Supply Chain Benefits How to Ensure it is delivered
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1 Supply Chain Benefits How to Ensure it is delivered Deepak Purohit, Sr. Vice President, Manufacturing & Energy
2 Deepak Purohit Senior Vice President - Strategic Client Engagements, Manufacturing, Energy 25 years of industry experience Areas of specialization: Large scale Business Transformation and IT Outsourcing across global Responsible for growth and expansion of KPIT s Strategic Deals Worked in various leadership roles in Sales, Account Management and consulting Prior to KPIT, Deepak has worked with Infosys, i2 Technologies, PWC Consulting and Tata Steel Deepak holds a degrees in Engineering and Business Management Instrumental in architecting and executing several large Business Transformation programs and IT Outsourcing programs for global clients across Energy and Utilities, Manufacturing, Life Sciences, Automotive and Transportation verticals 2
3 KPIT Quick Facts ~ $500 million in revenues for FY15 (Apr14-Mar15) employees 50+ patents filed & winner of 9 innovation awards 10 years of sustained 32% CAGR Among top 25 companies in India for best practices in corporate governance for four consecutive years Publicly traded company in India 3
4 Global Service Model 34 offices 17 countries 10 development centers Serving: 15 of the top 20 Automotive OEMs 50 top Manufacturing companies USA: Portland, OR Detroit, MI Iselin, NJ Santa Clara, CA Sacramento, CA Irvine, CA Columbus, IN Richmond, VA Houston, TX Austin, TX Boca Raton, FL Europe: London Paris Munich Nürnberg Bielefeld Amsterdam Stockholm Turino Brazil: Sao Paulo Middle East: Dubai India: Pune Mumbai Noida Bangalore Hyderabad Chennai Singapore South Korea Seoul Japan: Tokyo China: Shanghai 30+ leading Energy & Utility companies South Africa: Johannesburg Australia: Sydney 4
5 Our Strategic Focus Areas Industry Business Units Industry Consulting & Expertise Account Management Automotive & Transportation Strategic Business Units Delivery Excellence New Technology Capability Development Automotive & Transportation Manufacturing Energy & Utilities Oracle SAP Product Engineering services Products & Platforms Enterprise solutions Infrastructure Management Services Extended Product Lifecycle Management Geographies: America (NA, LATAM, Canada) Europe Asia META (Middle East, Turkey, Africa) 5
6 Our Oracle Competencies 6
7 What s different about a Supply Chain Project? Concept Intensive not configuration intensive Team size is small Testing is an art Go-live can be disruptive in invisible ways Benefits or lack of it can be attributed to many causes Higher expectations of benefits due to the magic of optimization capabilities 7
8 Benefits from Supply Chain Projects Key Dimensions to address Value Focus Process Dimension Data Dimension People Dimension 8
9 Value Focus: Value Harvesting Framework Project Phase Value Discovery Value Design Value Delivery Objectives Pre-Implementation Blue Printing Post Go-Live Identify capabilities that drive business value Identify Key Business Processes that will support those capabilities Define scope of project and other initiatives accordingly Define baseline and target metrics for key business processes Identify process features that will deliver the metrics Ensure the business process design will deliver the required business capabilities and metrics Create dashboards to monitor the business process metrics that were targeted Monitor the processes and fine tune the solution till the desired metrics are achieved 9
10 10
11 Business Value Discovery The Framework Revenue Capability 1 Process 1.1 KPIs Capability 2 Process 2.1 KPIs Business Objectives Cost Capability 3 Process 3.1 KPIs Capability 4 Process 4.1 KPIs W/Capital Capability 5 Process 5.1 KPIs Capability 6 Process 6.1 KPIs 11
12 Business Value Drivers Key Capabilities & Related Processes Capabilities Processes Speed to Market Concept to Launch Demand / Trade Promotion Planning Revenue Customer Responsiveness Co-ordinated Planning & Execution Demand Driven Outbound Logistics Master Planning Claims Processing Detailed Production Scheduling Available to Promise Deployment Planning Budgeting & Estimation-Speed and Accuracy Customer Contract Management Invoicing & Claims Processing Product Compliance & Shelf Mgmt. Spec/Recipe/Formula, Workflow Mgmt. Product Traceability, Master Data Mgmt FEFO based W/h Mgmt. 50% Growth ( ) Cost Financial Visibility & Control Operational Sourcing Mgmt. Product Costing Supplier Contract Management Credit / Collection Mgmt. Freight Mgmt. Optimized Plant Utilization Detailed Prodn. Sched. Constraint Based/Coordinated Legend PLM Hyper-efficient Transaction processing Processing of Orders/Invoices/Claims/AP/AR/Period Closure Finance Sales Pull based in-bound logistics MRP Procurement Working Capital Demand based outbound logistics Multi-echelon Inventory Planning and DRP Planning MFG Budgeting & Estimation Speed & Accuracy Cash Mgmt. Maintenance Logistics 12 KPIT Technologies Limited
13 Process Dimension: Ask the fundamental questions? Demand Planning Should we forecast all items? What s the right way to measure accuracy? Who should be doing the forecasting? Supply Planning What service levels are reasonable? How good are our current transaction processes Goods Receipt / Goods Issue Cycle Time Supplier Delivery Performance 13
14 Data Dimension: The biggest bang for the buck Data multiplicity 30% data obsolete Average item has 5-6 duplicates Every item variant is a different item number Data Accuracy Capacity Lead times Open sales orders in the system System capabilities to handle data Item description, numbering schema 14
15 People Dimension: Address Change Management Issues Upfront Structural Issues Should MRP and Scheduling be done by the plants or by the Global Supply Chain Team? Should Procurement be centralized? Skill Issues Statistical Forecasting S&OP Fear of the unknown Will I become redundant? Will my lack of skills / performance be visible? 15
16 To summarize Supply Chain Projects are a GOLD mine Benefits are not guaranteed just because The software is expensive The software is sophisticated The team speaks a lot of mumbo-jumbo Address fundamental issues Value focus Process effectiveness Data Integrity People: Take them along 16
17 This is the KPIT Master Template To be used as a basis for all presentations The THEME colors of this presentation are coordinated with our brand identity When you choose FONT Color or FILL color, the Theme colors on the top row are approved colors Our brand identity is not simply the logo, it is the logo PLUS the colors No other colors should be used KPIT Presentation Font is Segoe UI That is the font used in this deck; please do not change it This font comes standard with Powerpoint For MAC users, this font should be available to you once you start using this presentation Reset Slide If you accidently moved any element from its default position (e.g. Title, Subtitle, etc.) just right click the slide and click reset slide to go back to default state 17
18 Questions 18
19 Deepak Purohit
20 Thank You 20
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