CARGOCONNECT JULY2024 - Flipbook - Page 75
E-COMCONNECT 2024
“Once we've set and 昀椀xed our key
performance indicators (KPIs),
managing their performance is
crucial for continuous improvement. From my experience, the
key lies in closely managing
and re昀椀ning operations day by
day. After finalising our 3PL
partner and agreeing on KPIs, the
immediate step is process 昀氀ow
mapping. It's essential to provide
clear, detailed process plans to our 3PL partners, akin to guiding them
through a structured playbook rather than simply giving orders. Training
is pivotal; we need to be hands-on, ensuring they understand our business
intricacies, including peak seasons and scalability needs. Continuous
monitoring is paramount. We must closely supervise daily activities to
ensure adherence to our processes and KPIs. Regular reviews—biweekly or
monthly—help track progress across various KPIs such as Barrows, Dispatch,
Inventory, and Safety. This systematic approach ensures alignment and
performance consistency. Additionally, fostering a motivational environment is key. Recognising and rewarding their e昀昀orts instills ownership
and drives continuous improvement. Empowered with case studies and
best practices, our 3PL partners enhance operational e昀케ciency on the shop
昀氀oor, positively impacting overall performance.”
“Typically, in the e-commerce industry,
everything happens within a tight
timeframe, often measured from
order receiving to order dispatching,
which is a critical metric. Another
key performance indicator (KPI) is
related to operational e昀케ciency and
door-to-door operations, speci昀椀cally
focussing on pilferage and theft prevention. Inventory security is crucial due
to its monetary value for the company.
Historically, when e-commerce began, theft incidents were common. For
instance, Amazon implemented secure storage rooms with strict access
controls, especially during new Apple iPhone launches, to prevent losses.
They rotated through multiple 3PL partners until they found reliable ones
capable of maintaining security standards. However, partnering with a 3PL
involves more than just preventing losses; it requires supporting them to
ensure operational success. Damage control is another signi昀椀cant concern.
For example, mishandling by a forklift operator caused signi昀椀cant damage
to a high-value TV, resulting in substantial losses for Samsung and debit
charges to their 3PL partner. Educating warehouse sta昀昀 and operators on
proper handling procedures is essential to minimise such losses. Overall,
these three primary KPIs—order ful昀椀lment speed, pilferage prevention, and
damage control—are critical for assessing the performance of any 3PL partner.”
SATHISH KANDASAMY, Manager– SCM and Logistics,
HARMAN International India
UMESH KAUSHIK, Head– Supply Chain and Global Business,
Home Alankar Retail Network
“When customer obsession is
central to supply chain operations,
it inherently enhances various
metrics such as lead times for
order processing and overall
customer satisfaction. Key pillars
that support a robust supply chain
include lead time, customer obsession, and foundational elements
like safety, quality, productivity,
and cost e昀케ciency. Cost e昀케ciency
is particularly critical because it underpins survival in competitive markets.
Despite the complexities involved, the true value in supply chain lies in
ensuring the safe and intact delivery of products to customers. Therefore,
integrating customer obsession into supply chain metrics and KPIs is crucial.
In the current landscape, the millennial demographic expects rapid service.
They demand instant grati昀椀cation with deliveries almost at their 昀椀ngertips.
This necessitates careful orchestration, balancing factors such as optimal
service distance, e昀케cient order picking and packing times, and seamless
coordination between store teams and delivery personnel. Backend technology
plays a pivotal role in this scenario, leveraging extensive orchestration to
predict ideal customer ETAs accurately. Central to this system is robust data
infrastructure, creating de昀椀ned delivery zones and operational environments.”
“A key factor is correlating forecasting accuracy with customer experience.
In today's market scenarios, whether it's quick commerce or traditional
e-commerce, customers prioritise
product availability. Therefore,
ensuring optimal product availability
becomes the primary output metric of
e昀昀ective forecasting. Another critical
aspect is 昀椀nding the balance between
maintaining su昀케cient inventory levels
without excess. Managing this balance
is challenging, especially as our market
expands globally, enabling customers
to order from outside India and vice
versa. This globalisation has shortened consumption cycles signi昀椀cantly.
Previously, customers might have waited weeks for delivery, but now,
expectations are as quick as 10 minutes for certain assortments. This disparity
between consumption lead time and manufacturing lead time underscores the
importance of accurate forecasting. It's essential to avoid stockouts or excess
inventory, which typically result from unpredictable demand patterns. While
demand variability may seem uncontrollable, a well-managed supply chain
can mitigate its impact. This involves maintaining 昀氀exibility from vendor
procurement through to customer delivery, ensuring swift replenishment
cycles to adapt to 昀氀uctuating demands.”
RAHUL GANAPATHY, Sr. Manager– Process & Quality, Flipkart
VIRAT SHARMA, VP– Supply Chain Operations, Zepto
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