Presented BY:

Ravikant sharma
 Rethinking Your Supply Chain Strategy
By Sean Silverthorne I June 8, 2011
• In Japan, the production of everything from fuel cells to
TV displays to cars has been disrupted.
• Willy Shih sees two trends that place the world’s
supply system at increasing risk.
• In order to save costs, suppliers are putting all their
faith in a smaller number of suppliers.

• Subcontracting increasing the vulnerability if one of

subs downstream is disrupted.
Cont’d
• Every firms need to rethink their supply strategy.
• What happens if UPS workers go on strike-do you have a Plan
B?
• What suppliers can I least afford to have offline for any period
of time?
• Can I absorb the increased costs — prices go up when supply
drops. If so, for how long? Or can I pass those costs along to
customers?
• Is business insurance an effective way for me to manage risk?
5 Ways China Can Benefit From Japan’s Auto
Supply Chain Crisis.
By Matthew DeBord I April 6, 2011
• Upgrade the business model
-An investment now in R&D will enable China to build
its own high-value supply chain.

• Develop logistics expertise

• Expand the indigenous/existing parts industry

-China’s economy can support a certain amount of
excess capacity, so the country can function as a global
auto-parts safety valve.
Cont’d
• Conceive a strategy for transplanting its
carmakers
-time for the Chinese to begin thinking about moving
away from a pure export model and consider locating
capacity in export markets.

• Create a specialized supply chain for electric

vehicles.
-China could fill the role for high-end electric car
parts.
5 Things the Auto Industry Can Learn From the
Supply-Chain Crisis
By Matthew DeBord I March 30, 2011

• Move from lean manufacturing to flexible

manufacturing

• Preposition "crisis" inventory

-in this area the auto industry can supplies near possible
combat zones around the world to avoid the logistical
hurdle of moving everything to the battle all at once.
Cont’d
• Pursue standardization of supply
-At a fundamental level, all cars are basically the same.
-higher levels of standardization are possible,

• Enable local fabrication

-Works better with cheap, simple vehicles.

• Make the industry more sustainable

-Eliminate excess capacity and try to make higher
profits off the capacity that remains.
Consumer goods co’s hire consultancies to
improve supply chain
• Makers of consumer goods and personal care products
are turning to consultancies to help reduce sales losses
and cope with high growth.
• LT sales were falling by 15% because of availability
issues.
• No tools were available for sales forecast or
manufacturing.
• There was no system to integrate raw materials and
production check.
• This resulted in high inventory and high loss of sales,”
MD Arora said.
Cont’d
• By E&Y consultancy firm approach LT reduced loss of
sales 5 to 15% in domestic and 2 to 5 % in export market.
• The new logistics network reduced the time finished
goods took to be sold from 38 days to 26.
• E&Y also provided an integrated sales forecast system
on monthly base prediction to LT Foods.

• supply chain management put a company in an

integrated planning process with clear accountability.