Week 1 Memo

March 22, 2023

To: Students of Operations and Supply Chain Management (OP300)

From: Mohit Gupta

Supply Chain Conversion Strategy

The Covid pandemic has adversely impacted global supply chains, exposing vulnerabilities and
emphasising the importance of resilience and agility. Geo-political tensions and rampant inflation
has added to uncertainty and complexity in the business environment, and addressing supply
chain disruptions has now become part of strategic business plans worldwide. The focus
progressively shifts to anticipating, responding, and recovering efficiently and effectively from
supply interruptions. Most studies suggest that businesses must diversify their supply chain,
increase visibility and data analytics, focus on sustainability, and build partnerships and strategic
collaborations while implementing robust risk management practices to withstand possible future
disruptions. An alternative option for adaption is a conversion strategy which provides a
countermeasure for managing risk in inter-dependent supply chains, as proposed by authors in
the article “Conversion strategy builds supply chain resilience during the COVID-19 pandemic:
A typology and research directions” (Masahiko Haraguchi, 2023). The conversion strategies
focus on production location, production line, product line, storage, usage, utilisation channels,
and workforce changes.

The authors suggest that a single supply chain function can be transformed into a very different
one to accommodate changes in the operating environment. This article discusses how the
manufacturing industry supported the health system through a conversion strategy in Latin
America and the Caribbean. The study examines whether businesses can manage various risks by
learning from disruptions caused by natural hazards by comparing direct/ indirect impacts on
supply chain disruptions resulting from natural hazards and pandemics. The article provides
relevant examples of six conversion options, whether be it Samsung shifting from Korea to
Vietnam (production location conversion), Ford using in-house 3D printing for face shields
(production line conversion), measures taken by TTI, a distributor of electronic components, to
run warehouses in Asia, Europe, and USA between contractors and clienteles as an alternate to
China (storage conversion), a UK university hospital system repurposing new warehouse to
gather and manage the first surge of anti-pandemic supplies (usage conversion), Starbucks using
a combination of online-offline initiatives to achieve sales volume (distribution channel
conversion) or a German manufacturer of respiratory equipment temporarily borrowing aviation
engineers to increase production capacity (workforce conversion). In the end, challenges for
implementation, policy-related issues, the role of Governments, and the future scope of
developing this framework at strategic levels to mitigate systemic risk has been discussed.

The article provides an interesting take on supply chain strategy. Such measures enable
businesses to be more flexible and agile, especially during uncertain and dynamic business
conditions, and mitigate risks associated with disruptions like pandemics. However, the
conversion strategy would be advantageous if such options have Government regulatory support
and form part of more significant networked stakeholders, which is still a work in progress.

Reference: Masahiko Haraguchi, Thomas Neise, Wenyuan She & Makoto Taniguchi (2023, January). Conversion
strategy builds supply chain resilience during the COVID-19 pandemic: A typology and research directions.
Progress in Disaster Science, 17. doi:https://doi.org/10.1016/j.pdisas.2023.100276
 Week 2 Memo
March 24, 2023

To: Students of Operations and Supply Chain Management (OP300)

From: Mohit Gupta

Inventory Management

Inventory management is vital to a company's profitability by optimising costs without

compromising operational efficiency and customer needs. Businesses can exercise effective and
efficient inventory planning and control in this competitive market by analysing historical data,
current trends, and demand forecasts. The widely used Economic Order Quantity model has
several limiting assumptions which reduce its applicability to the modern-day business
environment. Technology advances have reduced errors and uncertainties in estimation and
contributed to developing robust solutions for real-world applications. The rising popularity of
big data in decision-making has led to using data-driven approaches to make optimal inventory
management decisions. Accuracy in future needs minimises stock-outs and over-stocking,
thereby improving customer satisfaction at optimal costs. It also avoids tying up capital or
wasting valuable storage space. Businesses can also make informed decisions about suppliers'
choices by analysing their performance, while real-time information on inventories can lead to
proactive decisions to mitigate supply chain disruptions. Data-driven inventory management is
helpful to businesses in identifying opportunities to optimise pricing options to increase margins.

In the HBR article ‘Inventory Management in the Age of Big Data’ (Cohen, 2015), the author
mentions that advanced machine learning and optimisation algorithms can search and exploit
observed data patterns, correlations, and relationships to implement and evaluate performance-
based deliverables like lower costs and/ or enhance customer satisfaction. The traditional two-
step process of generating forecasts and then using them as inputs for optimisation to assess
trade-offs, is replaced by a single-step process to identify the best relationship between all
possible decisions using the full range of available data to achieve better operational
performance. The impact would be even more significant when considering data available
through the Internet of Things. In this scenario, real-time performance data of connected
products is correlated with sales-based data for maintenance and replacement, using a
prescriptive analysis approach. However, this solution will not be universal. There would be
exceptions, such as online apparel retailing, where the retailer has minimal information on the
probability of a consumer's buying decision based on prices.

According to the author, despite challenges, data exploitation is inevitable given data sources'
connectivity, capacity, transparency, and the abundance of computing capacity and data storage
available at low cost. In due course, inventory management will be transformed into intelligent
systems, and businesses that adopt them early will secure a competitive edge. A wide range of
internal organisational functions will be required to successfully implement this change, along
with a high degree of coordination with supply chain partners and customer engagement.

As discussed by the author, it is evident that data-based intelligent inventory management

systems have the potential to transform the way businesses manage their inventories by quickly
responding to changes in demand or supply through real-time visibility. It provides a quick
competitive advantage in the fast-paced and dynamic business environment.
Reference: Cohen, M. A. (2015, June 24). Inventory Management in the Age of Big Data. Retrieved March 25,
2023, from hbr.org: https://hbr.org/2015/06/inventory-management-in-the-age-of-big-data
 Week 3 Memo
March 30, 2023

To: Students of Operations and Supply Chain Management (OP300)

From: Mohit Gupta

Digital Supply Chain Management

In today's complex and dynamic business environment, organisations value their supply chain as
a competitive advantage rather than a cost. As a result of the globalisation of facilities such as
sourcing, manufacturing, and logistics, customers' expectations regarding quality, variety, and
innovations have continued to rise. Digital technology can drive the convergence of these
elements. As a result, a digital supply chain integrating digital technologies into the traditional
supply chain leads to efficient and effective management and greater visibility, agility, and
responsiveness to rapid changes in demand or supply. It also enhances competitiveness by
fostering networked processes; optimising the enterprise holistically rather than individual
functions; unites suppliers, manufacturers, distributors, logistics providers, retailers, and even
customers. However, implementing a digital supply chain requires careful planning,
coordination, and investment in infrastructure, technology, and workforce training. Organisation
business goals will drive how it prioritises supply chain digitalisation.

In the article, ‘Digital Supply Chain: Challenges and Future’ (Blandine Ageron, 2020), the
authors point out technological, organisational and strategic challenges that must be addressed to
successfully implement a digital supply chain. The authors highlight the advantages at the
corporate level by bringing in transparency and improved communication between various
stakeholders in material flows along the value chain to avoid any bullwhip effect and make
accurate and timely decisions. They also discuss technologies such as IoT, AI/ML, and Big Data
to affect quality, flexibility, and agility, thereby enabling process/ product optimisation, planning/
inventory efficiency, risk management, and collaboration, amongst other things, to effectively
transform the supply chain at the strategic level. At the same time, digitalisation would also
mandate new skill sets and training for employees as it would change internal work processes of
finance, sales, maintenance, logistics or supply chain significantly. There would be an inevitable
HR challenge to create a supportive work culture that fosters employee engagement and
productivity to navigate the difficult transition period. The role of top management is crucial to
resolve conflicts and challenges of project management (during implementation) and how it
steers through dynamic situations of skepticism. Integration would be required upstream,
downstream, and within the organisation to ensure coordinated processes across partners in the
value chain. As far as the evaluation of the digital supply chain is concerned, it could be
undertaken on strategic, financial and non-financial measures/ metrics or at strategic, tactical and
operational levels.

As can be seen, implementing a digital supply chain can be a complex and challenging
management process. It requires a host of issues like migration from legacy systems, data quality
standardisation, security, workforce readiness, interoperability and integration, amongst other
things. However, once implemented, the digital supply chain can enable businesses to achieve
greater efficiency, visibility, and profitability and provide a clear competitive advantage.

Reference: Blandine Ageron, Omar Bentahar, & Angappa Gunasekaran (2020, October 20). Digital Supply Chain:
Challenges and Future. Supply Chain Forum: An International Journal, 21(3), 133-138.
doi:https://doi.org/10.1080/16258312.2020.1816361
 Week 4 Memo
March 30, 2023

To: Students of Operations and Supply Chain Management (OP300)

From: Mohit Gupta

Project Management

Managing the supply chain is a crucial element of project management as it involves planning,
coordinating, and executing activities in delivering goods and services from suppliers to
customers. By coordinating the flow of goods, services, and information from suppliers to the
project site, project managers can ensure that timelines are met and that materials and resources
are available when required. In project management, supply chain management can play a key
role in ensuring projects are completed on time, within budget, and to stakeholders' satisfaction.
Using technologies such as ERP, EDI, and RFID, project managers can gain real-time visibility
into inventory levels, shipment tracking, and other critical supply chain metrics, allowing them to
make informed decisions and take appropriate action. With a well-managed supply chain, project
managers can reduce the risk of delays and cost overruns and improve the project’s overall
quality. Project managers can optimise their supply chains and improve project outcomes by
focusing on effective communication, collaboration, and technology.

According to the article, ‘Review of Supply Chain Management within Project Management’
(Xinyu Wei, 2021), adopting supply chain management in a project-based environment can yield
substantial benefits; however, it must be carefully planned and executed to be effective. The
authors have identified key elements in this approach and explored the inter-relationships among
four primary application areas: IT integration, organisational coordination, risk management, and
supply chain resilience and complexity. With the use of 'systemigrams', the paper illustrates the
relationship between SCM and project management. The visualisation emphasises the
complementary knowledge between the two as it provides a holistic view of high-level
conceptual integration despite the complexity of the supply chain and differences between
projects across industries. The authors argue that coordination among project participants
through a three-level resource management model of coordination-planning-execution enhances
decentralised, emergent, and concurrent controls and addresses potential conflicts that may
threaten effective resource utilisation and project success. IT integration promotes organisational
collaboration and eliminates information asymmetry. Emerging technologies like blockchain and
big data analytics can transfer real-time information. However, digitally integrated solutions and
traditional project delivery models can only be transformed by properly adopting and
implementing technologies that manage pervasive information. The steps of assessing and
managing supply chain risks also apply to project-based environments. Improving transparency
between tasks and eliminating uncertainty among supply chain participants can reduce project
performance risks. According to the authors, project managers must consider each industry's
uniqueness when integrating SCM within projects, as their relationship is context-dependent.

Managing the supply chain is an integral part of project management, as the success of a project
relies heavily on supply chain management efficiency and effectiveness. To avoid delays and
cost overruns, project managers should collaborate closely with supply chain managers to
identify potential risks and develop mitigation strategies, as changes in the supply chain may
result in changes to the project scope, which may impact the project schedule and budget.

Reference: Xinyu Wei, Victor Prybutok & Brian Sauser (2021). Review of Supply Chain Management within
Project Management. Project Leadership and Society, 2. doi:https://doi.org/10.1016/j.plas.2021.100013