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1 Supply Chain Management Select Case Studies 2 Outsourcing – Managing Third Party Manufacturing Time Period : 1995 - 1996 CompanyMulti-NationalIndustryPharmaceuticals.

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Presentation on theme: "1 Supply Chain Management Select Case Studies 2 Outsourcing – Managing Third Party Manufacturing Time Period : 1995 - 1996 CompanyMulti-NationalIndustryPharmaceuticals."— Presentation transcript:

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2 1 Supply Chain Management Select Case Studies

3 2 Outsourcing – Managing Third Party Manufacturing Time Period : CompanyMulti-NationalIndustryPharmaceuticals Business Context The division had shifted from in-house manufacturing operations to third party manufacturing. This required a change in processes related to evaluation and selection of third parties, as well as those related to managing ongoing operations with third parties What was done Philosophy of association with third parties was articulated, third party identification-selection and management processes were defined and associated organization structures and job requirements were defined. Subsequently, transition support was provided - divisional personnel had to adjust to new job requirements, acquire additional technical skills and also develop significant interpersonal skills in getting work done through third party personnel. Change management interventions were made both during the assignment execution phase, as well as implementation stage. Interventions during execution included communication of assignment objective and plans, periodic involvement of front-line staff at diagnostic and redesign phase and development of support systems (performance appraisal, rewards, systems etc.) to enable new processes. Interventions during implementation were made while adopting the new organization structure, selecting appropriate personnel to staff various positions, developing job descriptions and identifying training and other organizational support requirements Results A year after the new processes and organization structure was deployed, the client had moved from a 67% order fill rate to a 98% order fill rate, with reduced tolerances in defining fill rates

4 3 Supply Side Streamlining Time Period : CompanyMulti-NationalIndustryLiquor Business Context The organization had been very successful in its brand building activity and faced constraints due to suboptimal supply systems. The engagement looked to improving order fill rate from production to sales What was done The assignment analyzed product and demand characteristics to develop supply chain objectives and policies for various product groups. These were then translated into manufacturing and purchase objectives. These were detailed in the form of policies and procedures covering supplier management, purchase, production control, production planning, inventory management and forecasting. A single-user PC based system was developed to provide an elementary production control system. The assignment included evaluating and recommending a mid-range ERP system for the organization to effectively carry out its supply chain activities. Six packages were evaluated on parameters relating to functional, technical and organizational capability. Based on these, the packages were ranked and a technical recommendation was made. Was the sole member to continue to be associated with the company for over six months after completion of the supply chain assignment, to provide assistance in implementing the recommendations. This assistance was largely in the areas of supplier relationship management and the development of an interim IT solution. The need for an interim IT solution was felt due to the long lead time expected for an ERP to be finalized and implemented. The interim IT solution was an integrated production planning, control and inventory management system Results Enhanced order fill rates

5 4 Cost Reduction Time Period : CompanyIndian Multi-NationalIndustryHousehold Insecticides Business Context The organization wished to improve operational efficiencies thereby improving service levels and reducing costs What was done Major cost drivers were analyzed to identify controllable and non-controllable factors and ways to improve performance. An optimization model was developed to evaluate the value of distributed manufacturing. Recommendations were mainly in the areas of manufacturing and distribution strategy, planning processes, value engineering and some internet based enablers Results Enhanced service levels in terms of order fill rate. Increased market share in the household insecticides market

6 5 Retail Purchase Order Management Time Period : CompanyUS RetailerIndustryRetail Business Context The organization was in the midst of implementing a turnaround strategy, shifting from decentralized planning and execution to largely centralized planning, with a mix of centralized and decentralized execution. The specific assignment (one of many at the client organization) involved delivery of a large-scale custom developed solution for Purchase Order Management. The solution needed to integrate seamlessly with other merchandising software that was under simultaneous development by other players What was done The initial engagement was to develop a detailed work plan (leading to a proposal) for developing the Purchase Order Management system. Subsequently, the design through to implementation project was also awarded. Still later, post- implementation support and enhancement projects were awarded Results The Purchase Order Management system was the only one of 3 key merchandising solutions that was deployed on schedule and without any system failures. Based on this performance, the development to post implementation support work of the other 2 merchandising solution software projects was also awarded to the same team. These projects played a pivotal role in shifting the solution providers image from an IT maintenance company to a business consulting services provider

7 6 Organic Growth Enablement Time Period : CompanyIndian Multi-NationalIndustryPharmaceutical Business Context The organization wished to improve its supply capabilities in the API CRAMS space, in both product development and manufacturing services What was done Project management for plant capacity enhancement and identification of organizational capabilities that needed to be enhanced. Process re-engineering to reduce order to delivery cycle time for API orders (early and late phase work). Managed a Boston based consulting company to identify leading edge technologies where capabilities should be developed so the business is poised to take advantage of evolving technologies Results Enhanced service levels in terms of order fill rate

8 7 Supply Chain Alignment Time Period : CompanyIndianIndustryTextiles Business Context The organization was a well established spinning and weaving unit in Polyester Viscose yarn and fabric. With increasing competition from the unorganized sector, they were facing high inventories, low order fill rates and high working capital requirements What was done The product and customer portfolio was analyzed to classify high and low volume, high and low contributing players. Distinct requirements of the supply chain were then defined for different categories of products and customers. Based on this analysis, the client organization identified 7 mini projects to be undertaken internally to reduce inventory levels while improving order turnaround times and fill rates Results In progress

9 8 Thank you Contact details : Ajita Kini : Cellphone ;


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