IIM Raipur Launches Special Issue of Strive on Retail

On 11^th March 2012, the Operations and Supply Chain Club of IIM Raipur, OPEP, launched the second issue of its magazine Strive. This issue of Strive focuses on the Retail Sector, an area which has been in the headlines for quite some time and needs immediate attention. The Magazine was launched by Prof. B S Sahay, the Director of IIM Raipur, along with Mr. Satyan Mishra, Co-Founder & MD, Drishtee Foundation and Mr. Bahadur Ali, MD, IB Group. Prof. Sahay lauded the efforts of the club in bringing together the various aspects of and challenges in the retail sector in a special issue of the magazine.



From Left : Akshay Aggarwal, Rohit Bhagat (Editor, Strive) , Mr. Bahadur Ali (MD, IBGroup), Mr. Satyan Mishra (MD, Drishtee Foundation) , Prof. B.S. Sahay (Director, IIM Raipur) , Anshu Katiyar and Nitin Kuraien at the Launch.



Just as the inaugural issue, this issue of Strive has also been launched in a Tablet Friendly version which helps it to be viewed easily on smartphones and tablets. The magazine was launched on the second day of Enspirit 2012, the inaugural edition of the Entrepreneurship Summit of IIM Raipur. Other eminent personalities who graced the occasion were Mr. Abhishek Sinha, CEO, EKO India Financial Services, Mr. Nirmal Kumar, Founder, Nirmal Group, Mr. Snehanand Sinha, Advisor to Social Businesses, Mr. Phanindra Sama, CEO, Redbus, Mr. Rustam Sengupta, CEO, BOOND and Mrs. Rashmi Bansal, the well-known Author & Entrepreneur.

Speaking on this occasion the Editor of Magazine and a Second year student, Rohit Bhagat, highlighted the salient features of the magazine. The second issue of Strive contains articles from both academia and the industry with Companies like Jubilant Foodworks (formerly Domino’s

Pizza India Ltd.) and Technopak contributing articles for the magazine. The magazine features an exclusive interview of Mr Arvind Singhal, CMD, Technopak. Other noted contributors include Mr Ajay Kaul, CEO, Jubilant Foodworks, Prof. Bhalender Singh, Prof. Omkar Prasad Vaidya and Prof. Naval Bajpai.

Students have written articles on the role played by Farmers and Middle-Men in the Supply Chain, emergence of E-Tailing in India, Retail in China, Book Review of “It Happened in India” and Success stories of Amul and Walmart. The local challenge discussed in this issue is the upcoming Logistics Hub in Raipur. In addition to the earlier column on Summer Internship Experience, two more columns have been added. Through the column of Gurumantra, some relevant technical terms would be explained. In this issue, the RFID technology has been explained in details. The other column is a debate, where students have presented contrasting views on “Should India allow FDI in Retail?”

Rohit thanked his team for the successful release of the special issue of Strive. The magazine will now be available for students of all B-schools across India and abroad and also for Retail Professionals in the industry. To access the magazine, please click here.

IIM Raipur Faculty and Students contribute Articles for Pan IIM Operations Magazine

The second edition of the Pan IIM Operations Magazine, “Opsworld” was released by Prof. Janat Shah, Director, IIM Udaipur during the International Operations Conference organized by Society of Operations Management at IIM Calcutta on 18th December 2011. The theme of the magazine is Sustainable Operations Management. The magazine would be hosted on SOM website alongside the prestigious operations management journals.

The magazine contains two corporate articles – one from Flipkart and the other from Ernst & Young. The magazine contains faculty as well as student opinion on Sustainability through two different sections. Also included are the general operations management articles in the General section.

The magazine can be downloaded from the following address as well. (http://paniimoperations.com/magazine/)

In the Editorial, The Editor in Chief has thanked IIM Raipur for their valuable support throughout the process.

In his article, “Jack of All Trades, Master of… Two”, Prof. Omkarprasad S Vaidya, Faculty in Operations Management and Quantitative Techniques Group at IIM Raipur has discussed some of the Management Problems and their possible solutions as a result of an interface of other streams with ‘Operations’ Management.    

Rohit Bhagat, a PGP 2010-12 Student of IIM Raipur has written an article on “Unique Challenges in Humanitarian Logistics”. The article starts with a description of the Disaster Profile of India and emphasises the need for research in the field of Humanitarian Logistics keeping in mind India’s risk profile. The article brings out the challenges that need to be addressed while undertaking humanitarian logistics.

Aditya Kumar Konathala and Amit Sharan Singh, PGP 2010-12 Students of IIM Raipur have discussed the positive impact of Information and Communication Technology (ICT) on Paddy Procurement and Public Distribution System (PDS) in Chhattisgarh in their article “ICT and Supply Chain Practices in PDS (Chhattisgarh)” .

Tarang Singhal, a PGP 2011-13 Student of IIM Raipur was a part of the Layout and Design Team.

IIM Raipur students win Second Position in Video Making Competition organized by NITIE

Chain to Excellence (C2X), The Supply Chain Interest group of NITIE Mumbai organized Optitude, a Video Making Competition. The participants were required to make a video on ‘Role of Supply Chain in Disaster Management’.

3 Students from IIM Raipur, Akshay Agarwal, Navjeet Sidhu and Rohit Bhagat participated in the Competition and won II Prize.  The winning team was from NITIE Mumbai.

This video starts with a description of the Disaster Profile of India and emphasises the need for effective Disaster Management using facts and figures. For instance, it has been found that according to the then UN Under-Secretary for Humanitarian Affairs (Jan Egeland): “In Niger in 2005, it would have cost $1 a day to prevent malnutrition among the children if the world had responded immediately. By July 2005, it was costing $80/day to save a malnourished child’s life.”

It is important to plan beforehand as during a disaster, Infrastructure is destabilised, Demand and Supply are unpredictable, last – mile connectivity is hampered and there is lack of coordination and training amongst the Relief Agencies.

An Effective Supply Chain can aid in Pre-Disaster by imparting Training and Education, Infrastructure Planning and Pre-Positioning of Resources. During a Disaster, Relief Operations need to be carried out and Last –Mile Connectivity for supply of food and medicine needs to be ensured. Post Disaster, Infrastructure needs to be rebuilt after cleaning the debris and communities need to be re-established.

Operations and Supply Chain Club of IIM Raipur Launches its Magazine – Strive

The Operations and Supply Chain Club of IIM Raipur, OPEP, today launched its Magazine Strive. The Magazine was launched by the Director Prof. B.S Sahay who expressed his happiness over the initiatives being taken by the club for the benefit of Supply Chain Professionals. The highlight of the event was the launch of Tablet Friendly version of the Magazine which helps it to be viewed easily on smart phones and tablets. The magazine was launched in presence of internationally acclaimed expert Dr E. Peacock and Business India’s b-school ranking expert A T Raman who lauded the students of IIM Raipur for their efforts and hoped that the students shall continue to strive for excellence in the field of management. Mr Raman was specially delighted by the launch of tablet friendly version of magazine and went on to say that initiatives like this are necessary for the improvement of quality of b-schools in India.

Speaking on this occasion the Editor of Magazine and also Second year student, Rohit Bhagat, highlighted the salient features of the magazine. The magazine contains article from both academia and the industry with Companies like Safexpress and Maruti contributing to articles in the magazine. Noted contributors include Mr Pawan Jain CMD, Safexpress, Dr Krishan Kumar, Director, Maruti Center for Excellence,  Prof. Ravi Shankar, the foremost academician on Supply Chain wrote the cover article for the magazine expounding the Guru Mantras for a Successful Supply Chain. The students talked about the Supply Chain Dynamics of PDS system in Chhattisgarh, which was studied by students in internship last year and how it is becoming a role model for other states to emulate. He thanked his team for the successful release of the inaugural edition of the Magazine. The theme of the magazine was Green Supply Chain and its implications were also discussed. The magazine will now be available for students of all B-schools across India and also to Supply Chain Professionals in the industry. The Institute now plans to use Kindle for its future releases to make the publications widely available, Prof. Sahay hoped that this marks the beginning of wide spread use of Digital Platforms for dissemination of content, and promised that all future releases will leverage the power of technology.
To download the magazne, click on the following link http://www.iimraipur.ac.in/pdf/Strive.pdf

The writer of this article, Tarang Singhal is a PGP student of Indian Institute of Management, Raipur. Tarang is a member of the Public Relations Committee of IIM Raipur.

This story is also available at http://www.iimraipur.ac.in/news21.htm

RESEARCH IN MOTION

Research in Motion (RIM), features in Gartner’s list of Top 25 Supply Chains of the World at Fourth Position after Apple, Dell and P&G. Major features of its Supply Chain are resilience and Demand Driven Supply Chain which leads which leads to a 3-year weighted ROA of 25.1% which is the best among the Top 25 Supply Chains of the World. [1]

The key teams supporting Global Manufacturing are:

• Manufacturing Production
• Manufacturing Engineering Support
• Global Supply Chain
• New Product Introduction
• Global Repair Services
• Manufacturing and Supplier Quality Engineering[2]

According to the Official Website, “The Supply Chain, Materials and Inventory Management teams are responsible for managing the sourcing, planning, tracking and distribution of all manufacturing parts and materials, as well as managing vendor relationships, ensuring a cost-effective and smooth manufacturing process globally. Positions in this area include: Commodity Manager, Production Planner, Master Scheduler, Buyer/Planner, Warehouse Manager, and Materials Operator”

RIM also makes use of SAP for in-house manufacturing. Daily feeds of information go from SAP into RapidResponse thus providing a comprehensive view of the upstream of RIM’s Supply Chain. SAP is also used for report generation which aid the different departments in decision making. [3]

In 2009, RIM partnered with SAP to allow its customers access to SAP Customer Relationship Management (CRM) applications on Blackberry smartphones. The new application gives sales representatives simple, secure, Real-time access to customer information which helps them in retaining existing customers. [4]

In 2009, RIM also launched a Cost Optimization Program focusing on eliminating redundancies and reallocating resources to focus on areas that offer the highest growth opportunities and alignment with RIM’s strategic objectives. [5]
RIM also became a member of the Global eSustainability Initiative (GESI). “GESI is an industry & NGO stakeholder body which commits to promote sustainability performance and focuses on three areas for peer and industry wide improvement: climate change, e-waste and supply chain.” Some of the members of GESI are HP, Ericsson, Cisco Systems, Nokia, Vodafone, Microsoft, Deutsche Telekom, World Wildlife Fund and Carbon Disclosure Project.[6] This is a signal that RIM wants to focus on having a Green Supply Chain.

REFERENCES

[1] http://www.gartner.com/it/page.jsp?id=1710016 (last accessed 5/9/2011)

[2] http://www.rim.com/careers/why_rim/careers/global_manufacturing.shtml (last accessed        5/9/2011)

[3] http://www.kinaxis.com/downloads/customer_spotlight/spotlight-RIM.html (last accessed 5/9/2011)

[4] http://www.sap.com/corporate-en/press.epx?pressid=11330 (last accessed 5/9/2011)

[5] http://press.rim.com/release.jsp?id=5121 (last accessed 5/9/2011)

[6] http://www.zdnet.com/blog/sustainability/from-blackberry-to-greenberry-rim-goes-green-at-cebit/188 (last accessed 5/9/2011)

Rohit Bhagat has done his B.E. in Electronics and Communication Engineering from Netaji Subhas Institute of Technology, Delhi University and can be reached at jeffhardy_027 @ yahoo . co . in

WINNING IN DIVERSE MARKETS THROUGH SUPPLY CHAIN FLEXIBILITY

The following article written by a student of Indian Institute of Management, Raipur has been adjudged the best article in the "Operations" category in an article writing event organised by Shailesh J Mehta School of Management, IIT Bombay.

The ability of an organisation to respond to uncertainty has always been important for success. Due to the increase in the number and the nature of threats that can affect our supply chain, the need to have a flexible supply chain has increased. It is no longer about managing the uncertainty but about managing it better than one’s competitors. In fact, companies should perceive it as an opportunity in disguise.

Here is a list of some practices that a company can adopt to win in diverse markets through supply chain flexibility:-

1. COLLABORATIVE PLANNING, FORECASTING AND REPLENISHMENT (CPFR) – CPFR aims to enhance supply chain integration by supporting joint practices. Information is shared between the components of a supply chain to reduce the inventory and to respond to the changing demand. As Hitachi’s supply chain expanded globally, its value chain became more complex. To respond to this increase in complexity, Hitachi shares accurate and timely information on projected part sales with its vendors to be more able to adapt to the changes in customer demand.

It is not necessary to have expensive IT systems to improve collaboration. Simple moves such as establishing direct communication from planner to planner and running forecasting processes jointly with key suppliers can improve collaboration.

2.  RISK POOLING – It suggests that demand variability is reduced if a company aggregates demand across locations because as demand is aggregated across locations, it is more likely that the increase in demand at one location will be offset by reduction in demand for another location. This leads to reduction in uncertainty in demand which leads to reduction in safety stock and hence to reduction in average inventory.
3. Managers should be able to make supply chain decisions quickly. They should be able to analyse the changes in demand if any and should be able to respond to it quickly. The managers should be able to make sense out of numbers and should know which data to rely on and which data to discard. Such a manager will be able to place frequent but small orders hence reducing average inventory as well. The structure of the system should be such as to allow the different departments to take the necessary decisions as and when required eg. Toyota gives its assembly line workers the authority to halt the production by pressing the emergency button.
4. Use of concurrent processes instead of sequential processes – Use of concurrent processes reduces the dependence of processes on one another in a supply chain. This can speed up processes in case any emergency arises.
5. Reducing risk due to cost fluctuations – Having a mix of short term and long term contracts with the suppliers will help in reducing the risk in supply chain due to cost fluctuations. Outsourcing can also come in handy in case the cost of production of the company increases at certain parts.
6. Converting Stock outs to Back Orders – If it is possible to convert stock outs to back orders, it would take away a lot of pressure from the supply chain. However, it requires an effective supply chain which can ensure delivery of the committed quantity of the products at the committed quality at the committed time. Incentives can also be given to the customers in case they agree to commit to their orders well in advance.
7.  Vendor Management – Several companies develop a network of vendors who are able to supply inventory to them within the stipulated time. These companies work closely with their vendors to develop them and assist them in periodically improving their processes. Maruti develops close relations with its vendors through strategic relationships and providing incentives to them. This also helps in reducing the bargaining power of Maruti’s suppliers as the company maintains and develops a network of suppliers.
8. Use of standardized and generic parts – This will reduce the dependence of production on certain specific parts. In case of any emergency demand, the parts can be bought from other suppliers or the production of these parts can be outsourced to other reliable suppliers who can supply these parts at the desired quality and quantity at the right place and time.
9.  Effective Communication between teams can help to respond to the varying market demand. This will help the procurement department to procure supplies in case of increased demand and will also intimate the sales department to reduce the prices and destock the less sold product. While changing production schedules, the opinion of all the departments need to be taken in consideration to avoid any last minute hassles.
10. Increased Production and Purchasing in low-cost countries – As a company increases its production and purchasing in low-cost countries, it is able to adapt itself to changing prices eg. Husqvarna has a well-developed production base to handle variations in demand related to seasonality and weather conditions. A major reason being that the share of purchases from low cost countries is increasing steadily, and amounted to approximately 23% in 2009.
11. Build models to evaluate the possible alternatives i.e. “What if Analysis”– The Company should build models that are expected to work in case of any deviations in the supply chain. This requires the managers to predict the various ways in which things may go wrong and be prepared for them.
12. Role of Human Resource Department - The workers should be conditioned to be resilient and flexible. The HR department should ensure that the workers have enthusiasm for their work.

References

http://blogs.hbr.org/cs/2007/08/building_a_resilient_supply_ch.html (last accessed on 18 March’ 2011)

http://en.wikipedia.org/wiki/Collaborative_planning,_forecasting,_and_replenishment (last accessed on 18 March’ 2011)

https://www.mckinseyquarterly.com/Building_a_flexible_supply_chain_for_uncertain_times_2330 (last accessed on 18 March’ 2011)

http://www.scdigest.com/assets/newsviews/06-03-08-1.cfm (last accessed on 18 March’ 2011)

http://corporate.husqvarna.com/?p=about&s=strategy&t=supply_chain&afw_lang=en (last accessed on 18 March’ 2011)

Rohit Bhagat has done his B.E. in Electronics and Communication Engineering from Netaji Subhas Institute of Technology, Delhi University and can be reached at jeffhardy_027 @ yahoo . co . in

Disney’s FASTPASS

During my visit to Disneyland Hong Kong a few years ago, I observed how Disney had made an attempt to eliminate waiting queues through the use of FASTPASS^TM. Left quite impressed with this concept, I am describing it here.

 Disney has come up with one of the most unique and innovative ways of making the wait invisible through the application of virtual queues. Disney has become a leader in this queuing advancement which allows customers to engage in other activities while they wait for their desired activity at an appointed time.

Disney is addressing this problem through its “virtual queue system” known as FASTPASS^TM. It allows the visitors to stand in a virtual queue by registering themselves. On registering, they will be given a time duration during which they should come back and join a smaller queue.

The idea behind this system is to have a queue of less than 15 minutes.   

FASTPASS^TM is very easy to use. One just needs to walk to the FASTPASS^TM attraction of one’s choice. At the FASTPASS^TM distribution centre, one can see a board listing the current standby time and the current FASTPASS^TM return time. To make a registration, one needs to insert one’s park ticket in the FASTPASS^TM distribution machine

The system was first tested at Walt Disney world in 1998. The system was assessed by surveying the guests who used it. Results were positive and indicated that guests spent considerably less time in lines, spent more per capita, and saw significantly more number of attractions. Needless to say, satisfaction levels skyrocketed.

The  system was  expanded  in  1999  to  include  five  of  the most  popular  park  attractions,  and was  named FASTPASS^TM. The system has since been expanded to all Disney theme parks worldwide, and is now used by over 50 million guests per year.    

To  ensure  that  guests  feel  comfortable  in  using  precious  waiting  time  to  do  other  things,  FASTPASS^TM designers added some flexibility into the system. Once an assigned FASTPASS^TM time is generated and provided to a guest, it is good for the 1 hour beyond that time creating a “window” in which guests can return.

FASTPASS^TM has been able to add to the bottomline of Disney as the key feature of the FASTPASS^TM system is choice. A quick survey of an attraction’s queue found that FASTPASS^TM  allows guests to pick the shorter wait and move on to something else. Disney managers knew that the queues were self regulating, but were perplexed as to why some guests actually chose traditional waits. They soon learnt that those who chose traditional waits were most often holding FASTPASS^TM tickets for another attraction. Thus, the system allows them the opportunity to see two attractions during the time they would have previously been able to see only one attraction. Obvious results were that guests were able to engage in more revenue producing activities, saw more of the popular attractions, and began to involve in other less utilized attractions in their free time.

References

http://en.wikipedia.org/wiki/Disney's_Fastpass (last accessed on 8 April’2011)

http://park.hongkongdisneyland.com/hkdl/en_US/general/guestServices?name=FastPassPage (last accessed on 8 April’2011)

www.cluteinstitute-onlinejournals.com/PDFs/1180.pdf (last accessed on 8 April’2011)

www.disneygeek.com/Disneyland Resort Guide (last accessed on 8 April’2011)

www.cluteinstitute-onlinejournals.com/PDFs/1180.pdf (last accessed on 8 April’2011)

Rohit Bhagat has done his B.E. in Electronics and Communication Engineering from Netaji Subhas Institute of Technology, Delhi University and can be reached at jeffhardy_027 @ yahoo . co . in