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Supply Chain : Priorities of Investment in FY13

Currently, almost all companies are looking to build a truly scalable, modular, and responsive demand driven supply chain planning and execution platform that will go the well beyond its traditional boundaries and will encompass the Suppliers, Contract Manufacturers and Logistic Partners

Significant investment requirements are being justified in building a multi-echelon resilient supply chain network that will result in , reduction in response time, better customer satisfaction, reduction in order to delivery cycle time, improvement in demand forecast accuracy and reduction in inventory levels across multiple nodes

Most of the companies have understood or in the early of the maturity lifecycle that Supply Chain excellence matters and that investment in building  the excellence is being truly reflected in Gartner Top 25 SCM company survey where companies consistently outperformed their peers in the same industry segments in terms of EPS, and Wall Street numbers

Significant improvement in Processes along with successful Organization Change Management and followed by deployment of enabling, Supporting  Information technologies will have a significant bearing in improving the operating margin ,improving the Cash to Cash cycle and ROA.  Gartner SCM survey proved that point too

Couple of significant areas of investment from the point of view of Hi-Tech and Manufacturing companies that will give significant long term benefits in terms of improvement in financial numbers are,

ü  Building of a truly collaborative 'Supply Chain Collaboration and Integration platform with Tier 1 and Tier 2 Suppliers/Contract manufacturers' that will facilitate communication  with all the internal and external stakeholders and will bring down the overall transaction cost

ü  Building a truly collaborative Integration Business Planning model that is well past the simply balancing of Supply and Demand taking into constraints into account. A model that will take into account of Suppliers' Capacity and Financial Constraints and also Region specific / Country specific Consensus forecasting process

ü  Also investment and  improvement in  building  a Supply Chain visibility platform in terms of Supply, Demand, Manufacturing capacities & constraints, domestic and International Shipments , Supply Chain Risk management, Inventory positions  will give a significant competitive edge in today's highly fragment and uncertain market and will help in providing uniform customer experiences


From our discussions and engagement, with multiple Hi-Tech and Manufacturing companies, we found many of the well-established Fortune 500K companies are now investing heavily in building these capabilities and competencies too



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