In today’s fast-changing business environment, supply chain professionals face daily challenges with demand, supply, and product disruptions. Now, more than ever, they need to think big and bold. As companies navigate the complexities of today’s global markets, a strategic focus on supply chain excellence will undoubtedly be a key differentiator for those aiming to thrive in the marketplace of tomorrow. By embracing digital transformation, fostering collaboration, adopting sustainable practices, managing risks, and continuously improving operations, businesses can build resilient supply chains that deliver value to customers while remaining adaptable to future challenges. Our Special Report attempts to highlight the key attributes that drive successful and efficient supply chains with experts’ insights on striking the right balance between responsiveness and efficiency.
While researching on this topic, I chanced upon an interesting article by Michigan State University, which has aptly highlighted the ever-growing importance of driving organizational growth through a sound supply chain orchestration. According to the writer, excellent supply chain strategies provide ways to move ahead of the competition in an increasingly complex marketplace. To achieve supply chain excellence, organization leaders need to pay particular attention to the details of their infrastructure. Viewed collectively, these details can support a more efficient and effective supply chain management process that can promote more aggressive performance goals across such areas as purchasing, general operations, distribution, and integration strategies.
Today’s best practice methods involve a more integrated approach to the entire supply chain. Taking the time to build a holistic perspective can give corporate leaders the information they need to identify challenges and build solutions to mitigate revenue lost due to redundant or inefficient supply chain methods. To support this statement, here are examples of how two corporate giants, FedEx and Amazon, have excelled in their SCM processes…
In one creative solution, FedEx worked with a U.S. automotive part distributor to essentially create a “flying warehouse.” Renting a permanent storage facility for a long-term contract in Japan was cost prohibitive for the parts distributor who chose instead to use FedEx services to fly parts overseas daily. In the end, this solution saved the company money. FedEx has built its own reputation on tight logistics and responsive customer service management practices. They are leading the way for other companies to grow through their example with controlled flexibility and SCM procedures that are able to seamlessly evolve in times of change or uncommon need.
Amazon’s focus is on growth based on, “its holy trinity of price, selection, and availability,” as explained by former Amazon executive John Rossman in his book The Amazon Way. One of the company’s strengths is that they built their own supply chain management tools from the ground up. As a result, they were able to build a system where communication in real time is standard practice and making adjustments is inherently part of the way the system works. While other big box giants and mega superstore companies are scrambling to retrofit outdated and disjointed IT, Amazon is efficiently zipping ahead of the competition. Communication in real-time means convenience for customers. Orders can be filled and shipped from a variety of locations to maximize efficiency and customer satisfaction. When a process is deemed no longer relevant, it is abandoned for more responsive solutions.
With such remarkable success stories, here we offer you first-hand insights rom the experts to help you drive supply chain excellence in your respective organizations and the path forward to succeed in this highly competitive era…
How important is supply chain excellence in businesses? How can companies drive excellence in their organizations? What are the ways to achieve supply chain excellence?
Building a competitive advantage through a company's supply chain involves aligning the various elements of the supply chain to create value for customers, optimize costs, enhance quality and differentiate the company's offerings.
Arpita Srivastava, Supply Chain Planning & Logistics Leader, Schreiber Foods (India): Given the shelf life of products and regulatory guidelines, Supply chain excellence is critical in the F&B sector. Food and beverages are highly perishable, requiring precise management of inventory, transportation, and storage throughout the chain to ensure products are delivered fresh and on time. It requires to maintain temperature as per the need of a particular product and ensuring the same throughout the journey till it reaches retail shelves. It calls for close coordination across functions. Regulatory compliance is stringent in this industry. Efficient processes ensure that products meet safety standards, reducing the risk of contamination and costly recalls.
Now, increasingly, consumers and regulators are calling for greater transparency and sustainability. Excellence enables better tracking of ingredients, reduces carbon footprints, and ensures ethical sourcing, which is becoming a significant competitive advantage. Lastly, this industry often faces disruptions due to weather, transportation, or supply issues. Your ability to quickly adapt to changes, ensuring business continuity projects your excellence.
Driving supply chain excellence in food and beverage (F&B) involves optimizing key processes such as sourcing, manufacturing, and distribution, and customer service. An easy way to achieve this is by improving demand forecasting. For example, advanced data analytics can be used to better predict customer demand for beverage SKUs. By analyzing past sales seasonal trends and market conditions, they can adjust production schedules and inventory levels accordingly. This helps prevent over production. (causes waste) and out-of-stock products (Causing sales loss). In distribution, using real-time tracking systems allows better route planning, ensuring fresh products reach stores or customers faster while minimizing fuel costs.
Nitin Varkey, VP – Strategic Projects, Organization Excellence and Innovations, Blue Dart Express: Supply chain excellence is vital for maintaining competitive advantage and achieving customer satisfaction. It enhances efficiency, productivity, and reduces errors. Achieving this requires leadership commitment, a culture of "Right First Time," with a robust planning and execution mindset.
Companies should focus on continuous improvement, adopt new technologies, and foster strong stakeholder relationships. Achieving supply chain excellence requires a holistic approach that encompasses collaboration, technology adoption, continuous improvement, talent development, performance measurement, and sustainability. By focusing on these areas, companies can optimize their supply chain operations, enhance customer satisfaction, and gain a competitive advantage in the marketplace. Key tenets include strategic alignment, expertise, collaboration, continuous improvement, data-driven decision-making, and talent development. To build a successful CoE, define its scope and objectives, assemble a skilled team, establish governance and processes, and invest in technology. Foster collaboration, communicate the CoE's value, and focus on continuous improvement. A CoE enhances efficiency, supports strategic decision-making, and drives innovation.
Nirav Doshi, Founder & MD, NIDO Group: Effective supply chain management is crucial for business success, driving competitive advantage, cost reduction, and customer satisfaction. It enhances efficiency, reduces inventory costs, and ensures quality control. Strong partnerships, collaborative innovation, and digital transformation also benefit from robust supply chain management.
At NIDO, we have recognized this process and have taken effective steps to transform the same. Through automation and data analytics, we can enable real-time tracking and predictive decision-making, reducing errors and delivery times. It is worth noting that automation is one of the key drivers of supply chain excellence, enabling enterprises to compete even on many resource-scarce fronts. Process automation will make it possible for any organization to manage and operate the business with minimal errors and maximum efficiency. Automation, therefore, provides an organization with a major competitive edge in the market, thereby positioning them to be among the market leaders, through which they spur economic growth and advancement in developing regions.
Deepak Jain, Director India, Argon & Co: Supply chain excellence is crucial for cost efficiency and customer satisfaction. Companies can drive it by aligning supply chain strategies with business goals, adopting advanced technologies, and fostering continuous improvement through lean practices. Strong partnerships and real-time performance monitoring also contribute to achieving excellence.
Chetan Kumria, Founder & MD, Xcell Supply Chain Solutions: In my view, supply chain excellence is one of the most important pillars of a manufacturing company as it works towards enhancing customer service and optimizing cost across the business.
The implementation of this spans across from primary suppliers to end customers, so if a company plans to embark on this journey, it should work towards working with its suppliers and service providers and its distributors & retailers and not just work internally to drive supply chain excellence. If we would like to achieve supply chain excellence in an organization, it needs to first have a buy-in from all the leadership team and then a buy-in from outside of the company also, like the suppliers and distributors because this is a long term change and all stakeholders should have a mind-set towards embarking on this journey. Once we achieve this, then the implementation and achieving supply chain excellence will follow.
How important is planning function in driving business excellence?
Effective planning ensures that the right products are available at the right time, in the right quantity, and at optimal cost.
Arpita Srivastava: One thing I always quote is ‘Good planning is Half Execution’. If you have the right plan in place, all you need to do is assign the right people to execute that particular task. Besides, there needs to be greater agility into the system so that in times of any unforeseen situation, things can be brought under control and become resilient. Planning is crucial in driving business excellence.
This is even more true in industries like food, where factors such as time, forecasting, and allocation become paramount. Effective planning ensures that the right products are available at the right time, in the right quantity, and at optimal cost. This function integrates procurement, production to distribution minimizing disruptions and reducing inefficiencies. For example, in the food industry, a bakery that uses effective demand management can order its raw materials, production calendar, and the delivery schedule effortlessly. Waste is minimized and freshness is preserved, hence cost saving and customer retention y matching the actual production with the real demand from the customers—especially for the perishable items.
Proper planning also helps the business adapt to changes in market demand or supply chain disruptions, making it more resilient and competitive. This operational excellence directly impacts probability and long-term success.
Nitin Varkey: Planning is crucial as it lays the groundwork for execution and subsequent excellence. Effective planning involves setting clear objectives, identifying key performance indicators (KPIs), and establishing both lagging and leading indicators to measure progress. Successful implementation requires not only planning but also continuous monitoring and adjustments. By aligning shop floor KPIs with management and senior leadership goals, companies can ensure that every level of the organization contributes to achieving overall excellence.
How easy is it for you to implement these business excellence pillars in your day-to-day operations and highlight their importance to the management?
Implementing excellence pillars requires clear planning and communication. Demonstrating how these practices align with business goals and deliver measurable improvements helps gain management support.
Nitin Varkey: Implementing business excellence pillars can be challenging, especially when balancing innovative approaches with existing processes. While major innovations like drones capture attention, smaller, incremental changes often yield significant benefits.
For example, conveyor systems in warehouses have revolutionized operations. At Blue Dart, we focus on three key areas: enhancing customer convenience, boosting operational fficiency, and reducing costs. Sustainability also drives many of our innovations. Emphasizing these pillars involves demonstrating their impact on performance and aligning them with organizational goals to gain management support.
Nirav Doshi: NIDO harnesses advanced technology to ensure business excellence and by innovating solutions, to enhance overall efficiency and growth. The strategy s focused on process standardization, increased productivity, and customer service experience. Operations are scalable; sustainable development will be aligned with industry benchmarking. This strategic focus enables the company to avail itself of huge opportunities that will not only reshape the business landscape but also contribute toward the development of the region. To that effect, the commitment to innovation means continued success and growth, which ushers in a better future. Tapping into technology opens up new frontiers, ushers in economic progress, and creates a lasting impact, hence its leader position in the industry.
Deepak Jain: Implementing excellence pillars requires clear planning and communication. Demonstrating how these practices align with business goals and deliver measurable improvements helps gain management support. Regular reporting and showcasing tangible enefits through KPIs and benchmarks strengthen the case for their importance.
What can be the possible barriers on the way to business/supply chain excellence? How can companies overcome them?
Barriers include outdated technology, resistance to change, and poor data visibility. implementing leasing automation solutions can be a highly effective strategy to overcome these obstacles and guarantee seamless logistics operations.
Nitin Varkey: Barriers include lack of alignment, limited visibility, complexity of operations, resistance to change, and inadequate resources. Companies can overcome these by fostering strong leadership, enhancing cross-functional collaboration, improving data accuracy, and embracing change. Effective communication, technology adoption, and a structured governance program with a reward system can also address these challenges, facilitating progress toward excellence.
Nirav Doshi: Some of the barriers towards business/ supply chain excellence include limited access to automation solutions, resistance to change, and limited resources in smaller towns and Tier II & III cities. Driving such a journey to excellence in such cases may include exploring cost-effective automation solutions and partnerships; assessments to identify areas for improvement; prioritizing strategies; and others. Furthermore, implementing leasing automation solutions can be a highly effective strategy to overcome these obstacles and guarantee seamless logistics operations.
Deepak Jain: Barriers include outdated technology, resistance to change, and poor data visibility. Overcoming these requires investing in modern tools, fostering adaptability, and improving cross-functional collaboration. Strong leadership and clear communication of benefits are essential for overcoming these challenges.
How important is the role of automation in business excellence strategy? How can companies get this orchestration done?
A structured approach to automation orchestration can help companies unlock its benefits. This includes the identification of areas to automate, investing in suitable technologies, and development of talent and expertise for effective implementation and management.
Nitin Varkey: Automation is a key enabler to enhancing operational efficiency, reducing costs, and improving accuracy. It streamlines tasks, minimizes errors, and provides real-time data for better decision-making. Companies can implement automation by identifying automation opportunities, evaluating solutions, and building a roadmap. Effective change management, piloting solutions, and ongoing support are crucial for successful implementation. Ensuring data security and continuous improvement will maximize the benefits of automation.
Nirav Doshi: With the above-mentioned importance of automation for efficiency and smooth operations, it ensures the driving of streamlined operations, efficiently managing growing scales of operation, and unlocking benefits such as increased productivity, lower costs, and improvement in customer experience. With the festive season approaching, numerous companies are proactively enhancing their logistics to ensure faster delivery timelines, anticipating a surge in demand during this peak period. By automating routine and error-prone processes, companies can achieve manifold accuracy and speed leading to higher customer satisfaction and better competitiveness. A structured approach to automation orchestration can help companies unlock its benefits. This includes the identification of areas to automate, investing in suitable technologies, and development of talent and expertise for effective implementation and management.
Deepak Jain: Automation enhances efficiency and accuracy, freeing up resources for strategic tasks. Companies should start by identifying repetitive tasks for automation, using pilot programs to test implementations, and ensuring seamless integration with existing processes. Effective change management and employee training are critical for successful orchestration.
How receptive are the companies towards automation adoption?
In the quest to stay competitive, shrink operations, and keep customers delighted, the adoption of cutting-edge solutions is on a spiralling high.
Nitin Varkey: Receptiveness to automation varies by industry, company size, and technological readiness. While many companies are increasingly open to automation due to its benefits, challenges such as job displacement, integration complexities, and cultural resistance can hinder adoption. As the advantages of automation become more apparent, more organizations are embracing these solutions to enhance operational efficiency and remain competitive.
Nirav Doshi: MSMEs, startups and new-age companies are increasingly embracing automation, recognizing its proven benefits in efficiency, productivity, customer experience, and business growth. Automation possesses the power to transform businesses specifically, in tier II and III cities levelling the playing field with larger enterprises.
In this quest to stay competitive, shrink operations, and keep customers delighted, the adoption of these cuttingedge solutions is on a spiralling high. Companies in these regions are bound to benefit and take advantage of such solutions, as they become increasingly accessible and more affordable. This strategic approach will help them win the race, ensure operations excellence, and surge ahead in the market. The adoption of these advanced technologies has yielded a substantial 15-20 % growth, underscoring the transformative impact on our operations, customer experience, and bottom line.
Deepak Jain: Companies, especially larger ones, are increasingly open to automation for its potential to improve efficiency, reduce labor costs, and enhance accuracy. Smaller companies may hesitate due to upfront costs, but highlighting long-term savings, productivity gains, and growth potential can boost receptiveness.
How do you educate companies who are either small-scale or from smaller towns about the ROI that they can achieve through automation adoption?
To effectively encourage small companies and those from smaller towns to adopt automation, it's essential to approach the conversation with cultural sensitivity, moving beyond just Return on Investment (ROI) discussions.
Arpita Srivastava: Rather than going for big bang investment right at the start, collaborating with the suppliers would enable customers understand the value of automation. Starting with a small, affordable automation tool to show immediate benefits. Once they experience the time and cost savings firsthand, they’ll be more open to larger investments. That’s where leasing models are finding their mainstay. We have so many players in market offering pallets on lease. A similar model can be applied to automation solutions in this domain. Not only it brings ownership on both the parties for implementation success, but also helps them monetize their efforts and assets.
Further, using relatable examples to show how automation reduces costs can help build a case. For instance, explain how automating inventory management helps reduce waste and overstock, lowering their operating expenses. Highlight that even small savings add up over time.
Nitin Varkey: Educate smaller companies by tailoring solutions to their specific needs, showcasing relevant success stories, and providing detailed ROI analyses. Conducting proof-of-concept trials, offering training, and providing continuous support can demonstrate the practical benefits of automation. Addressing their unique concerns and offering guidance throughout the adoption process will help them understand and realize the value of automation.
Nirav Doshi: To effectively encourage small companies and those from smaller towns to adopt automation, it's essential to approach the conversation with cultural sensitivity, moving beyond just Return on Investment (ROI) discussions. Instead, the focus should be on the tangible benefits of accessibility, efficiency, and scalability that automation brings. By highlighting how automation can streamline operations, enhance productivity, and drive growth – with or without additional manpower – businesses can better understand its value. Addressing concerns around accessibility, such as affordable solutions and phased implementation options, can also alleviate adoption hesitancies.
At NIDO, we open up new opportunities for small-sized companies from smaller towns to improve competitiveness through the adoption of automation as well as transforming their businesses to grow their businesses and ideas. In doing so, it becomes our avenue towards creating equal levels and helping such small-town companies get ahead in what seems like a much more competitive market.
Deepak Jain: Showcase how automation reduces manual errors, speeds up order processing, and optimizes space. Use relatable case studies, offer demo solutions, and emphasize scalability— starting small and expanding as benefits are realized. Clear cost-benefit analysis helps communicate ROI effectively.
At what maturity stage do companies involve consultancy firms to help them drive business excellence?
Arpita Srivastava: Consultancy shouldn’t be looked like a solution to all internal processes. It is not a fix for poor processes or poor management. So, only when organizations have stable processes, irrespective of the maturity level, they should engage in any conversations with consulting firms. This usually occurs after a company has established strong foundational systems and processes and have clarity in vision, but still encounters difficulties in scaling up operations, optimizing efficiency or dealing with new market demands. At such times, they often seek external expertise to acquire new perspectives, benchmark against industry best practices and discover cutting-edge strategies for continuous development.
For instance, in order to optimize the supply chain through data-driven insights or digital transformation, an organization experiencing stable operations may hire a consulting firm. Such intervention allows the firm to get out of growth plateau stage, enhance competitiveness and align itself with market dynamics. Generally speaking, firms at this level, recognize that specialized knowledge and outside assistance are essential if they have to go beyond their existing capabilities and attain business excellence.
Nitin Varkey: Consultancy firms are typically engaged when companies reach a stage where internal perspectives may be insufficient for driving transformative change. This often occurs during periods of significant growth, strategic reorientation, or when aiming for higher levels of operational excellence. Consultants bring a neutral, unbiased perspective, which is crucial when existing teams are entrenched in established practices. Their external viewpoint helps to identify best practices and innovative approaches without the constraints of internal biases or vested interests.
Deepak Jain: Companies typically engage consultancy firms when their foundational operations are stable, but they seek to elevate performance or tackle specific challenges. This often occurs during growth phases, such as market expansion or scaling, or when facing complex issues requiring specialized expertise. At this stage, businesses recognize the need for external perspectives to drive transformation. Consultancy firms offer insights and best practices to optimize processes, implement advanced technologies, and align strategies with business goals. Achieving excellence requires a continuous improvement strategy and a cultural shift towards embracing change and innovation.
Establishing accurate KPIs and robust monitoring systems is essential for tracking progress and measuring success. These tools help identify performance gaps, enable data-driven decisions, and ensure strategic alignment. Consultancy firms assist organizations in addressing immediate challenges while building a sustainable framework for ongoing improvement and operational excellence.
What is the critical role that leadership needs to play in driving supply chain excellence?
To achieve business excellence, leaders have to define a clear vision for the supply chain that dovetails with the overall goals, ensuring that every part of the operation, from procurement to delivery, promotes growth and customer satisfaction.
In the post-pandemic world of heightened risk, supply chain excellence is a critical difference-maker in business success or failure. A recent EY study stated that great products only exist if they can be made and shipped reliably and cost-effectively to eager customers. And this can only happen if CEOs drive this from the very top.
The supply chain can no longer be a domain exclusive to logistics experts as the impact and consequence reaches all parts of the business. The most strategic leaders have realized genuine competitive edge in business today lies increasingly in the ability to master the new supply chain agenda. Prevailing fears of disruption is leading to headline-grabbing geopolitical issues monopolizing the attention of CXOs and supply chain leaders.
Arpita Srivastava: To achieve business excellence, leaders have to define a clear vision for the supply chain that dovetails with the overall goals, ensuring that every part of the operation, from procurement to delivery, promotes growth and customer satisfaction. For instance, in a pharma company, leadership might invest in advanced demand forecasting technology to minimize wastage and improve inventory management. By promoting a culture of continuous improvement, leaders facilitate team innovations and adoption of best practices thereby making sure supply chains are efficient and adaptable to change. Also, they help with cross functional collaboration by breaking the silos between logistics, procurement, sales so that operation goes on smoothly.
Furthermore, effective leadership acts as a catalyst for identification of potential disruptions in the supply chain and ensuring methods are in place for maintaining resilience. Through resource allocation and provision of necessary know-how and skills on behalf of teams’ empowerment; thus, ensuring not only operational efficiency but also long-term business success. Also, to add, leaders need to build future leaders. If one alone drives excellence and ball stops at him/ her, management needs to look at it. This way one can build a sustainable and excellent individual independent processes and systems.
Nitin Varkey: Leadership is crucial in driving excellence within an organization. Effective leaders set the tone, establish the vision, and provide the necessary support to optimize performance. They must empower their teams, champion change and innovation, and foster collaboration. Ensuring accountability, managing risks, and leading by example are also essential. Additionally, continuous learning and development are important for staying current with industry trends and best practices. Strong leadership creates an environment that supports excellence and drives organizational success.
Deepak Jain: Leadership must set a clear vision, champion supply chain initiatives, and foster a culture of continuous improvement. They should align resources, support cross-functional collaboration, and invest in people and technology to drive operational excellence and strategic success.
Chetan Kumria: The leadership of a company plays a critical role in driving operational excellence as a company achieves scale of business, there is a need to relook at the processes and systems and eliminate waste from the supply chain to reduce cost and provide superior service to its customers and to achieve this the leadership has to support supply chain and provide resources in order to drive supply chain and operations excellence through the supply chain, in many cases, it has to be driven from the top leadership of the company. The leadership has to also invest in systems and people to drive supply chain excellence along with investing in automation and technology that serve as enablers.
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