizedthe conference very nicely in nutshell and gave anexcellent gist of all the speakers of 2 day program in aprécised manner.

The conference ended with a vote of thanks proposedby Mr. Satish Palekar .

The freed back received from the participants is veryencouraging and positive.62% of the delegates haverated the program as ‘Excellent’ and 38% have rated as‘Good’. (parameters : Excellent, Good, Neutral, Average,Poor)

Thus, the 2 day ‘DISHA 2016’ program was a grandsuccess in terms of the relevance of topics, quality ofdeliberations, expertise of the speakers, delegateparticipation etc. The program proceedings were highlyappreciated by all the participants. The feedbackreceived was excellent.

Visit of Minister for Industries, Government ofMaharashtra to Indian Institute of MaterialsManagement , Mumbai branch in its Annual SignatureProgram ‘DISHA 2016’ on 23rd April, 2016.

Hon. Minister for Industries, Govt. of Maharashtra Mr.Subhash Desai visited the DISHA 2016 program – IndianBusiness Resilient & Surging Supply ManagementStrategies for Sustaining the Momentum on 23rd April,2016.

Speech of Hon. Minister was very inspiring to theparticipants on this occasion wherein he shared thevision of Govt. of India about the industry and alsoinformed about the efforts the govt. is taking for ease ofBusiness as well as for skill building.

Hon. Minister praised the activities of IIMM and assuredhis guidance and support to the institute in skilldevelopment and education. He has invited IIMM,Mumbai chairman Mr. Ashok Mhatre along with branchteam with a proposal for a meeting with ministry’s skillbuilding initiative team for detailed discussions as thenext step forward.

Key Note address by Mr. Seshari Chari


Mr. B Narayan, Group President, RIL Guest of Honourdelivering his speech

Mr. Ajoy Sarkar felicitating Mr. Amitava Baksi,CPO-Tata Steel

Mr. Arun Banavali, Ex Chairman felicitating Mr. PierreAlexandre De Lavallaz, CPO-Lafarge Holcim

Mr. Ashok Sharma felicitating Mr. Lalit Verma,SVP-Mahindra & Mahindra

Panel Discussion :Mr. T K Dutta, Mr. Pramod Sant ,Mr. Umesh Malik with Moderator Mr. Pradit Saha

Mr. Sadri, Ex Chairman felicitating mr. RavindraSharma, VP-BD, SAP Ariba

Mr. Satish Palekar, Vice Chairman felicitating Mr.Ramesh Krishnamurthy, Director -HUL

Dr. Prince Augustine addressing the forum


MM Day Cake Cutting by IIMM, Mumbai Team

Mr. S Kartik, EVP, Deepak Petrochemicals & Fertilizersaddressing the participants

Hon Minister for Industries, GOM Mr. Subhash Desai

addressing the forum

Mr. G ganesh Apte, Ex Chairman felicitating Mr.Shankar, Head of Innovation, Anand Automotive Group

Mr. A R Sarkar, Advisor, IIMM, Mumbai felicitating Mr.C R Mohanty, ED-Pipeline ONGC

Release of Souvenir Mr. Ashok Mhatre, Mr AshokSharma & Mr. B V Iyer

Group Photo


EXECUTIVE HEALEXECUTIVE HEALEXECUTIVE HEALEXECUTIVE HEALEXECUTIVE HEALTHTHTHTHTHSTRESS AND STRESS MANAGEMENT

DR. PUJA PUSHKARNA

CHIEF PSYCHOLOGIST AND PSYCHOTHERAPIST, APOLLO HOSPITALS, GANDHINAGAR

Human Beings as complex organisms have a wide variety ofmotives, varying from such physiological drives as hunger andthirst to such social motives as those involved in vocationalsuccess and excellence in games. To meet the demands ofliving, each person must have a large number of diversemotives. Unless these are organized into a stable structureand hierarchy, they are apt to interfere with each other, andunless the person is successful in coping with his environment,he is likely to be thwarted in reaching some of his goals .Theproblems that then arise are those of conflict and frustrationcausing stress.

MODELS : The general ized Models are:1. The “emergency response”/flight or fight response by

walter Cannon (1914, 1932)2. “General Adaptation Syndrome” by Hans Selye (1936)3. Stress Model by Henery4. Transactional or cognitive stress Model/stress Model of

lazarus after lazarus(1974)5. Theory of “resource conservation” by Stevan Hobfoll

(1988, 1998, Hobfoll and Buchwald,2004)

STRESSORS: There are various events in life that can causestresses in once life from child birth to planning a vacation.Here is a list of stressors mentioned by employees:

1. The way employees are treated by their bosses/Supervisors of company

2. Lack of job security3. Company policies4. Unclear expectation5. Poor communication6. Not enough control over assignments7. Inadequate pay or benefits8. Urgent deadlines9. Too much work10. How the company treats coworkers

Symptoms of Stress: W hen a person is in stress he undergoesa lot of changes in his body at physical, behavioral andphysiological level which when ignored can lead to stroke orheart attack, the major diseases caused due to stress. Here isthe list of symptoms of stress:

PHYSICAL:· Ulcer in mouth· Frequent urination· Headache· High blood pressure

BEHAVIOURAL· Difficulty to sleep· Difficulty to concentrate· Finding difficult to solve problems· Accident proneness· Excessive uses of Alcohol, smoking , tea and coffee· Change of food habits

PSYCHOLOGICAL· Negative thoughts· Depression· Anxiety

Measuring Stress: One way is through the use of psychologicaltesting: “The Holmes and Rahe Stress Scale”- is used to rate

stressful life events, while the DASS contains a scale for stressbased on Self-report items. Change in blood pressure andgalvanic skin response can also be measured to test stresslevels, and change in stress levels. A Digital Thermometer, Canbe used to evaluate changes in skin temperature, which canindicate activation of the flight or flight response drawing bloodaway from the extremities. Cortisol is the main hormone,released during stress response and measuring cortisol fromhair will give a 60 -90 days baseline. Stress level of an individual.This method of measuring stress in currently the most popularmethod in the clinics.

WAYS TO EASE STRESS: Although stress is a very real threat toemotional and physical well=being, what matters most is notthe nature of a specific problem or incident, but how anindividual handles it. One of the best way to think of stress iscaptured by the Chinese word for “Crisis”, which consists oftwo characters: one means opportunity the other meanschange. Specific Strategies can helf to manage stress and tominimize its negative effects. Here are some of them:

1. learn to identify stress: By keeping a stress diary you areable to understand what elements in your life are causingstress in you. At the end of the day or a week, you will beable to see the pattern of stress in your life and then beable to make plans to cope with stress.

2. Build support: Develop a strong network of friends andfamily members who will be there whey you need themin time of change or crisis. In turn, be there for them whenthey need you.

3. Become a good Communicator: Poor communication isa major cause of stress. Be an active listener; try tounderstand what the other person is saying withoutinterrupting when responding. Address the behavior orthe problem not the individual.

4. Take charge of your finances: Money problems are also amajor stressor in ones life. Adjust your spending andsavings properly

5. Appreciate yourself : Increase your personal self esteemso that you have courage to handle the risk of failing.Eachnight before going to bed, name at least one thing you’vedone during the day that made you feel good.

6. Avoid over loading on Caffeine: Coffee, tea and cola drinksare stimulants that increase your heart rate and makeyou more irritable.

7. Taking an optimistic view: change your perception, if youhave a habit of “making a mountain out of a mole”.

8. Set realist goals: Review commitments and plans, and ifnecessary, scale them down. Assess what you’re doingand ask why. Is it what you want to do or what you feelyou should do; All of us have to do things we’d rather notdo; the strategy is to make sure that the should s do notover whelm the want-tos in our life

9. Cultivate Humor: It often enables us to express fear andnegative feelings without causing distress to ourselvesor others-()

��

Cover June 2016 Pesting

Documents

Transcript of Cover June 2016 Pesting