Addressing modern supply chain challenges requires a multi-faceted approach to enhance flexibility and efficiency. By adopting agile principles such as cross-functional teamwork, iterative planning, and continuous improvement, businesses can better navigate disruptions and meet market demands. Strategically aligning resources involves a comprehensive analysis of competitive and technological environments. Focussing on high-profit market segments and refining offerings to meet their specific needs are critical for achieving advantage in the business. Importantly, benchmarking innovation practices through structured methodologies helps organisations stay competitive. Investing in technology-driven solutions and advanced communication platforms is essential for improving collaboration and transparency. Leveraging digital tools such as predictive analytics, AI, and IoT enhances resilience and responsiveness to disruptions. Ultimately, the execution of strategic plans will bear fruit when combined with advanced technologies to ensure a resilient and efficient supply chain capable of adapting to evolving market conditions. At Omega Seiki Mobility (OSM), Manuj Malhotra, Vice President–Strategic Sourcing and Supply Chain, highlights that they are employing benchmarking approaches to support continuous improvement and adaptation. By integrating these practices with cutting-edge technologies and strategic planning, OSM is committed to maintaining a robust and agile supply chain that meets dynamic market demands and drives long-term success.
OSM boasts five decades of manufacturing expertise, originating from the Anglian Omega Group. The group includes Omega Bright Steel, OBSC, OBSC Perfection, Yashdeep, Anglian Infra, Aditi Power, and ADM. Since its inception in 1971, the Anglian Omega Group has been involved in various sectors, including steel, auto components, cold chain logistics, and warehousing. With manufacturing facilities spread across India and global offices, the group generates over US$150 million in revenue and maintains a 10 per cent EBITDA. Rooted in automotive manufacturing, the company transitioned to electric vehicle production in 2018.
OSM operates four manufacturing facilities across India, located in Faridabad and Pune. The company’s dealer network spans over 180 locations, and more than 7,000 satisfied users benefit from its products daily. The growing demand for affordable transportation, concerns about fuel efficiency, and last-mile logistics needs in emerging economies, along with the shift toward electric and hybrid vehicles driven by stricter emission regulations and government incentives, are key factors shaping the company’s trajectory.
Building a Flexible Supply Chain
One of the primary challenges is the insufficient number of charging stations, especially in rural areas. This leads to “range anxiety”, where individuals worry about running out of power without access to charging facilities. To address such challenges, agile supply chain methodologies are crucial. These methodologies focus on flexibility, responsiveness, and collaboration. By adopting agile principles like cross-functional teamwork, iterative planning, and continuous improvement, businesses can streamline their supply chain processes and quickly adapt to changes in demand or disruptions.
Aligning Distinct Capabilities with New Novel Approaches
An innovative strategy directs how resources are allocated to achieve business objectives related to innovation, value delivery, and competitive advantage. This strategy should begin with a comprehensive analysis of the business’s competitive and technological environment, including an evaluation of external challenges and opportunities.
To effectively target and position your offerings, focus on market segments that promise the highest profitability. Ensure that your product or service meets the specific needs of these segments. Identifying and prioritising your most profitable customers and clearly defining your target market are crucial steps in this process.
A well-rounded strategy also involves a market penetration approach, which aims to increase market share for existing products or services within current markets. This can be achieved through enhanced marketing efforts, better customer engagement, and refining product offerings to align more closely with market demands.
Unique and Innovative Strategies Enabling Service Abilities
Investing in technology solutions that support collaboration, such as unified procurement platforms, is one of our key strategies for enhancing supply chain efficiency. These platforms enable seamless data sharing across departments and facilitate real-time collaboration on sourcing, procurement, and payment processes. By integrating advanced communication technologies, organisations can achieve a higher level of coordination and transparency, which are essential for effective supply chain management.
Effective supply chain collaboration depends on the strategic use of modern communication tools that enable real-time information sharing. These tools allow for better coordination and faster decision making, crucial for managing complex supply chains. Advanced communication technologies foster trust and transparency among partners, which are vital for maintaining strong relationships and addressing potential disruptions proactively.
To improve supplier collaboration, organisations should focus on fostering open communication and establishing clear expectations. Regular information sharing, providing timely feedback, and addressing issues or concerns promptly are essential practices. By maintaining open lines of communication, organisations can ensure that all parties are aligned with the supply chain goals and can swiftly resolve any challenges that arise.
Enabling Straightforward Value Generation
Today, e-commerce has become a crucial component in modern supply chain management, offering platforms for seamless online ordering, payment processing, shipment tracking, and inventory management. This integration enhances the speed of order fulfilment and improves product visibility, making it easier for customers to locate and purchase products.
Suppliers play a foundational role in the supply chain, providing the raw materials, components, and services essential for producing goods. Their reliability and the quality of their service are pivotal, as they directly influence the efficiency and effectiveness of the entire supply chain. Effective management of supplier relationships is therefore critical for maintaining a smooth and responsive supply chain.
To optimise supply chain operations, it is important to facilitate collaboration and information sharing with suppliers. Sharing key supply chain information, such as order forecasts and inventory levels, fosters transparency and helps in better planning, reducing the risk of disruptions. Automation further enhances efficiency by streamlining requisition and purchase order creation, integrating payment processes, and minimising errors. This not only improves workflow but also boosts accuracy in order processing.
Ensuring Technological Prowess in a Rapidly Evolving System
Digital tools significantly enhance the resilience of supply chains by enabling companies to respond swiftly and effectively to disruptions. Technologies such as predictive analytics, Artificial Intelligence (AI) and Machine Learning (ML), the Internet of Things (IoT), Cloud Computing, and Advanced Robotics and Automation play a crucial role in this process.
Predictive analytics allows businesses to foresee potential issues and develop proactive mitigation strategies. AI and ML algorithms can analyse vast amounts of data to identify patterns and predict disruptions before they occur. The IoT provides real-time visibility into supply chain operations, improving tracking and monitoring. Cloud Computing ensures scalability and flexibility in managing data and applications, while Advanced Robotics and Automation streamline operations and increase efficiency.
Harnessing Innovation Benchmarking
Innovation benchmarking offers numerous benefits, including evaluating your current innovation performance, identifying strengths and weaknesses, and learning from the best practices and mistakes of others. This process enables you to set both realistic and ambitious innovation goals and monitor progress effectively.
Key sources of benchmarking data include industry reports, surveys, databases, publications, websites, associations, consultants, and direct interactions with other organisations. These sources provide valuable insights into industry standards and emerging trends.
At OSM, we employ an eight-step approach to ensure effective benchmarking. This structured methodology helps keep our organisation aligned with its innovation objectives and enhances our ability to remain competitive and responsive to industry changes.
Logistics—Essential to Strategy Logistics activities within a business organisation aim to meet customer demands by addressing time and location challenges, as well as optimising service cost and quality based on customers’ needs and purchasing power. To enhance supply chain efficiency, adopting logistics innovations, such as technology-driven third-party logistics (3PL) solutions, is essential. These advanced logistics management systems streamline warehousing, delivery, returns management, and procurement, significantly improving operational efficiency.
By leveraging such innovations, organisations can better align their logistics capabilities with market demands and achieve a competitive edge in their supply chain operations.
Warehousing Management to Alleviate the Bottom-Line
Techniques such as 5S (Sort, Straighten, Shine, Standardise, and Sustain) and Just-in-Time (JIT) inventory management are effective in reducing lead times, enhancing order processing efficiency, and optimising supply chain operations. Standardising picking and packing procedures is crucial for minimising errors and reducing processing times. Additionally, comprehensive inventory management strategies should include stock classification, inventory control techniques, safety stock management, cycle counting, and warehouse space optimisation. Effective layout design and storage techniques are also essential for improving overall efficiency and maintaining a well-organised supply chain. By implementing these practices, organisations can streamline their operations, reduce costs, and better meet customer demands.
New Frontiers pivotal to Evolution
Advanced technologies are revolutionising the supply chain landscape. Emerging capabilities in generative AI, data analytics, automation, machine learning, the Internet of Things (IoT), blockchain, and other innovations are driving the evolution of ‘smart’ supply chains, setting new standards for efficiency and agility.
At OSM, we are in the early stages of integrating these advanced technologies into our operations. We are adopting a Digital Work Management (DWM) approach to systematically incorporate these tools and ensure effective implementation. Through structured reviews and continuous evaluation, we are committed to embracing these innovations fully, aiming to transform our supply chain practices and maintain a competitive edge in the rapidly evolving market.
“Adaptive” – tomorrow’s Supply Chain in one word
Effective communication and exceptional customer service are crucial skills for success in supply chain management. Strong communication abilities facilitate successful negotiations with suppliers and stakeholders, while professional and courteous interactions build trust and foster long-term relationships with customers.
To excel in supply chain management, it is essential to combine these skills with perseverance and a strong work ethic. Success requires not only generating innovative ideas but also executing them effectively. It is important to maintain integrity and patience throughout the process.
While having a vision is important, the ability to implement and execute plans is what ultimately determines success in the dynamic field of supply chain management.
