purchasing bpo overview 1 . india team operating framework marketing mix service architecture...
TRANSCRIPT
Purchasing BPO Overview
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India Team
Operating Framework
Marketing Mix
Service Architecture
Solutions
Table of Contents
Manufacturing & Sourcing in 2020
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India Team
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CORE Process
• Commodity-wise reshaped Sourcing Strategy with a 3 to 7 year outlook• Integrated solution to identify and develop Suppliers and Parts • End-to-end Program management & delivery
ENABLING / GOVERNING Processes
• Support infrastructure for Ongoing improvement and management of Supplier processes• Supplier conditioning to World-class standards of Excellence (or) to Client norms• Change and Issue management at Supplier facilities
Services Architecture
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Suite of Solutions
Develop a 3 to 7 year Transformational
Road map
Develop a 3 to 7 year Transformational
Road map
6 Sigma rigour applied to addressing
the Client’s CCRs
6 Sigma rigour applied to addressing
the Client’s CCRs
Plain components re-sourcing from
Source A to Source B
Plain components re-sourcing from
Source A to Source B
Project Managementrigour in
implementation
Project Managementrigour in
implementation
Support Enabling & Governing processesSupport Enabling &
Governing processes
On-the-ground support to drive
Supplier Excellence initiatives
On-the-ground support to drive
Supplier Excellence initiatives
Complete Outsourcingof the Purchasing &
Supply Chain functions
Complete Outsourcingof the Purchasing &
Supply Chain functions
End-to-end Purchasing support for the India
Supply Base
End-to-end Purchasing support for the India
Supply Base
Manage Time, Cost & Resource challenges
for the Client’s Supplierfocussed initiatives
Manage Time, Cost & Resource challenges
for the Client’s Supplierfocussed initiatives
On-site support to drive Program
completion
On-site support to drive Program
completion
Provide IT solutions forreal-time Customer
and Supplier collaboration
communication & reporting
Provide IT solutions forreal-time Customer
and Supplier collaboration
communication & reporting
Supplier Training, 6 Sigma & Lean VST
Supplier Training, 6 Sigma & Lean VST
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Marketing Mix
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Operating Framework
SUPPLY BASE
CUSTOMER BASE
SUPPLIER MANAGEMENT
LOGISTICS & DISTRIBUTION MANAGEMENT
TECHNOLOGY ENABLEMENT
Direct
3PL Provider
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Manufacturing and Sourcing in 2020• Study involving 152 respondents in 8 countries• Sector spread of the study
• General Manufacturing (40%)• Automotive, Aerospace & Defense (16%)• High Tech (20%)• Industrials : Chemicals, Steel, Medical Devices (24%)
• Geographical spread of the study• US (18%) & UK (18%)• Germany (17%)• France (13%)• Sweden (12%)• Netherlands (11%)• India (8%) & China (3%)
• Dimensions of the study• Engineering and R&D• Manufacturing• Supply Chain & Logistics
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Engineering and R&D
Supplier Collaboration• 50% predict higher collaboration with Suppliers• More collaboration required when Outsourcing is involved
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Engineering and R&D
Product Lifecycle Management• 25 to 50% levels of product lifecycle shrinkage expected• Shrinking lifecycles will put inevitable strain on Supply Chains• Supply Chains must be Lean, Responsive and Flexible
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Manufacturing
Globalization• Manufacturing will be for Global markets. A shift from manufacturing in one country to multiple countries expected • Proximity to raw materials and consumers, labor wage differentials, forex dynamics etc. will be key drivers
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Manufacturing
Subcontracting• With 56%, the balance is tipped in favor of subcontractors to help develop products for the future• The standardized products will be subcontracted while specific products will be made internally• Regular visits or a Local Management Team will remain while IT based Management & Reporting Systems deployment will increase
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Manufacturing
Low-Cost Labour• Manufacturing and Sourcing from cost-effective countries will increase despite partial erosion of the labor cost advantage• Logistics, distance, travel time, customs regulations, open market issues, accessibility, geopolitical stability and local expertise leadership could also be other determining factors• China and India will still continue to be preferred destinations
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Supply Chain & Logistics
Overseas Suppliers• An increased reliance on Overseas Suppliers is expected in the future• 40% wish to involve and collaborate with Suppliers right from the Concept to the Development process• 60% of companies expect to be sourcing from more countries in the future than today• Closer relationship management envisaged . Co-location of Suppliers alongside Customers to increase. 14 www.procexcellenz.com
Supply Chain & Logistics
• General agreement exists that Cost uncertainties or escalations could drive increasing complexity into our Supply Base positioning• Given the picture, proactive action to normalize Cost risks will be imperative.
Cost of Commodities
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Supply Chain & Logistics
• Deployment of more sophisticated and capable IT or Web based systems will be the global norm to improve real-time information visibility and communication• Acute Talent shortage foreseen in the area of Supply Chain management and IT integration• 70% predict the overwhelming use RFID technology as a key enabler
Coping with complex Supply Chains
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Supply Chain & Logistics
• Global Supply chains will have a diverse set of attendant risks• Companies must be capable of managing Business Risks by recognizing, analyzing and preparing to manage the vulnerabilities• Multiple options to mitigate these risks exist. Foresight and relevant action is the key.
Supply Chain Disruptions
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Thank You !!
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