In conversation with Navneet Shrivastava – Head Supply Chain, Jay Bharat Maruti
Jay Bharat Maruti (JBM) Group believes that success depends on collective competencies, technical abilities and commitment of human capital. The core strength and valuable asset of JBM Group is the dedication of 20,000 plus employees, who synergise to deliver quality results to the clients. Navneet Shrivastava – Head Supply Chain, Jay Bharat Maruti, in an interview talks about his experiences, methods to maintain unbroken supply chain and much more. Excerpts:
Q) What new technologies and methods should companies adapt in their supply chains to push their limits and maintain a leading position in the market?
Today’s competitive marketplace means there’s less room for inefficiency, but the good news is supply chain technology can simplify and optimise your business processes.
That’s why it’s imperative for companies to continually innovate and streamline their supply chain and software. The new tech and platforms designed for the supply chain provide a more stable and efficient supply chain that enhances customer satisfaction and retention.
a. Real-time actionable data
In order to service customers, you need real-time inventory data at your fingertips that is accurate and actionable, no matter where the part is located worldwide. Radio Frequency Identification (RFID) chips, barcodes and scanners are vital pieces of equipment that can provide innumerable benefits to your business.
b. Visibility across your supply chain
Paired with RFID technology, cloud-based computerised shipping and tracking further simplifies the supply process and can dramatically reduce shipping errors.
c. Enhance customer communication
Creating predictability, consistency and visibility within your service supply chain enable your business to communicate faster and more efficiently with customers.
Q) How does the OEM distribution channel impact the overall automotive supply chain?
Over the past few years, the automotive industry has been evolving due to the accelerating development and acceptance of the technology. It is putting pressure on changing the marketing and distribution scenario of the industry.
The new offerings by technology start-ups in automotive distribution models and OEMs are adopting customer behaviour, further restructuring the infrastructure of production and distribution. It is bringing discipline to the current industry scenario and is significantly resulting in cost-effectiveness and establishing customer relationships.
Customers are now more empowered with personalised and engaging experience from new channels that they are approaching.
Q) Do you think it is important to strategise your supply chain on the basis of cost or agility?
Yes, it has become necessary to strategise the supply chain on the basis of cost/agility. Supply chain agility comes with a cost and sometimes that cost might be huge enough to turn down the profitability.
Companies have to decide how much agile the business has to be and wherein the value chain they need agility and whether it fits in well with the overall strategy of the company.
Sensing the change much in advance gives a lot of room for companies to respond to changes in the business environment. Proactively responding to the change with the right velocity differentiates winners from laggards.
Q) How do you overcome the challenge of developing a supply chain strategy which can mitigate risks occurring due to supplier or logistics delays?
Supply chain risk comes from many areas, including natural disasters, acts of war or terrorism, supplier bankruptcy, theft, damage and data breaches. Below are the points which will help us to overcome risks occurring due to
supplier or logistics delays:
a. Evaluate and identify current risks
Take a critical look at your business and identify areas with risk exposure. Identify and evaluate potential supply chain disruption scenarios.
b. Prioritise by probability and impact
Covering every scenario is impossible, so prioritise potential risks by the likelihood they could actually take place. And, then estimate the financial and brand impact of each event.
c. Ensure supplier quality
Suppliers can impact your company’s reputation so it is important to ensure the quality of suppliers’ goods, be aware of how they treat employees, source materials and interact with other partners. Conduct financial due diligence to ensure long-term supplier viability.
d. Diversify suppliers
Don’t rely on one source for materials or products. There is a possibility of goods not being delivered in a timely manner, making your supply chain vulnerable. Establish reliable secondary suppliers in different regions to minimize this risk.
e. Be aware of suppliers’ risks
Be aware of risks your suppliers may face, including regulations compliance, country risk, economic and political conditions or anything that may impact their ability to serve you.
f. Include partners in risk planning
Work with suppliers, transportation carriers, data management centres and customers to ensure they have disaster recovery and business continuity plans that align with yours. Involving them in risk management planning reinforces their importance as a partner and elevates their role in risk mitigation.
g. Purchase cargo insurance
Insurance is important in many facets of life. It should be just as important in your supply chain. Find a cargo insurance provider who can protect in-transit shipments, as well as warehoused goods, against loss or damage anywhere in the world, no matter the carrier or mode of transportation.
Q) You are a seasoned professional in the logistics and supply chain business with an experience of more than 2 decades. What do you bring to the table to transform the supply chain of your company?
I put my best foot forward to ensure that the supply chain of my company reaches to the next level and justify my experience and interest in the related field. Below are some points which I majorly focus on:-
a. Automatic Purchasing
Programming the ERP software to automatically place orders with vendors when inventory levels drop below a certain level will free up employees to concentrate on other important duties.
Process standardization is central to the success of any supply chain strategy. It will increase efficiency while saving time and money. And employees will share a standardized system of tools which increases accuracy, encourages teamwork and reduces miscommunication.
c. Real-Time Inventory Management
The modern ERP software offers inventory features that provide real-time visibility of exact inventory levels and has unlimited flexibility that will match your businesses’ growth and unique needs.
d. Improve Returns Management
Every solid supply chain strategy needs an efficient returns management system to quickly re-process or re-manufacture returned products or units. Being able to better manage returns will reduce waste and identify consistent product problem factors.
e. Just-in-time (JIT)
ERP systems naturally work well with both just-in-time manufacturing and JIT Inventory Management to decrease inventory costs and increase inventory turn around. As a result, there will be less overhead costs and order fulfilment communication mistakes. Operate at the optimal inventory levels and reduce warehouse costs.
f. Gain Data Insight
Decision making for your supply chain strategy depends on accurate and timely data and information. An ERP software allows both users and management to be able to instantly access inventory, purchasing and production data for critical decision-making purpose.