Industrial Manufacturing & Technical Services

Supply Chain Decision Services

Generating Smart Industrial Insight Impact

Companies globally are facing increased supply chain complexity (global footprints, reduced response times, cost and demand volatility, complex supplier landscape) exerting pressure on key financial metrics (e.g., cost of procured goods, logistics, manufacturing, working capital, and cash flow) as well heightening supply chains’ risk profiles.

Companies with significant asset bases (inventory, transportation, and facilities, among others) and significant working capital tied up in operations across industries such as Hi-Tech, Oil & Gas (upstream), Chemicals, Pharma, CPG, Equipment and Discrete Manufacturing, and Logistics/Warehousing/Distribution experience the greatest impact. Traditional methods and processes can no longer address these challenges and deliver results. For insight into their supply chain costs and ways to improve margins, companies need in-depth supply chain analytics.

Solutions

Genpact's Supply Chain Decision Services enables senior executives to achieve cost visibility and optimization through supply chain analytics across:

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Sourcing and Procurement Analytics: As businesses expand into new, volatile markets with diversified product portfolios, managing a multitude of suppliers around the world becomes challenging. There are considerable costs and potential risks when signing on each new supplier. Our sourcing analytics helps in achieving:

  • Improved sourcing strategies by assessing potential supplier risk through financial analysis and their capability constraints
  • Fact based supplier selection: Product cost sensitivity analysis with reference to different countries worked out to identify the Best Cost Country (BCC)
  • Detailed negotiation support analysis: Cost reduction opportunities through should-cost analysis, value engineering, and identification of alternative materials
  • Accelerated sample product development provides insights into commodity tracking by considering micro- and macro-economic factors
  • Supplier performance optimization: Vendor scorecards to identify improvement schemes for under performing vendors

Demand and Inventory Analytics: Demand and inventory management is seen as one of the most critical and challenging aspects of supply chain analytics, Genpact offers the necessary inventory optimization solution to empower organizations to take on and win the challenge:

  • Key performance enterprise dashboards with trend analysis for fact-based predictions and multi-dimensional drilldown to increase visibility and insight on a global level
  • Customized solutions adjust to the needs of each individual organization, taking instead of retrofitting a pre-defined product or application
  • Advanced forecasting engine allows organizations to handle intermittent demand patterns and incorporate real-time market intelligence in the forecasting process
  • The option of a cloud based bolt-on solution that integrates with existing ERP systems means cost savings in that a company pays for the solution and not for additional infrastructure

Transportation and Logistics Analytics: Fluctuating demand patterns and an expanding base of suppliers and logistics partners have driven companies to continuously rethink their logistics network strategy. With our logistics analytics, you can realize strong ROI improvements through:

  • Carrier rationalization by least cost carrier (LCC) analysis and LTL consolidation
  • Dynamic fleet routing to address varying demand across the network
  • Design of hub/distribution centers through cluster analysis of pickup and delivery points
  • Real-time monitoring of freight costs to ensure contract adherence
  • Key performance metric dashboards and reports with multi-dimensional drilldown of items such as origin-destination pair, and mode (of transportation) analysis

Supply Chain Decision Services - Specific benefits for major stakeholders

  • Chief Financial Officer
    • Better control of total cost-to-serve
    • Improved cash flow through working capital optimization
    • Visibility and categorization of spend across the organization
  • Chief Purchasing Officer
    • Supply risk mitigation and improved sourcing performance
    • Objective price negotiations using should-cost model
    • “Right-sizing” of supply base and lowest cost country (LCC) sourcing program management
    • Better visibility on potential supplier risk
    • Better cost deflation opportunities
  • Head of Supply Chain
    • Pro-active identification of challenges to avoid impact on customer service
    • Up-to-date monitoring of supply chain performance
    • Better visibility on key supply chain metrics (e.g., Cash Conversion Cycle (CCC))
    • Enable proactive planning for varying customer demand patterns

Impact

Some of the key business impacts delivered to our clients:

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