intelligent supply c hain management · in response to these evolving business requirements, and to...

WHITEPAPER OcTObER 2014

Intelligent scm

Accelerated Business Transformation @ Technology

www.hcltech.com

Intelligent Supply chain Management

INTELLIGENT SCM – ACCELERATED BUSINESS TRANSFORMATION @ TECHNOLOGY | OCTOBER 2014

© 2014, HcL TEcHNOLOGIES. REPRODUcTION PROHIbITED. THIS DOcUMENT IS PROTEcTED UNDER cOPYRIGHT bY THE AUTHOR, ALL RIGHTS RESERVED. 2

TABLE OF CONTENTSIntroduction and Summary 3

HCL’s Approach - Accelerated Business Transformation @Technology 5

Components of Intelligent Supply Chain Management (iSCM) 6

Why iSCM? Aligning IT Strategy with Business Transformation is a Proven Formula and an Integral Component of iSCM 10

Conclusion 12

Customer Case Study 1 13

Customer Case Study 2 13

Authors 14

About HCL 16



Introduction and SummaryGiven the dynamic nature of today’s business and macroeconomic environments, it has become a chronic challenge for organizations to nimbly anticipate and react to immediate business requirements, while at the same time remaining on track and aligned with a given company’s 5-year business plan and strategy. This dichotomy results in significant pressure on both operations and business managers to manage and execute day-to-day processes, ensuring timely deliveries through effective and frequent allocations/re-allocations of resources. In addition, it requires continuous monitoring of existing operations and the management of deviations, exceptions and spikes in demand—both proactively and reactively—while at the same time planning for a higher level of customer requirements and deliveries in the quarters ahead.

Due to a typical organization’s lack of visibility into upstream and downstream activities across their extended supply chain—even with today’s available technology-enabled SCM solutions—business and operations managers often have limited options to react accordingly to operational challenges. Regardless, the advent of newer detection technologies combined with best-in-class supply chain practices now offers an opportunity for them to respond holistically—and often proactively—in a near-real time environment. These monitoring and visibility best practices, technologies, tools and solutions fall within the category known as Supply Chain Event Management (SCEM). We will talk about a specific solution in this category a bit later in this whitepaper.

Just as important, organizations are increasingly looking for a systematically incremental approach to the adaptation of these new best practices, in a manner that causes fewer or minimal disruptions to customer-facing and delivery-oriented operations. This is because they have learned—many times the hard way—that implementations of large-scale, “big bang” transformations over the years have more often than not caused huge disruptions to their day-to-day operations and impacted delivery schedules to their customers. In addition, organizations experienced firsthand the enormous energy and effort outlay required to effectively drive and accomplish the monumental change management required for the adaptation of new processes and technologies with such transformations.

In response to these evolving business requirements, and to help organizations overcome the related challenges, HCL’s Manufacturing Solutions Group has developed a suite of consulting-led transformation assessments, frameworks and SCEM tools under our Intelligent Supply Chain Management (iSCM) umbrella for enabling organizations to realize and accelerate near-term operational goals without risking cost and time overruns, while also introducing process changes to support future business plans and strategies.



iSCM Approach

Step–by–step incremental approach towards achieving supply chain excellence

Process improvement can be at the functional level or across the supply chain

Empowering business managers with best practices, benchmarks tools, technology, frameworks etc.

Non-intrusive approach

“What If” Analysis specific to industry to identify “Best Fit”

Prioritize opportunities based on ROI

Leveraging functional expertise to achieve change management

Baseline

Touchstone

Business Performance

Opportunity identification?

Experience from Operations

Best Practices-SCOR Framework

-KPI Benchmarking-Touchstone-Visibility Framework-Risk Management-S&OP Framework- Excess & Obsolete

Goal Setting

DSI Evaluation

Business Sign Off

Experience of Operations managers

Analyze

Workshops

Root CauseChallengesConstraints

“SCOR” Driven Process mapping across supply chain by factoring Visibility, Responsiveness, Flexibility,

Utilization and Cost“What IF” Scenarios @DSI

Implementation

Change Management –Transformation Leader

Team Building Pilot Engagement

Enablement –Process documentationTraining, User Manuals

Coordination , Roll Out , Hand holdings ,Support

D riven By Business

Driven by VSOM, HCL

Led Business Transformation



HCL’s Approach - Accelerated Business Transformation @TechnologyA key step when considering business transformation that is focused on an enterprise’s supply chain operations is to conduct a detailed, realistic assessment of the capabilities that exist within the organization, and even across the extended supply chain. And a formal supply chain assessment by an un-biased outside party often is best in helping an enterprise to understand its true opportunities for improvement.

Within HCL’s iSCM offerings, our consulting-led assessment approach involves identifying the current baseline for an organization’s business operations performance, and setting goals for targeted performance improvement with the close involvement of the business and operations teams. This effort is facilitated by HCL’s TOUCHSTONE® IP Framework, which focuses on identifying best-in-class Supply-Chain Operations Reference (SCOR) model-driven KPIs specific to the industry and the function, along with respective benchmarks from the American Productivity and Quality Center (APQC).

Specifically, TOUCHSTONE® enables operations managers to compare their performance measures directly with that of their best-in-class competitor(s), and then assists them in setting achievable goals to bridge the gaps. In order to better visualize and understand specific supply chain operational scenarios and their impact on current performance levels, HCL’s Demand–Supply–Inventory (DSI®) Evaluator tool is often utilized within the TOUCHSTONE® Framework. The DSI® Evaluator tool analyzes the three key SCM functional areas noted in its name by means of advanced BI analytical methodology. DSI® Evaluator’s measurements and indicators empower the operations team to discover shorter-term, “low-hanging fruit” improvement opportunities, while also assisting the team to make relevant, insightful decisions in the setting of longer-term business goals.

Once an organization’s goals are set, the detailed analysis phase follows. This phase employs root-cause analysis to identify the originating problems and constraints, and to uncover the challenges involved in overcoming the gaps in operational performance.

As an essential part of the TOUCHSTONE® Framework, process owners are asked to bring their rich experience to bear for development of a pragmatic solution. HCL’s consulting repository of SCOR, Visibility, Risk, Sales and Operations Planning (S&OP), and Excess and Obsolete Inventory Frameworks used with our clients is fully leveraged to refine the solution to address the specific gaps and deficiencies in targeted process areas, to effectively adopt the relevant best practices.

Next, detailed workshops involving various stakeholders are conducted in order to align issues and constraints that impact the proposed solution. This provides an opportunity for brainstorming of solution components, and for exploring those which are the best fit by factoring in visibility, cost, utilization, responsiveness and flexibility. The DSI® Evaluator further supports proposed solution component options by creating “what if ” scenarios, and quantifying the impact of each option. In essence, DSI® Evaluator enables the business to identify the best-fit solution option(s), and evaluates the likelihood of meeting the goals - all based on an analytical and statistical approach.

Once the workshops are executed and a desired approach emerges and is finalized, HCL’s consulting team drafts the business solution blueprint, which lays the foundation for the implementation. The blueprint includes recommendations for new (or changed) technology and business software components and solutions.



During the implementation, transformational managers and leaders are identified and a team is formed. This is closely followed by a pilot project execution, where key portions of the solution are tested and confirmed. Finally, HCL’s consulting team accelerates the process during each stage of the implementation by providing the required training, support and coordination for managing the roll out.

Components of Intelligent Supply Chain Management (iSCM)As HCL’s key enablers for accelerated business operations transformation, iSCM offerings assist enterprises to overcome uncertainties, meet their customer demands and reduce manufacturing/supply chain costs by providing BI-driven, big data-like analysis of customer enterprise data and real-time visibility of the extended supply chain and manufacturing operations. In addition, it provides seamless synchronization between demand and fulfillment, backed by real-time analytics for accurate and rapid decision-making.

HCL’s iSCM consists of a portfolio of unique and differentiated offerings/solutions and frameworks that focus on—and have achieved—the enhancement and measured improvement of supply chain capabilities.

iSCM – Solution Offerings:1. iSCM Opportunity Assessment—driven by our unique DSIOP® (Discover-Study,

Identify, Prioritize) Methodology, and utilizing our DSI® (Demand-Supply-Inventory) Evaluator toolset powered by a BI, Big-Data analytics approach and engine.

2. KPI measurement and benchmarking solution—via TOUCHSTONE®3. Supply chain visibility, event management, and collaboration solution—

HCL’s iVISION®

iSCM Opportunity Assessment

KPI Measurement

and Benchmarking

Solution -Touchstone

Supply Chain Visibility and Collaboration

Solution-i-Vision

• Rapid benefit-oriented assessment of Supply chain• Delivers an action plan for performance issues in

the Supply chain• Enables smart decision-making about where to

invest limited budget dollars• Leverages large sets of data in its analyses,

providing useful and accurate results• Allows valuable “What-if” simulations, with

the ability to compare results from using multiple parameter sets

• Platform – independent tool• Retrieve relevant data for KPI calculations

from disparate systems• Repository of predefined data points and

formula for each major SCM KPI calculation• Industry Best KPIs as defined by Supply

Chain Council USA (SCOR®)• Repository of industry benchmark values for

each KPI enable by American Productivity &Quality Center (APQC)Offers drill down capability from high level KPIs to low level KPIs for enabling root causeanalysis

• Provides insight into manufacture operations, inventory and shop floor• Event based alerts for better customer management• Unified Communications Technologies by CISCO for Collaboration across Extended

Enterprise • Provides single map view of Integrated SCM landscape• Real time visibility of delivery information from 3PL• Impact analysis of alerts along with corrective actions involving multiple stakeholders• Compendium of SCM measures of cost optimization

iSCM



1. iSCM Opportunity AssessmentThis relatively rapid assessment—usually in the range of 6 to 8 weeks, depending on frameworks used and processes covered—consists of process base-lining, KPI benchmarking and best practice analyses. Business process performance evaluation is carried out by two HCL IPs (Intellectual Properties)—DSI® Evaluator and TOUCHSTONE®. The assessment process itself is accomplished by utilizing HCL’s DSIOP® Methodology as explained in the diagram below. The DSIOP® Methodology stands for and helps organizations to Discover & Study, Identify Opportunities, and Prioritize them for supply chain assessments that:

y Provide a quick yet high-value-added investigation process,

y Help you identify your supply chain issues, and then

y Build a transformational roadmap of actionable, prioritized opportunities.

Discover & Study Identify Opportunities Prioritize

Key Activities Mobilize Interviews Strategic Direction Discovery Rapid Qualitative process Review DSI ( Demand ,Supply,

Inventory) Evaluator Tool ( Quantitative Analysis)

Benchmarking ( Touchstone* and SAP VE)

Key Activities Opportunity Diagnostics• Opportunity Review Workshop• Gap to best practices ( HCL

Proprietary Repository )• Process Framework ( SCOR*

Models) Reality Check Workshops Opportunities Qualification

Key Activities Shortlisted Opportunity Detailing:• Impacts to the organization &

enterprise solution• Project plan for design and

implementation• Project costs, ROI, TTR

Opportunities prioritization

Key Deliverable DSI Evaluator & Touchstone*

Reports

Key Deliverable Opportunities

Key Deliverable Optimization roadmap document Report out presentation

1 2 3

Demand-Supply-Inventory (DSI®) Evaluator: The DSI® Evaluator tool leverages quantitative analysis techniques to understand a customer’s supply chain performance from the “bottom-up”. It brings to light opportunities for better accuracy and alignment of demand, supply and inventory. It rapidly uncovers near-term supply chain optimization possibilities by taking into account an organization’s supply chain characteristics and the unique dynamics of the market in which it operates, by analyzing specific current and historical data. And in turn, it provides a basis and detailed roadmap on how to transform the supply chain going forward.

DSI® Evaluator analyzes areas and issues such as demand patterns, forecast accuracy, inventory level holdings and safety stock levels among others. HCL’s subject matter experts (SMEs) in the DSI toolset’s data requirements have utilized the technology at several client organizations running well known ERP solutions, and thus have the detailed mappings to data model components to retrieve current and historical data in the following categories:

y Demand data (forecasts, sales order history, shipments/deliveries, etc.),

y Supply data (Production orders, schedules, purchase orders, transfers, etc.), and

y Inventory data (historical monthly levels, positions, allocations, etc.).



HCL SMEs have the data mappings and APIs for extracting this supply chain data from popular SAP and Oracle ERP/SCM solutions, and have the expertise to find the same information in the data models of other 3rd party and legacy ERP systems used within the enterprise.

DSI® Evaluator generates standardized analytical measures in quantities and dollars, with data slicing and dicing functionalities supported by Big Data-like capabilities. Some notable features and insights from DSI® reports are:

i. Key demand patterns of business trends, and life-cycle status

ii. Determination of the right forecast level by reviewing trends and characteristics at each aggregation level

iii. Analysis of trade-offs to maximize savings in safety stock/ inventory levels, while maintaining a high customer service level by ensuring accurate forecasts—measuring the Fill Rate

iv. Analysis of expected safety stock reduction across tiers from forecast improvement—measuring Days of Supply (DOS)

v. Identification of potential process and systems improvement areas related to these areas—with prioritization by Total SCM Cost measurement

DSI Evaluator

Demand

Inventory

Supply

Symptoms of a Sub-Optimized Supply Chain

Demand

Inventory

Supply

Service Level(Key measure: Fill Rate)

Poor correlation between stock level and customer service

Inaccurate sales forecastingPoor accountability for

forecast accuracy

No formal S&OP process or tools

Over-ambitious sales forecasts

Low schedule attainment

Mismatch between capacity and rpduct mix

If any of the above symptoms are seen, DSI® Evaluator toolset in conjunction DSIOP Methodology should be considered

Forecast at too high a level to faciliate inventory management

Failure to identify, manage slow moving and obsolete items

Duplication of safety stocks

High inventory variances

Inventory Level(Key measure: DOS)

Operation E�ciency(Key measure: Total SCM Cost)



2. TOUCHSTONE®

While DSI® Evaluator embraces a bottom-up viewpoint in its approach as a more detailed toolset, TOCHSTONE® focuses on the performance indicators and measures that business managers consider important for the health of the enterprise and where effort is needed for improvement. It is essentially an accelerator for supply chain assessments, using benchmarking-led KPI measurements. TOUCHSTONE® provides a holistic approach to SCM challenges, utilizing a repository of industry-best KPIs and benchmarking values to measure and set improvement goals for process performance. It also identifies specific process areas for improvement, thus indicating technology enablement solutions supporting the adoption of industry best practices. At a high level, TOUCHSTONE® provides visibility of performance across the supply chain and improves decision making by giving strategic and operational managers deeper insights into the business.

Since TOUCHSTONE® is a platform-independent tool supporting heterogeneous IT landscapes, it can be leveraged to overcome the challenges faced by organizations in collecting relevant data from disparate enterprise systems, the existence of which typically prevents the continuous monitoring of KPIs for measuring performance.

Some other noted quantitative benefits provided to customers are:

y Minimized costs by proactively monitoring KPIs and takes corrective action to improve process efficiencies

y Enhanced cash flow by proactively monitoring the KPIs focused on this area

y Reduction of the Days Sales Outstanding (DSO) and balancing of the Days Payable Outstanding (DPO)

3. iVISION—Visibility and Collaboration SolutionHCL’s unique iVISION solution offers visibility and event management (an SCEM enabler) across the entire supply chain and covers the entire functional landscape of operations spanning across organizational boundaries. It collects information seamlessly from different partners for actionable intelligence, decision making and display. Furthermore, coupled with ‘Unified Communications and Collaborative Technologies’ embedded in the solution from a well-known multi-national networking and Internet communications company with whom HCL has partnered, iVISION enhances people-to-people collaboration for faster resolution of detected issues. The iVISION solution is in place for a couple major high-tech companies that have both standard ERP solutions (Oracle, SAP) and other legacy applications in use in their IT landscapes. It is delivering value by connecting to the various business systems to quickly and repeatedly consolidate supply chain data and provide cross-supply chain intelligence to operations managers who require the information for ongoing decision making.

Key elements of functionality provided by the solution include:

y Creating forecasts that truly reflect customer demand y Performing person-to-person, company-to-company collaborative SC planning

and execution



y Monitoring supply chain operations in real-time, and immediately highlighting bottlenecks along with the impact to the supply chain (a key feature of SCEM solution capabilities)

y Enabling the visualization and filtering of end-to-end supply chain data and processes

y Collaborating automatically with various stakeholders, in a variety of communication forms (e-mail, text, portal alerts, IP phone calls, etc.)

y Providing visibility across multi-tiers of supply chain partners and cloud-based trade partners

y Facilitating CPFR (Collaborative Planning Forecasting and Replenishment) as a next step in continuous improvement, which helps to surpass organization boundaries and whose benefits exceed the intra-organizational SCM efficiency enhancements of DSI® Evaluator and TOUCHSTONE® alone

Why iSCM? Aligning IT Strategy with Business Transformation is a Proven Formula and an Integral Component of iSCMDeveloped with and built for our clients over the last several years, iSCM plays a pivotal role in aligning IT strategy with business transformation to enhance the supply chain’s operational effectiveness and efficiency. Results have shown over time that the most successful supply chain processes and operations at enterprises were developed,



emplaced and maintained by a rigorous alignment of business transformation goals with appropriate and relevant technology solutions designed to support the goals and processes.

The figure below shows the application of iSCM solutions and frameworks at different stages of a supply chain’s maturity, namely semi- functional enterprise, integrated enterprise and extended enterprise.

Over the last decade or so, the increasing degree of supply chain integration and its solutions has enabled enterprises to evolve from semi-functional enterprises to integrated enterprises—and for some companies, into more extended enterprises. As the level of integration has increased, operational performance of the companies adopting the integration has also increased. However, the penetration of IT systems, use of methodologies/ frameworks, methods of communications and the strategy differs during each stage of supply chain maturity.

iSCM not only improves performance at the current stage and level of supply chain operations, but it also enables a transition to higher stages of supply chain performance. The solutions and frameworks (highlighted in the figure below) aid in enhancing the capabilities. Take the case of demand planning, for example—informal demand planning in the semi-functional enterprise is replaced by S&OP in the integrated enterprise and, in turn, by S&OP and Collaborative Planning, Forecasting and Replenishment (CPFR) in the extended enterprise. Additionally, advanced communication tools such as Unified Communications (UC) are used for collaborating with partners as the enterprise moves into the highest stages of supply chain operations.

Supp

ly C

hain

Per

form

ance

Degree of Supply Chain IntegrationLow High

Low

Hig

h

Local Inventory Available-to-Promise

EDI traditional or web based

EDI /Unified Communications/ VMI

MRP - II

ERPInformal Demand Planning

Sales and Operations Planning

Sales and Operations Planning

TMS

WMS

WMS

TMS

Supply Chain visibility and event management

CPFR

SRM

CRM

Cost ReductionReliability, Responsiveness, Cost Reduction

Continuous Improvement

Integrated performance management and benchmarking

Risk Management

Integrated Risk Management

CRM

Supply chain advanced analytics

Supply chain analytics

The goal of the supply chain optimization strategy shifts from simpler “cost reduction” in the semi-functional enterprise to “improving reliability and responsiveness along with cost reduction” in the integrated enterprise, and finally to “continuous improvement” in the truly extended enterprise.



ConclusioniSCM frameworks such as S&OP, Risk Management, Excess and Obsolete Inventory, and Discover and Study Identify Opportunities Prioritize (DSIOP) along with their related solutions are designed to address business issues typically seen in each stage of the supply chain. The difference with iSCM offerings is the availability of a technology and/or solution component to leverage the results and direction indicated by the frameworks and the overall assessment. And finally, the @ Technology component is what we’ve seen to be the enabler for the desired state of continuous improvement, which is the highest level goal of a truly extended supply chain enterprise.

An iSCM Assessment approach and engagement starts with the identification of process improvement opportunities by means of a step-by-step approach, all done in close partnership with the business and operations teams. It is followed by the creation of a roadmap for enhancing supply chain performance with clear short-term opportunities and benefits, and long-term objectives that directly support the business’ strategy. Through the entire assessment and implementation processes, the incremental benefits derived are cost reduction, improved efficiency, increased visibility and event management, and—due to these previous three—noticeably improved end-to-end supply chain risk management.

Comprehensive iSCM Supply Chain Assessment Framework

Data Collection & Analysis Segmentation of Demand/

Product and Customer portfolio

Develop targeted demand, inventory & Build Mgmt. Strategies

DSI Evaluator Toolset Analysis – demand, supply & inventory data from operations

Key Demand, Supply & Rev. Planning Process Review process flows,

roles and responsibilities Attend key meetings to

understand actual working of ASIS Process

Baseline & understand Product, Customer structure and impact on Planning

Compare with SCOR & APQC processes

Conduct Interviews with Key Stakeholders All functional departments Executives & IndividualsKPIs & Metrics Baseline key metrics and

KPIs (Ex. Demand volatility, Forecast Accuracy, Delivery Performance etc.,

Quantitative Survey Supply Chain metrics

SCOR Level 1-2-3 & Cost indicators

Industry Segmentation & Financials

Product & Process background

Delivery & Fill Rate, Lead Time, Flexibility. Total Supply Chain Cost Cycle Time, Forecast Accuracy Gross Margin

Predictive MeasuresQualitative Survey Process Maturity Plan-

Source-Make- Deliver & Overall

Functional (Stage 1) Internal Integration

(Stage 2) External Integration

(Stage3) Cross Enterprise

Collaboration (Stage 4)

Complexity Survey Measure High/ Low

complexity in Product, Supplier base,

Customer base, Mfg. Distribution, Systems

Current to Future state Improvement per Industry Best Practices Key findings with success

criteria based recommendations

Sequential Improvement plan & recommended best practice

Current state Interim state Future stateConceptual Design of Key Process, Practices and Performance Metrics High level design of key

processes and its enablers

IT Systems in Support of Proposed Processes Industry standard Vs. Best

of breed solutions Best suited solutions

considering IT investments already made and future Technology roadmap

Industry trends and cost effective future models

RECOMMENDATIONBENCHMARKINGASSESSMENT

Prioritized Plan to Balance Early Success & Learning with Implementation High impact Quick wins Medium to Long term

improvements Integrated roadmap by Sequencing Business

process improvements Organization changes Decision making and

points of escalation Key Performance metrics

and Balanced score cards IT System functionality

improvements Plan Key working

sessions, design reviews and Management (Steering committee) reviews

IMPLEMENTATION PLAN

Estimated Benefits Order of magnitude and

source of benefitsProject Team Identify Project team

members and secure commitment

Governance Structure Define governance board,

rules

One on One sessions with Key Leaders Review finalist of gaps &

recommendations Obtain buy-in from key

executivesConduct Final review with Leadership Team Finalize improvement

roadmap including Key capabilities Performance

improvements Key metrics Value propositions Obtain approval Secure Implementation

resources

MANAGEMENT REVIEW

DSIOP – DISCOVER STUDY IDENTIFY OPPORTUNITIES & PRIORITIZE

TYPICALLY A 6 TO 8 WEEK ENGAGEMENT MODEL

Diagnose

ISCM

Cost

Visibility

Effi

cien

cy

Risk



Customer Case Study 1Outcome/Value RealizedCompany Background – America’s leading manufacturer and

distributor of healthcare supplies Processes Enhanced:

• Demand Planning• Inventory ManagementSolution offering – DSI Evaluator

• Perennial increases in the number of SKUs and distribution centers due to rapid growth, especially from 2007-2012

• Imports with long lead times doubled from 600 ocean containers to 1200 per month

• Increased supply chain planning/procurement complexities placing pressure on efficiencies

Leveraged HCL’s iSCM opportunity assessment approach to develop 3 steps for supply chain optimization using the DSIOP methodology

i. Discover and Study – Conducted workshops to gain insights about the client’s business and strategic direction, reviewed their process documentation and performed quantitative analysis of supply chain datasets using HCL’s DSI Evaluator.

ii. Identify Opportunities – Opportunity diagnostics identified gaps (compared with best practices) through reality check workshops.

iii. Prioritize – Identified opportunities were prioritized based on their impact on the organization and enterprise solution, project plan was created for design and implementation including project costs, ROI, etc.

Approach

Challenges

Quantified Benefits:

• Forecast accuracy improve-ment potential of 12% for many items identified as demonstrating forecast bias

• Better alignment of safety stock on materials requiring large storage space that would lead to significant warehousing space saving (around 100K ft3, equivalent to a mid-size warehouse) when adopted

Outcome/Value RealizedCompany Background – A U.S. leading multi-national travel and transportation provider with service and replacement part inventory level challenges Processes Enhanced:• Inventory Management• Working Capital Management and Cash FlowSolution offering – DSI Evaluator

• Perennial increases in the number of SKUs and distribution centers due to rapid growth, especially from 2007-2012

• Imports with long lead times doubled from 600 ocean containers to 1200 per month

• Increased supply chain planning/procurement complexities placing pressure on efficiencies

Leveraged HCL’s iSCM opportunity assessment approach to develop 3 steps for supply chain optimization using the DSIOP methodology:

i. Discover and Study – Conducted workshops to gain insights about the client’s business and strategic direction, reviewed their process documentation and performed quantitative analysis of supply chain datasets using HCL’s DSI Evaluator.

ii. Identify Opportunities – Opportunity diagnostics identified gaps (compared with best practices) through reality check workshops.

iii. Prioritize – Identified opportunities were prioritized based on their impact on the organization and enterprise solution, project plan was created for design and implementation including project costs, ROI, etc.

Approach

Challenges

Quantified Benefits:

• Forecast accuracy improve-ment potential of 12% for many items identified as demonstrating forecast bias

• Better alignment of safety stock on materials requiring large storage space that would lead to significant warehousing space saving (around 100K ft3, equivalent to a mid-size warehouse) when adopted

Customer Case Study 2



Authors

Arindam SenGeneral Manager (MFG Vertical Solutions - HCL)

Frank WattsPrincipal Solution Architect (MFG Vertical Solutions - HCL)

Arindam is primarily involved in devising solutions, IPs and frameworks in HCL’s Manufacturing Vertical. He is a seasoned professional with 18 years of global experience in Information Technology, Production Operations and Supply Chain Management. He has extensive experience in ERP consulting including business strategy and planning, product selection, solution building, competency development and program management.

Arindam holds a Master’s degree in Management (General Management) from the Asian Institute of Management (AIM), Manila. He is also a CSCP (Certified Supply Chain Professional) from APICS/SCC, USA. He completed his Master of Engineering (Production Management) degree at Jadavpur University, Calcutta, India and his Bachelor of Engineering (Mechanical) degree at Indian Institute of Engineering, Science and Technology (IIEST).

Frank is a principal solution architect with 25 years of experience spanning business consulting, process re-engineering, best practice analysis, IT strategy, ADM/ILM, SI and large scale ERP/SCM program management in several Manufacturing sub-verticals. He has deep knowledge of various consultative frameworks, the Oracle family of ERP/VCP solutions, and has executed several large scale transformations and ROI assessments for various clients across A&D, automotive, discrete manufacturing, high-tech and telecommunications industries.

Frank holds both CPIM (Certified in Production and Inventory Management) and CIRM (Certified in Integrated Resource Management) certifications from APICS/SCC, USA. He has an MBA in Operations Management from the Kellstadt Graduate School of Business – DePaul University (Chicago, IL), and a BSE in Industrial and Operations Engineering from the University of Michigan-Ann Arbor.



Roopesh SinghSenior Manager (MFG Vertical Solutions - HCL)

Bharani RanganathanIndustry Principal (MFG Vertical Solutions - HCL)

Alok JoshiSenior Manager (MFG Vertical Solutions - HCL)

Roopesh has over 10 years of experience covering management consulting, supply chain management and transformation. He has consulted across Automotive, CPG, Retail, Pharmaceutical, For-ex , Mining and Publishing industries.

Roopesh holds a Master’s degree from SCMHRD, Pune, and a Bachelor’s degree in Mechanical Engineering from KLE College of Engineering. and Technology, Belgaum. He holds both CPIM (Certified in Production and Inventory Management) and CSCP (Certified Supply Chain Professional) designations from APICS/SCC, USA. He is a Certified Project Management Professional (PMP) from PMI, and is Six Sigma Black belt certified from RBQSA.

Bharani has over 22 years of Manufacturing and Supply Chain Management experience in process and technology solutions for production planning, inventory management, procurement, demand and supply planning, S&OP execution, data warehousing, analytics and business intelligence, manufacturing execution systems (MES) and B2B collaboration using SAP, JDA, Kinaxis, Web Methods. He is a Lean Six Sigma and Kaizen practitioner for Business Process Re-engineering (BPR) and continuous improvements. He is a certified Green Belt in Lean Six Sigma and Advanced Lean from Purdue University, Certified Sales and Operations Planning (S&OP) by S&OP Institute and COE of Ohio State, Certified in Supply Chain (CSCP) by APICS, Certified in Forecasting (CPF) by IBF and a Certified Project Management Professional by PMI.

Bharani also holds a Post Graduate Certification in Management from Indian Institute of Management (IIMK), Kozhikode, a Master of Science degree in Technological Operations from Birla Institute of Technology and Science in India, and a Bachelor of Engineering in Production Engineering from PSG College of Technology in India.

Alok has more than 8 years of experience around business process mapping and analysis, KPI measurement, requirements gathering and ERP implementations focused on supply chain and related functions for high-tech, discrete manufacturing , energy and utilities, and other verticals.

He is certified in SCOR® (Supply Chain Operations Reference) by SCC, USA. He has his Master’s degree from IIM Indore, and a Mechanical Engineering degree from BIT, Mesra, Ranchi.

For any queries,please drop a mail to: [email protected]

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About HCL

About HCL Technologies

HCL Technologies is a leading global IT services company working with clients in the areas that impact and redefine the core of their businesses. Since its emergence on the global landscape, and after its IPO in 1999, HCL has focused on ‘transformational outsourcing’, underlined by innovation and value creation, offering an integrated portfolio of services including software-led IT solutions, remote infrastructure management, engineering and R&D services and business services. HCL leverages its extensive global offshore infrastructure and network of offices in 31 countries to provide holistic, multi-service delivery in key industry verticals including Financial Services, Manufacturing, Consumer Services, Public Services and Healthcare & Life sciences. HCL takes pride in its philosophy of ‘Employees First, Customers Second’ which empowers its 91,691 transformers to create real value for customers. HCL Technologies, along with its subsidiaries, had consolidated revenues of US$ 5.4 billion, for the Financial Year ended as on 30th June 2014 (on LTM basis). For more information, please visit www.hcltech.com

About HCL Enterprise

HCL is a $6.5 billion leading global technology and IT enterprise comprising two companies listed in India – HCL Technologies and HCL Infosystems. Founded in 1976, HCL is one of India’s original IT garage start-ups. A pioneer of modern computing, HCL is a global transformational enterprise today. Its range of offerings includes product engineering, custom & package applications, BPO, IT infrastructure services, IT hardware, systems integration, and distribution of information and communications technology (ICT) products across a wide range of focused industry verticals. The HCL team consists of over 96,000 professionals of diverse nationalities, who operate from 31 countries including over 505 points of presence in India. HCL has partnerships with several leading global 1000 firms, including leading IT and technology firms. For more information, please visit www.hcl.com

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