india supply chain summit 2016 rev 1

Harish PantManaging Director

India Supply chain Summit 2016

Global Supply Chain Trends

How is India preparing for the next move against the evolving landscape

19th May 2016: Bombay Convention and Exhibition Centre

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Content

1. Global Supply Chain Trends

2. Big Data in Logistics

3. Future Value Management

4. India Supply Chain - A perspective

5. Impact of GST

6. Supply Chain Opportunities

7. Conclusion


3 India Supply chain Summit 2016

1. Changing value proposition: Service Chain and Experience

2. Sustainability: Social, Environmental and Economic Impacts – reporting Corporate Externalities

3. Disruptive Technology: Artificial Intelligence, IOT, 3D Printing, e vehicles, Self Driven Vehicles

4. Digitization : Platforms demolishing tiered / pyramid supply chain structures - E-commerce, Cloud

5. Financial : Exchange rate, Interest rate (-/+), Quantitative easing, Oil prices

6. Energy Impact: Railways electrification, Oil Transportation, Mechanized goods handling

7. Ease of doing business: Govt. Digitization, GST, Smart Cities

8. Integrating multiple channels of transport: Waterways, Railways, Roadways, Airways

9. Treaties among various group of nations and between nations: NAFTA, TPP, ASEAN, RCEP, TTIP

10. Logistics at no cost - Shop next door to compete with e-commerce free delivery!

We need Big Data and analytics to understand a Volatile, Uncertain, Complex and Ambiguous world!

1 – Global Supply Chain Trends

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2.

~ 3 Trillion dollar saving by 2022 with Interconnected Digital Supply Chain +

3. Future Value Management


4. India Supply Chain - A perspective

Non Value Added activities Processes End Result


Existence of many world in India - Developed, Developing, Under Developed

Move India

1- Waterways2 - Railways,3 - Roadways4 - Airways

India has potential to become best connected country in the world!

Transportation of bulk commodities through Waterways

• Saving potential of $50 billion by bringing down logistics costs to 9% from 14 % of GDP • Expected compounded annual

growth rate of about 16% • Policy changes are crucial for all

modes of transport • Goods and Services Tax (GST) to

improve the logistics sectors performance by bringing down distribution costs by 15%

(Assocham and Resurgent India)

4. India Supply Chain - A perspective…contd.


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GST Book - Bimal

5 - Impacts of GST


5 - Impacts of GST...contd..

• Nation wide ledger – No need for ERP?!

• Simple Tax Structure

• Dramatic Price Reduction

- Integrate Food processing, E –Mandis, Logistics and GST

• Smart system for toll collection

• Saving due to perishable food items not getting spoiled ( > 50%)

• For Manufacturing Companies• Shift to demand driven lean system • Value Velocity • Massive document reduction


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6. Supply Chain Opportunities

• Multi sector growth potential - Anything Moving has huge potential!• Space• Aerospace• Defense • Railways • Automotive

• A $500 Billion Opportunity requiring world class supply chain management

• Automotive industry predicted to reach $300 billion by 2026, create 65 million more jobs; current value of $ 74 billion

• Require inter connected and digital supply chain management and world class Infrastructure to be world competitive


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7. Conclusions

• Build up various emerging scenario beyond 2020 and get set for disruptive world

• Formation of Think Tanks from multiple disciplines across all sectors

• Collaborate and co-create National and International platforms to impact Policy, Structure, System, Processes and skills for a digital world

• Continued investment in Infrastructure – A great leveller of many disparities

• Reset organization for and beyond GST roll out

• Education: Curricular change – Include Innovation and Entrepreneurship


india supply chain summit 2016 rev 1

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