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Tools
Distribution Network Optimization Tool
Aqua MCG Distribution Network Optimization tool works with the objective of optimizing the economic value added to the shareholder capital by evaluating every investment made over multi period at its net present value.
We firmly believe that looking at just cost reduction with service level constraints as the driver for network design or redesign decisions is a deficient way of evaluating your distribution network. Instead these decisions are a continuous trade off between the costs and the service levels. The service level enhancement has the potential to impact the revenue significantly thereby resulting in a net value add for the organization despite higher operational costs or capital outlays. This forms the basis of our Economic Value Add (EVA) optimization
Components & Capabilities
1. Analysis, Aggregation :
a. Multi commodity, multi echelon and multi period evaluation
b. Measurement of the impact of changing service levels on the revenue
c. Optimal timing of capital outlays based on NPV consideration of the EVA generated
d. Clustering facility of customer/demand data, visualization of clustering
e. AHP (warehouse selection)
f. Pareto analysis
g. Ability to study the effect of aggregation on costs and model accuracy
h. Value Stream Map
2. Simulation Capabilities
a. Stochastic demand at changing service levels in different periods
b. Various inventory replenishment models
c. Various transportation and warehousing models
3. Transportation Ra
Last Updated On:5/11/2009 6:29:01 PM
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Process Mapping and ERP evaluation in a leading Media and Entertainment Company
Title: We customized business processes and evaluated an ERP based on the derived functionalities for selection and implementation
Background :
Client was a leading MNC in Entertainment Businesses such as TV channels, movie production, home entertainment in the Global Market and had a presence in India for the previous 8 years through a licensee
Entire current Operations - Marketing, Sales, Production and Distribution was outsourced to the licensee under the Licensing Arrangement
Client had a strategic intent of strengthening presence in India by setting up an Indian arm
Business Scenario:
In Home entertainment, the client had taken a decision to change the Operating Model from the Licensing Out to the India Presence with a Distributor model. This needed a smooth transition.
An ERP being used by the licensee was under consideration for implementation, but the client needed help in evaluating its suitability from a functional and technical point of view
Corporate SOPs were required to be put in place for ensuring customer service and keep control on costs
IT Systems needed to be aligned to local business needs and to be configured as per Global SOPs
Implementation was required for the ERP and its Interfaces with the client’s global systems
Our Solution:
Current local business requirements were studied and global SOPs were customized to local business needs without compromising on process standards. A system to manage changes was also designed for the SOPs
A transition roadmap was designed for ERP implementation and business model transition giving project schedules, milestones, timelines, responsibilities, review and communication plans and risk m
Last Updated On:7/5/2011 11:30:03 AM
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INTEGRATED SUPPLY PLANNING
The fifth element is a synchronized supply planning processes, integrated at one end with its internal consumers,manufacturing and logistics, and at the other end, with all suppliers. Supply Planning consists of numerous initiatives such as Supplier Rationalization, Vendor Managed Inventory and Consignment Processing. While it is important to achieve optimal demand-supply matching at the downstream end of the supply chain as discussed under S&OP earlier, it is equally rewarding to have a similar demand-supply matching at other end too. In this case demand would be the requirements from manufacturing functions and supply would be external suppliers or internal component manufacturing units. Based on end customer demand signal, production plans and material requirements plans are firmed up. These material requirements usually partially filled up by existing inventory but the rest comes from fresh procurements. Supply Planning targets this function to achieve increased efficiencies and reduced costs.
Supplier Rationalization: More often than not, a firm may have more suppliers than it may actually need. As firms grow the number of suppliers also increase, usually because of diverse purchase requirements and lack of control over supplier approval process. Obviously during growth phase these aren’t areas that attract a lot of executive attention, but as operations stabilize supplier rationalization presents a good opportunity for cost reduction. This program targets to achieve an optimal supplier base for the firm based on its requirements and delivers benefits both from a financial and business process perspective. Some specific benefits include – increased spend leverage, reduced procurement overheads and better relationships with suppliers. On the flipside, this program can increase dependence on a smaller set of suppliers and may impact the competitiveness amongst
suppliers.
Vendor Manag
Last Updated On:7/11/2011 6:49:04 PM
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Developed a cross vertical supply chain optimization tool considering complex inventory, transport, warehouse & product replenishment decisions
Title: We developed a cross vertical supply chain optimization tool with the objective of optimizing the overall costs of the supply chain comprising of freight, warehousing costs, inventory holding costs and taxes
Background :
A need for supply chain tool was felt having robust simulation capabilities, creation & analysis of multiple strategic scenarios, excellent reporting capabilities and having enough flexibility to cater to all verticals
The tool should ascertain and evaluate complex business scenarios with respect to timing & quantum of capital investment, facility decisions, transport decisions, inventory holding and product replenishment decisions, etc
Business Scenario:
Tool Requirements were
Tool should be able to evaluate complex inventory decisions such as, where and what is the optimal amount of inventory to be stored at each echelon based on demand variability
Tool should be able to evaluate product replenishment decisions such as, model (Push or Pull based), applicability of dynamic or static norms and source of product replenishment at every facility in each echelon from the upstream facilities
Tool should be able to analyze transport decisions such as, mode, capacity, shipment size and frequency of shipment and evaluate the trade off on inventory and freight costs
Our Solution:
Supply Chain Model:
A analytical Model was built capturing inventory in the supply chain in multiple echelons of the supply chain network
At each level, evaluation of inventory norms and mode of replenishment (push or pull) was derived based on downstream demand variati
Last Updated On:9/13/2011 2:56:18 PM
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Management Team
Management Team
Ram Mantravadi
CEO
More than 14 years of global consulting and leadership experience with firms like Satyam, IBM, EDS – Excellent understanding of strategy, operations and management in both business and IT realm – Led IT strategy & transformation practice in Satyam – Trained in Six Sigma Black Belt, TOC, eSCM. TOGAF certified enterprise architect. Industries include logistics, supply chain, retail, manufacturing, consumer goods, oil & gas.
Some Projects: Logistics strategy & organization setup for Leading conglomerate in ME, Supply Chain cost optimization for a leading Farm equipment manufacturer - Customer acquisition/ logistics cost reduction strategy for a leading Indian logistics service provider – Customer acquisition/ warehouse set-up and future strategy for a leading Indian logistics service provider – Business, operations & IT strategy for a leading Indian logistics service provider – Business process reengineering for a leading Indian logistics service provider – India market entry strategy for a German logistics service provider –Transformation Strategy and Roadmap for Shared Services Organization of a leading North American Bank – Outsourcing and Transition planning for a global publishing organization – IT efficiency and effectiveness improvements for a large US retail chain – Balanced scorecard design for a leading manufacturer of automated process control systems – E-business strategy & supply chain initiatives for a global auto giant – US State Welfare systems, design and development.
MBA from Carnegie Mellon University. BTech. from IT-BHU
Manish Kumar Singh
Director - Business Advisory & Transformation Services
14 years of experience with more than 8 years in Supply Chain Consulting and Implementation in Sales and Operations Planning, Demand Planning, Network Optimization and Supply Chain Strategy. Actively involved in architecting supply chain processes and solutions and leading im
Last Updated On:11/11/2011 12:56:47 AM
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Cost Management Initiatives
The Importance of Sales and Operation Planning :
An S&OP process helps in balancing supply and demand with the help of a single operating plan spanning across all functions to achieve profitable growth. It also helps align the company’s strategic business goals with the daily operations plan in the most cost-effective manner. Effective planning results in better forecast accuracy and better visibility. Effective planning of the supply chain helps in maintaining balanced inventory levels, increase inventory turns and a better utilization of the resources. All these three factors together help achieve supply chain cost reduction.
The demand forecasts developed by the Sales personnel are generally inflated to buffer the effect of late deliveries from the manufacturing plant. The manufacturing personnel in turn give an inflated projection to the sourcing and procurement team. The finance team gives another set of forecasts to the manufacturer purely targeted at meeting goals of the finance group, without any idea of either the capacity constraints or the inventory levels. The result is a number of forecast figures most of which are inaccurate and unreliable. On the other hand a poor planning process results in higher costs due to expedited shipments, frequent stock-outs, higher inventory levels, higher transportation costs due to large number of small shipments and lower customer service levels. The chart below shows a typical 5 step S&OP process.
Most companies today have some sort of an S&OP process in place. However, in most cases the existing process in place is far from an ideal state. Even in companies where there is a rudimentary traditional S&OP process where a forecast number is agreed by marketing, sales, finance and production planning teams; forecasts tend to be poor.
A company thus needs to first do a diagnostic to determine at what stage of maturity it is at present, and t
Last Updated On:9/16/2010 2:41:39 PM
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About »The Firm
The Firm
Aqua Management Consulting Group (Aqua MCG) is a premier advisory and execution group committed to delivering superior supply chains and maximizing business value for our clients. We help transform and manage supply chains for better business performance. We do this by providing -
High value consulting advice and complete execution support
Business and functional leadership, on a BOT model
Supply chain outsourcing solutions and services
Steady-state operations monitoring & continuous performance improvement
Our team comprises professionals with strong consulting experience, good domain knowledge and execution leadership. We use structured methodologies, analytical rigor and defined metrics to deliver value for every project we undertake.
Our vision is to be globally recognized as highly valued partners for achieving supply chain leadership.
Our core offerings include:
- Business Advisory and Transformation Services
- Procurement Co-Sourcing and Management Services
- Logistics Outsourcing and Management Services
Service domains we serve include product development, sourcing and procurement, manufacturing, logistics and distribution, sales and demand fulfillment, service management and information technology.
Industries we serve include power, oil & gas, roads & construction, automotive, media and entertainment, manufacturing and industral goods, metals and mining, pharmaceuticals and health care, retail and consumer packaged goods.
Service capabilities we have include experience in business and supply chain strategy, organization design and governance, process improvement, IT advisory, change and performance management, program management and execution leadership.
We help with organization needs like globalization, innovation, revenue growth, asset utilization, cost reduction and end-customer experience.
Last Updated On:5/4/2011 10:36:57 AM
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Packaging Cost Reduction for a leading Power Conductor manufacturer in India
Title: A blend of Design optimization, Reverse Logistics and packaging SKU standardization to deliver 14% savings on current packaging costs
Background:
The client is a leading manufacturer of Power conductors and Optical Fibre Cables with turnover over Rs. 2500 Cr
Wooden drums are used for packaging and supply of Conductor cables. Client was interested in exploring opportunities and alternatives for optimization of the (significant) outlay on packaging expenses
Pricing Gaps:
Scarcity of good quality wood and monopoly of local vendors leading to a seller’s market.
Establishing cost basis for negotiations was also challenging.
Global procurement is not cost competitive
Alternates packaging solutions in plastic and steel are not price competitive
Process Gaps:
SKU selection (by client) was a time-intensive process taking upto 3-4 weeks. It also led to multiple SKUs of packaging being required.
Absence of standardization of SKUs led to inefficiencies in planning and procurement as the team was unable to maintain inventory. Vendor manufacturing capacity could also not be reserved in advance.
Tactical approach to procurement resulted in spot purchase-price negotiations
Handling and usage of drums at client site rendered them unfit for reuse
Our Solution:
Design optimization of the existing cable packaging – tweaking components, materials and sizes while conforming to IS, AS NZS, DIN and NEMA standards.
Standardization of packaging SKUs ; product – SKU map developed after taking the conductor characte
Last Updated On:7/4/2011 12:52:07 PM
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Supply Chain Processes in India
Among the many supply chain processes, the three ranked the highest by resp
ondents were: Customer service, Demand
management & Inventory management.
In inventory management, the inventories looked at are raw
materials, WIP, finished goods, goods in transit, accounts receivable, accounts payable, inventories at CFAs/DCs, distributors & retailers.
In India, the primary inventory replenishment process is the push system versus the pull system. It is often quoted in the industry that up to 85% of companies adopt the push system.
In a push-based supply chain, products are pushed through the channel, from the production side up to the retailer. The manufacturer sets production at a level based on historical buy patterns. However, it takes longer for a push-based supply chain to respond to changes in demand, which may result in overstocking or bottlenecks & delays (the bullwhip effect), unacceptable service levels & product obsolescence. On the other hand, in a pull-based supply chain, procurement, production and distribution are demand driven so that they are coordinated with actual customer orders, rather than forecasted demand.
PUSH-BASED MODEL
PULL-BASED MODEL
The major divisions of logistics costs in India are: cost of materials, labour, production operations, inbound / outbound transportation, warehousing, primary/secondary movements and distributor’s margin. Delivering on these costs is itself a challenge and added to that companies must deliver on profitability & responsiveness.
Delivering on all three i.e. cost, profitability and responsiveness can therefore be the real test. In the surveys of many nations it was found that the reduction in cost has been replaced by the focus on quality in the top three objectives. And to meet these multiple objectives, supply chain leaders have realized that supply chain effectiveness requires more than
Last Updated On:7/14/2010 3:51:31 PM
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Services »Domains »Manufacturing
Manufacturing
Manufacturing Management developed into something close to a science after Fredrick Taylor's principles of Scientific Management. However, this stream still continues to pose increasingly new and complex challenges for management at all levels. Why? There are many reasons, however; one of the main factors is shortened life cycles due to speedily evolving technologies. Unlike the good old years when products were built to last a lifetime, today's products are not expected to be used for more than a few years, because the product becomes obsolete in terms of features, functionality and price. This trend is manifested across the board - consumer products such as electronic items, consumer durables, computers, cars, furniture, homes, apparel, etc, as well as industrial products such as machinery, chemicals, tools, etc.
Make to Stock, Make to Order, Assemble to Order and Continuous Process are some of the challenges (and opportunities) faced by all Operations Managers today in all Manufacturing Environments. We at Aqua MCG apply our expertise and thought leadership in all the service areas of manufacturing, some of which are
Strategic decisions such as In-house vs. Outsourcing Analysis, De-bottlenecking, Facility
Installation, Capacity Building, Organizational Design, etc.
Planning Systems such as MPS, RCCP, MRP,CRP, Production Scheduling,
Quality Management Systems such as Process Design, Process Capability, Training and
Documentation, as well as
Shop Floor related Quality Control, Production Efficiency
Clients come to us when they want help in
Gearing up the manufacturing function to meet business needs
Last Updated On:10/21/2008 2:20:33 PM
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