Effective Supply Chain Management in an Era of Decoupling Updated

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(No Transcript)
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Webinar Hosted by NexInfo
Delivered Multiple Supply Chain Transformations..
Awards
Recognized in the industry, including features in
Gartner Reports, The Silicon Review (50 Smartest
Companies of the Year 2016 and 10 Fastest Growing
Oracle Solution Providers 2017), and CIO Review
(100 Most Promising Oracle Solution Providers
2015 and 10 Most Promising ERP Consulting/Services
Companies 2019)
Major Industry experience includes High
Technology, Life Sciences, Discrete Process
Manufacturing
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Introduction
ARUN CAVALE
DR. NICK VYAS
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Guest Presenter Dr. Nick Vyas

• Executive Director and Co-founder of Center for
  Global Supply Chain Management (CGSCM) at USC
  Marshall
• Educator, thought leader, author, keynote
  speaker, and advisor to leaders in the worlds of
  supply-chain practice and policy
• In 2018, Dr. Vyas was bestowed the Supply Chain
  Leader Award of Excellence by APICS
• Founder, Supply Chain Professionals without
  Borders (SCPWOB)
• Contributor, Supply Chain Management Review
  (SCMR), NPR, KCRW, CBS News, The Economist, and
  the LA Business Journal
• Member, U.S. Department of Commerce Advisory
  Committee on Supply Chain Competitiveness

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Questions?
Please submit questions using the Questions
option on the GoToWebinar panel
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Factors affecting Supply Chain and driving
Decoupling
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Decoupling, not Deglobalization

• Globalization is strongly linked to economic
  prosperity
• Economies are far more interconnected and
  interdependent and that is helping lift millions
  out of poverty and improving living standards
  across the world
• West cannot ignore the market opportunities from
  the emerging markets

How do we minimize the risks of globalisation
without reducing its footprint?
DECOUPLING
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Decoupling

• Widely used for inventory management where it
  plays a crucial role in centralizing and
  buffering a distribution network
• Decoupling point is established close to the
  operational zone
• Acts as both a strategic distribution hub and a
  safety buffer
• Protects supply chain network from demand shocks
• For global supply chain management, decoupling
  points or nodes also connect supply chain
  pathways to customers

Instead of a worldwide web of long and linearly
joined supply chain networks, we will have
regionally concentrated supply chain clusters,
each connected with other clusters using a
decoupling point.
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Elements of an OpTIMAL decoupling strategy
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OpTIMAL decoupling strategy - OPERATIONAL

• Regionalized supply chains would marginally
  increase production costs in the short run, but
  they offer several long-term benefits such as
• reduced carbon footprint
• improved agility and resiliency in the face of
  supply chain disruptions
• higher product quality
• Developing effective supply chain operations that
  account for decoupled world will take planning
  and require careful balance between lean
  manufacturing principles and supply chain
  adaptability and resilience.

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OpTIMAL decoupling strategy - TECHNICAL

• Companies must leverage technologies such as 5G,
  IOT, machine learning, blockchain, AI and
  advanced data analytics to efficiently align with
  decoupled supply chains
• Ability of companies to adopt digital
  transformation will vary depending on their size
  and resources
• Companies will have to ensure and be able to
  certify that their entire supply chain is secure
  for both private and public sector audiences
• Each supply chain brings its own challenges
  around personal and non-personal data ownership,
  flows and governance.

Companies must begin to conceptualize, analyse,
and appropriately implement customer-centric
network design
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OpTIMAL decoupling strategy - INFRASTRUCTURE

• To support a revamped supply chain, companies
  need to develop and execute a strategy for
  obtaining financing, especially in challenging
  financial markets
• Depending on the project type, companies may need
  to
• develop and employ a legal and political strategy
• deploy an advocacy strategy
• to support financing, permitting, stakeholder
  engagement and operations

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OpTIMAL decoupling strategy - MANAGEMENT

• Corporate leaders will need to make a deliberate
  decision to focus on supply chain resilience and
  agility as their core objective, rather than on a
  strict cost imperative
• Adopting Digital Transformation has become a
  market mandated inevitability to safeguard
  organizations from supply-chain disruptions
• Decoupling and redesigning of supply chains will
  be underpinned by future technology

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OpTIMAL decoupling strategy - ADVOCACY

• Supply chain strategy will require carefully
  designed and proactive advocacy and marketing
  strategies such as
• emphasis on buying local
• promoting specific brands as best-in-class with
  respect to health and safety
• pushing stronger climate change, sustainability
• circularity measures to take advantage of
  proactive investments
• new technologies that provide a competitive
  advantage
• whether to a company, sector, jurisdiction or
  region.
• Companies need to think creatively about ways to
  prioritise their specific interests or be
  prepared to persuasively divert counter
  productive endeavours into more workable
  alternatives.

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OpTIMAL decoupling strategy - LEGAL

• Minimize legal risk, take advantage of existing
  laws and regulations, and help craft new policies
  that would benefit the bottom line
• Integrate multiple areas of law relevant to
  supply chains across jurisdictions in which a
  company maintains operations
• Supply chain shifts and new government supply
  chain-related policies may require a company to
• Develop and execute outsourcing strategies
• Solve new logistical challenges
• Implement labor reorganisation strategies
• Obtain permits for new facilities
• Put in place new measures to protect its
  intellectual property
• Demonstrate supply chain risk management to a
  government agency as part of a procurement bid

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OpTIMAL decoupling strategy - LEGAL

• Develop and execute strategies to minimize tax
  and duty liability
• Ensure compliant incorporation of temporary
  workers and contractors into the workforce
• Address immigration and visa issues for foreign
  workers
• Manage difficulties arising out of acquisition
  and divestitures

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QUESTIONS ?
ARUN CAVALE
DR. NICK VYAS
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QUESTIONS
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Thank You
_at_Vyassupplychain
LinkedIn Thevyas007
Nikhilvy_at_usc.edu
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