Presented by Shaibal Roy 12th 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) Comparison of characteristics of lean and agile supply Characteristic Lean Agile Logistics focus Eliminate waste Customers and markets Partnerships Long-term, stable Fluid clusters Key measure Output measure such as Measure capabilities, productivity, efficiency and focus on customer and cost satisfaction Process focus Work standardization, conformance to standards Logistics planning Stable, fixed period Focus on operator selfmanagement to maximize autonomy Instantaneous response Demand characteristics & supply capabilities End-customers become more knowledgeable about product Lean supply chain Efficiency, cost Focus Agile supply chain Responsiveness 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? 20 min ½ day 1 day 1 week Product Packaging -Product and product portfolio changes everyday -Product manufactured everyday -Every day decision making -Radio/TV news shows – content changes everyday -Fully automated from printing, binding to loading into trucks -Shelf life of few hours Newspaper Industry Distribution Pricing -2 sets of pricing – readers/viewers/listeners and advertisers -Customized pricing packages for every advertiser Reporters News desk Editorial Media sales (slotting ads) -Everyday distribution with very little room for error (TV/Radio broadcasting, newspaper distribution) -Product (news content, live programs) reaches real time Art and layout Scheduling Production Supply Chain – 24 hour cycle If one stop breaks down, there is media blackout Distribution 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