Leading Manufacturing Companies – Nestle india
In order to win at the market place, optimisation of the category value chain approach need to be adopted by supply chain managers. Value chain determined from suppliers to manufacturing to logistics and distribution and route to market needs to be responsive, agile and efficient and superior than the competitor brand/category to generate consumer preference. Preferences and choices are rapidly changing and the SCM needs to engineer speed to market, transform new product deployment and design new route to market.
Digital disruption is a huge opportunity to improve responsiveness, cut layers of transaction and handovers and reduce non value-added activities while creating an ability to win at the market place. “GST is one of the fundamental reforms in supply chain and provides a life-time opportunity for supply chain managers to transform end-to-end value chain for customers and consumers,” says Pande.
Taking the total delivered cost approach, distribution network re-design, transport strategy leverage across primary and secondary movements, optimisation of route to market and if possible review of manufacturing and supply base infrastructure and optimisation is a possibility in the medium term horizon. Direct sales from factories to customers, modernisation and mechanisation of distribution centres, sharing MUFs and transport synergies, backhauling, etc would now be embedded in the supply chain strategy.
GST also requires end to end compliance across the value chain to ensure input tax credit realisation and transaction level handovers need to be as per the GST requirement — accurate and timely both on documentation and execution on the ground.