Presented by Shaibal Roy 12 th June 2014

SUPPLY CHAIN CHALLENGES OF TODAY

TSUNAMI

FLASH FLOODS

EARTHQUAKES

ECONOMIC SLOWDOWN

EXCHANGE RATE RISK

SHIPPING DISASTER

POLITICAL UNREST

THIS IS TODAY’s REALITY WORLD AFTER EFFECTS HAVE TO BE MANAGED EFFECTIVELY & EFFICIENTLY

Customer Behaviour is Unpredictable › Constantly changing › I need the BEST › I need VALUE for money (BEST at LEAST cost) › I need it NOW › I need to choose from a VARIETY of options

V - VOLATILITY U - UNCERTAINTY C - COMPLEXITY A - AMBIGUITY

A GLOBAL / LOCAL Supplier has to be prepared to manage this volatility

Change from LEAN Supply Chain (Doing more with less) To AGILE / HYBRID Supply Chain (Doing more with less within a time frame)

CharacteristicLeanAgile Logistics focusEliminate wasteCustomers and markets PartnershipsLong-term, stableFluid clusters Key measure Output measure such as productivity, efficiency and cost Measure capabilities, and focus on customer satisfaction Process focus Work standardization, conformance to standards Focus on operator self- management to maximize autonomy Logistics planningStable, fixed periodInstantaneous response Comparison of characteristics of lean and agile supply

Demand characteristics & supply capabilities End-customers become more knowledgeable about product Lean supply chain Agile supply chain Efficiency, cost Responsiveness Focus

Today’s supply chain should  Cope with unpredictable demand  Meet customer demand at short notices  Be flexible  Have high level of manoeuvrability  Be more responsive & market sensitive

What is the shelf life of a Newspaper? 1 week 1 day ½ day20 min ½ day 1 week1 day

20 ReportersNews deskEditorial Media sales (slotting ads) Art and layout SchedulingProductionDistribution Supply Chain – 24 hour cycle If one stop breaks down, there is media blackout Product -Product and product portfolio changes everyday -Product manufactured everyday -Radio/TV news shows – content changes everyday -Shelf life of few hours Packaging -Every day decision making -Fully automated from printing, binding to loading into trucks Pricing -2 sets of pricing – readers/viewers/listeners and advertisers -Customized pricing packages for every advertiser Distribution -Everyday distribution with very little room for error (TV/Radio broadcasting, newspaper distribution) -Product (news content, live programs) reaches real time Newspaper Industry

21 India’s Most Diversified Media Company In World’s Fastest Growing Media Market 175 Years Heritage Dominant Position – Relationship with Advertisers/Media Planners Corporate Governance with Highly Professional Management Corporate Social Responsibility, Emphasis on Environment, Education & Health

 Life of the finished product is extremely short and hence timely delivery is important  No TOMORROW  Every minute delay is a LOSS OF SALE  40+ print centers PAN INDIA  361 days of output and every day is different  Predominantly night operations  Input supply chain to ensure timely availability of raw material for producing the paper for the next day  Output supply chain to ensure timely distribution of finished products  Market dynamics - highly fluctuating  Highly cost sensitive – multiple cost drivers impacting logistics cost

 Use of advanced technology › Ability to collate the latest news in print › Ability to print more copies in less time › Paper to be delivered by 6 am › Providing variety through Product innovations  Various flap products  The fragrance paper  The talking paper  The Green paper  The Glued paper  Capacity creation › Get the printing close to the market › Enhanced localised news coverage

Thank You