TCS Supply Chain Center of Excellence

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1 TCS Supply Chain Center of Excellence Delivering Supply Chain Performance in Complex Dynamic Markets Supply Chain Management

2 Supply Chain Management (SCM) has evolved and the focus has now shifted from the internal alignment and optimization of systems and processes, to the management of dynamic ecosystems that require multi-tier synchronization and collaboration across suppliers, technology partners and customers. Effective SCM not only requires alignment with business strategy, but also needs to sense market trends, enable technology shifts early, and ensure the timely orchestration of connected execution across all elements of the value chain. Companies that excel in integrating business strategies with effective supply chain execution enjoy far greater profits than their industry peers independent industry analysis has found that companies with the best performing supply chains realize up to 50% higher net margins, double the return on assets (ROA) and over 80% higher inventory turns. At Tata Consultancy Services (TCS), we devise and implement scientific, methods-based, innovative SCM strategies and solutions. These correctly and holistically address impediments to business processes, information technology and the organization in a dynamic and complex business world. For companies in the Consumer Products, Retail, Life Sciences, High Tech, Telecom, Manufacturing and Transportation industries, we facilitate a quantum improvement in business performance while adhering to our commitment of delivering certainty.

3 Overview Today s supply chains operate in an era of a new normal, characterized by unprecedented volatility, uncertainty and complexity. These are caused by uncertainty in macroeconomic, geo-political, and climatic conditions, as well as growth in product and service personalization levels. Consequently, to manage change constantly, effective orchestration of supply chains requires responsive, fact-based, multi-variate analytical capability. For instance, low-cost country sourcing strategies have led to extended multi-link global supply chains that are more susceptible to disruptions, thereby requiring contingency plans which add to the supply chain costs. On the other hand, shortened product lifecycles in the face of declining prices and increased demand volatility amplifies costs associated with these contingency plans and suggests a regional supply chain design as the optimal approach. Clearly, decisions that seem most advantageous today may cease to be so in a few years due to industry consolidation, changing market conditions, factor costs and evolving distribution channels. Factoring in the increasing consumer demand for customization as well as intense competition, the task of managing supply chain complexity with its accompanying tradeoffs assumes critical importance. At TCS, we help you build adaptive, cost optimal supply chains that deliver superior financial and operational performance despite the pressures imposed by globalization and changing market needs. We accomplish this by designing responsive supply chain platforms to provide tailored services appropriate to your business conditions. These supply chain platforms can be implemented at your premises or in TCS, with the TCS-based platform providing you the added benefit of delivering SCM services on a variable cost model. The principles used to achieve this design objective include: Segmented thinking: The supply chain of an enterprise is a collection of multiple supply chains with varying degrees of interaction operating under the umbrella of a single organization, and in most cases, a single infrastructure. This necessitates a thought process that structures and operates them with different rules. Flexible design: The supply chains cost optimality needs to be coupled with flexibility to make them adaptable to a changing environment. Visible and predictable operations: Timely use of internal and external information to dynamically analyze, visualize and predict the way forward is essential to enable cost optimal agile operations. To achieve flexible and cost optimal design of supply chains with due consideration for environmental influences Intrinsic Challenge Flexibility Predictability Visibility Customizability Extrinsic Challenge To achieve better visibility and predictability into impact of external world to improve forecasts and operational predictability To realize these design objectives, our innovation effort is centered on two major themes Supply chain design that adopts dynamic simulation-based approaches to analyze and design flexible and cost optimal supply chains. Supply chain operation that uses predictive analytics and information fusion to ensure better understanding of the environment and the operational risks in supply chains. TM Our Global Network Delivery Model, a collaborative, best-in-class framework of people, processes, and infrastructure, makes it possible for us to consistently ensure the success of SCM initiatives anytime, anywhere. With solutions for every functional area, we partner with our clients, helping them realize the full potential of their supply chains.

4 Our As a full-service player, we help you transform your business by streamlining, optimizing, integrating and continually evolving your supply chains. We support you in all your transformational needs from analyzing long-term strategic requirements, to addressing near-term operational challenges. In developing business solutions with you, we engage in strategy formulation, process change identification, process design, solution design and implementation, advanced supply chain analytics, change management and organizational alignment. In providing technology services, we recommend the right technology, implement packaged software, identify deployment issues, and provide post-implementation support. We are uniquely positioned to undertake metricsdriven project management and develop bespoke solutions for you, when pre-packaged solutions do not address your requirements. You can gain insight into our solutions through proof-of-concepts as well as pilot executions. Through our outsourcing services, we take complete ownership of managing your SCM applications and supporting business execution functions. This allows you to refocus on key business issues and value drivers. Our areas of supply chain proficiency are: Sourcing and Procurement Strategic sourcing and procurement management Supplier relationship and vendor management Spend analytics Manufacturing Plant design and layout optimization Master planning Production planning, scheduling and control Energy management Enterprise asset management Manufacturing execution system Theory of Constraints and Lean enablement Digital manufacturing Reverse Return management Waste management Warehouse and yard management Distribution network planning and route optimization and transportation management Planning and Control Demand planning and forecasting Sales and operations planning Distribution planning Supply network planning Product Development New product introduction processes Supply chain collaboration Customer-facing Multi-channel order fulfillment Warranty and aftermarket service Customer relationship management Spare parts management

5 Supplier Relations Procurement Packaging Design Product Development Planning and Control Inbound Integrated Product Design Manufacturing Customer Facing Manufacturing Outbound Innovative Customer Return and Reuse Customer Service Operations Reverse TCS Supply Chain Center of Excellence From Islands of Excellence to an Integrated, Transformative & Innovation-led Supply Chain Through our transformative solutions and services, we help you: Increase customer satisfaction by delivering high quality products in time, every time Deliver the required service levels at the appropriate cost/asset performance level Reduce lost sales and minimize excess and obsolescence costs Enhance collaboration and information sharing across the supply chain Strengthen supply chain visibility to reduce supply chain risks and help you make informed decisions Improve planning, forecast demand more accurately, and design product and service schedules more efficiently

6 The TCS Advantage A Dedicated Center of Excellence with wide-ranging thought leadership Over the years, we have successfully leveraged industryspecific knowledge to develop differentiated supply chain solutions. Our Supply Chain Center of Excellence brings together the capabilities necessary to drive competitive SCM advantage through a team of experts with deep domain knowledge and industry expertise. From market-driven demand management, to shop floor redesign, our Center of Excellence solutions are recognized for their innovation, thought leadership, and proven delivery. Expertise in leading SCM solutions Across industries, our proven solutions have resulted in responsive supply chains that enhance planning, visibility and control needed for rapid expansion into emerging markets with minimal working capital requirements. We have expertise in implementing cutting-edge SCM solutions from leading industry vendors such as Oracle, SAP, JDA, Kinaxis, SAS, Ariba, Red Prairie, and Manhattan Associates. Our capability is further strengthened through alliances with select vendors, and investments in Centers of Excellence for these technologies. Our ability to integrate SCM technologies with leading Enterprise Resource Planning (ERP) and legacy systems ensures successful solution deployment and transition. Recognized prowess in supply chain shared services and outsourcing Not only do we implement SCM solutions successfully, we also run, maintain, and enhance your solutions. This allows you to focus your attention on achieving operational excellence. Through our supply chain shared services, your SCM solution can be hosted and managed off site, relieving you of the responsibilities of maintaining and periodically upgrading IT infrastructure and licenses for SCM. Our SCM experts receive data from your company in a secure manner, run the solution, and provide you with operational results. We also offer SCM Shared Services capabilities in a Build-Operate-Transfer model where we transfer the ownership and management of the solution back to your organization, if needed.

7 How we help our customers One of the largest chemical manufacturers in the world chose us to design a next-generation supply chain that would cater to the company and its joint venture needs till Working in close collaboration with the company, we leveraged innovative measures and mathematical models to design a supply chain. Our solution demonstrated the potential to achieve high standards of security and sustainability, reduce the company s carbon footprint, and contribute millions of dollars worth to savings. We partnered with a Fortune 500 engineering company to revolutionize its supply chain. Recommended improvements included reengineering the supply chain process, training staff, and enabling advanced planning and process management through cutting-edge technology solutions. With our help, the engineering company was able to more accurately forecast the demand for its products and services, promote effective sales and operations planning (S&OP), improve on-time deliveries, and reduce inventory. We worked with a leading electrical appliance manufacturer to develop a JDA (Manugistics) application to allow the company to deliver on its promise of products configured to customer requirements. We designed, customized, and implemented a solution that enables daily planning and scheduling to support the make-to-order process, with accurate available-topromise (ATP) and improved component capacity planning. This solution has improved customer satisfaction through accurate delivery of products configured to customer needs. For a global high-tech manufacturer, we implemented and supported a JDA (i2) solution that improved customer loyalty through better parts inventory management. It also significantly reduced costs and strengthened supplier relationships. We designed and implemented an SAP APO solution for a multi-national consumer electronics manufacturer. Our solution helped the organization reduce order lead times, improve available-to-promise performance, and provide a single interface for customers. The solution also helped the manufacturer track the accuracy of order forecasts.

8 Contact To know more about how we can help you optimize your supply chain, contact About Tata Consultancy Services Ltd (TCS) Tata Consultancy Services is an IT services, consulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT and IT-enabled infrastructure, engineering and TM assurance services. This is delivered through its unique Global Network Delivery Model, recognized as the benchmark of excellence in software development. A part of the Tata Group, India s largest industrial conglomerate, TCS has a global footprint and is listed on the National Stock Exchange and Bombay Stock Exchange in India. For more information, visit us at IT Services Business Consulting All content / information present here is the exclusive property of Tata Consultancy Services Limited (TCS). The content / information contained here is correct at the time of publishing. No material from here may be copied, modified, reproduced, republished, uploaded, transmitted, posted or distributed in any form without prior written permission from TCS. Unauthorized use of the content / information appearing here may violate copyright, trademark and other applicable laws, and could result in criminal or civil penalties. Copyright 2013 Tata Consultancy Services Limited TCS Design Services I P I 08 I 13

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