1. Innovation in Supply Chain Management
Sanjay More
Barloworld Logistics, Dubai
26 September, 2012

2. Contents Definitions Current trends Innovations in supply chain
Cutting edge solutions
Matching it to your business

3. Innovation
Innovation is the development of new customer value through solutions that meet new needs, unarticulated needs, or old customer and market needs in new ways.
This is accomplished through different or more effective products, processes, services, technologies, or ideas that are readily available to markets, governments, and society.
Innovation is not equal to Invention or Improvement.
In short “doing things differently”
Source: Wikipedia

4. Supply Chain Management
Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.
Another definition is provided by the APICS Dictionary when it defines SCM as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally."
Source: Wikipedia

5. A typical supply chain model

6. Innovations that changed Supply Chain Management
#1. Container & Cranes
The box that changed the world
It gave the world an unit to ship
Standardized the size and capacity
Set tariffs across a distance
Defined the capacity of ships
Road transport and trucking
Helped warehousing to measure and build capacity.
Helped manufacturer and traders in making and ordering decisions.

7. Innovations that changed Supply Chain Management
#2. Pallets & Forklifts
Movement of goods made easy
Movement made easy
Storage made easy
Counting made easy
Stock taking made easy
Air Freight made easy

8. Innovations that changed Supply Chain Management
#3. Racking system and VNA
Storage of goods made easy
Systematic storage
Stock taking became easy
Segregation of Fast Moving vs slow moving goods
Facilitated unique location
More capacity

9. Innovations that changed Supply Chain Management
#4. Barcoding & RFID
Tracking and data collection
Stock replenishment
Tracking
Intelligence building
Real-time data
Facilitated planning

10. Innovations that changed Supply Chain Management
#5. Production line and LEAN
Productivity and process management
Improved efficiency
Reduced the lead time
Reduced the cost
Simplified production and also principles were applied across the supply chain

11. Innovations that changed Supply Chain Management
#6. Computer & Web technology
The power of computation and connecting
Computer facilitated the computation of complex formulas and large amount of data
Facilitated analysis and trends
Web enabled data sharing
Real-time data analysis
Conversion of data

12. Innovations that changed Supply Chain Management
#7. Mobile & Communication
The speed of communication
Real time data capturing
Simplification of process
Shorter processes
Enabling data conversion
Facilitates quick analysis
Speed in response
Less paperwork

13. Innovations that changed Supply Chain Management
#8. DRP & ERP
Distribution and Resource planning
Streamlining processes
Quick access to information
Best business practices
Improved efficiency
Improved customer satisfaction
Improved on-time delivery
Reduced inventory costs
Better planning, tracking and forecasting

14. Innovations that changed Supply Chain Management
#9 DTS & TMS
Dedicated Transport and management
Improved financing, cash-flow
Increase visibility
Reliability
Route mapping and optimisation
Optimisation of resources
Integration

15. Innovations that changed Supply Chain Management
#10. Inventory & Demand planning
Reduce costs and improve availability
Reduce excess inventory
Improve cash flow
Forecast demand
Reduce gut feel risks
Improve availability
Improve customer satisfaction
Better return on investment

16. Innovations that changed Supply Chain Management
#11. Inventory Optimisation
Creating a strategic advantage
Deal with greater levels of complexity
Manage longer lead times and uncertain supply
Deal with bigger production runs and supply constraints
Different modes of transport
Network optimisation

17. Innovations that changed Supply Chain Management
#12. Supply Chain design and network modelling
End to end supply chain solutions
Global supply chain network modelling with mapping, locations and road network databases for any combination of countries in the world.
Reach your full supply chain planning potential
Carbon Footprint mapping

18. Areas for innovation Supplier demand planning
Manufacturer demand planning
Wholesaler / distributor Inventory planning
Retailer Inventory planning
Consumer Value / Price
All these major points are connected with one or the other forms of transportation.
Production planning, ERP
Production Planning Demand Planning, Distribution planning, network modeling, Inventory optimisation,
Warehousing and Distribution
Air Freight, Sea Freight, Sea Air, Road, Rail, multimodal

19. The future of Supply Chain
Technology
We as a supply chain industry haven’t used the available technology to the full extent.
Collaboration
The supply of goods moves from one network to another network therefore collaboration amongst these networks is very important. i.e. Suppliers and their suppliers, customers and their customers (if applicable).
Collaboration with government bodies, regional legal and tax compliance, association and international norms and regulations are some of the areas also calls for the collaboration.
Planning and Strategic alignment
Improve Customers performance
From suppliers order point to customers demand point
Dell Computer’s direct-sales model for business clients

20. The Green Trailer Drag reduction 35-43% Fuel saving 7-10%
Monthly saving
AED 4250
Carbon reduction 14 Tons in 6 months

21. Link to Barloworld Logistics case studies

22. Thank you