Prakash Kumar

Recession is bound to challenge the way this critical part of delivery value chain is handled.Supply chain has long suffered from historic methods and some or the other research trying to improve upon. A 3P model is shaping up in the supply chain landscape.

Programs– IT will remain the biggest enabler for this nervous system and it is high time organization look beyond enterprise package solutions. Legacy system and managing through worksheets have to disappear for cost control and maintenance and production support has to be reduced to minimum. Companies have to learn the production support skill from their Enterprise support vendors as part of their contractual requirement. Pricing of technology project can no longer be Time and material or Fixed Price – it has to be a function of, cost + incentive – risk, triangle. IT department has to merge with supply chain for buy in.

Procurement – Regarding the Supply Chain methodology itself – subcontractors need to be roped in through e-procurement. Low cost sourcing presents a great opportunity to leverage global companies – it needs to be trusted by developed countries as a means to save cost and not as an inferior supply from a third world country.
RFID use in warehouses is necessary but not sufficient- RFID should be omnipresent in the entire chain. Paper free organizations have to be digitally connected with usage of iPhones wherever possible. 3PL and 4PL logistics are obsolete configuration wherein incoterms have to accommodate contracts more at an aggregate cost structure.

People – Lean supply chain organization in line with projectized environment with no inbuilt silos of communication. A supply chain manager needs to be identified at the bidding stage and he should be involved in make/ buy decision making regarding goods and services. Times are gone by- when he acts as co-coordinator trying to provide what the project manager requires. Supply chain boss should report to no less than the CEO and must have measurable cost targets.