Supply Chain & Operations
Supply chains and operations are undergoing radical restructuring as they meet the challenge of improving performance in a world of unprecedented complexity and opportunity. They must balance increasing needs for agility and responsiveness against driving down costs and improving cash.
EY Advisory believes a better working world means addressing big, complex industry issues and opportunities to deliver outcomes that help grow, optimize and protect businesses. We work with you to help you effect fundamental change in your operations performance to support sales growth, become more cost competitive, reduce risk and enhance operational resilience.
Your supply chains and operations should be viewed as sources of strategic competitive advantage, and we can help you identify and invest in the right operating models to unlock the full value from this strategic asset.
Our global connectivity, including alliances with sector-leading businesses, means we can combine deep operational consulting capability with industry-specific leading practices, so you get the benefits of a wide range of insights. This ongoing collaboration enables us to help you design better outcomes and deliver long-lasting results.
EY has a proven track record of helping organizations transform their warehouse operations using leading technology platforms, software and leveraging digital capabilities such as IoT, 3D printing, robotics, predictive analytics, machine learning and augmented reality.
We gave valuable insights to a leading mining company on the supply-side scenarios for five commodities over the next 30 years. The team provided necessary solutions after evaluating the impact of policy decisions and infrastructure limitations on the supply situation. We helped the client understand the dynamics of the Indian market better, thereby aiding in the development of strategy.
The company wanted to understand the mineral scenario in India, in terms of policy implications and future developments. It also wanted to obtain insights into demand and supply forces in the market and forecast growth factors for the Indian manufacturing sector. The company had to answer the question: “Can supply-side scenarios define the nature of your business?”
We assessed three key modules: existing mineral resources and reserves, mineral policy, and road, rail and port infrastructure.
The team prepared a quantification model, based on the policy impact assessment on key levers.
We painted a picture of the India story in 2050, in terms of macro-economic and sector-based trends, and presented its view on factor inputs driving manufacturing growth till 2030.
The team conducted an econometric study to assess if the Indian service sector growth has been an outliner and whether it is likely to sustain in future.
We leveraged expert views to help the client gain an understanding in the areas of existing resource base, accessibility, infrastructure development, key policies and policy/infrastructure evolution paths.
We provided an integrated understanding of the manufacturing sector and its future, which would assist the client to formulate the future strategy for its India business.
We created quantitative excel models, which can be updated at a regular frequency, to assess the different demand scenarios and supply situations. It also helped in developing a mid-/long-term cross commodity strategy.
Our team designed and implemented the supply chain optimization program for a leading tire manufacturer facing fierce competition from cheap Chinese imports and external influence on the local markets. To help the company keep up with market demands, our team significantly increased supply chain effectiveness through process optimization and implementation of new IT solutions.
The company required a flexible and responsive supply chain to cater to all the distinct customer segments with an individualized approach. In spite of having inventories in the system, the company was losing sales due to inaccurate forecast and lack of inter-departmental coordination for planning.
Furthermore, a decrease in the duration of the full logistics cycle from planning to sales was required to ultimately increase supply chain effectiveness. The company had to answer the question:
How can an organization create an agile and responsive supply chain that gives it a competitive advantage?
We created a quantitative dashboard, which served as a baseline to measure the supply chain’s performance.
It understood the needs of end users, their buying behavior, and performed a detailed gap analysis of the existing supply chain planning practices.
After establishing gaps and fixing the solution direction, the business case was established and targets were set.
We also helped implement a new sales & operations planning(S&OP) process and rolled out pull-based distribution planning from major factories. Finally, robust IT systems were installed to improve efficiencies and make the change sustainable.
With our support, the flexibility and responsiveness of factories and availability at the plant warehouse improved by more than 50%. The new supply chain operating model is the driver for profitable growth – from servicing and retaining valuable customers, to managing complex product supply base at an optimal cost and working capital deployment.
Ashish Nanda Partner