Evaluating the Option of Designing an Integrated Supply Chain Across Business Units for a Chemical Manufacturing Company in India

Automotive Management Consulting

Client Challenge

The client, a leading fortune 500 global Chemical manufacturers in India has four business units with each business unit having a dedicated supply chain team. As phase 1 of the project, the client has advised the feasibility of moving toward an integrated supply chain. As a part of phase 2 of the project, the client asked UC Strategy to plan and set the roadmap to implement the same.

Our Approach

To develop an implementation plan with detailed documentation and roadmap, UC Strategy adopted the following approach:

  • Process mapping and improvement
    • Interviewed more than 50 internal stakeholders and process owners to understand existing issues and shortcomings
    • Embarked on process improvement by mapping client’s ‘AS IS’ process to globally accepted frameworks and mapping new ‘TO BE’ processes
    • Frameworks such as Supply chain operations reference (SCOR) and American productivity and quality control (APQC) were used to effectively map all the processes and address any gaps or shortcoming in the process
    • Created standard operating procedures for all business units and the integrated processes common to each business unit
    • Overhauled the demand forecasting and inventory planning process and systems to include new and efficient forecasting and planning dynamics
    • Detailed fasting moving and slow-moving stock keeping units(SKU) for the client for effective production planning and sales management
  • Technology integration
    • Involved and brainstormed new technology adoption with key India and global stakeholders from each business unit
    • Recommended and executed a roadmap for integration of latest cloud-based enterprise resource planning (ERP) systems for customer management
    • Mapped internal technology and existing enterprise resource planning systems to new processes
  • Defined new organisation structure
    • Shadowed the supply chain teams of all BUs to understand and map employee competency for the existing and new roles
    • Finalised the new organisation structure, defined staffing needs and levels and prepared detailed job descriptions as per the processes and performance metrics
    • Defined detailed performance metrics and MIS procedures
  • Logistics service provider integration – a first for Chemicals industry in India
    • Implemented Integration of Logistics service providers for End-To-End Logistics – including Customs clearances, Inbound transportation, Warehousing, Outbound primary & secondary transportation and reverse logistics,
    • This integration paved the way for enabling consolidation of nearly 50 service providers to 1 single organisation wide logistics service provider
    • Assisted the client in the process of shortlisting and final selection of the service provider by drafting RFQ’s, SLA’s, KPI’s and EHS standards
    • Defined a milestone based implementation roadmap for the Logistics service provider integration
    • Created a location-based customer cluster for better implementation of logistic operations.

Our Impact

The client received a detailed implementation plan and roadmap with designed processes, frameworks, SOP’s and new organisation structure. The client embarked on a logistics service provider integration journey which will enable huge cost savings in terms of transaction costs and lead to better efficiencies.

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