Heavy
engineering industry has been witnessing a major shift in their manufacturing
process and strategy. Companies are shifting their base to low cost countries
where there is land available for setting up of factories and cheap labor for
continuous operations. Alternatively they are also outsourcing operations to
the low cost countries. Sectors such as Power, Infrastructure, mining, auto
components, steel are driving the growth of heavy engineering industry due to
capacity creation and enhancement.
Key Characteristics
Heavy
engineering industry has mainly been capital intensive. Raw material is
required in large quantity for manufacturing of product. Around 70% of the cost
of finished product is the cost of raw material. The industry requires a very integrated
supply chain so that the deadlines are met and the end customer gets the
product or project completed on time. Heavy engineering industry has less
competition within the industry than other industries because it is capital
intensive and requires high competencies. It is less fragmented at the top and
more at the bottom with small players.
Challenges
Any heavy
engineering company will face challenges in their supply chain on account of
the suppliers, production schedule and capacity, logistics and engineering.
Another set of challenges facing any heavy engineering industry is the
availability of raw material, fluctuation raw material/fuel prices, fluctuating
exchange rate, supplier cartels. The industry requires dedicated and
specialized logistics as it involves transporting big equipments to site/end
customer from the manufacturer. Maintaining relationships with suppliers to
have an optimized and strategic supply base with minimal supply risk is
becoming difficult.
Consulting and Implementation solutions
Aqua MCG
provides end-to-end supply chain solutions to help improve your bottom line and
profitability. Unlike other firms, we also implement our solutions at the
client location as a proof-of-concept. We are with you at every stage of your
supply chain improvement initiative.
With a strong
team of consultants, we help your organization in benchmarking your supply
chain process against industry standards, suggest solutions and implement them
at your plant/site. Whether you need to form long term contracts for strategic
raw materials or perform bulk purchases for standard items, we can suggest the
best strategy for the given item along with a competent supply base and
logistics services. We offer services in the following areas
Operations and
Strategy
·
Business advisory
·
Spend analytics
·
Sourcing strategies
·
Sourcing and procurement
technologies
·
Procurement process transformation
·
Procurement co-sourcing
·
Vendor management and
rationalization
·
Demand/supply planning and
management
·
Logistics outsourcing
·
Transport network design and
optimization
·
Organizational transformation
Project planning
and management
·
Feasibility study reports
·
Budgeting
·
Project costing
·
Compliance to project timelines
Organization
Building
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Organizational capability
assessment
·
Organizational transformation
·
Change management