Leveraging Technology to Enhance Supply Chain Resiliency and Agility at Cummins India

The past two years have brought the plumbing of global commerce to the forefront of agendas in boardrooms and newsrooms, where it was hardly discussed previously. The COVID-19 pandemic, its aftermath, and the current geopolitical and macroeconomic uncertainties have exposed the vulnerabilities of today’s global supply chains. This has now made it sacrosanct for organizations to future proof their supply chains by recognizing new priorities alongside the traditional objectives of cost, quality and service and redesign their supply chains accordingly.?

Pillars of Future Supply Chain: Resiliency and Agility

The two main priorities in redesigning the supply chain of the future are achieving Supply Chain Resiliency and Agility. Building resilience will equip the organizations to overcome disruptions and crises which will likely be more frequent and consequential. Agility, on the other hand, will enable the organizations to continuously meet the rapidly evolving, and increasingly volatile customer needs.

Technology plays a crucial role in future proofing the supply chains and enhancing their key capabilities. With the right digital technology, data and talent, the supply chain will be adept at executing real-time decisions, at the speed that makes sense for each process.

Advancements in Technology and Talent Deployment

With Industry 4.0, companies are transitioning to IoT-based technologies, smart manufacturing, condition monitoring system with remote access, and so on. Cummins India is also making great advancement in this area, digitally connecting critical machines to access real time information pertaining to machine downtime/idle time to improve OEE (Overall Equipment Efficiency). With continuous monitoring of critical machine health related parameters, we are implementing proactive maintenance practices using CBM (Condition-Based Maintenance) methodologies.?

Deploying the right talent for critical machines is imperative for achieving best-in-class quality performance. Combining machine data and quality systems’ information helps in planning talent management and deployment of right skills at the required machines in a timely manner. We expect RFT (Right First Time) throughput to increase with the use of these technologies at the shopfloor.?

IBP and Digitalization revolutionizing Supply Chain Management?

Integrated business planning (IBP) with supply chain digitalization is revolutionizing the way supply chain function operates in today's hyper-connected global infrastructure.

At Cummins India, we have a structured approach to connect all planning functions and improve alignment across the value chain to achieve organizational goals. Bringing digital tools with analytics capability during IBP allows us to align our commercial, financial and supply chain priorities.

We can serve our customers better through dynamic scenario planning and responding faster to changing customer demands. Another key enabler in our supply chain digitalization journey has been the successful deployment of statistical forecasting tools which have resulted in significant improvements in the forecasting accuracies. Improved forecast accuracy leads to higher customer satisfaction with on-time delivery of goods, lower operational costs with reduced premium freights and optimization of plant resources.?

Enhancing Logistics and Risk Management through Digital Solutions

With global supplier network, dynamic build schedule, proliferated products and fragmented distribution channels, organizations are facing increasing complexity in logistics operations. With the help of digital solutions like Transportation Management System (TMS), logistics processes have enabled us to optimize the physical movement of goods and enhance visibility of orders. For us, this has translated into improved visibility of information across multiple stakeholders including transporters, customers, and plants and optimized logistics routes and vehicle utilization.?

Deployment of digital tools in the supply chain functions are enabling organizations to create robust mitigation plans to address emerging risk areas. We, at Cummins India, reduced supplier capacity risks significantly with the help of Rough-Cut Capacity Planning (RCCP) tool that tracks critical risks in meeting dynamic customer demand. Early detection of these risks enabled the sourcing teams and suppliers to take capacity improvement actions and protect the business from losing revenue streams.?

We also aim to continuously improve supply chain agility, tailor our manufacturing and supply systems and adapt to the changing consumer behaviors. Power BI, a visual analytics tool, provides access to real time data, empowering stakeholders across the supply chain to collaborate swiftly and make informed decisions with increased speed.?

The journey toward future proofing our supply chains is an ongoing and continuously evolving process, and we continue to invest in new technologies to create resilient supply chains that can not only survive, but also thrive in the new age of continued disruption.?

Shubhankar Chatterji is the Chief Supply Chain Officer at Cummins India. Widely regarded as a luminary in the supply chain realm, he has over three decades of experience in Quality, Manufacturing, New Plant Start-up, Supply Chain, Purchasing, Project Management, and Six Sigma.