Hello!

I am Karthikeyan from
PerkinElmer
You can find me at
@https://www.linkedin.com/in/thiyagarajan-karthikeyan-
089b8639

Karthikeyan.thiyagarajan@perkinelmer.com

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1 Sustainable LCC strategies – Beyond China
Let’s start with the first set of slides
1 Indirect Sourcing
Let’s start with the first set of slides
Indirect procurement is the
sourcing and purchasing of
materials, goods, or services
necessary for internal use but
not aprt of Final Product
/services . Examples : Travel,
Facilities MRO, Technology
(computers, phones..) etc.,

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Indirect – A PROFIT CENTRE

Indirect sourcing is treated as a Cost center

in many organizations still

hift
S
igm
arad Cost Centre to Profit Centre with
P Major Strategy of Sustainable sourcing
 Impact of Covid – Indirect Commodities
Chemicals
3,6
3,0 Creative Agencies &
Logistics
3,4 Digital Marketing
3,2
3,0
2,3

4,5
Professional Services 3,0 3,4 Promotional Items
1,7

Rating on a scale of 5 (5 represent No Bottleneck in

supply chain i.e more opportunities)
1,2
3,0 1,2 3,3
IT Services
4,0 MRO

2,6
3,0
3,3
Facility Management Construction

Pre COVID Post COVID Source : Beroe

Growth opportunities to Many Indirect Commodities like IT, Chemicals,Facility management etc. thereby
Increasing Buyer Power.So Covid has provided opportunities to Indirect commodities rather than Threat
Strategies
Prescribed

v Cost reduction through Sustainable

Indirect Procurement

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What is
Sustainability

Sustainability means meeting our own needs

without compromising the ability of future
generations to meet their own needs. In addition to
natural resources, we also need to ensure social
resources like Human labor rights and avoid forced
and Child labor

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Sustainability Parameters
Drivers of Sustainability
Impact of Sustainability Drivers on Supply chain
Regulation framework
Impact of Covid – Indirect Commodities
Types of Regulation – By Mechanism
“ Here
you go
with an
Example

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Materiality Assessment – Case study - BASF
Impact of Covid – Indirect Commodities
Cost reduction with
Sustainability

Consolidated lean Supply chain

Optimization of Logistics

Reduction in Waste & Environmental Protection

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Lean Supply Chain through Consolidation to reduce carbon footprint

OEM – Inspection

A B C D

Assembly Supplier
 Optimization of Logistics - Common Pool Collection – Case Study - Bosch

Benefits
Peenya • Reduction in Logistics cost
(3 Suppliers)
(4 Suppliers)
Rajajinagar • Reduction of Traffic/Pollution
9 Kms • Fuel Conservation – Reduce FOREX Outflow
(1 Supplier) 6 Kms
Mysore • JIT supply to Shops
Road
25
Km

Total Distance covered : 40 Kms

s

Total Suppliers Covered : 8

Figures are not true considering confidentially. But proportionate

 Common Pool Collection – Benefits – Case Study - Bosch
Before Collection Project After Collection Project

Vendor personnel

100 nos. 25 nos.

Vendor vehicles

50 nos. 15 - 20 nos.
Transportation Cost

Rs

0.4 Mio INR/mth 0.25 Mio INR/mth

Figures are not true considering confidentially. But proportionate

Reduction in Waste
& Environmental
Protection

Common Pool Collection

Recycling though effective EOL approach

Green Buying

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Recycling through effective EOL approach

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Green Buying
Case Study
– Case
– Bosch
Study - Bosch

Traditional Practice

Green Practice
26
27
Pillars of Sustainable
Sourcing

Wealthy and Safe Nation

Satisfied Customer & Profit with Competitive advantage

Certifications
mapping/COC
Supply chain

Reduced Natural
employees
Motivated

Embraced
Optimised

approach
logistics

resources
Effective Sustainable Sourcing through Globally comp. suppliers

Societal Environment Regulation

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Results in Economy
of a Nation

Increased Business leading inflow of FOREX

Improved GDP

Improved PPP

Creating Competitive Vendors

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Conclusion
Wealthy & Healthy
Global Economy

Satisfied Customer ,
Increased Profit &
Competitive advantage

Effective Materials Management

through Sustainable sourcing

Sourcing Procurement Logistics

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 Thank
you
Time for Interaction

31
Back
up
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Sustainability – palm
oil case study
We will chat over
Points for
Discussion
(Agenda)
v Indirect Sourcing – A PROFIT CENTRE
v Importance of Spend Visibility …
v Digital transformation
v Importance of Sustainable procurement
v Avoiding bull whip effect for Covid medicines
v Productivity improvement in Indirect sourcing

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