Redesigned the end-to-end supply chain for India operations, identified 500 Cr. INR in savings over the next 5-10 years
Key Business Challenges
- Final product was assembled at channel partners’ plants that are located all over India, resulting in too high levels of Inventory (RM, WIP & FG)
- Plant locations require too much back and forth materials movement from OEM to customers which were not always supplied from nearest plants which might be owned by other GOEMs
- Business is expected to drastically change as new industry revolution were to take effect. The extra overhead of parts movement would invalidate the current supply chains
Client Expectations
- Client expected us to work seamlessly with theirs and their 3 channel partner teams to understand and build a very comprehensive tool to evaluate the overall cost minimal/ serve optimum solution
- Based on analysis, make a recommendation for future path forward while evaluative pros/cons
Evaluated more than 10 network Configs and estimated cost/benefits analysis for each
Analytics/Consulting Project
- Conducted Cost-to-serve analysis for all customers. Starting w/ outbound logistics from CIL plants to GOEMS. Value-add by GOEMs incl. fabrication, assemble and testing.
- Customer sales, delivery, installation and support by channel partners (O/B Logistics) Supply chain inventories, labor and risk management
- Current capability assessment of channel partner and OEM operations, based on site visits and surveys. Competitive assessment, incl. benchmark supply chain measures
- Logistics modelling recommendations after evaluating more than 10 different scenarios using operations cost data. Identified key capability gaps vis-à-vis competitors, future
Modeled 12 products, thousands of customers, over 5 years of demand forecsts
SUMPURA Delivered Outcomes
- Developed logistics model to evaluate 10 different configuration of value-add operations in it own facilities instead at its channel partners to supply its domestic demand. (retaining them for customer sales)
- Business case showed savings of 60 Cr. Annually most of the savings were from transportation, inventory, facilities costs...after investing to build demand and supply management capabilities. This entire transformation would take about 12-16 months.
Helped to optimize their manufacturing and distribution network at save > 500 Cr.
