Understanding AI and Demand Forecasting in Supply Chain

Summary

In this episode of 'Decoding the Industrial Revolution,' host Arvin Serim engages in a deep dive with Rahul Ganguli, Chief Supply Chain Officer at Tricord International. They explore the challenges faced by small to midsize enterprises (SMEs) in the global economy, emphasizing the importance of supply chain management for SME survival and growth. Ganguli shares insights on leveraging technology like AI for cost modeling and TMS for visibility, while addressing risks and sustainability in supply chains. The conversation underscores the value of agility, innovation, and resilience for supply chain excellence.

Takeaways

• 🌐 Small to midsize firms make up 90% of companies globally and contribute to 70% of the world's GDP, yet 67% face challenges with survival and expansion, including profitability, funding, and access to technology.
• 🛠️ Rahul Ganguli, the chief supply chain officer at Tricord International, emphasizes the importance of process improvement and risk management in transforming challenges into opportunities in the business world.
• 📈 The integration of AI in cost modeling has become a valuable tool for startups, helping to develop accurate sector-specific cost benchmarks and improve gross margin and COGS management.
• 🚚 Advancements in Transportation Management Systems (TMS) enhance visibility in the supply chain, allowing for better planning and customer satisfaction through real-time tracking and monitoring.
• 🔮 Demand forecasting is being revolutionized by AI, moving towards more accurate predictions that can greatly benefit retail and other industries sensitive to market demands.
• 🌟 For small to midsize businesses, AI solutions can level the playing field by providing access to sophisticated analytics and modeling without the need for an in-house team of data scientists.
• 🔄 The importance of effective communication in supply chain management cannot be overstated, as it directly impacts inventory levels and the efficiency of the supply network.
• 🌳 Sustainability in supply chain operations is becoming increasingly important, with strategies such as nearshoring, 3D printing, and improving SME efficiency playing key roles.
• 🛡️ Risk management is a critical component of supply chain strategy, requiring companies to assess geopolitical, cost, and other risks, and develop mitigation strategies accordingly.
• 📊 ERP systems, when integrated with AI, can significantly improve supply chain efficiency by providing real-time adjustments to demand and supply, reducing waste and improving sustainability.
• 🚀 Entrepreneurs in the supply chain domain are encouraged to fail fast, validate市场需求, and ensure that any technology developed addresses a real-world problem, rather than the other way around.

Q & A

What percentage of companies globally are small to midsize firms, and how much of the global GDP do they drive?

90% of companies around the world are small to midsize firms, and they drive 70% of the global GDP.

What issues do a majority of small to midsize companies face in terms of survival and expansion?

About 67% of small to midsize companies face issues of survival and expansion, which include profitability, access to funding, access to technology, and the inability to scale operationally.

What is Rahul Ganguli's role at Tricord International and what is the company's focus?

Rahul Ganguli is the chief supply chain officer at Tricord International. The company focuses on supporting small to midsize enterprises by leveraging best practices of supply chain management, aiming to bring global supply chain tools and abilities to their doorstep.

How did Rahul Ganguli's career journey in global supply chain and operations management begin?

Rahul Ganguli's career began about 28 years ago when he moved to the United States as a young graduate student. His first foray into supply chain management came when he was selected to be one of the first cohorts of Six Sigma Black belts, working on a project to solve an inventory working capital issue.

What are the four key pieces of supply chain management that Rahul Ganguli mentioned?

The four key pieces of supply chain management mentioned by Rahul Ganguli are plan, source, make, and deliver, utilizing the supply chain operations reference model.

How has artificial intelligence (AI) transformed supply chain management in recent years?

AI has transformed supply chain management by helping in cost modeling, improving visibility in transportation management solutions (TMS), and enhancing demand forecasting. It also aids in creating more accurate and real-time benchmarks for cost criteria across different sectors.

What is the significance of ERP systems in supply chain management and how are they evolving?

ERP systems are crucial in supply chain management as they help in planning and managing resources effectively. They are evolving by integrating AI capabilities, which allows for real-time adjustments and better connectivity with partner systems, ultimately improving sustainability and reducing waste.

What are some emerging technologies or trends that could revolutionize supply chain management in the near future?

Emerging technologies that could revolutionize supply chain management include advanced ERP systems with AI integration, 3D printing, and nearshoring. These technologies and trends focus on improving efficiency, reducing waste, and enhancing communication and connectivity in the supply chain.

How can small to midsize businesses leverage AI solutions despite having limited resources?

Small to midsize businesses can leverage AI solutions by utilizing platforms and tools developed by experts in the field, focusing on specific areas like demand forecasting, cost modeling, and transportation management. They can also adopt AI-enabled ERP systems to improve their operations without needing a large in-house technology team.

What advice does Rahul Ganguli have for young entrepreneurs looking to make an impact in the supply chain domain?

Rahul Ganguli advises young entrepreneurs to fail fast, iterate quickly, and focus on solving real problems rather than inventing technology first. He also emphasizes the importance of understanding the cross-functional nature of supply chain management and the value of market validation.

Outlines

00:00

🌐 Global Impact of Small to Midsize Enterprises

This paragraph highlights the significant role small to midsize enterprises play in the global economy, contributing to 70% of the world's GDP. It emphasizes the challenges these businesses face, such as profitability, access to funding, technology, and operational scaling. The introduction of the podcast 'Decoding the Industrial Revolution' is made, with the host Arvin Serim welcoming the audience and introducing the guest, Rahul Ganguli, a seasoned professional in global supply chain and operations management.

05:02

📈 Career Evolution in Supply Chain Management

Rahul Ganguli shares his career journey, starting as a graduate student in industrial engineering and evolving through various roles in manufacturing, Six Sigma, and supply chain management. His accidental entry into supply chain through a project at Case New Holland led to a deep interest in the field. The paragraph also touches on his work in designing supply networks, implementing ERP systems, and engaging with AI in supply chain operations.

10:03

💡 Tricord International: Supporting SMEs with Supply Chain Best Practices

The focus shifts to Tricord International, a startup aimed at supporting small to midsize enterprises by leveraging supply chain best practices. Rahul discusses the company's mission to bring global supply chain tools to businesses that may not have the resources to access them. The discussion highlights the importance of addressing survival and growth issues in SMEs, such as profitability, access to technology, and operational scaling.

15:04

🔍 Engaging with SMEs: Typical Challenges and Solutions

Rahul elaborates on the types of engagements he has with SMEs, which can range from reducing cost of goods to managing sensitivity to commodity pricing. He discusses strategies such as global sourcing, supply agreement structuring, and redefining logistics networks. The paragraph also touches on the use of AI in cost modeling and the importance of risk-adjusted best cost rather than the lowest cost.

20:07

🚀 Technology's Role in Transforming Supply Chain Management

The conversation delves into how technology, particularly AI, has transformed supply chain management. Rahul mentions the use of AI in cost modeling, transportation management solutions (TMS), and demand forecasting. He also discusses the importance of visibility in supply chains and the potential for AI to democratize access to sophisticated analytics and modeling, benefiting smaller businesses.

25:08

🌐 Geopolitical and Climate Risks in Global Supply Chains

Rahul addresses the risks facing global supply chains, focusing on geopolitical and climate risks. He discusses the challenges of decoupling from major trade partners like China and the importance of developing strategies to mitigate these risks. The paragraph also touches on the impact of climate change, such as water levels in the Panama Canal, and the need for businesses to be prepared for such disruptions.

30:09

📊 Risk Management Strategies in Supply Chain

The discussion turns to risk management, with Rahul sharing his experience in the pharmaceutical industry and the importance of viewing every business KPI through a risk lens. He emphasizes the need to define risk appetite and develop strategies accordingly. The paragraph also introduces the concept of failure modes and effects analysis (FMEA) as a tool for managing risks in supply chains.

35:11

🌿 Sustainability in Supply Chain Operations

Rahul discusses the importance of sustainability in supply chain operations, highlighting the tradeoffs between global supply chains and environmental impact. He mentions the rise of nearshoring, 3D printing, and the efficiency of SMEs as key factors in promoting sustainability. The paragraph emphasizes the need for businesses to adopt practices that reduce waste and energy consumption.

40:11

📚 Best Practices for Managing Inventory and Emerging Technologies

The final paragraph covers best practices for managing inventory, emphasizing the importance of supply network design and communication with supply partners. Rahul also discusses emerging technologies that could revolutionize supply chain management, such as advanced ERP systems with AI capabilities, autonomous driving, electric trucks, and robotics in warehouse management.

🚀 Encouraging Innovation and Resilience in Supply Chain Entrepreneurs

In conclusion, Rahul offers advice to young entrepreneurs in the supply chain domain, encouraging them to fail fast, validate market needs before developing technology, and focus on cross-functional approaches. The paragraph wraps up the podcast with a reflection on the importance of agility, innovation, and resilience in the dynamic world of industry.

Keywords

💡Supply Chain Management

Supply Chain Management (SCM) is the oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to final consumer. In the video, SCM is central to the discussion as the guest, Rahul Ganguli, has a career in this field. He mentions how his journey began with an introduction to Six Sigma Black belts, which led him into the world of supply chain, emphasizing its cross-functional nature and the need for collaboration across various disciplines.

💡Global GDP

Global GDP refers to the total economic output of all the countries in the world, measured in terms of market prices. The script mentions that 70% of the global GDP is driven by small to midsize enterprises, highlighting their significant economic impact. This underscores the importance of supporting these businesses through effective supply chain strategies.

💡Operational Excellence

Operational Excellence is a business philosophy focused on continuously improving the efficiency and effectiveness of business operations. Rahul Ganguli discusses his role in improving processes within companies, not only internally but also in the supply base, which is a key aspect of achieving operational excellence. This concept is tied to the overall theme of enhancing business performance through supply chain management.

💡Six Sigma

Six Sigma is a set of techniques and tools for process improvement developed by Motorola, aimed at reducing defects and variability in manufacturing and business processes. Rahul's first project in supply chain management involved solving an inventory working capital issue as part of a Six Sigma Black belt initiative. This example illustrates how Six Sigma methodologies can be applied in supply chain contexts to improve efficiency and reduce costs.

💡ERP Systems

Enterprise Resource Planning (ERP) systems are integrated software solutions that help manage a company's business processes, often in real-time, using a system of integrated applications. Rahul mentions the importance of ERP systems in supply chain management, particularly in terms of their advanced planning tools and AI capabilities, which can help in forecasting and managing inventory more effectively.

💡Risk Management

Risk Management is the process of identifying, assessing, and controlling threats to an organization's capital and earnings. Rahul discusses the importance of risk management in supply chain, particularly in the context of geopolitical risks and the need for strategies to mitigate these risks, such as diversifying supply sources and establishing robust contracts.

💡Sustainability

Sustainability in supply chain management refers to the practice of designing, managing, and operating supply chains in a way that minimizes negative environmental impacts while also balancing social and economic responsibilities. Rahul talks about the importance of sustainability, mentioning nearshoring, 3D printing, and helping small to midsize businesses become more efficient as ways to achieve more sustainable supply chains.

💡Innovation

Innovation in the context of supply chain management involves the introduction of new ideas, technologies, or methods to improve efficiency, reduce costs, or create new opportunities. Rahul emphasizes the importance of innovation, particularly in the application of AI and technology to supply chain processes, to stay ahead of the curve and maintain a competitive edge.

💡Agility

Agility in supply chain management is the ability to quickly and effectively respond to changes in the market or business environment. The script highlights the need for supply chains to be agile, especially in the face of disruptions, to maintain efficiency and meet customer demands. Rahul discusses the importance of adaptability in the dynamic world of industry.

💡Resilience

Resilience in supply chain management refers to the ability of a supply chain to withstand and recover from disruptions. The script emphasizes resilience as a key principle in supply chain operations, suggesting that businesses must be prepared to face and overcome challenges to ensure continuity and success.

💡Nearshoring

Nearshoring is the practice of moving manufacturing or service operations to a nearby country, often to reduce costs or improve supply chain efficiency. Rahul mentions nearshoring as a strategy to hedge against geopolitical risks and support sustainability initiatives, highlighting its role in balancing cost, risk, and environmental impact.

Highlights

90% of companies globally are small to midsize firms, contributing to 70% of the world's GDP.

67% of small to midsize companies face survival and expansion challenges, including profitability and access to funding and technology.

Rahul Ganguli, Chief Supply Chain Officer at Tricord International, discusses his journey in global supply chain and operations management.

Supply chain management is a synthesis of multiple disciplines, including engineering, business, economics, and finance.

Tricord International supports small to midsize enterprises by leveraging best practices in supply chain management to access global supply chains.

Engagements with businesses often involve cost reduction, supply agreement structuring, and logistics network redefinition.

Artificial intelligence is transforming cost modeling and enhancing visibility in supply chain management.

Technology like Transportation Management Systems (TMS) is key for improving delivery transparency and efficiency.

Demand forecasting is evolving with AI, moving towards more accurate predictions in the next 10 to 15 years.

AI solutions make advanced analytics more accessible to small and midsize businesses without the need for large data science teams.

Staying ahead in supply chain management involves continuous learning and adaptation to new technologies.

Risk management in supply chain is about identifying, strategizing, and executing upon risks to mitigate potential disruptions.

Sustainability in supply chain operations is enhanced by nearshoring, technological advancements like 3D printing, and efficiency improvements.

Effective inventory management relies on robust supply network design, strong communication with supply partners, and efficient demand planning.

ERP systems with integrated AI capabilities are becoming essential for real-time supply chain optimization and sustainability.

Entrepreneurs in the supply chain domain should focus on solving real problems with technology rather than inventing technology first.

Supply chain is an interdisciplinary field offering vast opportunities for those who love a cross-functional approach.

Adaptability, innovation, and resilience are key principles for success in the dynamic world of industry.

Transcripts

90% of companies around the world are

small to midsize firms and 70% of the

global GDP is driven by uh these small

to midsized Enterprises and what we find

is about

67% of the total population of the small

to midsize companies face issues of

survival and expansion when I talk about

survival I'm talking in terms of profit

ability access to funding access to

technology and when I talk about um I

also talk about growth because it is

their inability to scale operationally

that you know prevents de Pro hello

everyone welcome to another episode of

decoding the Industrial Revolution where

we dive into the minds of The

Visionaries transforming the landscape

of industry and Innovation I'm Arvin

serim and today we have a special guest

who brings over two decades of expertise

in global supply chain and operations

management he's a master at process

Improvement and risk management turning

challenges into opportunities for some

of the biggest names and rising stars in

the business World he's the chief supply

chain officer at tricord International

and an executive member of international

leap Network without further Ado please

join me in welcoming the remarkable

Rahul ganguli welcome to the podcast

Rahul and thank you for joining us today

thank you for having me Arvin it's a

pleasure wonderful yes um this is super

exciting we've had a lot of

conversations already even before doing

this podcast and I'm super excited to be

um you know sharing some really

inspiring stories and some insights with

our audience I think um there's going to

be a lot of Buzz around this podcast so

super excited let's start with um

understanding your career Journey with

us and what inspired you to pursue a

career in global supply chain and

operations management and what are some

of the key Milestones along the way to

explain my career Journey let's go back

about 28 years ago and this started we

uh with me crossing the shores of India

to come to the United States as a very

young graduate student in the midwest uh

for a master's degree in industrial

engineering at that point in time I had

no clue of what Supply Chain management

is or was because there was no formal

topic called Supply Chain management

which in today's day and age is actually

taught around colleges as a formal you

know a formal degree after I graduated I

joined a a company called case New

Holland which is part of the Fiat group

in their manufacturing leadership

program and I was rotated through

multiple functions uh production

supervision product engineering Etc

however my first foray into Supply Chain

management

game came in the picture when I was

selected to be one of the first cohorts

of Six Sigma Black belts which was a

very very New Concept uh in terms of

product and process Improvement uh that

was taking the industrial World by storm

and one of my first projects I

distinctly remember was to solve an

inventory working capital issue

associated with uh certain components so

that was a little bit of an informal

entry into the world of supply chain and

the world of supply chain actually

intrigued me started to Intrigue me at

that point today because I thought it

was a wildly collaborative and a cross

functional topic where you need not have

a a master in any single topic but it is

a synthesis of multiple disciplines

which was in engineering business

economics Finance so on and so forth and

that really interested me a lot and from

that point on my career began to evolve

not directly into supply chain but

functions supporting supply chain from

there I went into recreational Marine

building Yachts where I served in their

operational excellence team trying to

improve processes not only internal to

the company but also Alo in the supply

base so as you can see uh my Evolution

was beginning so I say my foray into

supply chain was more accidental than it

was a wellth thought out career journey

and then from that point on I went on to

multiple different Industries uh

starting with uh wind turbin to medical

devices to Pharma now all of these post

recreational Marine were very very

focused on supply chain and when I talk

about supply chain I talk about the four

key pieces that folks may know know of

which is plan Source make and deliver

utilizing the supply chain operations

reference model and I had the privilege

then uh to not only design Supply

networks establish the technology site

such as Erp

implementations as well as in the recent

uh recent Years also we have been in

working with organizations to help us

the with the AI movement that has come

into the picture so this is me in a

nutshell in terms of my journey through

the world of supply chain please feel

free to ask away if you have any

questions or any clarifying questions no

that's fantastic quite a journey and I

think there are a lot of similarities as

we've talked about in um my journey as

well I you know that's how I came to the

United States to get my masters that was

20 years ago and I think um you you were

in Midwest and you know I came here

where

telecommunication is is key in Dallas

for Worth area and started working with

Fujitsu and then um you know got my MBA

from UT Austin and that's when I started

a company building Mobile Solutions but

eventually transformed that into

full-blown digital transformation

initiatives across the board for various

Industries and of course that's how I

ended up there so uh it's it's a

fascinating story and looks like um you

know you're saying that it was by chance

but I'm I'm sure there were seeds

planted along the way and it was uh just

meant to be so tell us more about your

current role at Tri cord International

and also about the company what sets it

apart in terms of your approach to

supply chain and operations management

so Trier International is a startup and

the core idea behind the startup is I'll

start off with some facts

90% of companies around the world are

small to midsize funds and 70% of the

global GDP is driven by uh these small

to midsized Enterprises and what we find

is about

67% of the total population of the small

to midsize companies face issues of

survival and expansion when I talk about

survival and talking in terms of

profitability access to funding access

to technology and when I talk about um I

also talk about growth because it is

their inability to scale operationally

that you know prevents their growth so

frod

International was an idea which was

developed to support these small to

midsized

Enterprises Leverage

the best practices of Supply Chain

management where you could bring the

world closer to the's door step so that

they now have the tools and the ability

to enjoy the fruits of a global supply

chain which large companies like the one

that I had been part of seamons M casley

Holland the Fiat group have always had

this at part of their footprint so this

is what sets us apart so you have

companies uh if you take a look at the

big 10 consulting firms starting from

mckin to deoy to everybody all have

phenomenal Supply Chain Solutions that

they bring to bear but they work they're

clientele basis people that already have

the the tools and the resources

necessary us we are trying to get it to

the doorsteps of the folks that

necessarily A do not have that awareness

B they do not know how both in terms of

Technology Pro process and capability so

that's that's who we are and that's what

we are trying to do love it that's

fantastic that you chose this um Market

segment because of course for any

economy small medium businesses are so

so important in fact small businesses

specifically the number of companies uh

that are around that are small

businesses um is is exorbitant and I

think partly because of the reasons that

you described we also Target small

mediumsized compan companies where um

you know they may not have the resources

to have a full-blown team um internally

so they would leverage a partner a

technology partner and utilize our help

and our expertise to build those

solutions that are world class and a lot

of times um you know just only for the

longest time the large companies could

dream of having but we're able to give

them those um Solutions those platforms

those custom applications that they can

then utilize and I I've seen that the

learning is is next level when we work

with them as well so in your experience

what have you like what are majority of

your engagements like what do you what

are the types of areas that you help

these small medium siiz businesses with

like what would be a typical engagement

for you so first of all let's talk about

uh let let's talk about the the size of

the company right and when I talk about

a small to

midsize Enterprise you know as defined

by the world economic Forum it is

anywhere from uh half a million dollars

to you know 45 million is your typical

small to midsize uh firm but we extend

that definition to include about half a

billion dollars as well you know up to

up to that uh up to that level so our

engagements uh can fall into many

different areas for instance it could be

uh helping a company reduce their cost

of goods and as we all know in a typical

Manufacturing Company especially when

you're manufacturing a product about

roughly 70% of your cogs is associated

with the material side of it and about

30% is labor so this is one very typical

area what we try to do is to kind of

find the levers associated with Supply

Chain management to help lower the cost

of that uh of the material cost and the

way we do that is either through Global

sourcing finding partners for these

companies across the world which could

be in Vietnam India is very much for

Rising manufacturing power it could be

India it could be turkey whatever makes

the best sense for this company in terms

of what we call is risk adjusted best

cost so not necessarily the lowest cost

but the risk adjusted best cost for that

that's one the other one could be

helping these companies with uh managing

their uh uh managing their sensitivity

to changing commodity pricing by

structuring their uh Supply agreements

as such the other way could be also

helping them redefine their supply net

uh their their Logistics networks where

does it make sense to create a hub how

do you consolidate loads who should you

be developing a relationship with even

if it's a multi-billion organization

such as CH Robinson and so on and so

forth um if they need access to

Innovation so for instance if you have a

company that requires certain innovation

in their electronic manufacturing but

they don't have access to Nvidia then

are there alternate players such as in

Taiwan or in Vietnam or even in India to

help open that access channel for them

so these are our typical engagement

and depending on the complexity it takes

anywhere from you know it can be

anywhere from 3 months to 12 months now

we also have engagements with larger

organizations uh you know very recently

we finished an engagement with a half a

billion dollar organization where it had

nothing to do with the cost side it had

to do with opening up their supply

channels because they were so badly

impacted by the availability of solid

state devices coming out of covid-19

that they were completely hamstrung in

terms of the ability to ship the

products on time to their customers so

which was at a risk of almost destroying

the product in the marketplace so these

are the kind of engagements that we work

with so got it that gives me a good idea

on what are the kinds of problems you're

helping your customers with uh what

about utilizing technology um Can can

you tell me about how has technology

transformed Supply Chain management in

the recent years and if you can provide

some examples of technological

innovations that have given um you know

that edge or have significantly impacted

your work so first of all uh because

artificial intelligence is on

everybody's mind right I mean everybody

everything everyone talks about AI now

for a startup company we have to

bootstrap right so uh we don't have we

want to spend our resources very very

expeditiously as a supposed to larger

companies that have very much Deep

Pockets right so one area that we have

found is when we are doing cost modeling

artificial intelligence has come in

really handy in terms of helping us

develop cost models and I would say by

sectors so for instance when we because

we deal with the world of gross margin

and cogs quite a bit for instance uh

when I am looking at a life sciences

product versus an industrial product the

cost structure is very very different

and so the data pooling we get out of AI

helps us get very close to the Benchmark

cost criteria associated with these

sectors that's one the second area of

technology that we see is and and really

um we see evolving and we help our

clients with is in terms of uh the

visibility side as it pertains to

delivery which is the transportation

Management Solutions TMS so TMS is very

very key because once you get into the

last mile or once even if it's Shi out

of your suppliers what you call doors

you have serious de uh you have a lot of

visibility in where that given Viet that

part or the subsystem is which allows

your customers to have good visibility

in terms of not only what is coming but

they can plan their production around it

much much easier it's also the number

one Trend it's also the number one Trend

like transparency I know there are so

many companies that are working on this

initiative on how to have that next

level transparency and you know create

um a a a platform where they can see

exactly where the product is you know

when it was shipped and even we work for

an organization uh that TR site they are

the largest in the United States and do

um real um Freight um you know type

stuff and they have temperature

controlled um you know Goods that they

have to supply so that's why they help

their customers know the exact

temperature within that carriage and of

course they help with the GPS monitoring

so you know exactly where the uh Supply

is and of course you know you talked

about AI

that's I mean extremely critical and I I

understand you know cost modeling could

be uh an important thing for your

customers and that's where you're

utilizing AI I'm I'm very fascinated to

hear that um you know we've only done uh

a handful of use cases of course the

most popular one is in demand

forecasting so you are absolutely right

I was going to add to that that and it's

it's very interesting you bring that up

because demand for casting especially

when you start talking about independent

demand not necessarily the dependent

side but the independent demand where uh

you know you're selling retail and in

the past even know up until like five

six years ago you would take the past

demands build some amount of build some

amount of you know uh cycle factors into

it and develop a regressive model but

now with the Advent of of uh competi

capability afforded by eii I think that

area is going to continue to really

develop not to the extent it becomes a

crystal ball but it'll be close to a

crystal ball in the next 10 to 15 years

that that's my absolute guess absolutely

no I think it's uh going to be like that

but what about some of the smaller

organizations like that have maybe only

a dozen trucks and if they cannot afford

to have you know a five people

technology team to create that model um

I mean how are those people the small

mediumsized businesses going to take

advantage of these AI Solutions but that

is that is exactly what AI affords you

is you don't you don't have I mean as

the word suggest AI right so I think it

is the adoption of the technology and I

can see AI becoming more and more

powerful as a as a word suggests I mean

you could make an analyst I mean you

could have Avatar like me becoming an

analyst I mean and in in fact I can see

AI helping small to midsize businesses

more than hurting them you know I mean

we talk about it because you're you're

making the calculations the modeling

much more accessible without the need

for phds to come and do this modeling

for you I agree with you that it's not

statistics and it's AI so you don't need

those modelers to come in and do the

forecasting and pretend like they have a

crystal ball but what about an

organization that doesn't understand the

capabilities of AI an organization

that's so small they can't afford to

even have some data science Engineers

right I mean they're they're not cheap

so and and I guess the it's a little bit

of a rhetorical question of course you

know they can contact you yeah and you

know leverage that type of um expertise

of course you know if they want to build

something custom they can contact us you

know we've built tons of platforms like

that where we can use different

parameters and try to model that and and

but what I'm even talking like I think

in the coming years even a pizzeria a

oneman shop can then predict that this

is the kind of pizza demand I'm going to

have on such and such day you know on

Super Bowl on sport to July on you know

such and such day if it's a Tuesday if

it's a Wednesday and then that's what we

were able to do as well for one of our

customers we created a platform and fed

the weather data um into it so they

could predict the number of calls they

were getting for air conditioning

repairs and they're a nationwide company

and I mean you will be astounded with

the accuracy that it it presents so the

pace of innovation is like amazing and

especially in manufacturing and

Logistics but how do you stay ahead of

the curve I think that's the question

that I want to get to so

the that that that's really the AI level

question right how do you stay ahead of

the curve to some extent you have to

keep yourself the rest of the technology

that is out there so there are no two

ways that you have to be a student of

the subject so to continue to study keep

yourself uh plugged in with various

conference

uh various networking forums and working

with futurists such as yourself as well

I these are all all networking right you

learn from each other it's your openness

to learning and it is your ability to

learn and then look at a situation and

connect the two dots that mean that's

the simplest answer I can provide

there's a Magic Bullet you know as as

such I think it's a great answer I think

it is your mindset to try new things I

mean we have so many different tools

that our marketing department our sales

department uses across the board for

different geographies but they're still

asking and getting new tools and they're

like Marvin um you know there's a new

tool that's come it's called you know

mail blusters like okay well we already

have seamless we already have zoom info

we already have this but no this is a

brand new tool so being open to trying

new products in the market running those

small experiments and learning from it

and understanding that every few months

there's going to be this breakthrough

that's going to happen and there's going

to be new tools that if you're not

leveraging your competitors are and

they're going to have that Competitive

Edge so you know you want to always be

looking to um find ways to increase

Revenue decrease cost of course create

that better experience for your end user

um but what about the risk management

strategies and what are the key risks

facing the global supply chain today and

how can companies effectively mitigate

some those risks uh it's a great

question uh risk is a uh let me uh let

me first give credit to a company that

really taught me risk and which was my

background in Pharmaceuticals uh working

with Merc pharmaceutical companies by

their very nature are extremely risk

ofous and extremely conservative now

when we think about risk or when we

always think about risk in terms of A

disruption of Supply that that's

typically what Supply as supply chain

practitioners or even manufacturing

practitioners we think but that was the

first company which takes every business

kpi pro looks at every business K from

the lens of a risk is it a cost risk is

it a compliance risk is it a delivery

risk is it a capacity risk so that is

where I learn and then you formulate

your strategy based on

one how much is the risk and what is

your risk appetite so you have to

develop those bands how much you know

how much can that rubber band basically

stretch before you break is how they

Define the risk appetite and then from

that point that you try to tighten it

depending on how much you want to

tighten it so some of the key risks for

for example in today's DNA that I'm

talking a little bit holistically I'm

looking at number one we look at uh

geopolitical risk and the big

geopolitical risk today is associated

with the Far East we all know without

mentioning uh to give you a context

United States Imports about half a

trillion dollars from the People's

Republic of China and there is a huge

Sho and cry in the United States oh my

God we have to decouple you cannot you

cannot just decouple half a trillion

dollars worth of trade in two days but

to some extent then what you can do is

determine what is most critical for your

National infrastructure what is very

critical for your security

infrastructure and then decouple those

in fact even though I am not a proponent

of decoupling I hate it because I think

create B makes Nations come closer as

opposed to when you decouple but looking

at that then you take a look at okay the

the the small uh the the smaller less

riskier to the geopolitical risk and

then you develop your strategy is your

strategy now to go to a third country

such as India or to go to Vietnam or to

go to Taiwan so how you take that risk

and how you determine your capital

investment strategies is one way to

blunt that geopolitical risk then in

terms of cost risk which I think has

been practiced for a very long time is

how well have you established your

supply agreement are your contracts sure

they can blunt that risk you know these

are not really uh rocket size it's a

displine of identifying and putting the

strategy and then executing upon them is

how you're able to manage a risk risk is

always going to be there absolutely

moment you think about a for-profit

model means risk absolutely the moment

you step out of the house means it's

risk absolutely no I like the idea of

decoupling of course you got to have

Alternatives right you can't put all of

your eggs in one basket um of course

when you do that and if you're going to

have an alternative um manufacturer

let's say now not in China but now in

India or Taiwan or um you know Vietnam

then there's going to be some costs and

of course there's going to be that

overhead of you know managing two or

three different manufacturing plants or

suppliers and but but that offsets the

risk So Def what's your tradeoff right

which ones are your trade tring up right

I mean it's it's like you're saving some

but you're doing something else I mean

what is more important to your business

at that point in time is going to help

you uh Define that trade all true and

act on it um and I think in different

parts like in Middle East too now like

the SE canal and um you know then the

attacking of those ships in those routes

by HTI rebal I mean sometimes it feels

like the world is on fire and you know

I'm a content creator as well and I

sometimes create content around that and

it's um it's it's crazy it's it's so

hard to predict but I guess what you're

saying is that's why you create those

bands and and um you know develop your

strategy you know I'll give you you you

mentioned now Jam say something very

similar by the way you know hey don't

think that recession is not gonna happen

it is gonna happen of course it's gonna

happen and and how well planned you are

how how how well you could look at you

know and cover for all those possible

scenarios it's good however for a

startup I mean you want to be

risk-seeking and you know me personally

as well like I I am very risk-seeking

I'm I'm I'm you know at times um you

know inviting New Opportunities and I

know that something might not work out

but I'm still wanting to learn from it

and I think learning from that is

extremely important as well sorry I

didn't interject you were saying no so

two two key points yeah two key points

you made and I'll come to this latter

point you just made too you mentioned

the SS Canal SS Canal is a function of a

geopolitical risk but you also forget

climate risk so exactly the same thing

the situation happened in the Panama

Panama Canal where the water level got

so down that you were barely able to get

your ships across it's you know the

world is indeed on fire right so now you

have to think now you have to think now

the second and I talk about risk taking

that we are as entrepreneurs it is also

uh the severity of failing right a large

corporation when they take a risk and

they fail the impact is is is you know

of Epic Proportion but whereas in a

smaller initiatives you fail it's not as

impactful yeah you get a little bit hurt

you get up and you run right so I always

use word so we are much more nimbler so

you know so it's a function of how big

you are I mean it's too big to fail

right kind of thing absolutely because

you know first of all um like most

things most like there's there's this

example in this book like write down

what's the worst that can happen and

make a list of all the you know terrible

things that can happen this is from

four-hour work read by Tim Ferris you

know one of the very first books that I

read um and and and then he says and

then look at that list and say none of

that is going to really happen like what

is the probability of that happening I

mean that's one because of course if if

it's it's it's because of the scale and

that's why the startups can take you

know so much risk because what doesn't

kill you makes you stronger I mean but I

think uh it's it's so true there's a

very good tool actually mention the book

that you and I have been both exposed to

and probably we have utilized it

significantly for risk management I go

back to a very simple tool called

failure modes and effects analysis right

so we have both been coached and we have

FMEA I mean you talk about each one that

cost quality delivery compliance you

write them down and say all the things

that can what do you call uh all the

risks associated with this and then you

determine based on your risk score which

ones you want to go after some of the

risks you don't even need to go after

because you have enough appetite to

absorb it basically absolutely

absolutely no and that's a good

discussion on risk so from risk to

sustainability now I guess how important

is sustainability in today's supply

chain operations and what steps can

company ensure uh can take to ensure um

their supply chains are both efficient

but also environmentally responsible

yeah and you know it's actually a good

question right um by definition by

definition when you the more Global your

supply chains are the less sustainable

it is because you are going to be

polluting

the enine I mean you know again it's

it's a it's a tradeoff right however I

think I think as we look to the Future

there are few things that are already

happening I think there is a healthy

amount of near Shoring happening which

is not completely decoupling a supply

chain so I think near Shoring is not

only a good idea to hedge your risk

against geopolitics but it's also a good

idea to help support the sustainability

initiatives I think that's one uh the uh

the the second key area there is a rise

of manufacturing technology and it's

going to become more and more mainstream

which is 3D printing 3D printing was

quite Limited in terms of the type of

materials it could handle and the speed

with which you could produce I think

this is also point to it has developed

quite a bit now you have people you have

companies that are are 3D printing whole

houses so I think this is going to blunt

the effect of sustainability and also

from a sustainability perspective it's a

near zero waste process so you know so

you're not throwing energy of anytime

you produce you're actually using energy

right what percentage of that energy

you're throwing away is your scrap

Factor basically right so I think this

is a key area uh of of sustainability

and then the last but not the the least

at least in my mind is the very fact if

you help these small to midsize

businesses get more efficient it makes

it more makes it more sustainable too

right because because they don't have to

utilize inefficient methods to develop

the product now you they are develop

utilizing more efficient methods to

produce uh so these all kind of weigh

into sustainability this is how you know

I think about it I think it's super

comprehensive and especially in the

supply chain operations I think um I

didn't put that two and two together

until you mentioned it that yes I think

near Shoring or um having alternative

facilities or you know the 3D printing

that cuts huge costs of

Transportation um so I think um so

that's why it's extremely important and

then tying it with the small mediumsized

businesses and making them efficient I

think is also uh very very cool um what

about um some of the best practices in

managing inventory effectively uh you

know especially in this rapidly changing

business environment what tips do you

have for that uh I think I always go

back to how well you design your supply

network with that number one and and

when I talk about a supply network what

I'm not saying is that everything should

be near short because just by the

mathematical definition the shter the

lead time the lower the inventory you're

having a pipeline that's not what I

mentioned what I meant what I really

mean is how well how much time have you

spent in picking the right partner for

your business because the more robust

your partner is the more efficient their

processes are the less your inventory

burden right number one the second key

aspect is communication between you and

your partners which is your supply

Partners the more you communicate I

think the less is the inventory uh less

of the amount of inventory you have to

come you have to carry in your pipeline

and when I talk about communication more

specifically it is your demand planning

the greater you communicate your demand

plan or the change to your demand plan

the

more and almost in real time the more

your partners are able to vary their

supply according to your demand

and if we this is the best practice

really I've seen what sets the good from

the bad is is the communication and a

formal channel of of of communicating

and the process used to manage the

inventory is what really makes it so

that's that's really really very key

lovely and utilizing technology for that

is going to make it uh super efficient

so yeah um I guess then moving to

technology from your perspective what

are some emerging Technologies or trends

that have the potential to really

revolutionize Supply Chain management in

the near future so we already I think

touched base on it a little bit uh early

on during our conversation I mean if you

take a look at any good Erp system today

right uh I mean sap saps Hannah

everything has a very good Advanced

planning tool if utilized effectively

and each of these modules are also now

bringing to bear with them the the AI

capabilities as well which are able to

flex the the parameters in real time I

think we have to see more and more of

this and again this also kind of impacts

your sustainability right the the seven

wayte the the the more you're able to

communicate the more you are able to be

closer to the market requirements the

less you produce and the less is the

amount of waste so I think this is a

very Rising so the more connected you

are with the the the partners

systems the connectivity of the partner

system how well they talk with each

other and also from a governance

standpoint how closely connected you are

is what's going to determine so in my

mind it's your Erp it's your erps how

well they communicate talk to each other

so it's very interesting that you say

that because um of course I think I

understand the importance of Erp but

that's just so essential but I think

that's why maybe um some people may not

give as much importance to continuously

integrating that with AI and I think

that's that makes sense um you know I

was also expecting to um you know at

times when I'm talking to uh smart

people like yourself in in this field

I'm expecting to hear about autonomous

driving or you know uh like electric

trucks and I think um you know some of

those Technologies or Robotics and you

know managing the warehouses and um or

the route planning you know that can

happen as well I think some of that is

is also what comes to mind but I think

your your um take on that is you know

get get focus on the Erp you know focus

on the get the basics right right so

really the single biggest thing the

single biggest draw I mean the weight on

your supply chain is the amount of

inventory you carry in your supply chain

and the more efficient you are in terms

of projecting and meeting that

projection as closely you're narrowing

that band really helps a company with

its uh working capital requirements

towards the end what you're making is

you're making the warehousing process

more efficient so agbs Etc yes they have

but I think the larger Capital uh you're

tying up lot more capital in your

inventory uh pipeline inventory than on

the warehousing side of it you know

that's already happened basically so so

understood understood well great uh

fantastic Rahul and so what advice would

you offer to the young entrepreneurs to

people who are trying to have an impact

in the supply chain domain um or you

know even companies that are uh looking

at all of these disruptive Technologies

in this space what advice would you have

um looking ahead for them so first of

all to all upand cominging oers fail

fast try it doesn't work p it try it

yeah that that's the iteration you have

to do um and the second advice is not my

original but it is um Steve Jobs who

said don't invent a technology and then

try to find a solution for it so uncover

a real problem and find a technology to

support that need that really helps the

you know that really

will reverberate with the customer

because if you develop the technology

first which would be a great technology

but it would be a shame if you don't

find a real world application for it to

be applied to so that is what I would do

and then from a realistic all those of

uh you as entrepreneurs uh from a supply

it's a it's a mindblowing field again if

you love the cross functional approach I

mean it's it's one of the best fields to

be in it's it's highly yeah the cross

functional so it's it's wonderful

interdisciplinary love that of course um

you know that's something that um I've

learned um across many different domains

of course by making mistakes myself but

even during my MBA at UT Austin we had a

professor Rob he actually wrote a book

on it that said if you build it they

would come and he had this Capstone

program uh for the entire duration of

two years that we were getting our MBA

where uh we would have lectures every

semester but the focus was on spending a

lot of time on Market validation on

finding that problem that you want to

solve instead of just you know of course

you know if you build it they would come

you can't think like that you can't have

that mindset um no so definitely great

advice and uh thank you for that and

with that said folks we're wrapping up

another riveting exploration Into the

Heart of Industry with Rahul gang we

extend our heartfelt gratitude for Rahul

for generously sharing his in valuable

insights as we bid Ado let's reflect on

the gems he's imparted the essence of

agility Innovation and resilience that

drive the wheels of supply chain

Excellence remember in the dynamic world

of Industry adaptability is key

Innovation is fuel and resilience is

armor so let's harness these principles

as we chart our course towards a future

defined by efficiency sustainability and

success until next time stay inspired

stay informed and stay ahead of the

curve thank you Rahul thank you bye-bye

bye-bye