SUPPLYCHAINTRIBE.

COM
JUNE 2023
Volume 7 Issue 6

INSIDE
Indian Supply Chain Startups –
The Ultimate Dealmakers
 Investors’ Evaluation Criteria for
Startups
 Ground rules to sustain & survive in
tough times
 Startups’ poised role to lead the
growth trajectory

THE ‘QUINTESSENTIAL’
FOOD VALUE CHAIN
Unraveling Aspects Redefining the Indian
Food Supply Chain and making it Future-
Ready to serve the global markets
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Akhil Srivastava Arush Kishore Purushottam Tatkar Sachin Gupta Mitesh Gangar Sreekanth V Nikhil Puri
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Kimberly-Clark Kearney Zepto Lava International Mondelez
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Panel 1 – Customer Centric Supply Chain Panel 6 – 3PL CEOs and Users Roundtable

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Panel 2 – Sustainable and Smart Infra &

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Panel 8 – Digital Journey of Omnichannel
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Panel 9 – Last Mile Delivery and

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Atul Barve Laxmana Murthy Ashish Tripathi Aswini Thota Ajit Jangle Ayush Agrawal Dr Firoze Hussain

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Reliance Retail Legrand (India) TORM A/S Bose Coporation FM Logistics

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Dhritiman C R G Panicker Kumar Gaurav Nilesh Belani Rajat Sharma TS Venketram Chetan Kumria
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Ingram Micro Dangerous Goods Hamilton Housewares UNPAUSE Consulting Xcell SCS
Management India Croma Pantaloons
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Anirban Sanyal Ankur Sharma Sanjay Desai Manpreet Kaur Ravikant Parvataneni Kaushik Ghatak Prasanna Salvi
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Century Ply Roquette Humana International Vivantaa Captech Pvt. Ltd Argon & Co ValueQwest Blue Dart
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Irfan Mulla Dr. Arnab Banerjee Sudeep Mehrotra Pavithran Kallada Raghvendra Chandak Dr. Mala Singh Gaurav Bhatia
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Allcargo Logistics Ltd Micron Technology Alvarez & Marsal Actis IGBC Mumbai Reliance Pharma
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Indian Subcontinent
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Sebin Thomas Prashant Ghazipur Saurabh Palsania Rajeev Kadam Vishal Sharma Samrat Paul Vaideeswaran S
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Flipkart Ecom Express Ltd Shree Cement Limited Indorama Zepto Param Network
Marketing India
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GET IN TOUCH
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REGISTER NOW - bit.ly/celeritysct2023

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tech@celerityin.com www.supplychaintribe.events
Food and Funding!
Dear Readers,
While the World will observe the World Food Safety Day on June 07,
the Global Report on Food Crises (GRFC) for 2023 highlights that the
number of people experiencing acute food insecurity and requiring urgent
food and livelihood assistance is on the rise. The report indicates that
over a quarter of a billion people are facing acute hunger, with economic
shocks and the Ukraine war contributing to the increase. In 2022, around
258 million people across 58 countries and territories faced acute food
insecurity at crisis or worse levels, up from 193 million people in 53
countries and territories in 2021.
As the threat of another year of food crises looms ahead, our Cover Story
looks at addressing challenges such as food wastage, food safety and
quality and environmental impact. Experts from this sector discuss multiple
innovative ways including implementation of sustainable production
processes, ethical sourcing, clean and efficient supply chain, etc. Read on
to know more.
The start-up funding winter continues in this soaring heat. In the Special
Report section, seasoned investors reveal their evaluation strategy, and
tips that supply chain startups can address to become more attractive for
VC and PE investments.
This issue packs in a lot more including potential of Metaverse in supply
chain, use of Applicant Tracking System (ATS) to get the best match
for both parties, and some more on customer-centricity and use of lean
management principles for resilience.
Enjoy the read and let us know what you think.

Charulata Bansal
Publisher
Charulata.bansal@celerityin.com
www.supplychaintribe.com

Published by Charulata Bansal on behalf of Celerity India Marketing Services

Edited by: Prerna Lodaya • e-mail: prerna.lodaya@celerityin.com
Designed by: Lakshminarayanan G • e-mail: lakshdesign@gmail.com
Printed by: Xposures, A 210, Byculla Service Industrial Estate, D K Cross Road, Byculla, Mumbai- 400027.
Logistics Partner: Blue Dart Express Limited

4 CELERITY June 2023

CONTENTS JUNE 2023
Volume 7 Issue 6

18 COVER STORY

The ‘Quintessential’ FOOD VALUE

CHAIN
Food supply chains are complex and opaque
networks involving various stakeholders such
as farmers, government machinery, retailers,
logistics providers, etc. Moreover, external
factors such as climate change, price inflation,
Covid and the Ukraine war have been creating
further strain on the global food value chain.
These global disruptions are reinforcing the
need for Sustainable and Resilient Food
Chains. The ‘Quintessential’ Food Value Chain
urgently needs an OVERHAUL, which should
be ably supported by new age tech deployment,
adoption of sustainable practices & innovative
approaches to reduce wastages and a
collaborative spirit to drive holistic growth.

FOCUS 10 | SPECIAL REPORT

07 |Exploring the METAVERSE in SUPPLY Indian Supply Chain Startups –

CHAIN The Ultimate Dealmakers
Prof. Abhishek Behl (Management Development Institute, Seasoned investors share their evaluation strategy, some
Gurgaon, India) and Nirma Jayawardena (OP Jindal ground rules for startups to sustain & survive in tough times
Global University, India), project the future of metaverse in and their poised role to lead the growth trajectory…
supply chain and its potential impact on the same…

35 | Applicant Tracking System (ATS): The 31 | INTERVIEW

Holy Grail of Candidates
Taking the Customer-First Approach
Sanjay Desai, Co-founder & Regional Director, Humana
“To keep customers happy, give them what they want, when
International (S) Pte Ltd., reveals the cheat sheet on ATS
they want it and at the lowest price,” emphasizes Sanjay
for candidates and employers to find the RIGHT MATCH…
Kshirsagar, Head of Supply Chain – South Asia, Brenntag
trends of in-city warehousing in India.
India …
38 | LEA’R’N with Continuous ‘R’ESILIENCE
Prof (Dr) Kalyana C Chejarla and Ganesh
Mahadevan trace a few relevant resilience strategies, using
the lean management principles.

Editor: Prerna Lodaya

DISCLAIMER: This magazine is being published on the condition and understanding that the information, comments and views it contains are merely for guidance and reference and must not be taken
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or omission is brought to her notice for possible correction in the next edition.

The views expressed here are solely those of the author in his private/professional capacity and do not in any way represent the views of the publisher. All trademarks, products, pictures, copyrights,
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No part of this publication can be reproduced or transmitted in any form or by any means, without prior permission of the publisher. All disputes are subject to the exclusive jurisdiction of competent
courts and forums in Mumbai only.

6 CELERITY June 2023

 FOCUS

Exploring
METAVERSE in
SUPPLY CHAIN
New age technological innovations such as metaverse can
have a significant impact on senior supply chain leadership
decisions because they enable novel planning approaches,
quick virtual testing, and accelerated time to market for
new products. Owing to its inherent functionality, the
metaverse would create a virtual supply chain that would
emulate the most minute variables across inventory points,
subcontractors, suppliers, products, buffers, customers,
ships, and trucks. This would ultimately enable companies
to spot potential issues, disruptions, and shortages before
they can occur and take corrective action in advance. Prof.
Abhishek Behl (Management Development Institute,
Gurgaon, India) and Nirma Jayawardena (OP Jindal Global
University, India), through this article, project the future of
metaverse in supply chain and how its potential impact on
Abhishek Behl is an experienced Researcher with
the same… a demonstrated history of working in academia
and research and is currently a faculty at MDI

M
ETAVERSES are edge
technologies that operate from
the bottom up. Digital operations
enhance physical supply chains digitally,
while the metaverse creates a digital
world and translates it into a real one.
Companies and governments around
the world are investing in the metaverse.
Industry practitioners and scholars
have recently begun to pay attention to
the metaverse. According to McKinsey
& Company, the metaverse market is
expected to generate $5 trillion in the
coming years, involving a variety of
products, services, and industries. It
is consequently expected that several
giants and emerging companies will
invest heavily to take advantage of
the opportunities presented by this
new market. With the help of a three-
dimensional (3D) representation and a
variety of applications, the metaverse
can provide immersive experiences that
relate to the physical world. Various
technologies are used to support avatars
Gurgaon. He holds a double doctorate in Business
(i.e., smartphones, tablets, smart glasses, Management with a focus on gamification and
headsets, etc.). These include artificial information management. He has published more
than 100 papers in top tier journals and holds
intelligence (AI), simulations, virtual prominent position in more than 20 journals of
reality (VR), augmented reality (AR), international repute.
extended reality (XR), blockchain, and
digital twins.
METAVERSE SOLUTIONS
FOR SUPPLY CHAIN
OPTIMIZATION
A virtual world can be used to observe
the movement of goods throughout the
entire supply chain. To determine how
the supply chain responds and where
it breaks down, issues such as weather
conditions, component shortages,
and transportation disruptions can be
introduced. The use of these digital twins Dr Nirma Jayawardena is an Assistant Professor
in O P Jindal Global University, India. She
can facilitate the identification and testing
completed BSc in Business Management (first-
of improvements at various stages, and class honours) from NSBM Green University,
when problems arise, the virtual world can Sri Lanka. MBA in International Business from
University of Colombo. Graduate Diploma of
be used to evaluate potential solutions. Business Research and PhD in Marketing from
Metaverse solutions are also capable Griffith University, Australia. Her research
interests include consumer psychology, consumer
of optimizing peak demand planning.
social cognition, digital video advertising, and
In a virtual environment, you can test experimental research.

supplychaintribe.com 7
FOCUS

Metaverse has the potential to integrate the real and virtual

worlds, enabling residents to carry out their daily tasks
without having to move their bodies. As a result, a great
number of businesses have adapted to account for this
recently discovered fact. Every individual is represented by a
corresponding digital avatar that may be communicated with,
managed, guided, and watched over. Companies have the
ability to buy and sell products, monitor operations, receive
information, adjust projections, and deliver services within
the metaverse. As a consequence of this, it becomes a digital
imitation of what businesses actually do.

everything from order management to
distribution and fulfillment, revealing
those areas of the supply chain that
require reinforcement during times of
increased demand. In the real world, end-
to-end supply chain network mapping
contributes to the development of a
more robust and resilient supply chain.
When historical data is unavailable or
irrelevant, artificial intelligence can
produce synthetic data that can be used
to develop forecasts and determine the
best course of action.
METAVERSE-BASED
SOLUTIONS FOR THE
DESIGN AND LOCATION OF
FACILITIES
Commercial and industrial facility
managers are increasingly interested
in using augmented reality to improve
their operations. A digital augmentation
lens allows people to see their physical
environment through augmented reality.
Smartphones use it daily for navigation
or Snapchat filters. Commercial and
industrial facility managers can take
advantage of augmented reality for
convenient assessments. Operational
planning and risk assessment can be
done with it. Currently, 1 out of 5
facility management professionals use
augmented reality for work. AI and IoT
sensors could be used in conjunction with
these facilities to track the movement
of goods throughout the supply chain
once these facilities are constructed.
By utilizing blockchain technology,
they may be able to plan, respond, and
implement the best responses in real
time with minimal human intervention.
As a result of the metaverse, people will
have new opportunities to collaborate
and exchange ideas with each other.
This means, for example, that in the
digital arena, there may be a meeting
between firms and their suppliers,
where they examine and evaluate the
facilities together. There is no doubt that
the presentation of new ideas and the
exchange of comments both contribute
to the facilitation of an efficient and
timely collaboration.

ENHANCE SUSTAINABILITY
WITH METAVERSE SUPPLY
CHAINS
Firms and organisations need to be ready
to confront a crucial question regarding
one of the many business characteristics
that characterise the metaverse which
is that does metaverse is essential and
accountable type of digital technology?
This is an undoubtedly serious subject
in the context of Industry 5.0, which
represents a radical departure from
traditional business practises. Industry
5.0 seeks to utilise cutting-edge technical
innovations to help businesses become
more productive, eco-friendly, and
community responsible.

8 CELERITY June 2023

 FOCUS

Metaverse solutions are also capable of optimizing peak demand

planning. In a virtual environment, you can test everything from
order management to distribution and fulfillment, revealing those
areas of the supply chain that require reinforcement during times
of increased demand. In the real world, end-to-end supply chain
network mapping contributes to the development of a more robust
and resilient supply chain. When historical data is unavailable or
irrelevant, artificial intelligence can produce synthetic data that can
be used to develop forecasts and determine the best course of
action.

The literature on digital driven culture of an organization, the CONCLUSION

transformation has exhaustively
documented how the implementation
of certain digital technologies can have
a negative impact on a variety of facets
of sustainability. For instance, the
deployment of robot’s technology can
assist manufacturing systems in managing
repetitive tasks and helping continuous
systems attain economies of scale as well
as efficiencies. Every piece of robotics
hardware is equipped with sensors,
intelligence that enables it to come to
its own conclusions autonomously, and
the ability to collaborate with humans
to enhance production, quality, and lead
times. Robotics, on the other hand, can
be considered as a danger because it
will likely result in different working
conditions and remuneration, as well
as the possibility of job loss and the
requirement for training programmes.
Large volumes of data can optimise
processes for low scrap, high saturation
of manufacturing equipment, minimal
waste, and high energy efficiency. Big data
manufacturing systems may be capital-
intensive and utilise more energy. Big
data uses 200 terawatt hours each year in
data centres, according to actual research.
This is greater than Argentina, Ukraine,
and Thailand's energy usage, half of the
world's transportation electricity, and 1%
of global electricity demand.
THE CULTURE OF THE
ORGANIZATION AND
THE COMMITMENT OF
STAKEHOLDERS
The culture of the organisation plays a
crucial influence in digital transformation
projects such as the metaverse. It is
possible that progress towards the
metaverse will be hindered by the data-
support of upper management, and
cross-departmental and cross-functional
cooperation. Organizations may also face
difficulties due to a lack of knowledge
about or exposure to the metaverse. The
Metaverse, according to McKinsey &
Company, enables levels of collaboration
in training and agile virtual prototyping
that were previously impossible.
Businesses and their suppliers are now
able to collaborate on supply chain
management because of this lens. The
opinion and engagement of customers,
sometimes in real time, is becoming
more important than it has ever been,
thanks to the metaverse. Nevertheless,
the management of project stakeholders
is most affected by cultural factors.
When individuals are forced to interact
with international stakeholders, some of
them are unable to accept the differences
because they carry different views and
values than those that are prevalent in
their societies.
This is the core cause of the problem.
Before making a purchase decision,
clients in other industries, such as travel
and hospitality, will be presented with
opportunities to participate in immersive
experiences. In addition, clients can
conduct virtual experiments with a variety
of resources, services, and products such
as rooms, excursions, restaurants, and
flights. In addition, companies in a variety
of different sectors have already begun
implementing metaverse technologies
into their operations. For example,
companies such as Amazon, Google,
Apple, Nvidia, and Tencent, amongst
others, are redesigning their goods and
the professions associated with them so
that they can function in the metaverse.
A variety of applications and three-
dimensional (3D) representations make
up the metaverse. Besides smart devices
(such as smartphones, tablets, smart
glasses, headsets, etc.), avatars can
also be accessed through cutting-edge
technologies like artificial intelligence
(AI), simulations, virtual reality (VR),
augmented reality (AR), extended reality
(XR), blockchain, and digital twins. Four
aspects have been discussed through this
article as; metaverse solutions for supply
chain optimization, metaverse-based
solutions for the design and location of
facilities, enhance sustainability through
the use of metaverse supply chains and
the culture of the organization and the
commitment of stakeholders.
After implementation, the lack of
skilled workers has become one of the
primary concerns, whereas security was
the primary concern before adoption.
Strong plans pertaining to human
resources, financial costs, supplier
relationships, and physical infrastructure
should be developed by managers. The
technology, known as the metaverse,
has the potential to integrate the real
and virtual worlds, enabling residents to
carry out their daily tasks without having
to move their bodies. As a result, a great
number of businesses have adapted to
account for this recently discovered fact.
Every individual is represented by a
corresponding digital avatar that may be
communicated with, managed, guided,
and watched over. Companies have the
ability to buy and sell products, monitor
operations, receive information, adjust
projections, and deliver services within
the metaverse. As a consequence of this,
it becomes a digital imitation of what
businesses actually do.

supplychaintribe.com 9
SPECIAL REPORT

Indian Supply Chain Startups

The ULTIMATE
DEALMAKERS
Call it a profit opportunity or unveiling of a new goldmine, the logistics space has been
able to capture investors’ attention for all the right reasons. Sitting on the back burner for
decades, supply chain domain has proven its power during the times of crisis and emerged
as the SHINING STAR of every business vertical. Growing investments into this field has
only accentuated the performance and projection of this MIGHTY BEAST. This resurgence
has been ably supported by the advent of tech-savvy and eco-conscious supply chain
startups who are harmonizing and optimizing the supply chain network of the country. This
Story captures the trendsetting landscape enabling a constant infusion of investments
from ivy league investors. Here’s an attempt to capture investors’ evaluation strategy for
investing, some ground rules for startups to sustain & survive in tough times and their
poised role to lead the growth trajectory…

I
NDIA’S private equity industry has
evolved significantly, with a broadened
investor base that quadrupled from
200 to 800 active investors since
early 2010s, diverse pools of capital, and
acceleration in buyout capital for quality
assets, as highlighted in a recent Bain &
Co., research report. This has enabled
tremendous growth in exit opportunities,
complemented by the growth in strategic
sales and secondary markets, resulting
in value capture of 10x to 20x for
multiple investors across investment
cycles since the 2010s. A supportive
regulatory landscape, innovative digital
infrastructure, and deepening maturity
of founders and talent have all led to
this spurt in investment landscape for
startups. Indian private equity, bolstered
by a maturing ecosystem, demonstrates
confidence and resilience to navigate
the turbulence ahead and continue its
accelerating flywheel of growth.
Another interesting research by
Redseer Strategy Consultants highlighted
that India has in the past weathered
such economic storms owing to strong
business fundamentals. In the next few
years, India will shine as the preferred
investment haven despite certain
challenges. India may see 100-plus
matured, large-scale, profitable startups
in the next five years. About 20 of these
startups are already being listed and the
others can look at an IPO journey. Until
2021, investors had a fear of missing
out and had made several investments
without due diligence. In 2022, a gradual
shift was witnessed in the investment
approach. In 2023, startups have to show
how differentiated they are. They must
demonstrate their scalability and ability
to grow and demonstrate how they are
reducing cash burns. Taking cognizance
of the matter, Indian startups have now
begun to prioritize profitability and are
focused on getting their fundamentals
right. The attitudinal shift makes the
Indian startup ecosystem attractive to
investors.
Latest updates only reflect the reigning
supremacy of Indian startups when it
comes to attracting investors… Some
of the world’s largest logistics players
and private equity fund managers such
as Panattoni, Investcorp-NDR Group,
RMZ, Hiranandani-Blackstone, Actis,
Assetz Property, Ivanhoe Cambridge and
Prologis are fast making a foray or are
expanding their wings into this highly
promising Indian industrial and logistics
space, which has a total stock of about
350 million square feet (msf).
As per an IBEF report, the
development of industrial and logistics
parks, as well as data centers, is a
new bright spot on the Indian real
estate heatmap. In 2022, these two
segments received US$1.8 billion in
Private Equity (PE) / Venture Capitalist
(VC) investments, representing a 29%
increase year on year. The industry
garnered investments worth US$1 billion
(Rs8,257 crore) at the beginning of 2022.
Over the last four years (2019-2022),
the warehouse and logistics sector has
received a total institutional investment
of US$5.4 billion, with 2022 accounting
for a major 35% portion.
As part of the latest funding
landscape, logistics startup Agraga has
raised Series A funding of $8.5 million
(Rs70 crore) led by venture capital firm
IvyCap Ventures, with participation from
Alteria Capital. Malaysian sovereign
wealth fund Khazanah Nasional Berhad
has bet $40 million (around Rs320

10 CELERITY June 2023

 SPECIAL REPORT

Whenever there is a large problem to be solved or

a big opportunity to be leveraged, innovative minds
get activated. Interestingly supply chain, of late, has
been one of those promising domains for startups.
This territory, though highly complex and vast, is still
at a very nascent stage of technological evolution and
it makes perfect sense for young minds to put their
energies into something which is practically a crucial
Pramod Gupta, part of every business. India’s imperative as well as
Founder and Lead,
focus on improving its supply chain efficiencies, trade
TGF Advisors LLP
competitiveness and ease of doing business are
driving the spurt in
investments.

crore) on Pune-based logistics company
Xpressbees. Welspun One Logistics Parks
(WOLP) has successfully concluded the
initial close of its second Alternative
Investment Fund (AIF), WOLP Fund 2,
raising Rs500 crores from domestic high
net worth and family office investors
within a short span of eight weeks. The
speed of the raise underscores the strong
investor confidence in both, the Welspun
One platform and the prospects of the
warehousing and industrial sector in
India. Celcius Logistics Solutions Pvt
Ltd, which operates the cold chain
marketplace Celcius, has completed its
Series A funding round to take the total
amount to Rs100 crore ($12.2 million)
from Venture capital firm IvyCap
Ventures.
Dr. Ivo Ganchev, Founding Director,
the Centre for Regional Integration, was
quoted as saying, “Opportunities are
vast and Indian entrepreneurs have the
potential to benefit from them. On one
hand, as Bain and Company point out,
structural factors such as low leverage, tech
adoption, and favorable demographics
create conditions for India’s continuous
growth. On the other, due to its relative
market openness, bilingual workforce
and global connections, India has strong
soft power within the international
business community. The potential of
these strengths can be further amplified
when combined with correct market
positioning and strong leadership to fuel
the next chapter of India’s growth story.”
Such a buoyant landscape propelled
us to speak to the enthused investors’
community who is actively partaking
in the supply chain startup growth
bandwagon. The discussions led to them
revealing fascinating facets of investing.
Here’s presenting to you some of the most
striking insights unveiled by them…
How has the supply chain
investment landscape shaped over
the years?
Pramod Gupta, Founder and Lead,
TGF Advisors LLP: All of us recognize the
potential of supply chain in the country.
We have been talking about significant
breakages happening in the supply chain
in the country and the associated costs,
as compared to the Western countries.
This has been adversely impacting India’s
competitiveness, export performance,
etc. Lately, a lot of work has happened
from the government’s side on the
Supply Chain front. Interestingly we have
witnessed a plethora of logistics-tech
startups of varied size emerging from
the country in the last 7-8 years to solve
these challenges. It’s an exciting space
to be in as we move forward. Startups
will continue to invest, and their scale-
up journey will speed up further, given
that initiatives like Aadhar linkages, GST
implementation and use of data analytics
to plug revenue leakages are leading to
increasing formalization of the Indian
economy. But we still have a very large
cash economy. The pace of formalization
needs to pick up pace.
Trucking is still quite fragmented
in our country. Railway freight has the
potential to become very big, but there
are enormous amounts of breakages on
the first mile and the last mile, which
need to be ironed out. Waterways are
virtually non-existent. Then we have
a big issue around non-acceptance of
Electronic Proof of Delivery (EPoD). As
most organizations are just not tuned
to the concept, this results in delaying
the cargo movement substantially.
Moreover, large organizations still treat
the trucks and the truck drivers with a
fair amount of contempt. Even if trucks
move significantly faster, if they are held
up for days for loading and unloading,
then the benefit of faster speeds on
highways is lost. It also significantly
impacts the network and has significant
cost implications.
In terms of supply chain for foreign
trade, the whole world is putting up
higher-and-higher non-tariff barriers
and India is no exception. That also
impacts supply chain efficiencies. Each
of these big scale problems presents
an investment opportunity in the area
of supply chain, subject of course, to
government policies and regulatory
framework also evolving simultaneously.
Ankit Sethi, COO – SE Asia & India,
Fung Investments: Supply chain was
not in the priority list for VCs, especially
when compared to more in-vogue
sectors. Limited knowledge about the
sector within the VC ecosystem also
played a role in this with corporates/
corporate VCs leading the charge in
fostering innovation and startups. With

supplychaintribe.com 11
SPECIAL REPORT

In a sector such as supply chain, collaboration with

stakeholders is key to push innovation and bring in new
ways of working. I would encourage the startups to work
with the larger ecosystem as much as possible. This is
even more important in the critical areas of digitalization
and decarbonization of supply chains. Be close to your
customers and stay abreast of their evolving needs. Have
a razor-sharp focus on value proposition and business
Ankit Sethi, fundamentals. And think of step changes in your areas of
COO – SE Asia
focus.
& India, Fung
Investments

the confluence of various macro and
micro trends shaping out in the last
few years, supply chain and logistics has
gained prominence in the larger investor
ecosystem with the number of deals,
total funding amounts and valuations
increasing consistently.
Akhil Srivastava, Director – Supply
Chain, AB InBev: Supply chains and its
evangelists are striving for continuous
focus around maximising velocity to
serve, minimising variability and in
process building real-time visibility
solution platforms. The supply chain
tech space has of late seen surge in new
incumbents evolving the techstack (which
most claim as proprietary algorithms) to
gain real-time data based analytics for
actionable insights. Very recently firms
like Pando, Roambee, Fareye, Nebularc,
etc., have shown profound interest from
both investor community as well as
established corporates.
The world of RTTVP (real-time track
and visibility protocol) has seen upsurge
and tick in investments. Most of brands
and product firms envision that data
based decision centric supply chains will
be both competitive advantage as well
as opportunity to farm data for future
digitization and monetisation. These
supply chain tech stack firms can play
pivotal role to not just predict but with
deeper data mining start prescribing how
supply chains of futures will help bring
optimisation in business and key drivers
of inventory management, cost arbitrage
as well as sustainability pledges for future
emissions reductions.
Companies will thrive and gain
momentum and our supply chains,
which used to be static and phone calls
enquiry dependent will move towards
dynamic and action oriented just like
today’s smartphones, which can have
our pulse on 24*7 basis with alerts and
notifications to rule out any deviations
and eventuality. The smart chains will be
the game of future, and these will lead
to market leadership and apex positions
for firms, which embrace data centricity
based analytical supply chains …. The
Pulse check … is your supply chain Ready
for One!!
Arindam Mukhopadhyay, Partner,
India Accelerator: Supply chain
investment landscape in India has
undergone significant changes reflecting
the growth and evolution of the Indian
economy over the last few years. While
in the past, investments were limited
primarily to infrastructure projects such
as roads, ports, and railways, in recent
years, there has been a shift towards
more sophisticated and technology-
driven supply chain investments.
One of the key drivers of this change
has been the growth of e-commerce
in India, which has led to increased
investment in logistics and last-mile
delivery infrastructure. Companies
such as Flipkart, Amazon, Snapdeal
and Delhivery have invested heavily in
building out their supply chain networks,
including warehouses, fulfilment centres,
and delivery fleets.
There are other sectors such as
manufacturing, retail, and healthcare,
which have also seen increased investment
in supply chain infrastructure. Further,
rise of technology has also played a
key role in shaping the supply chain
investment landscape in India. This
includes investments in automation,
data analytics, and artificial intelligence
(AI) to optimize supply chain processes
and reduce costs.
What factors have led to this strong
spurt in investments by VCs and
PEs in Supply Chain?
Pramod Gupta: To a certain extent,
whenever there is a large problem
to be solved or a big opportunity to
be leveraged, innovative minds get
activated. Interestingly supply chain, of
late, has been one of those promising
domains for startups. This territory,
though highly complex and vast, is still
at a very nascent stage of technological
evolution and it makes perfect sense for
young minds to put their energies into
something which is practically a crucial
part of every business.
India’s imperative as well as focus on
improving its supply chain efficiencies,
trade competitiveness and ease of
doing business are driving the spurt in
investments. We are witnessing a sea
change in the policy framework and pace
of implementation in the area of supply
chain. There has been a paradigm shift
when it comes to developing logistics
parks, GST implementation, Mission
Gatishakti, Bharatmala, etc. There is
modernization happening in ports
development, railways infrastructure
and road network, to name a few. The
new National Logistics Policy (NLP) puts
equal emphasis on softer aspects like
digitalization and process simplification.

12 CELERITY June 2023


While many of the initiatives have
already progressed significantly, the road
ahead is even more exciting. All these
factors have led to increased investments
in supply chain startups over the last
few years, and this tailwind is likely to
continue in the foreseeable future.
Ankit Sethi: The last few years have
seen supply chains being disrupted
like never before. The evolving geo-
political landscape has put pressure on
the existing structures and has brought
supply chain resiliency right on top of
the global boardroom agenda. Consumer
behavior has been rapidly changing with
consumption being increasingly digitally
influenced and consumers looking for an
omni-channel experience. Consumers
are seeking shorter lead times and a
higher degree of convenience resulting in
re-organization of supply chains. Supply
chain is also key to the fight against
climate change with Scope 3 emissions
accounting for >80% of GHG emissions.
All these trends have put pressure on
supply chains to be agile, transparent,
digital, sustainable and collaborative, and
are therefore creating new opportunities
for innovation. Governments are also
doing their bit, as seen in India, to boost
the sector by investing in infrastructure
– both physical and digital.
Arindam Mukhopadhyay: There are
several factors that have led to a spurt in
VC and PE investments in supply chain:
• Growth of E-commerce: The rapid
growth of e-commerce has created
a huge demand for efficient supply
chain solutions and VCs and PEs
supplychaintribe.com
have made significant investments in
e-commerce, logistics, warehousing,
and last-mile delivery companies.
• Government Initiatives: The Indian
Government has launched several
initiatives such as National
Manufacturing Policy and the Make
in India campaign, which aim to
boost domestic manufacturing and
create a more efficient supply chain
ecosystem.
• Emergence of Technology: The
emergence of new technologies such
as artificial intelligence (AI), machine
learning (ML), and blockchain
have transformed the supply chain
industry by optimizing processes and
improving efficiency.
• Changing Consumer Demand:
Consumer behaviors are changing
with the rise of new models such
as quick commerce, hyperlocal etc.,
which has led VC and PE investments
in these areas.
• Globalization of Business: Companies
are increasingly relying on global
supply chains to source materials
and distribute products and VCs
and PEs have invested in companies
that offer cross-border supply chain
solutions to help companies expand
their reach.
Are there any challenges that you
feel should be ironed out before
looking out for investments when it
comes to supply chain startups?
Ankit Sethi: Founders should be careful
about adopting a one size fit all approach.
The context within which supply chains
SPECIAL REPORT
operate can alter significantly between
geographies and industries, and
therefore picking up established models
from other ecosystems may not be the
right approach. Localization is essential.
Akhil Srivastava: As investors, we
analyze these aspects:
• Which Quadrant are supply chains
looking to solve and how, for which
I refer to the quadrant designed by
imminent Prof. Hau L. Lee, Thoma
Professor – Operations, Information
and Technology, Stanford Graduate
School of Business…
• What Wins/Victory does the startup
wishes to get of three Vs – Velocity,
Visibility or Variability.
• Velocity: In today’s context of instant
gratification, startups are solving for
speed to deliver measured by Service
Level and Rate my Delivery.
• Variability: Today’s supply chains need
to ensure minimal disruptions and
variations to ensure standardization
of product with consistency and
conformity.
• Visibility: Today’s supply chains
need to work on digitization for
ensuring Analytics based Real-Time
intervention for actionable insights.
Investments Thesis should hence be
covering above two concepts along with
the Risks and Reward matrix.
1. Pre Revenue Startups: The idea and
problems they are looking to solve
and tech driven models to enable
faster adoption will be primary
drivers while investing in early (pre
revenue firms). What would also be
critical is to see teams fungibility
and ability to quickly pivot during
this stage to find a PMF (Product
Market Fit) while they master the
MVP (Minimal Viable Product).
2. For Startups which are romping
up capital for growth with Series
A/B should focus as much about
execution as it is about technological
advancements so the following two
factors of operational excellence and
ability to execute by the founders
(their past performance of solving
13
SPECIAL REPORT

Porter’s Five Forces – Threat of new entrants, Bargaining

Akhil Srivastava,
Director – Supply
Chain, AB InBev
power of buyers, Bargaining power of suppliers, Threat
of new substitutes, and Competitive rivalry; are a MUST
to keep a tab on marching ahead and continue to thrive.
Supply chains will lead construction of a ‘new whole-of-
nation’ system for science and technology innovation, to
face heightened odds in the world. Thus, each country/
government is working to build reliable supply chains
locally, offering both an extensive opportunity for startups
along with alleviating the risks of going global.

problems at scale) matter the most.
3. For Late stage startups, it’s about
Digitizing and Monetising the
business, use the traction to spread
global reach and incubate key
partnerships.
Finally, Execution Always Triumphs
the Idea. So, the core to investing will
be in teams who have unparalleled GRIT
and Perseverance to Execute and Win!!
Arindam Mukhopadhyay: Yes, there
are few challenges that supply chain
startups can address to become more
attractive for VC and PE investments…
• The supply chain industry is highly
fragmented, with many small players
operating in different segments of
the value chain. This can make it
difficult for startups to gain scale and
achieve economies of scale, therefore
startups should focus on building a
strong value proposition.
• Building a supply chain infrastructure
requires significant capital
investment, which can be a barrier
for startups. VCs and PEs are often
hesitant to invest in startups that
require large capital investments,
especially if they are unproven in the
market.
• Startups need to adopt emerging
technologies that are available today
to be able to differentiate themselves
by offering innovative supply chain
solutions that can improve efficiency
and reduce costs.
What are the evaluation criteria
for investors for selecting the right
company?
Pramod Gupta: The specifics may vary,
but focus on fundamentals is true of any
startup, irrespective of the sector. The
most important aspect that we look for
before making a start-up investment is
the founding team and are they able to
offer investors a comforting vibe. While
obviously having a sector understanding
or prior experience is a great plus, I have
personally taken bets on people who have
no prior understanding or exposure to
the sector. In terms of specifics of what
people look at in terms of quality of the
founder(s) is their transparency, depth
of problem understanding, work done to
create a business model, their resilience,
and the ability to pivot as and when
needed. Are they open to feedback? Do
they give you a sense of high integrity?
And while having more than one founder
gives us comfort, I have invested in
single-founder start-ups too. If there
are indeed more than one founders, it’s
important to understand their vibes with
each other, clarity of role split and how
do they complement each other.
Once the ‘Founder’ box gets ticked,
we move to other aspects such as the
problem they are trying to solve, is it
significant enough? Is there a Product
Market Fit? How is their GTM (Go-To-
Market)? Are they capable enough to
manage the scale-up and implement
processes as they scale? Do they know
their customers end requirements
well? Have they got the supply-side
and customer acquisition piece thought
through. What progress have they made
in putting partnerships in place, where
needed. As a startup investor, while I
don’t look for perfect answers to all of
the above, but broadly one needs to get a
sense that either these are in place, or the
team is capable of finding answers along
the way. Lot of it is data, but at times,
it is more of conversations and gut feel.
Coming specifically to supply chain
startups, supply chain is an execution-
heavy field, and hence it’s important to
understand whether startup team has in it,
to get down to trenches and execute deeply?
The other thing especially true of supply
chain is that there are a lot of procedural
and compliance requirements and unlike
pure tech services, finance plays a much
larger role in supply chain. Therefore, I
personally put immense emphasis on their
ability to work with the finance and supply
chain of their customers or even suppliers.
In short, the real magic happens when tech
excellence meets operational excellence,
and it's truer in supply chain than in many
other sectors.
Ankit Sethi: Investments in supply chain
startups typically follow the same process
as investments in other sectors. However,
there are certain peculiarities. Firstly,
supply chains can be strongly influenced
by macro factors and developments in
other sectors, and therefore investors
need to have a forward-looking lens
on deciding the trends that they want
to back. Second, the supply chain is
broad with multiple verticals and sub
verticals embedded, each with their
own specific nuances and potential for
innovation requiring consideration by
investors. From a personal perspective,
I look for companies which are working
towards an exponential change as
incrementality may not be sufficient and
would eventually get displaced in this
sector.
Akhil Srivastava: To me, these seven are
the key criteria for making an investment

14 CELERITY June 2023

 SPECIAL REPORT

– Idea; Founder; Team; Product Market
Fit; Clients/Customers or the Target
Market; Scalability; and Competitive
landscape.
Besides, there are several stages that
investors weigh these key criteria for:
• For Pre Seed Stage: Idea and Founder
matter the most.
• For Series A/B Stage: Team, Product
Market Fit, Current Clients /
Customers are the most important
factors.
• For Late stage Startup: Scalability and
Competitive landscape are high on
the agenda of investors.
A due diligence should ensure
reviewing startup’s competitive strategy
and identify which inputs are most
essential for the new supply chain
business. Consider inputs beyond the
scope of traditional supply chains, such
as skills and IP. For example, identify
the owners of software essential to
operations. Then, identify how the supply
chain supports the maintenance of these
critical inputs and which geographies are
involved. Go as far back in the supply
chain startups as possible to gain a
detailed understanding of where these
inputs originate and how exposed client’s
company really is to disruptions across
the globe.
Arindam Mukhopadhyay: We, at India
Accelerator, use the following evaluation
criteria to select the right supply chain
startups:
• Founder: We evaluate whether the
founder has right experience needed
to execute on the business plan, this
includes looking at the founder's
track record, technical and industry
experience, and ability to build a
strong team.
• Business Model: We determine
whether the startup has a large
addressable market and a clear path
to growth, this includes looking
at the attractiveness of industry,
market size, revenue streams,
pricing strategy, cost structure and
competition.
• Traction: We ensure the startup
has proven product-market fit with
existing customers who are willing
to pay for the product or service and
can get new customers efficiently.
• Technology and Innovation: We
look for startups that are leveraging
technology and innovation to create
new and differentiated solutions in
the supply chain domain, which gives
them a significant advantage over the
competitors.
What would be your advice to these
companies to sustain their growth
momentum and be successful in the
long run?
Pramod Gupta: Even though startups
often attract investors on the strength
of their business ideas, unit economics
must make sense right from the start.
So, in parallel with working on product
market fit and GTM, founders need
to double down on unit economics.
Number two, especially in today's
funding environment, startups must
have their runway planned out. We
have seen that a lot of startups end up
chasing vanity revenue where they would
either discount significantly or give away
too much for free or go overboard on
marketing expenditure. There are some
startups who have exhausted virtually
their entire funding on IPL advertising.
I firmly believe that all these things
don’t help. Every startup must keep a
hawk’s eye on the runway and growth
with profitability. And where needed,
investors need to guide – or even step in
– to ensure that happens.
Then in terms of execution, startups
must strike a fine balance between tech,
strategy and execution so that they are
able to implement their ultimate vision.
The most important thing during black
swan events is the agility of the team.
How open are they to inputs? Are they
ready to act to pivot the business or
change the revenue models as per the
evolving scenario? Like everything else
in life, the ones who are more agile and
open to inputs do better than those who
are highly capable but rigid. Startups
should also look out for having a set of
mentors and advisors or experts who are
invested in them and who are happy to
spend time helping them guide through
scale up as well as in handling various
eventualities. There are enough and more
very experienced people who want to
help startups; and it doesn't necessarily
need to be a commercial relationship. I
am myself working with a few startups
to help them scale, grow or even pivot
where needed.

The Indian supply chain sector is poised for strong

growth in the near future, driven by various factors
such as government initiatives, increasing investment in
infrastructure, rising consumer demand, and the growth of
e-commerce. Startups are poised to play a crucial role in
this journey, as they are well positioned to drive innovation
as well as disruption in the supply chain domain.
Arindam
Mukhopadhyay,
Partner, India
Accelerator

supplychaintribe.com 15
SPECIAL REPORT
I would like to mention two of my
investee startups that got impacted by
COVID, but they not only survived, but
they also continue to thrive. Today they
have a growing business and are in the
process of raising much larger rounds.
The first one is Intugine, a leading real-
time multimodal supply chain visibility
platform. One can imagine when a
company’s major goal is enhancing
visibility in the supply-chain world, how
would happen to their business during
COVID; if there is no movement, there is
no need for visibility. Obviously, they got
impacted as deeply as one could imagine,
but they survived. They managed it
through a prudent use of funds, and they
used the Covid period to take care of a
lot of developmental backlogs since there
was no day-to-day operational pressure
coming in from the customer’s side. They
made effective use of that period for
deep enhancements and improvements
on the product side and then as soon
as COVID started easing, they reached
out to their existing customers and
delighted them with the outcomes.
They expanded their offering to existing
customers, and taking references from
the existing customers, they've managed
to go to newer customers. They also used
this time to create offering that have
enabled them to move beyond India and
also get into ocean freight visibility for
international trade.
Another interesting story is about
Syook – a SaaS based Real-Time-Location
platform for business process automation
of enterprises, helping them track assets,
16 CELERITY June 2023
Graph courtesy: Appinventiv
and enhance safety and compliance.
During Covid when the factories were
shut down for a long periods of time or
were partially operational, they pivoted
their stance and even started helping the
government in contact tracing. While it
was not a high revenue generator for
them, it really helped them work through
their product because besides being
gainfully employed for a larger purpose,
they could add dimensions to their
product around dealing with movement
(from earlier situation of handling
mostly stationary situations). They now
have a diversified set of offerings across
multiple use cases, especially those
involving significant compliance and
safety matters, like pharmaceuticals and
offshore drilling.
Ankit Sethi: In a sector such as supply
chain, collaboration with stakeholders
is key to push innovation and bring in
new ways of working. I would encourage
the startups to work with the larger
Key Questions to answer for startups to know if they've achieved product-
market fit:
Ask yourself whether you've met these criteria:
• Is the product creating growth and traction?
• Are consumers spreading the word about your product on their own on
social media or reviews?
• Do people think it is worthwhile to spend money to get your product
with repeat purchases?
ecosystem as much as possible. This is
even more important in the critical areas
of digitalization and decarbonization of
supply chains. Be close to your customers
and stay abreast of their evolving needs.
Have a razor-sharp focus on value
proposition and business fundamentals.
And think of step changes in your areas
of focus.
Akhil Srivastava: Porter's Five Forces
– Threat of new entrants, Bargaining
power of buyers, Bargaining power of
suppliers, Threat of new substitutes, and
Competitive rivalry; are a MUST to keep
a tab on marching ahead and continue to
thrive.
The other prime factor will be
government policies emphasizing self-
reliance and building ‘independent and
controllable’ technology capabilities,
which have increased significantly since
the pandemic. Supply chains will lead
construction of a ‘new whole-of-nation’
system for science and technology
innovation, to face heightened odds
in the world. Thus, each country/
government is working to build reliable
supply chains locally, offering both an
extensive opportunity for startups along
with alleviating the risks of going global.
When shifting supply chains from one
country to another, other considerations
need to be made. Goods are not the
only flows that face disruption. Capital,
people, and data flows also face new
challenges in the decoupling scenario
between world powers. The new
country’s regulatory environment, tax
code, environmental considerations,
workforce skillsets, availability of
finance, and infrastructure — all need to
be thoroughly analysed when evaluating
the benefits and costs of such a move.

For example, reducing geopolitical risks
by moving production to a new country
may come with the benefits of lower
labor costs and fewer taxes, but lurking
political risks and environmental, social,
and governance-related liabilities are
issues that should not be overlooked
instead keenly evaluated for scaling of
businesses.
Arindam Mukhopadhyay: Following
are some of the rules that startups can
imbibe to tide past eventualities and
uncertainties in the future:
• Focus on strategy and the business
model, it should be ready to scale
which means growing exponentially.
• Stay customer-centric to deliver
unfulfilled demand of the customers
by continuously gathering feedback
and use it to improve products and
services.
• Achieve a proven product-market
fit by analyzing the market, target
audience and competitive landscape.
• Build a strong team and an
organization structure that is agile
and allows for scaling.
• Create an efficient way to generate
revenue and cash flow from the
business and manage expenses.
• Finally, be adaptable and resilient,
expect challenges and setbacks along
the way, but learn from failures and
pivot quickly to grow and improve.
How do you project the growth
of Indian supply chain segment in
the future and what crucial role
are startups poised to play in this
journey?
Pramod Gupta: We have just started.
Supply chain growth is closely linked
with manufacturing. If you look at
the last 2-3 decades, very large part
of India’s growth has actually come
from services. We are just entering
the manufacturing era now. And as we
enter the manufacturing era, the role
of supply chain can't be emphasized
enough. Then the reform measures
we spoke about earlier, such as Gati
supplychaintribe.com
SPECIAL REPORT
Criteria to invest in late state startups
• Growth and Momentum at a fast rate
• Customer Acquisition at a low cost: Companies with product-market fit
receive organic and non-paid growth.
• Consumers Retention (loyal and Repeat Sales): Retain consumers
by knowing who is happy with your product and why. Satisfy your
consumers and entice them to buy by determining what product
features are most valued.
• Ability and ease to scale easily when needed: By clearly understanding
what you provide to consumers, your company will experience less
growing pains and be able to scale with ease.
Shakti, port investments, the railways
investment, logistics parks, digital Arindam Mukhopadhyay: The Indian
India movement, National Logistics supply chain sector is poised for strong
Policy, etc., are only accentuating growth in the near future, driven by
the pace of supply chain growth and various factors such as government
accrued investments. initiatives, increasing investment in
And as I said earlier, while there are infrastructure, rising consumer demand,
large problems to be solved or significant and the growth of e-commerce.
opportunities to be leveraged, startups Startups are poised to play a crucial
are uniquely placed to lead the innovation role in this journey, as they are well-
race. Let a thousand flowers bloom. I positioned to drive innovation as well as
am personally truly excited about the disruption in the supply chain domain.
potential that supply chain holds in Following are the areas where startups
times to come, and especially about the are leveraging technology to streamline
role that startups can play in it. operations, improve efficiency, and
provide better services to customers…
Ankit Sethi: India has a growing middle
class with rising urbanization and • Last-mile delivery: This is a critical
incomes resulting in one of the largest area for e-commerce companies, and
and fastest growing consumer base startups can leverage technology and
globally. On the other hand, the Indian innovation to improve the efficiency
government is strongly encouraging of this process.
manufacturing and investing heavily
in the country’s infrastructure. Supply • Warehousing and fulfilment: These
chain would be the pillar on which are critical components of the
these macro trends would sustain, and supply chain, and startups can
this would create strong tailwinds for provide innovative solutions such as
startups in the sector resulting in one automation and robotics.
of the largest opportunities available
globally. I believe startups would play • Supply chain visibility: This is
a pivotal role in shaping the future of becoming increasingly important for
supply chain in India. customers, and startups can create
innovative solutions to improve
Akhil Srivastava: Startups working on visibility and transparency in the
profitable scalability with technological supply chain.
advancements and culture to embrace
changing environment would be the • Logistics: Aggregation platforms
beacon of light for building Resilient can help small and medium-sized
and Agile supply chains, which would businesses access logistics services at
enable Indian corporates gain both a lower cost, and startups can provide
competitive advantage and outreach to innovative solutions in this space.
end consumers.
17
COVER STORY

18 CELERITY June 2023

 COVER STORY

The
‘Quintessential’
FOOD VALUE
CHAIN
According to the United Nations Environment
Programme’s (UNEP’s) Food Waste Index
Report 2021, people globally waste 1 billion
tons of food each year. A staggering one-
third of all food produced globally is lost or
wasted. Food supply chains are complex
and opaque networks involving various
stakeholders such as farmers, government
machinery, retailers, logistics providers, etc.
Moreover, external factors such as climate
change, price inflation, Covid and the
Ukraine war are creating further strain on
the global food value chain. These global
disruptions are reinforcing the need for
Sustainable and Resilient Food Chains. In
lieu of this, the ‘Quintessential’ Food Value
Chain urgently needs an OVERHAUL, which
should be ably supported by new age
tech deployment, adoption of sustainable
practices & innovative approaches to
reduce wastages and a collaborative spirit
to drive holistic growth. Aspects such as
streamlining of processes, improvements
in cold chain infrastructure, complying
with regulatory standards would help in
redefining the overall food supply chain and
make it READY to serve the global markets.

supplychaintribe.com 19
COVER STORY
A
recent Press Information
Bureau release stated that
India’s agriculture sector
has been witnessing robust
growth with an average
annual growth rate of 4.6% over the last
six years. This has enabled agriculture
and allied activities sector to contribute
significantly towards country’s overall
growth, development, and food security.
Further in recent years, the country
has emerged as the net exporter of
agricultural products, with exports in
2021-22 touching a record US$ 50.2
billion.
While these stats offer much to cheer
about… there are myriad challenges on
the way to achieve the ultimate vision of
achieving an agile, adaptive, and efficient
food supply chain. A well-developed
food processing sector with improved
infrastructure like cold storage and better
logistics can help the country in not only
achieving the stated vision, but will also
result in reducing wastage, improving
value addition, ensuring better farmers'
returns, promoting employment, and
increasing export earnings.
Initiatives like the National
Agriculture Market (eNAM) and
the Promotion of FPOs formation
have been introduced to strengthen
the agricultural market. With the
interventions including Pradhan Mantri
Krishi Sinchayee Yojana (PMKSY), PM
Formalisation of Micro food processing
Enterprises (PMFME), production-
linked incentives (PLI), etc., attempts
have been made to boost the food
processing industries to harness its
linkages with the agriculture sector.
Ministry of Food Processing
Industries (MoFPI), through its schemes,
is helping to strengthen food processing/
preservation infrastructure with efficient
supply chain across the country and
thereby reducing gap between production
and processing capacity & post-harvest
losses. The Ministry is also implementing
a Scheme for Integrated Cold Chain, Value
Addition and Preservation Infrastructure
as one of the component of Pradhan
Mantri Kisan Sampada Yojana with the
objective of reducing post-harvest losses
of horticulture and non-horticulture
produce and providing remunerative
price to farmers for their produce.
As per the Economic Survey 2022-
20 CELERITY June 2023
23, to facilitate the unfettered growth
of the food processing sector, there
is a continuous need for extensive
investment in cold chain infrastructure
and address logistical challenges. In fact,
the NITI Aayog Strategy for New India
also identifies the lack of adequate and
efficient cold chain infrastructure as
a critical supply-side bottleneck that
leads to massive post-harvest losses
(mostly of perishables) estimated at
₹92,561 crore annually. The uneven
geographic distribution of cold storage
infrastructure also contributes to
regional-level disparities.
During a recent event, Shri Manoj
Ahuja, Secretary, Department of
Agriculture and Farmers Welfare, said,
“Ministry of Agriculture recognizes the
importance of the cold chain industry
in ensuring food safety, reducing food
waste, and increasing the shelf life of
perishable products and ministry has set
up an extensive outlay of policies and
programs to give strength to this sector.
Technological innovation is crucial for
the growth and development of the
Indian Cold Chain industry. With the
advent of advanced refrigeration and
cooling systems, industry is now able to
store and transport goods at much lower
temperatures, which helps to extend
the shelf life of perishable products.
This has led to an increase in the export
of perishable goods from India, as the
products can now reach international
markets in better condition.”
Dr. Abhilaksh Likhi, Additional
Secretary (DA&FW), said, “The Indian
Cold Chain industry is expected to
experience significant growth in the
coming years. The increasing demand
for perishable goods such as fruits,
vegetables, and meat products, as well
as the rise in e-commerce and online
grocery sales, are driving this growth. As
the demand for these goods continues to
grow in India, the government recognizes
the need to support the development of
the cold chain industry in order to ensure
food security and public health.”
In the management of food supply
chains, criteria including the incoming
quality of materials, processing
methodology, storage conditions,
outgoing quality, and much more must
be documented at each link in the
chain. Synchronizing and sharing this
information among all of the parties
along the chain is critical for enabling lot
traceability, collaborative coordination
and optimization of operations, product
consistency and quality management,
regulatory compliance, and ultimately,
customer safety and satisfaction.
Industry experts in this sector have
been vocal about the challenges being
faced to streamline their supply chain
network and have been taking innovative
measures to strengthen FOOD supply
chain network in the country aimed at
reducing wastage on the go and delivering
FRESH produce to their end consumers.
Here’s capturing the developmental
landscape and strategies to enhance the
logistics infrastructure…
WASTE MITIGATION
STRATEGIES – A MUST FOR
SURVIVAL
The Food Value Chain has been marred
with one of the biggest constraints
in its growth – HUGE WASTAGES.
Globally, around 14% of food produced
is lost between harvest and retail,
while an estimated 17% of total global
food production is wasted (11% in
households, 5% in the food service
and 2% in retail), according to stats by
UN Food and Agriculture Organization
(FAO). Forward-looking companies are
constantly addressing this challenge
through innovative measures.
Somnath Chatterjee, Executive Vice
President & Head of Procurement
and Logistics, ITC Foods Division,
elaborates, “Forward-looking companies
are addressing the challenge of food
wastage by focusing on more efficient
and sustainable production processes,
utilizing more data-driven solutions to
optimize, and forecast supply chains, and
developing innovative retail solutions to
reduce food wastage. Companies are also
investing in conservation technology,
investing in education, and training
initiatives that promote food waste
prevention, and collaborating with local
markets and farmers to reduce waste.
Additionally, companies can implement
incentives to promote food donations,
source or produce products with higher
nutritional value and longer shelf life,
or use non-toxic packaging materials to
extend the shelf life of products.”
 COVER STORY

Abhishek Joshi, Country Lead
- Ag-Business & Supply Chains,
Transform Rural India, states, “The
key differentiation is to clearly identify
two distinct areas for addressing this,
without which any strategy or operational
intervention within the entire supply
chain would be meaningless. These are
“food loss” & food waste”. Perhaps they
appear similar, they are not. Food loss
is lack of planning of supply & demand
vectors, non-directed efforts in mitigating
risks & misaligned production feeding
the downstream channels – inventories,
warehousing, channel alignment and
fulfilment. At the composite upstream
system, food waste majorly, is at
consumers’ and channels’ level, resulting
from misaligned upstream plays.
Overstocking of inventory, non-directed
inventories to identified channels,
packaging-pack- mixing with lots over
or its under availability at shelfs, better
transport configurations, seasonality
pull strategies, predictive forecasting
not meeting or over exceeding demand
at retailers’ end and timely marketing
or directed promotional priorities. For
the composite downstream system.
concurrently for both, Data visibility is
important.”
He expresses that the high-
performance companies with a good
product mix of perishables & expired
products for food consumption are able
to sequester integrated efforts across
all nodes of their supply chain system.
Some measures are interlining the ‘origin
source’ of forecasting, planning and
procurement, outlining key inventory
standards for optimized efficiency,
increasing digital adoption across the
curve & investing in technologies where
efficiencies are shorting performances,
increasing visibility for both synchronous
& asynchronous nodes, collaboration
beginning from suppliers-suppliers
to customers-customers, adaptive
packaging with transportation and
fulfilment as key fulcrums ‘the product
line / SKU density’ mix, as we say & NOT
solely on center of gravity of distribution
priorities for omni channels. The key
aspect however, which has differentiated
these high-performance organizations to
reduce both ‘loss & waste’, essentially lies
in collaborative efforts of all partners in
their supply chain system.
According to Harish Kumar,
Director – Supply Chain, House of
Spices India, most companies in the
food & beverages sector are addressing
the challenge of food wastage through
various strategies and initiatives. Some
key approaches include:
• Improving Supply Chain Visibility:
Enhancing visibility across the supply
chain is crucial for identifying areas
of waste and implementing targeted
solutions. Companies are utilizing
advanced technologies to track and
monitor food products throughout
the supply chain. This enables better
inventory management, reduces
losses due to spoilage, and facilitates
real-time decision-making.
• Cold Chain Management: Maintaining
proper temperature control
throughout the cold chain is crucial
to prevent food spoilage and
extend shelf life. Companies are
investing in advanced refrigeration
technologies, cold storage facilities,
and transportation systems to ensure
optimal temperature conditions and
reduce food waste associated with
inadequate cold chain infrastructure.
• Product and Packaging Innovations:
Companies are investing in research
and development to develop
innovative products and packaging

As consumers become more concerned

Somnath Chatterjee,
Executive Vice President & Head
of Procurement and Logistics, ITC
Foods Division
with the origins of their food, the food supply
chain may shift towards greater transparency
and traceability, enabling consumers to make
more informed choices about what they eat.
Companies can reduce their carbon footprint
by using renewable energy sources, improving
transportation efficiency, and investing in
energy efficient technologies. They can aim
to design and operate their food value chain
according to circular economy principles
by reducing waste and actively reusing or
recycling materials wherever possible. Overall,
the food supply chain is likely to become
more diverse, flexible, and responsive to
changing consumer demands, while at the
same time adopting more sustainable and
efficient practices to help meet global food
demand.

supplychaintribe.com 21
COVER STORY
solutions that minimize waste. This
includes techniques like modified
atmosphere packaging, intelligent
packaging, and compostable materials
that extend shelf life, reduce spoilage,
and enhance overall sustainability.
• Collaborative Partnerships: Many
companies are forging partnerships
and collaborations across the food
value chain to address wastage
collectively. This involves close
coordination between farmers,
suppliers, manufacturers,
distributors, retailers, and even
non-profit organizations. By sharing
information, resources, and best
practices, these collaborations can
identify inefficiencies, streamline
processes, and reduce overall food
waste.
• Consumer Education and Awareness:
Companies & government both
recognize the importance of consumer
behaviour in minimizing food waste.
Examples like the campaign of "Love
Food Hate Waste" initiated by the
UK's Waste and Resources Action
Programme (WRAP) and "Save Food,
Share Food" Campaign by Feeding
India. They invest in educational
campaigns and initiatives to raise
awareness about the issue and
22 CELERITY June 2023
provide practical tips to consumers
on reducing waste at home, proper
food storage, etc.
PITFALLS ON THE WAY…
There are several pressing concerns
that companies are facing in managing
their supply chain, deciphers Somnath
Chatterjee. Some of the most common
ones include:
• Supply Chain Disruptions: One of the
biggest challenges companies face
is supply chain disruptions, such as
natural disasters, pandemics, trade
disputes, and transportation issues.
These disruptions can impact the
entire supply chain and can result
in delayed or missed deliveries,
increased costs, and loss of revenue.
• Managing inventory: Companies
must strike a balance between
holding enough inventory to meet
customer demand and controlling
inventory costs, such as storage and
obsolescence. Accurately forecasting
demand and effectively managing
inventory levels is a key challenge
facing companies.
• Supplier management: Companies
must ensure that their suppliers
are reliable and ethical. They must
monitor suppliers for quality, delivery
performance, and financial viability.
The challenge is to find suppliers that
meet these criteria and to maintain
good relationships with them.
• Cost pressures: Companies are under
pressure to reduce costs while
maintaining high-quality products
and services. They must find ways
to reduce costs across the entire
supply chain, including sourcing,
transportation, and inventory
management.
• Managing complexity: Many
companies have complex supply
chains that span multiple countries
and involve numerous partners and
vendors. Managing this complexity,
while maintaining visibility and
control, is a significant challenge for
companies.
Overall, managing the supply chain
is a complex and challenging task for
companies. Companies must adapt to
changes in the market and maintain
flexibility, while also ensuring that they
meet customer demands and remain
profitable.
Harish Kumar adds that in managing
the supply chain in the food industry,
companies face several challenges that
impact their operations and overall
performance. Here are some of the most
significant challenges:
• Food Safety and Quality: Ensuring
food safety, following regulatory
compliance and maintaining high-
quality standards is a critical
concern for companies. They must
adhere to strict regulations and
standards to prevent contamination,
maintain product integrity, and
safeguard consumer health.
Monitoring and managing food
safety risks throughout the supply
chain, including during production,
transportation, and storage, is a top
priority.
• Supply Chain Complexity: The food
supply chain is often complex,
involving multiple stakeholders,
diverse products, and global
distribution networks. Lack of end-
 COVER STORY

The government has recently announced the launch of ‘Agriculture Accelerator

Fund’ – aimed at bringing innovative and affordable solutions for challenges faced
by farmers. It will also bring in modern technologies to transform agricultural
practices, increase productivity and profitability. Additionally, the government
announced its intent to build an open-source digital public infrastructure that will
likely support agtechs with relevant information services across the value chain.

to-end visibility hampers efficient mitigate risks related to supplier

decision-making and increases the
risk of disruptions.
• Demand Volatility and Forecasting:
The food industry is subject to
demand volatility influenced by
changing consumer preferences,
seasonal variations, and unforeseen
events such as natural disasters
or pandemics. Accurate demand
forecasting becomes challenging,
leading to inefficiencies such as
overstocking or stockouts.
• Cost Pressures and Margin
Optimization: Cost management is
a constant concern for companies
operating in the food industry.
Fluctuating raw material prices,
transportation costs, energy
expenses, and labour challenges can
impact profit margins.
• Sustainability and Environmental
Impact: Growing concerns about
sustainability and environmental
impact drive companies to address
issues like greenhouse gas emissions,
water usage, waste management,
and responsible sourcing practices.
Balancing economic viability with
sustainable practices is a key challenge
in managing the food supply chain.
• Supplier Risk Assessment: Maintaining
a reliable and resilient supplier
base is crucial for companies in the
food industry. Supplier selection,
qualification, and performance
management are essential to ensure
consistent product quality, on-time
delivery, and continuity of supply.
Companies actively assess and
reliability, geopolitical issues, natural
disasters, and other potential
disruptions.
INNOVATIVE PRACTICES
TO MANAGE FOOD SUPPLY
CHAIN
Large companies often implement
innovative practices in managing their
supply chains to increase efficiency,
reduce costs, and improve the overall
performance of their business. Overall, the
use of innovative practices in managing
supply chains enables large companies
to gain a competitive advantage in the
marketplace, while also improving their
sustainability and resilience in the face
of ongoing challenges and disruptions.
Some innovative practices that large
companies follow in managing their
supply chains, as offered by Somnath
Chatterjee, include:
• Implementing real-time tracking
and monitoring of inventory levels
and shipments using advanced
technologies such as RFID, GPS, and
IoT
• Using predictive analytics and
machine learning algorithms to
forecast demand and optimize
inventory levels and distribution
patterns
• Collaborating with suppliers and
distributors to share information and
improve visibility across the supply
chain
• Adopting sustainable and
environmentally friendly practices
such as using renewable energy,
reducing waste, and implementing
reverse logistics
• Establishing agile and flexible supply
chain models that can quickly
respond to changes in market
demand, disruptions in the supply
chain, and new opportunities
• Investing in automation and robotics
to increase efficiency and accuracy
in the supply chain, especially in
areas such as warehousing and
transportation
• Implementing blockchain technology
to improve supply chain transparency,
traceability, and security, making it
easier to track products and prevent
counterfeits.
To address the concerns in managing
the supply chain in the food industry
and promote more efficient and effective
operations, companies have implemented
various innovative practices. Here are
some examples presented by Harish
Kumar:
• Supply Chain Digitization and
Integration: Digital transformation
initiatives involve integrating
disparate systems, applications, and
data sources to achieve end-to-end
visibility and streamline processes.
This includes implementing
Enterprise Resource Planning (ERP)
systems, cloud-based platforms, and
supply chain management software
to enable seamless information flow
and collaboration.
• Supplier Collaboration and Risk
Management: Effective supplier
collaboration is crucial to
managing risks in the supply chain.

supplychaintribe.com 23
COVER STORY

The adoption of technology is creating wonders

Abhishek Joshi, Country Lead
- Ag-Business & Supply Chains,
Transform Rural India
in the modern food supply chain. It is perhaps
one of the best sectors, immediately after
pharma, which has not only evolved upon
adding to its supply chain maturity standards
but also been at the forefront in not only in
leveraging but frequently seen deploying
unique high-end technology driven models
for its customers. With customers keen not
only about the safety, quality and batch life
of the products anymore but are demanding
to know the origin source of raw materials
in processed foods, from sourced ethically
to processed hygienically, the traceability in
modern food supply chains is now given. The
food supply chains internally also are shifting
from earlier track & trace to now monitoring
real-time data by harnessing powers of IoT
(sensors) for efficient monitoring and control
of its inventories in flow to retail shelves.

Companies engage in proactive
supplier relationship management,
including regular communication,
joint planning, and risk mitigation
strategies. Supplier assessment
programs help ensure compliance,
quality, and reliability.
• Last-Mile Delivery Innovations: Last-
mile delivery is a critical aspect of
the food supply chain, and companies
are exploring innovative solutions
to improve efficiency and customer
experience. This includes route
optimization algorithms, delivery
drones, lockers, and crowd-shipping
models that leverage the sharing
economy.
• Robotics and Automation: Robotics
and automation technologies are
employed to streamline processes,
reduce labor-intensive tasks, and
improve operational efficiency.
Automated systems can handle tasks
such as sorting, picking, packing, and
palletizing, leading to faster order
fulfilment and reduced errors. India
is still catching up on this trend and
there’s a long way to go.
• Advanced Data Analytics and Predictive
Modelling: Leveraging data analytics,
machine learning, and predictive
modelling techniques can provide
valuable insights for demand
forecasting, inventory optimization,
and risk management. Companies
analyze historical data, market
trends, and external factors to make
informed decisions and mitigate
supply chain uncertainties.
ENHANCING DEMAND
PLANNING AND
FORECASTING
The latency of demand planning &
forecasting has predominantly now
covered with the rapid adoption of digital
tools and emerging ML/AI embedded
standard definitions of such digital
products. According to Abhishek Joshi,
the assimilated technology is enabling
to overcome any planning elasticity,
which could have earlier impacted the
synchronization of processes, facilitating
companies to reduce risks, optimize
both – information & physical flow of
products & services envelope – meeting
customers’ end requirements. However,
despite these trends, most organizations
continue to grapple with meaningful
decision-making insights. One aspect
of that is proliferation of ‘fad techs’,
which do not necessarily integrate or
speak easy to each other when adapted
to larger aspect of whether they have
been carefully deployed to address any
of the pertinent challenges, which the
organization struggles to respond.
“The answer is not simple, however
enhancement or value earning pivot
purely from system and processes
standpoint can only be secured when
organizations are acutely aware of their
process strengths and weaknesses.
The balance of efficiency, optimized
flows, increased visibility, predictive
and prescriptive analytics for demand
analysis, sales & operations planning,
forecasting accuracy with visibility to
shifting trends in demands, consumer
choices and channels to inventory
management & fulfilment have to be
balanced to ensure any digital adoption
is cost effective, reinforces, and enhances
value and is able to differentiate the
competitive value both for its suppliers
and its customers. The choice of
evaluation is critical, the objectivity of
changing landscape and dynamics of
linear and omni channels is critical. Above
all, customer preferences, serve cost to
customer, cost of change management,
scale up of the adopted tech besides other
aspects of redundancy by exercising

24 CELERITY June 2023

 COVER STORY

investments in such technologies is
the most critical aspect when planning
to enhance functions. Organizations
would have to layer these up and see
if automation is for automation’s sake
justifies for organizational long-term
objectives without operational supply
chain systems’ dilution,” elucidates
Abhishek Joshi.
There are several ways companies
can work towards enhancing demand
planning and forecasting, according to
Somnath Chatterjee. These are:
Fundamental changes to global behavior, coming from both the public and
private sectors, could boost transparency and resilience to the global food
system. Potential steps to take include the following:
• Sustainably transform agriculture to boost yields, especially in importing
countries with fast-growing populations
• Find ways to reduce global food waste and optimize use of land for
food and biomass production
• Accelerate the development and adoption of alternative meat and
encourage the consumption of the most efficient proteins.
Source: McKinsey

• Collect and analyze data: Good

data is key to accurate forecasting.
Companies should collect historical
sales data, customer orders, and
market trends from various sources
and use analytics tools to gain
insights into how different factors
affect demand.
• Improve forecasting methods:
Companies can use statistical models
and machine learning algorithms to
develop more accurate forecasting
models. They can also use scenario
planning to evaluate the impact of
changes in economic conditions or
other factors on demand.
• Increase collaboration: Companies
should involve all relevant
stakeholders, such as sales teams,
marketing teams, and supply chain
partners, in the forecasting process.
Increased collaboration can help
identify potential demand drivers
and barriers, as well as improve the
accuracy of forecasts.
• Leverage technology: Many software
solutions are available that can
help with demand planning and
forecasting, including enterprise
resource planning (ERP) systems and
demand planning software. These
tools can help automate data analysis
and forecasting tasks, freeing up
resources for strategic planning.
• Adapt to changes quickly: Demand
planning and forecasting must be
flexible enough to adjust to changing
market conditions and customer
preferences. Large companies
must be prepared to modify their
forecasting methods and strategies
when necessary to stay ahead of the
curve.
Additionally, various strategies are
being explored and implemented in
improving the forecast as most of the
agricultural commodities are seasonal
and availability is a concern. Harish
Kumar captures few of them:
• Demand Sensing Technologies:
Implementing demand sensing
technologies, such as point-of-sale
(POS) data analysis, social media
monitoring, and web analytics,
enables companies to capture
real-time demand signals. These
technologies provide more accurate
and timely information about
changing customer preferences and
market dynamics, improving demand
forecasting accuracy.
• Demand Segmentation: Segmenting
customers based on their
characteristics, behavior, and
preferences helps in understanding
their unique demand patterns.
Companies can develop tailored
forecasting models for different
customer segments to account for
variations in demand drivers and
seasonality. This approach allows for
more accurate and granular demand
planning.
• Statistical Forecasting and Predictive
Analytics: Companies can leverage
statistical forecasting techniques,
such as time series analysis, regression
analysis, and exponential smoothing,
to predict future demand. Advanced
predictive analytics models, including
machine learning algorithms, can be
used to incorporate a wide range of
variables and generate more accurate
demand forecasts.
• Scenario Planning and Sensitivity
Analysis: Companies can conduct
scenario planning and sensitivity
analysis to assess the impact of
different scenarios on demand.
This involves evaluating various
factors such as changes in customer
preferences, economic conditions,
and market trends. By simulating
different scenarios and their potential
effects on demand, companies can
develop contingency plans and better
prepare for uncertain situations.
• Sales and Operations Planning
(S&OP): Implement a robust Sales
and Operations Planning process
that aligns sales forecasts with
operational capabilities. This involves
cross-functional collaboration,
regular demand reviews, and
scenario planning to align supply
with expected demand levels.
• Continuous Monitoring and
Adjustments: Demand planning is
an iterative process, and continuous
monitoring is essential. Companies
should regularly review and update
forecasts based on actual demand,
market dynamics, and changing
customer behavior. By monitoring
forecast accuracy, identifying forecast
errors, and making necessary
adjustments, companies can
continuously improve their demand
planning capabilities.

supplychaintribe.com 25
COVER STORY
INVENTORY OPTIMIZATION
IN FOOD VALUE CHAIN
Inventory optimization plays a crucial
role in the food value chain by helping to
ensure that the right amount of inventory
is held at the right time. This can have a
significant impact on costs, quality, and
efficiency throughout the food value
chain. Somnath Chatterjee elaborates,
“Food products have a limited shelf life,
and if they are not sold or consumed
within a certain time frame, they may
have to be discarded, resulting in waste.
By optimizing inventory, businesses can
minimize waste and reduce associated
costs. Additionally, having the right
amount of inventory on hand can prevent
shortages and stockouts, which can lead
to lost sales and dissatisfied customers.”
He adds that inventory optimization
can also help improve quality and safety
throughout the food value chain. By
managing inventory levels, businesses
can reduce the risk of products becoming
outdated or deteriorating, which can
affect taste, texture, and nutritional
value. Proper inventory management can
also help ensure that products are stored
and transported safely, reducing the risk
of contamination or spoilage. Overall,
inventory optimization is essential for
companies in the food value chain to
minimize waste, ensure product quality
and safety, and improve efficiency and
profitability.
Adding further, Abhishek Joshi,
states, “Without a doubt, inventory
management is the most critical part
of the planning process in any food
value chain. The perishability of the
product portfolios for any organization
could make or break the entire gamut
of its assiduously efforted customer
positioning and fierce fencing of its
own corporate competitiveness vis-
à-vis its competitors, eroding entire
trust & resulting in the lost value of
sales. Overstocked and understocked
inventory can play havoc to even best of
laid plans for any supply chain, however
for food supply chains, this adds to an
already complicated layer of robust
demand analysis with astute focus on
forecast visibility along the entire curve
from procurement to production to end
fulfilment.”
Traditionally, primary wastage
(muda) is better efficiently controlled,
26 CELERITY June 2023
owing to lean-semi lean but effectively
optimized production linear philosophies.
However, research has shown that the
lumpy part of it is the secondary food
waste down the distribution chain at
consolidation dock storage facilities
to wholesalers, tertiary retailers, and
customer channels where inventories
have to be mandatorily controlled to be
as closely remain in sync with planning
cycles when serving consumer demands.
Using the right inventory system whether
integrated as an enterprise platform
or embedded into crucial stocking
and distribution tier nodes becomes
important. “The responsiveness agility is
critical in food chains. The key variables
prior to inventory optimization require
synchronized processes layout focused
on the foremost optimizing safety
standards, efficiently driving processes
to ensure that it reduces the chance
of perishable products going to waste,
products are on shelf when needed with
effective batch and lot controls policies
within desired fulfilment cycles with
optimized packaging and transportation
suite plugged appropriately to respective
product lines and SKUs attributed
to their useful life for lesser returns
of near to expiry food products or
avoiding inventory obsolescence.
The inventory optimization engine
relevant for inventories depending over
this landscape could structure itself.
Key outcomes would be to ensure
adapting digital processes to maintain
desired equilibrium from demand side,
standardizing differentiated strategies
for inventory controls and management
with enhanced visibility tier up &
tier down distribution nodes for any
changes or disruptions ensuring efficient
working capital management tied up to
inventories,” Abhishek Joshi adds.
According to Harish Kumar, there
are some key aspects of inventory
optimization:
• Balancing Supply and Demand:
Inventory optimization helps
companies strike the right balance
between supply and demand. By
accurately forecasting demand and
aligning it with production and
procurement activities, companies
can maintain optimal inventory
levels. This prevents stockouts and
excess inventory, reducing the risk of
lost sales or wastage due to spoilage.
• Minimizing Holding Costs: Holding
excessive inventory ties up working
capital and incurs costs such as
storage, handling, and insurance.
Conversely, insufficient inventory
levels can result in increased order
lead times, rush orders, and lost
sales. Inventory optimization aims to
minimize holding costs by ensuring
inventory levels are optimized
to meet customer demand while
minimizing excess inventory.
• Reducing Food Waste: Excess
inventory can lead to increased food
waste, especially in perishable food
products. By optimizing inventory
levels, companies can minimize
the risk of products reaching their
expiration dates before being sold.
This reduces the amount of food
waste generated throughout the
food value chain, contributing to
sustainability goals and minimizing
financial losses.
• Improving Supply Chain Efficiency:
Inventory optimization enhances
supply chain efficiency by reducing
stockouts, improving order
fulfilment rates, and streamlining
replenishment processes. With
optimal inventory levels, companies
can respond more effectively to
customer orders, reduce lead times,
and improve overall supply chain
responsiveness.
• Enhancing Product Freshness
and Quality: Proper inventory
management ensures that food
products are maintained in optimal
conditions, preserving their freshness
and quality. By avoiding overstocking
and minimizing excess inventory,
companies can reduce the likelihood
of product spoilage, deterioration, or
obsolescence. This, in turn, enhances
customer satisfaction and reduces
waste due to unsellable products.
• Seasonal and Promotional Planning:
Inventory optimization supports
effective planning for seasonal
variations and promotional
activities. By analyzing historical

data, customer demand patterns, and
market trends, companies can align
their inventory levels with expected
demand fluctuations during peak
seasons or promotional periods. This
ensures the availability of products
when demand is high, without
excessive inventory during slower
periods.
TECHNOLOGY
FACILITATING THE FOOD
SUPPLY CHAIN
According to a Deloitte study, technology
is a key enabler disrupting the entire
agri and food value chain. Technology
adoption is being led by 1,000+ operating
agri-tech start-ups in India. The entire
agri-tech market size is estimated at
~Rs14 billion in 2020 vs. a potential
~Rs1687 billion, indicating a massive
opportunity ahead. In fact, this year’s
Union Budget has clearly identified
technology as the lever of change for
effective decision making and planning.
Furthermore, the Ministry of Agriculture
& Farmers Welfare has commenced
the work for creating Agristack in the
country. In order to create Agristack,
the department has finalized the core
concept of “India Digital Ecosystem of
Agriculture (IDEA)”, which lays down
a framework for Agristack. Agristack is
a federated structure and ownership of
data is with the States only. This will
Harish Kumar, Director – Supply
Chain, House of Spices India
supplychaintribe.com
enable agricultural value chain players
take data-backed decisions and will also
assist in serving the farming community
efficiently.
Highlighting the crucial importance
of technology, Somnath Chatterjee adds,
“Technology is playing an increasingly
important role in facilitating the food
supply chain.” According to him, some
of the ways in which technology is being
used to improve the food supply chain
include:
• Farming: Technology is helping to
increase agricultural productivity,
reduce waste, and improve
sustainability. For example, precision
agriculture uses sensors and GPS to
gather data on soil moisture, nutrient
levels, and weather conditions,
allowing farmers to optimize their
use of resources.
• Transportation: Technology is
making it easier and more efficient
to transport food from farms to
consumers. For example, refrigerated
trucks and containers help to
maintain the quality and freshness
of perishable foods during transport.
• Warehousing: Technology is helping
to improve the management of food
inventories and reduce waste. For
example, warehouse management
systems can track inventory levels
The food supply chain is expected to undergo
several changes and trends in the future as
the industry responds to evolving needs of
the consumer. There will be a notable shift
towards local and regional sourcing in the
food supply chain. Companies will focus
on shortening supply chains, supporting
local farmers, and promoting sustainable
agriculture practices. This trend is driven
by consumer preferences for fresh, locally
sourced products and the desire to reduce
transportation related emissions. The growth
of e-commerce and direct-to-consumer
channels will reshape the food supply chain.
Companies will need to optimize their logistics
and fulfilment capabilities to meet the demand
for home delivery and online shopping.
COVER STORY
and expiration dates, making it easier
to rotate stock and prevent spoilage.
• Traceability: Technology is improving
the ability of food companies to trace
the movement of food from farm
to table. For example, blockchain
technology can be used to create
an immutable record of every
transaction in the food supply chain,
making it easier to trace the source of
foodborne illnesses and other issues.
According to Abhishek Joshi,
adoption of technology is creating
wonders in the modern food supply
chain. It is perhaps one of the best sectors,
immediately after pharma, which has not
only evolved upon adding to its supply
chain maturity standards but also been
at the forefront in not only in leveraging
but frequently seen deploying unique
high-end technology driven models for
its customers. With customers keen not
only about the safety, quality and batch
life of the products anymore but are
demanding to know the origin source
of raw materials in processed foods,
from sourced ethically to processed
hygienically, the traceability in modern
food supply chains is now given. The
technological advancements have quelled
this all must know appetite of customers
to not only increased essence of visibility,
but also given standards of consumption
27
COVER STORY

The food sector has the potential to become not only net-zero, but also net-
positive by acting as a significant carbon sink through natural carbon storage. The
entire food ecosystem will need to work in unison to make a net-zero or even net-
positive food system become reality. Building coalitions will be key to establishing
common standards, conducting monitoring, and fast-tracking system changes.
Food processing and food retail industries will set the pace, driven by consumers
and brand perception. Regulators must set standards to enforce end-to-end
transparency. Data and analytics skills will help realize it. Innovation, improvement,
and development of new technologies will be critical enablers in achieving net-zero.

Source: Deloitte

for food chains, which further brand
this as part of its overall customer
experience and product-services value.
The food supply chains internally also are
shifting from earlier track & trace to now
monitoring real-time data by harnessing
powers of IoT (sensors) for efficient
monitoring and control of its inventories
in flow to retail shelves. Tracking
location of goods, ‘in-transit motion’
by monitoring humidity, temperatures,
cold chain transportation at adequate
levels by setting up supply chain control
towers for both cross border or domestic
or even last mile fresh deliveries,
the digital tools through integrated
inventory, warehouse, transport and
order fulfilment systems are constantly
meeting service efficiencies, resiliency,
responsiveness and sustainability of
business objectives.
One of the most promising
technology, which has recently seen
enormous interest is ‘blockchain’
pivoted by IBM Food Trust & Walmart
Global tech in food supply chains. IBM
has deployed this emerging platform
under its ‘farmer connect’ program
for coffee beans, enabling ‘digital trust
platform on blockchain’ for consumers
that is ‘sustainably grown & responsibly
sourced’. The platform, hence, is able
to leverage the platform on counts of
proof of origin with reliable trust-based
documentation among all stakeholders
in the supply chain, enhancing brand
equity of suppliers with consumer
trust by reducing fraud & waste.
After partnering with IBM to create a
food traceability system based on the
Hyperledger Fabric (a project hosted by
the Linux Foundation), Walmart could
trace the mangoes stored in its US stores
within 2.2 seconds, literally, the speed of
thought!
Creating accountability and ensuring
transparency across the food supply chain
is a necessity rather than an afterthought,
especially with food contamination being
rampant across the globe. Blockchain
tech can effectively help trace the
contaminated product (even if it is just
an ingredient) back to its source and curb
the further spread of foodborne illnesses.
Also, granular information about food
items derived from Blockchain supply
chain solutions removes the guesswork
and helps merchants make decisions
on how they handle the goods such as
getting the accurate shelf-life data of
fruits to halt discarding food that is still
fresh, a Walmart news release stated.
ENHANCING
SUSTAINABILITY IN FOOD
VALUE CHAIN
During a recent Deloitte Food Summit,
Paul Polman, Co-founder and Co-chair
of IMAGINE, and former global CEO
of Unilever, was quoted as saying, “Our
global system is broken. We are realizing
that we can’t have infinite growth on a
finite planet, and the costs of not acting
become higher than the costs of acting.”
We need to move to a net-positive food
system and create a reliable food value
chain for the long term. That means
giving back more than we take from our
planetary food system, making things
better than we found them.
Now is the time to do it. “This is
the decade of action,” continued Paul.
“And the agricultural value chain is the
biggest opportunity we have.” Creating
a regenerative food system can create
a financial benefit of US$4 trillion and
it contributes to solving about 30% of
global climate issues. But we must realize
that it is a leadership issue. “We need
political and industry leaders to show
courage to set real targets and work in
broad partnerships that may, potentially,
uncover inconvenient truths.”
Food and FMCG (fast-moving
consumer goods) industries together
produce more than one-third of global
emissions, which mainly come from their
upstream supply chains. A recent study
finds that – combined – China, India, the
US and Brazil generate just over 44% of
the global supply-related emissions from
food waste and 38% of the global waste-
management-related emissions. A WEF
study highlights that more than 70%
of the food industry’s emission sources
come from land use, more specifically by
agriculture and deforestation. With this
large carbon footprint, decarbonizing
value chains in these sectors is a
gamechanger for achieving the net-
zero goal. A shift to a productive and
regenerative approach to restoring
soil health and fertility is an emerging
opportunity, expected to generate $1.14

28 CELERITY June 2023


trillion of annual business opportunities
by 2030.
Coca‑Cola India, in line with its
efforts towards creating an Atmanirbhar
Bharat, has announced a decade of
successful implementation of its Project
Unnati. The project aims to support the
Indian agri-ecosystem by enhancing
farming efficiency, strengthening
forward linkages, and building food-
processing capacity in the country. The
projects also facilitate farmers’ access to
enabling infrastructure via high-yielding
planting material and Good Agriculture
Practices (GAPS) such as ultra-high-
density plantation (UHDP) which
involves drip irrigation, on-site training,
and farm supplement support. These
new technologies lead to a substantial
increase in quality, productivity, and
profitability per unit of land which further
makes fruit cultivation lucrative. Rajesh
Ayapilla, Director-CSR and Sustainability
for India and Southwest Asia (INSWA),
The Coca‑Cola Company, said, “Farmers
are the backbone of the Indian agrarian
economy. Through project Unnati, our
aim has been to elevate and enhance the
livelihoods of these farmers by not only
enabling them with advanced horticulture
solutions, but also empowering them to
substantially increase their incomes. This
is a step in line with the Government
of India’s vision towards AtmaNirbhar
Bharat, making the agrarian economy
self-reliant.”
According to Somnath Chatterjee, there
are several ways companies can enhance
sustainability in the food value chain.
Here are some suggestions:
• Reduce food waste: Companies can
reduce food waste by implementing
better storage practices, using
technology to track inventory and
expiration dates, and donating
surplus food to food banks or
charities.
• Improve packaging: Companies can
redesign their packaging to minimize
waste and choose compostable or
recyclable materials.
• Use sustainable sourcing: Companies
can ensure that the food they source
is sustainably produced by using
environmentally friendly farming
supplychaintribe.com
practices, reducing pesticide and
fertilizer use, and supporting local
farmers.
• Implement energy-efficient practices:
Companies can reduce their carbon
footprint by using renewable energy
sources, improving transportation
efficiency, and investing in energy-
efficient technologies.
• Engage in community initiatives:
Companies can engage with local
communities to build awareness and
support for sustainable practices
and involve them in initiatives like
community gardens and composting
programs.
• Embrace circular economy principles:
Companies can aim to design and
operate their food value chain
according to circular economy
principles by reducing waste and
actively reusing or recycling materials
wherever possible.
By implementing these practices,
companies can enhance sustainability in
their food value chain and contribute to
a more sustainable world.
FAST SHIFTING FOOD
SUPPLY CHAIN DYNAMICS
The future of the food supply chain is
likely to be shaped by several factors
such as changing consumer preferences,
advances in technology, environmental
concerns, and globalization. Here are
some possible ways the food supply
chain dynamic may change in the future,
as enumerated by Somnath Chatterjee…
Increased focus on sustainability: Given
the growing concern about the impact
of food production on the environment,
there may be a greater emphasis on
sustainable practices and reducing waste
throughout the supply chain.
Shift towards plant-based alternatives:
With the increasing global demand for
plant-based protein sources, it is likely
that the food supply chain will adapt to
cater to this trend. Consumers could see
a rise in the availability of plant-based
meat and dairy alternatives.
COVER STORY
Adoption of technology: There will likely
be an increased adoption of technology
in agriculture and food production, for
example, through the use of GPS tracking
and data analytics to improve crop yields,
or robotics and automation to increase
efficiencies in food processing.
Greater demand for transparency: As
consumers become more concerned
with the origins of their food, the food
supply chain may shift towards greater
transparency and traceability, enabling
consumers to make more informed
choices about what they eat.
Overall, the food supply chain is
likely to become more diverse, flexible,
and responsive to changing consumer
demands, while at the same time adopting
more sustainable and efficient practices
to help meet global food demand.
Harish Kumar believes that the food
supply chain is expected to undergo
several changes and trends in the future
as the industry responds to evolving
needs of the consumer. There will be
focus on:
• Shift to Local and Regional Sourcing:
There will be a notable shift towards
local and regional sourcing in the
food supply chain. Companies will
focus on shortening supply chains,
supporting local farmers, and
promoting sustainable agriculture
practices. This trend is driven by
consumer preferences for fresh,
locally sourced products and the
desire to reduce transportation-
related emissions.
• Demand for Healthy and Functional
Foods: The increasing focus on health
and well-being will drive the demand
for healthy and functional foods.
This will impact the supply chain
dynamics as companies’ source and
produce ingredients that align with
these preferences. Supply chains will
need to adapt to handle specialized
ingredients, certifications, and
additional quality assurance
measures.
• E-commerce and Direct-to-Consumer
Channels: The growth of e-commerce
and direct-to-consumer channels
will reshape the food supply chain.
29
COVER STORY
Companies will need to optimize
their logistics and fulfilment
capabilities to meet the demand for
home delivery and online shopping.
Last-mile delivery solutions, cold
chain management, and packaging
innovations will be critical to ensure
product integrity and customer
satisfaction.
• Supply Chain Resilience and Risk
Management: The COVID-19
pandemic highlighted the importance
of supply chain resilience. Companies
will continue to invest in risk
management strategies, scenario
planning, and diversification of
suppliers to mitigate disruptions.
The focus will be on building agility,
flexibility, and redundancy into the
supply chain to respond effectively to
future disruptions and uncertainties.
SUPPLY CHAIN
MEGATRENDS
In the food sector, several supply chain
megatrends are expected to shape the
industry's future. These megatrends
reflect the overarching shifts and
developments that will have a significant
impact on the food supply chain. Harish
Kumar enlists some of the megatrends…
• Digital Transformation and Industry
4.0: The food supply chain will undergo
significant digital transformation and
embrace Industry 4.0 technologies.
This includes the adoption of
automation, robotics, artificial
intelligence, Internet of Things
(IoT), and data analytics. These
technologies will enhance efficiency,
visibility, traceability, and decision-
making throughout the supply chain.
• Enhanced Traceability and
Transparency: Increasing consumer
demands for transparency will drive
the need for enhanced traceability
in the food supply chain. Blockchain
technology and other traceability
solutions will enable real-time
tracking of products, ensuring
visibility and accountability. This will
enhance food safety, quality control,
and consumer trust.
• Customization and Personalization:
30 CELERITY June 2023
Consumer demand for customized
and personalized food products
will drive supply chain megatrends.
Companies will adapt their supply
chains to accommodate flexible
production processes, enabling
customization based on individual
preferences, dietary requirements,
and health considerations. This
trend will require agile supply chains
capable of managing small-batch
production and quick turnaround
times.
• Increased Emphasis on Sustainability:
Sustainability will continue to be a
driving force in the food supply chain.
Companies will focus on reducing
carbon emissions, minimizing
food waste, implementing circular
economy practices, and adopting
environmentally friendly packaging
solutions. Sustainable sourcing
and ethical production practices
will gain prominence as consumers
demand greater transparency and
accountability.
According to Somnath Chatterjee,
there are several megatrends that are
expected to impact the food sector
supply chain. some of them are:
Sustainability: There is an increasing focus
on sustainability throughout the food
supply chain. Consumers are becoming
more conscious of the environmental
impact of their food choices and are
demanding more sustainable products.
Traceability: The ability to trace products
and ingredients throughout the supply
chain is becoming more important, as
consumers are increasingly concerned
with food safety and quality. Advances
in technology, such as blockchain, are
making this easier to achieve.
Digitalization: The use of digital
technologies in the food supply chain
is expected to continue to grow, from
automating manual processes to using
data analytics to optimize operations.
Flexibility: The ability to adapt quickly to
changes in demand or supply is becoming
more important in today's fast-changing
business environment. This requires a
more agile and responsive supply chain.
Collaboration: Collaboration between
different players in the supply chain,
such as farmers, processors, retailers,
and logistics providers, is becoming
more important to improve efficiency
and reduce waste.
ARE YOU READY FOR A
NEW DAWN?
The Indian food and agriculture sector
is at the cusp of a transformation and
would require all value-chain members
to act in tandem, along with government
support to secure the future of food in
India. India’s farms have been putting
food on the table for India and the world
for decades. Digital technologies could
enhance production at every step, from
high-quality agriculture inputs to world-
class agriculture outputs. This could help
create sustainable growth for the Indian
farmer, boost economic fortunes in rural
areas in a flourishing ecosystem, and
benefit the entire economy, a McKinsey
study stated.
“It may sound like a massive task but
transforming the food system offers the
opportunity to contribute to a better,
healthier, and more sustainable world;
to tap into new markets and profit
opportunities; and to make an impact
that matters. It is the time to be bold,
brave, commercial, and take up the
challenge together—as together is the
way we can take major steps,” stated a
Deloitte report.
 INTERVIEW

Taking the
CUSTOMER-FIRST
APPROACH
“Customer service is best provided through a robust supply chain. It controls price and delivery
– the two most important customer satisfaction factors. You may undercut competitors
on retail price with an effective supply chain. You can also meet or exceed client delivery
expectations with high-performing operations. To keep customers happy, give them what they
want when they want it at the lowest price,” emphasizes Sanjay Kshirsagar, Head of Supply
Chain – South Asia, Brenntag India, during an interview…

You have been a close witness to

the transformational landscape of
Operations & Supply Chains, more
so during the last decade. What
are the factors that have led to this
transformation?
Businesses face rising global
competitiveness and periodic operational
model disruptions. They need a roadmap
and applicable technology to improve
supply chain performance to meet
these issues. Transformation and
modernization of Operations and Supply
chain necessitate a review of existing
supply chain processes and business
models as well as the implementation of
new technologies. Ultimately, a company
must align its supply chain functions with
its overarching goals and objectives. This
ensures that a company’s supply chain
meets its requirements, drives its growth
& success, and mitigates disruptions and
risk.
The progression of this change in
Operation and supply Chain can be
attributed to the following factors:
v A strategic vision with quantifiable
long-term objectives
v A plan that is flexible and scalable,
because technology evolves rapidly
and businesses must keep pace
v Structured governance, ideally with
centralized oversight of digital
implementation
v A customer-focused, data informed
and innovative corporate culture.
Based on my experience in supply
chain and operations over the last two
decades, I can confidently state that a
successful supply chain and operation
transformation landscape boosts sales,
revenues, and profits. This often means
digitising supply chain activities and
implementing new organisational A business growth & operational excellence enabler,
Mr. Sanjay Kshirsagar is a performance-oriented
processes to eliminate challenges and and enterprising leader with organized nature
bottlenecks in today’s business and and analytical problem-solving approach. He has
demonstrated expertise in cultivating and managing
technical world. exceptional teams to meet and exceed demanding
targets. He holds PGDBA (International Marketing)
What have been a few of the best from Symbiosis Institute of Management Pune and
B. Tech (Dairy Technology) from Dr. Panjab Rao
learnings during the last few years Krishi Vidyapeeth, Akola.
that will stay with you forever and
help you climb the success ladder?
Nobody sets out in life intending to
fail. But the reality is that far too many
people fail, and I, too, have failed on
many occasions. One of the secrets to
my success is that I am not afraid of
failure. Instead, I always pick up the
beautiful fruits of failure. For me, failure
is a mirror that accurately reflects our
flaws. Below mentioned are some of the
learnings gained…

supplychaintribe.com 31
INTERVIEW

Businesses face rising global competitiveness and periodic

operational model disruptions. They need a roadmap and
applicable technology to improve supply chain performance
to meet these issues. Transformation and modernization of
Operations and Supply chain necessitate a review of existing
supply chain processes and business models as well as the
implementation of new technologies. Ultimately, a company must
align its supply chain functions with its overarching goals and
objectives. This ensures that a company’s supply chain meets
its requirements, drives its growth & success, and mitigates
disruptions and risk.

v Discipline: Discipline is the
foundation of success. Discipline
means failing, falling, getting up, and
repeating.
v The future is in your imagination:
Humans have the power to project
their thoughts into the future. We
can see possibilities by using our
imagination.
v To win, you must expect to win:
Visualize your ideal future and then
wrap it in a set of core values. This
will motivate us to work towards the
goal.
v Opportunities await us in every
direction: The best way to climb the
success ladder is by stepping on the
rungs of opportunity. Life is a merry-
go-round. Time brings opportunity,
recognizing them as brass rings and
grabbing them is all we need.
v Your success depends on other
people: Nobody’s alone. Success
requires social interaction and
support. I make industry, community,
and global friends. I believe that
knowing more people increases your
chances of finding help in a crisis.
v Read, Read, and Read: In the end,
most importantly, one should read as
much and as varied subjects as one
can to keep oneself updated with the
global current market trends and
gain insights.
What have been the challenges faced
in managing the supply chain and
how did you overcome them? Any
interesting example that you would
like to share with us…
Supply chains have always been prone
to interruption. Despite being accurately
referred to as the ‘plumbing of global
business,’ supply chains have received
little attention in the past. Unprecedented
occurrences like the Covid-19 outbreak
and the ongoing turmoil in Ukraine have
once again highlighted the vulnerabilities
of global supply chains. Customers’
constantly expanding and evolving needs
have only accentuated the supply chain
issues. Besides, factors such as market
volatilities, trade wars, raw material
shortages, climate change, stricter
environmental regulations, economic
uncertainties, etc., are also keeping the
supply chain managers on their toes
every single day. They are encountering
unexpected delays in shipments. There
is huge pressure to curtail costs, while
on the other hand, freight rates are on
a new high. Abrupt market sentiments
are only making demand forecasting a
difficult task for supply chain managers.
We have taken various steps to address
these issues. We focused our emphasis
on automating processes and enhance
end-to-end visibility. We partnered
with industry peers such as customers
and suppliers to harmonize operational
processes.
What has been one of the most
challenging tasks that you have
achieved in the supply chain? Please
elaborate…
During the time of the Covid-19
incident, I was working for a firm that
manufactured mechanical cleaning tools,
and my primary responsibility was to get
dispatches and operations back up and
running. Although it was not simple to
get operations and deliveries back up and
running, we took the highest care of the
employees involved, and this was only
possible thanks to close collaboration. In
addition to this, we were able to properly
manage the additional demand during
that time.
You have been an integral part of
globally leading companies and have
worked in various geographies. What
are the biggest differences that you
have witnessed in managing supply
chain in other parts of the world vis-
à-vis India?
I have worked, visited, and lived in a
variety of multinational corporations
and nations with distinctive cultural
traditions, including Thailand, China,
Singapore, Egypt, Dubai, India, and South
Africa. Working in tough environments
and interacting with people from other
cultures has always been an unforgettable
experience of my career. In the course
of my previous job, I was exposed to a
variety of various cultures and picked up
a number of useful supply chain practices.
According to me, the most significant
difference is related to the culture and
the management of people. Since people
are the most important component of
any supply chain, I devised the following
method in order to overcome these
obstacles: practice open communication;
Acknowledge the cultural difference
and take action accordingly; and pay
attention to work schedules.
How can companies strike the right
balance when it comes to inventory
optimization?
Inventory management requires
establishing a balance between supply
and demand. Maintaining a sufficient,

32 CELERITY June 2023


yet cost-effective supply of products and
materials must be balanced with meeting
customers’ requirements. Based on my
two decades of supply chain experience,
I suggest the following strategies
to improve and balance inventory
management:
v Implement Demand Forecasting tools:
Demand forecasting can help firms
analyze sales patterns using past
order data. Businesses can use data to
predict product demand and improve
customer experience.
v Automate Replenishment: Manual
inventory processing costs time
and money. Inventory management
software should automate
replenishment for companies.
Distribute inventory across
fulfillment centers.
v Track the entire supply chain:
Supply chains used to have several
independent components. Real-
time data analytics now inform
supply networks of stock quantities,
locations, and delivery timeframes.
Barcode/QR code scanners and
other tracking gadgets have solved
numerous logistics issues. Real-
time data helps organizations make
quick, informed decisions and
minimize costs across the supply
chain, improving RoI and customer
happiness.
Can you share with us demand
sensing and advanced planning
supplychaintribe.com
strategies that will help build resilient
supply chains?
Businesses need a resilient supply
chain to compete in today’s dynamic
environment. Customers’ tastes vary
quickly in a turbulent market. Thus,
product lifecycles are shortening, and
purchasers are spoiled with choice. AI-
powered demand sensing strengthens
supply chains, and companies are using
AI and ML to fuel strategy.
The Supply chain Network is becoming
more complex, and various disruptions
in the network can impact the whole
system. Unavailability of data and
insights impair decision-making and
disable visibility deep down in the
demand-supply value chain.
Cognitive supply chain planning using
AI-driven demand sensing has become
even more critical in these uncertain
times. It can ensure on-time delivery
for improved customer satisfaction and
revenue realization, improved forecast
accuracy at the product-mix level, and
improved working capital with reduced
inventories.
Demand Sensing enhances forecast
accuracy by handling multiple types
of internal and external data sets. It
makes promotions more effective and
reduces out-of-stock by enabling timely
adjustment of replenishment plans. It
automates & improves planning and
execution and improves forecasting
agility as well as creates a responsive
supply chain to meet changing demand
effectively.
INTERVIEW
What would you like to advise
young supply chain professionals of
tomorrow? How can they enhance
their skillsets?
On the basis of my own experiences
working in the supply chain, I strongly
advise that in order to become a
competent supply chain manager, every
supply chain manager needs to cultivate
these seven productive habits.
v Sceptical: Supply Chain Professionals
always assess risk. Scepticism doesn’t
mean they’re risk-averse; it means
they’re prepared for anything.
v Eye for Details: Supply chain
professionals disregard perceptions
and superficial analysis. In-depth
and unbiased analysis changes
perceptions.
v Observant: Supply chain
professionals are perceptive and
curious. They make decisions beyond
reports and excel analyses. They
combine quantitative data with
qualitative and informal information.
v Technology Friendly: Supply chain
professionals understand technical
advances. They analyse local
technology and refresh themselves.
v Challenge the Obvious: Supply
chain professionals always look
for continuous improvements by
challenging what might seem to be
given. They don’t take anything for
granted.
v Team Player: This stands out for
me as the most critical habit because
supply chain procedures necessitate
the involvement of cross-functional
teams and getting them to agree
on the ‘business cause’ is the most
difficult assignment. The supply
chain serves as the foundation for
the balance between demand and
supply as well as cost and service.
v Flexible: Supply chain professionals
cannot be dogmatic. They must
adjust to corporate and external
changes. They adapt their strategy
and operations basis the external
changes. They may accommodate
33
INTERVIEW

Supply chain leaders are overlooked for CEO positions. However,

they make wonderful CEOs and should be considered. Why do
so many successful CEOs have supply chain backgrounds?
It’s no coincidence that many top business executives come
from operational roles like supply chain. Apple CEO Tim Cook
was COO first. General Motors CEO Mary T. Barra has extensive
operations and supply chain experience.

unexpected chain variations.
What are the qualities of a supply
chain leaders that make him a
people’s person and the preferred
leader / CEO of a company?
Supply chain leaders are often overlooked
for CEO positions. However, they
make wonderful CEOs and should be
considered. Why do so many successful
CEOs have supply chain backgrounds? It’s
no coincidence that many top business
executives come from operational roles
like supply chain. Apple CEO Tim Cook
was COO first. General Motors CEO
Mary T. Barra has extensive operations
and supply chain experience.
We would like to know from you
the incredible journey of customer
satisfaction to customer delight
powered by a nuanced supply chain…
I am a firm believer in making the
customer happy, and I think that this
should be the focus of all of our efforts.
Your company’s expansion is directly
attributable to the satisfaction of your
current customers.
Customer delight and profitability can be
improved by supply chain performance.
Effective supply chain management
delivers value for customers and your
business by reaching customers, cutting
retail pricing, and enhancing service
levels.
Customer service is best provided via
your supply chain. It controls price
and delivery – the two most important
customer satisfaction factors. You may
undercut competitors on retail price
with an effective supply chain. You
can also meet or exceed client delivery
expectations with high-performing
operations. To keep customers happy,
give them what they want when they
want it at the lowest price.
That’s possible with good supply chain
management. By picking the proper
systems, tactics, and partners in
your supply chain, you’re delivering
your customers—individuals and
businesses—great service, transparency,
and visibility. From conception through
delivery, you implement systems to
eliminate errors and boost inventory
efficiency. The better your supply chain,
the happy your customers will be and
the more likely they are to buy from
you again. Your supplier chain has the
greatest direct impact on repeat business.
What are the aspects that will make
India’s Supply Chain Future-Ready
and Resilient?
India needs to effectively bridge the
competitiveness gap of US$180 billion
vis-à-vis the supply chains of advanced
nations and become a leading player
globally. Below are some aspects need to
work so that India’s supply chain will be
ready for future and remain resilient…
An unbalanced logistics modal mix:
Unnecessary logistics costs stem from a
road-heavy mode mix. 40% of logistics
costs—6% of GDP—are transportation.
High indirect or ‘hidden’ costs: India
has four times the indirect logistics
expenses of wealthy nations. Inventory
mismanagement and numerous
distribution channels are the key causes.
Poor demand forecasting owing to
technology adoption causes inventory
mismanagement. It also raises inventory
carrying expenses, including unsold
products storage.
Poor-quality infrastructure: The
second-largest road network in the
world, India’s 5.5 million kilometers,
contains only 2.7% national highways.
The national highway network, which
conducts 40% of road traffic, suffers.
Limited adoption of the latest
technology: AI, blockchain, and IoT
adoption in supply chains is slow. Global
organizations use the latest technologies
to monitor supply chain activities
in real-time. Digitization, inventory
mismanagement, and faulty demand
estimates due to a lack of technology are
major factors in India’s competitiveness
gap.
Fragmented logistics (trucking)
network: Despite its importance to
economic growth, India’s logistics sector
is fragmented and unregulated with
many local firms and no national or
regional players that can create end-to-
end platforms. The trucking industry
is extremely disorganized with non-
standard pallets and truck dimensions.
Most Indian truck drivers use single
trucks and use third parties to place
orders. Only 10% operate fleets over
25 trucks. Entry-level enterprises are
at a cost disadvantage without market
leaders. Truck turnaround time in India
is less than 300 kilometers per day,
compared to around 700 kilometers in
Europe and the US.
Integrating the supply chain
network: Integrating the network of
the supply chain with supply chains can
be made more flexible and agile with the
use of platforms that combine processes.
Qualities of a Supply chain Leader that
help them climb the corporate ladder
and REACH the TOP:
• Understanding how to generate revenue
from operations
• Understanding how to prioritize
resources
• Understanding different cultures
• Ability to think strategically
• Having a global outlook.

34 CELERITY June 2023

 FOCUS

Applicant Tracking System (ATS)

THE HOLY GRAIL
OF CANDIDATES
As a Candidate ever wondered why hiring managers/ recruiters do not see 70% of the resumes
they receive? This is primarily because of ATS application which reviews, ranks, scores CVs
based on main keywords, action words, critical job requirements and few other factors. Only
the top 20-30% Profile with high matching % go ahead in the hiring process. Remaining are
rejected. What does this mean to candidates? It re-affirms the important point that, in order
to land a job interview, candidates need to take that extra mile and optimize their CVs to make
it ATS-friendly in order to be in top 20-30%. Through this article, Sanjay Desai, Co-founder
& Regional Director, Humana International (S) Pte Ltd., traces the evolutionary journey
of ATS and offers a great headway for candidates and employers to find the RIGHT MATCH…

A
TS stands for Applicant
Tracking System. In simple
terms, it is an AI application
that is being used by Hiring
/ HR Managers/ Head-hunters and
Recruiters globally to scan / update
the large amounts of profiles (CVs)
into their CRM Software. It is an OCR
application (Optical Character Reader or
Recognition) whereby it takes the text
from a document and converts it into a
format, which is optimised and readable
for data processing /storage and retrieval
in a standardised manner.
ATS system has parameters that need
to be fed-in as they are mentioned in
the job description, for example (action
words, KPI, deliverables, qualifications,
requirements, must haves, etc.). ATS
system imitates a human mind and
compares a CV with the parameters fed
in. Based on number of parameters
matching, it will highlight a % number
as “matched” with the job description
(example – 70% match with JD).
How does an ATS system work?
When an organisation or a head-hunter
Sanjay Desai is a seasoned Supply Chain
professional who runs his own advisory consulting
practice based out of Singapore. He sits as an
Advisory board member for multiple startups
and SMEs located in Asia. He also runs Humana
international handling Talent Development &
Executive Placements in supply chain domain
across the region. He holds a Bachelor of
Commerce and a Postgraduate in Materials
Management from premier Indian business
school. He is a Certified Logistics Professional
from The Logistics Society, Singapore. He is a
certified (CPIM) practitioner from APICS, USA.
He has completed formal Executive Leadership
management courses at INSEAD, Singapore.

supplychaintribe.com 35
FOCUS

The Global Applicant Tracking System Market size is expected

to grow at a CAGR of 6.7% during the forecast period, to reach
US$3.2 billion by 2026 from US$2.3 billion in 2021, according to a
new report by MarketsandMarkets™. The Applicant Tracking System
Market is growing due to the presence of global and emerging
players in the market. The major factors that are driving the
adoption of ATS solutions among the enterprises as well as SMEs
across various verticals including BFSI, government, manufacturing,
telecom and IT, consumer goods and retail, healthcare and life
sciences, energy and utilities, transportation and logistics, and
others due to significant adoption of cloud services and security
infrastructure.

posts a job on their website / in an open
portal, candidates start to apply and send
their profiles via soft copy / hard copy
depending on the mode requested. Their
CVs are uploaded into the ATS system
electronically or via manual mode. ATS
uses an algorithm called “parsing” to
extract & convert the critical information
from CV & stores it in their system data
base as information for easy retrieval.
ATS also helps the hiring manager /
head-hunter to easily search / sort the
database as required using correct ‘search
words’. The software then identifies
resumes containing those keywords and
ranks them based on their relevance. This
means that candidates whose resumes
contain the most relevant information
as mentioned in the job description are
more likely to be shortlisted for further
processing in the hiring process.
Does ATS guarantee selecting the
“best suitable” candidate?
Yes / No both. But remember that this
is NOT the objective of a HR / hiring
manager to use the ATS for. This
process is not an end to the means of
selecting the best candidate. The hiring
process is beyond ATS and there are
other manual processes, which ensure
that an organisation will select the best
candidates. ATS application helps the
hiring managers to shortlist a much
wider pool of candidates from a huge
database of profiles in a short span,
reducing repetitive task / time & cost.
Hiring managers will continue to tighten
the parameters and compare the set of
profiles repeatedly till they get the most
relevant profiles with high % match.
Thereafter the manual process will take which are mission critical.
over to complete the hiring process.
• Efficiency & Accuracy: ATS helps
Advantages of using ATS system organizations to be more efficient
There are many quantitative and in handling large pool of candidates
qualitative advantages in using ATS by accurately analysing / comparing
system if it is handled and optimised the parameters with the profiles
correctly. Let us look at a few major and highlighting the top candidates
advantages only: within a very short span like less than
couple of hours. The hiring manager
• Reduction in time & duplication can spend more time on qualitative
of effort: ATS will save time and tasks and engaging candidates more
duplication effort to a larger extent effectively, making better informed
almost all the time. Besides the decisions.
quality matching, it also helps in
automating some of the downstream • Greater Candidate Journey &
tasks like filtering / ranking. Experience: Usually, head-hunters
and organisations have their own
• Standardised Quality: The way ATS HRIS (Human resource information
works, it automatically assigns a system), which has ATS built-in as a
standard quality in its scanning utility. The organisation can leverage
process. So, there are no deviations this set-up to communicate with
while comparing a large pool of the candidates on a real-time basis
candidates in a consistent manner. for critical updates. This helps to
Additionally, ATS helps in eliminating enhance candidates’ experience in
bias in the candidate review process real time.
by focusing on objective criteria,
Let us look at some Don’ts !! (avoid)
• Don’t push your generic CVs to all the positions that you want to apply.
• Avoid using pictures / logos of companies and or creating tables in your CV.
• Don’t overuse action words else your CV will be stuffed with many duplicate action
words.
• Do not use readymade CV software applications available in the market which allow
you to create various visually appealing formats, they don’t server your purpose.
• Avoid using headers and footers as much as possible as most ATS applications
usually find it troublesome “parsing” the information.
• Lastly, try & keep the length of your CV to two pages that is (1 page printed both
sides)

36 CELERITY June 2023


• Cost Effective Process: Using an ATS
system is certainly cost-effective
for employers and recruitment
agencies. The software eliminates
the need for manual data entry and
reduces the amount of time spent
on administrative tasks, allowing
the person to focus on higher-value
tasks.
• Automates Intra-company and Inter-
company Communication: An ATS
allows improved communication
among the recruiting team members
and others who are involved in
the hiring process. It helps the
team members to send messages,
schedule emails in bulk, and assign
tasks in an organized manner using
the e-approval capabilities of an
ATS system. Most ATS nowadays
integrate seamlessly with google/
outlook calendars and various other
email systems. You end up with less
paperwork and a more organized
automated platform process.
How to ‘beat’ ATS and get your CV
past ATS?
It is indeed challenging to ‘beat’ an ATS
completely. However, there are subtle
ways and means that professionals can
practice increasing their chances of
getting past the initial screening with
high % match. Here are some Do’s and
some Don’ts:
• Tailor your resume: As a candidate,
you must have a ‘generic’ CV ready.
For every new position that you
want to apply, you need to tailor the
generic CV by incorporating relevant
keywords, action words and phrases
from the job description. Only then,
your tailored CV will be a high %
match with the job description
amongst other profiles.
• Use a simple word template: Use
single font (Arial or Calibri) and with
maximum two scales (size 11 for
entire CV and size 12 for highlights).
Save the file in Word or PDF model
only. ATS barely understands beyond
Word and PDF documents.
• Identify about 30-35 relevant action
words and short phrases from the job
supplychaintribe.com
Example of an ATS compliant and ATS non-compliant CV (this photo is for
specimen purpose only / not for textual clarity)
description and include them at least
once in your CV under appropriate
bullets.
• Keep the content sharp and simple:
Remember it is not the design or the
colourful layout, but it is the content,
clarity & text, which makes your CV
appropriate, so FOCUS on these.
• Align your CV and LinkedIn Profile:
Make sure to keep your CV as short
/ conscious as possible and use
LinkedIn as an extension of your
career history to create a story. Most
HR / Hiring Managers will check
your LinkedIn profile to get a sneak
preview of your achievements or
career progression.
• Special instructions in Job Description:
Pay full attention to the instructions
provided by the company and
comply 100% so that you are NOT
automatically filtered out due to non-
compliance with some instructions.
What is the future of ATS?
We need to acknowledge that technology
is constantly evolving, affordable, and
available consistently. Similarly, ATS
has also evolved long way, adding new
improvements and innovative features,
making it the core of the Hiring Process.
Disclaimer – This article is about ATS only. It should not be mis-construed as CV / Resume writing article. It is NOT.
FOCUS
It has embraced multiple capabilities like
social networking via WhatsApp & video
conferencing. While we cannot lay down
a finger on a number, ATS will continue
to evolve and will be in practice easily for
next decade, scaling innovation & ideas
for HR / Hiring managers globally.
In conclusion, an ATS offers a range
of benefits and advantages to employers
and recruitment agencies. The software
does save time, money, and duplication.
It helps to increase accuracy, improve
the candidate’s experience, enhance
communication, and be cost-effective.
Your resume is your business card.
After it passes thru ATS, it will be reviewed
thoroughly by a hiring / HR manager. It
is absolutely necessary that your CV is
‘tailored’ for each position you apply for.
Keep it crisp – just the right size that it
covers all key tasks mentioned in JD. It
will create an interest for the hiring/ HR
manager to shortlist your profile.
Remember that while these strategies
can enhance your shortlisting chances,
more important for you, is to focus on
developing your interview skills, your
ability to build a strong professional
network and your reputation in the
market. They all go hand in hand for
a successful career transition. All the
BEST!!!
37
FOCUS

LEA’R’N with
continuous ‘R’ESILIENCE
In the wake of ever bubbling geo-political risks, legislation &
regulation ambiguity, cyberattacks, natural disasters, climate
and global health events, supply chain resilience is perhaps
one of the top-of-the-mind concerns faced by senior leaders
of every organization, country, or an institution. Internet
is abuzz with a whole lot of articles, frameworks, survey
results and the like – enough to make a hapless supply chain
manager’s mind spin. A supply chain manager is today faced
with a blizzard of terminologies, viz., disruption, uncertainty,
fragility, risk, resilience, and many more. Amidst the pressure
of real changes, and a surfeit of here-is-one-more frameworks,
the environment is ripe for the supply chain manager to
get back to first principles. To build resilience from ground-
up, it is important to clarify terms relating to supply chain
uncertainties. With this as the backdrop, Prof (Dr) Kalyana
C Chejarla and Ganesh Mahadevan trace a few relevant
resilience strategies, using the basic lean management
principles. Ganesh Mahadevan is Partner and Lead
Consultant at the Kanzen Institute. He has helped
more than 50 organizations across industry sectors
improve performance through Lean. A BTech from
IIT, Mumbai and MBA from NIT, Trichy, he has
worked earlier with organizations such as Hindalco
and Deloitte.

U
NCERTAINTY is when reality
differs from what we expect.
Strategies to address uncertainty
therefore belong to both sides
of the coin viz., shape reality (demand
management, redundant capacities,
multiple suppliers etc,) and update
expectations (change model parameters,
(re)negotiate service levels, invest in
training, etc.). Supply chain uncertainties
can be grouped into following four
categories. This grouping is loosely in the
order of: (a) decreasing order of ability to
know or quantify, (b) increasing order of
magnitude of impact and (c) increasing
spatial and temporal system boundaries.
RANDOMNESS
Randomness refers to the unpredictable
component of variation in behaviour
of every process, equipment, or system
from mean/expected behaviour.
Randomness (also called white noise)
is when the deviation does not exhibit
specific patterns. Control limits
are defined based on the extent of
randomness, that prescribe the buffer
needed to run the adjoining processes
smoothly. Technically this is called
Aleatory uncertainty. When the system Dr. Kalyana C Chejarla teaches and writes on
operations, digitalization and decision making at
under study is zoomed into a unitary IMT, Hyderabad. He is an alumnus of IIM (L), IIM
process level, randomness is observed. (A), IBS, and NIT (Jamshedpur). Prior to moving to
academics, he worked with organizations such as
Good techniques to address randomness
Tata Motors, TCS, Dell etc., and was part of SCM
are statistical process controls, six sigma transformation projects for clients worldwide.

38 CELERITY May 2023

 FOCUS

BIASES
Much less talked about, but very
much the cause of a numerous supply
chain mishaps, is the presence of
inappropriate mental models / belief
systems in the minds of supply chain
managers. This phenomenon is called
Ontological uncertainty. Closely related
to these mental models are behavioural
factors such as cognitive limitations,
bounded rationality, and availability of
information and time, etc., that affect
supply chain decision making.

Typical biases are:

approaches, robust designs, etc. To an
extent, these techniques help bring the
process performance within control
limits.
VARIABILITY
If the deviation is beyond control limits
or if there is a pattern in the deviation of
a process parameter, it implies that there
are causes affecting the system, which we
are not fully aware of. Such a variability
is called Epistemic Uncertainty and could
addressed by undertaking focused study
of the system and learning about all the
affecting causes. Incomplete knowledge,
understanding, and articulation
are information induced sources of
variability. Additionally, few action
induced uncertainties are triggered on
account of feedback effects and decision
making by various supply chain entities.
By design, supply chains are wider
in scope in comparison to individual
processes, and so are subject to epistemic
uncertainty. Naturally, as the system
boundary increases, complexity and
therefore variability increases. We are
not recommending unending study or
development of models that are the exact
replica of real world. The skill and art lie
in the ability of supply chain manager to
draw and redraw boundaries of system
knowledge (s)he should strive for with
changing circumstances. A good way to
do that would be to link the supply chain
risk management to the investments in
enhancing supply chain visibility. The cost
and effort involved in learning a system
must be commensurate with the benefit
of resultant uncertainty reduction.
(a) Confirmation Bias is a short term
bias in which a supply chain manager
accepts only the information that
confirms her view, disregards
contradicting evidence e.g., failure
to adjust forecast against one’s
optimistic/pessimistic view,
(b) Endowment Effect is a medium
term bias, in which a supply chain
manager overvalues the decision in
which (s)he has invested time and
effort e.g., not changing a supplier
(that (s)he selected) even when
better alternatives become available.
(c) Sunk cost fallacy is a longer term
bias, in which the supply chain
manager throws good money after
the bad money, eg., he/she continues
to invest in a capital project in
increments despite the new adverse
information. The longer it takes
one to realize, recognize and make

By design, supply chains are wider in scope in comparison

to individual processes, and so are subject to epistemic
uncertainty. Naturally, as the system boundary increases,
complexity and therefore variability increases. We are not
recommending unending study or development of models
that are the exact replica of real world. The skill and art lies
in the ability of supply chain manager to draw and redraw
boundaries of system knowledge (s)he should strive for with
changing circumstances. A good way to do that would be to
link the supply chain risk management to the investments in
enhancing supply chain visibility. The cost and effort involved
in learning a system must be commensurate with the benefit
of resultant uncertainty reduction.

supplychaintribe.com 39
FOCUS

The core principle of lean is about bringing supplier and

customer closer in all possible ways - physically, capacity
wise and information exchange. Any efforts in this direction
contribute to better sync between the supplier and the
customer, which makes the relationship strong and resilient
to the uncertainties. Leaner the supply chain, less is the
inventory and the lead time. Flexibility is the natural benefit of
Lean and is the basic requirement of a resilient supply chain.

corrections to one’s mental models,
the bigger the risk one faces. Peter
Senge’s ‘The Fifth Discipline: The
Art & Practice of The Learning
Organization’ does an excellent job of
sensitizing and equipping managers
to overcome this bias induced
uncertainty.
DISRUPTIONS
Black swan events such as a pandemic
breakout, Suez Canal blockade, natural
calamities, or accidents etc., are termed
as disruptions. In highly globalized
supply chains, a disruptive event
occurring at one corner of the world
can swifty transmit to another corner
causing plants to shut down. Unlike the
previous three uncertainties, which can
occur on both supply and demand side
of supply chains, disruptions are more
common on the supply side.
LEAN MANAGEMENT IS
MORE THAN JUST ‘LEAN’
The term Lean was popularized by John
Krafcik, in his article, ‘Triumph of the
Lean Production System’ in 1988. Then
an MIT researcher referred it to as Toyota
Production System (TPS). This choice
of terminology was perhaps motivated
by the central principle of elimination
of different kinds of wastes in supply
chains in TPS. Unfortunately, such a
nomenclature resulted in a somewhat
second hand treatment of couple of other
fundamental principles of TPS namely
Gemba (to observe the problem at site
and learn) and Kaizen (continuously
strive for improved state). As noted in
the vast lean management literature
and examples, mere elimination of
even a single waste, results in a marked
performance improvement of supply
chains. Lost in the temporary success,
kaizen-led Gemba was inadvertently
pushed under the carpet, or forgotten
by many leaders.
This article is meant to remind the
supply chain managers of these two
principles of learning. The main outcome
of waste removal in the initial stages
of lean implementation is to provide
visibility to supply chain unknowns.
Achieving financial performance
improvement is just a happenstance.
Recall the popular example of a smooth
sailing of the ship on highwaters of
a sea with a rocky bed. As soon as the
water level falls, the problems (read –
Opportunities to Improve) surface.
At the fundamental level, it is the
information and trust that binds supply
chains. As explained earlier, poor quality
of either of these two binding elements
results in a blindness, which we call
as Uncertainty. A well-documented
phenomenon called the bull-whip
effect ensues with the most upstream
players facing the maximum brunt of
wild swings of demand propagation.
A conventional supply chain response
to this blindness was to create buffers
in terms of inventory, capacity, and
customer lead time. While this might be
ok as a short-term measure, our advice
to supply chain managers would be to
to go beyond the short term measure,
and focus on improving the quality of
information and trust among supply
chain partners.
In doing so, supply chain managers
should leverage digital technologies
intelligently to reduce lead time by
improving the quality and timeliness
of information collection, processing,
and propagation within and through
the departments as well as the entities
outside the organization. Then, through
process improvement, developing
better understanding of immediate
environment, leveraging technology and
practices, organizations can continue to
keep reducing their uncertainty.
Following are some of the strategies
that can be pursued in response to
different degrees of uncertainties. The
strategies make sense when implemented
in the order (except the last) mentioned
below, as the capability acquired in one
stage serves as the ground to implement
the next stage:
Reliability: Improve the reliability of
the process through statistical process
control techniques such that it operates
well within the customer specification
limits.
Robust: Robust engineering goes a step
beyond reliability by taking control of
process design such that the output stays
within desirable levels, regardless of
changes in environmental conditions, up
to an extent beyond which the benefits
don’t justify the redundancy costs.
Responsive: Responsiveness as
an effective supply chain strategy to
counter uncertainty, if the products
are innovative, have high margins, and
short life cycles or fixed selling seasons.
A firm is responsive, when it can meet
the alternative delivery requests such as
changes in product features, quantity,
delivery lead-time, location, or lot size,

40 CELERITY May 2023


etc. Ways to achieve responsiveness managers can know the critical spots
requires deliberate cushion building in of in their supply chains, invest on
the supply chain by signing up with more appropriate reinforcements.
responsive suppliers, logistics service
providers, keeping inventories at various Purpose-driven: While the previously
echelons, having quick access to spare mentioned strategies largely focus on
capacity, etc. the information exchange and structural
issues of supply chains, building trust
Flexible / Agile: Supply chains can is quite different. Responsible supply
be made flexible by making them meet chains have always held higher value
the changing environment or more system than being just profitable. Supply
proactively agile by making supply chains touch lives of a huge number of
chains able to rapidly capture the people both within and outside the
opportunity presented by an uncertain organization. Purpose-driven supply
event. Organizations can build flexibility chains understand that organizations
into their plans by undertaking a are nothing but people, and people are
segmentation analysis of their products, motivated much more by values such as
component parts and creating operations dignity of work, respect for individual,
plans to consist of a mix of standard, security, etc., than just money. Such
optional, and rare products right from trust can only be built over time by
design to delivery. Flexibility and agility repeated actions that reinforce the belief
are structural capabilities, whereas system of the purpose-driven supply
responsiveness refers to information and chains, especially in the face of adversity.
process capabilities. Motivated stakeholders provide the most
resilience cushion that supply chains can
Resilient / Anti Fragile: Resilience ever have in comparison to any other
is a measure of the organizations’ ability strategies.
to quickly restore its normal functioning
post disruption. Several frameworks have Linkwell, an energy meter
emerged both from academic institutions manufacturer, grew fivefold within a
and consulting firms to measure and couple of years due to a surge in demand
implement resilience. The frameworks in the overall economy. This growth was
range from improving visibility through managed through lateral expansion of
digital aids on one hand to big data both in-house facilities and multiplying
driven analytical understanding the subcontract vendors for upstream
supply chain data on the other. Further, processes. By early 2019, fluctuating
supply chain managers can improve order characteristics such as product
the knowledge and limitations of their type, order quantity, lead time, etc., and
existing supply chains by undertaking the resultant pressure on profit margins
supply chain vulnerability assessment, made the management look for ways to
mapped to current and potential geo- implement a flexible operating model
political risks and the likes mentioned that can synchronize output with orders.
at the beginning of this article. Armed The answer was implementing Lean to
with such deeper understanding, the improve flow both within the plant and
Don’t let Lean be yet another
fad that had passed its time
and miss all the gains achieved.
Instead, develop a comprehensive
understanding of TPS to create
learning supply chains that can
quickly respond to the dynamics of
internal and external shocks.
supplychaintribe.com
FOCUS
two levels of subcontractors, followed
by implementing pull throughout its
entire value stream, and finally by
stabilizing the processes at a higher level
of performance. The built-in flexibility
throughout Linkwell supply chain during
2019 and early 2020, helped it bounce
back on to its feet soon after lockdowns
were lifted post Covid-19, resulting in
a highly resilient organization. The lean
way of thinking is so much imbibed into
everyone at the company that it was able
to take in its stride numerous challenges
imposed on account of Covid-19 such as
social distancing, reduced manpower,
disturbances in supplies, and occasional
order cancellations, which is a mark of a
highly resilient organization.
CONCLUSION
As we can see, a short-sighted
view of Toyota Production System,
misunderstood as ‘only’ Lean
Management is the source of woes of
several supply chains during recent
supply chain disruptions over the past
few years. The core principle of lean is
about bringing supplier and customer
closer in all possible ways - physically,
capacity wise and information exchange.
Any efforts in this direction contribute to
better sync between the supplier and the
customer, which makes the relationship
strong and resilient to the uncertainties.
Leaner the supply chain, less is the
inventory and the lead time. Flexibility
is the natural benefit of Lean and is the
basic requirement of a resilient supply
chain.
What we are suggesting to the
supply chain managers in this article
is that blaming Lean Management as
the cause of all troubles, and hence
dropping all lean initiatives is akin to
throwing the baby with the bath water.
Rather this is the time to take Lean to
next stage. Don’t let Lean be yet another
fad that had passed its time and miss
all the gains achieved. Instead, develop
a comprehensive understanding of TPS
to create learning supply chains that
can quickly respond to the dynamics of
internal and external shocks. Lastly, it’s
worth remembering that only change
is permanent, and so no supply chain
design is ever eternally optimal. A higher
purpose provides supply chains with true
north and support at times of turbulence.
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