Supply Chain Management and Importance of People | Chethan Kote | TEDxUniversityofStrathclyde

Summary

The video script discusses the importance of people in supply chain management, emphasizing how effective collaboration and leadership can drive success. The speaker shares their journey from software engineering to supply chain management, detailing their experience at Castle Precision Engineering and explaining the fundamentals of supply chain operations. Through examples like Volkswagen and Audi, the script illustrates how complex supply chains work and the critical role of people in managing them. The speaker highlights that tools, systems, and processes are essential, but it’s the people who make an organization truly successful.

Takeaways

• 😀 People are the most important asset of any company, as emphasized by Ha Gay Paula Lehmann, co-founder of Banco Granita in Brazil.
• 😀 The speaker initially studied software engineering in India but discovered that coding was not for them, leading to a career shift into supply chain management.
• 😀 Supply chain management (SCM) is the centralized management of the flow of services and goods, transforming raw materials into finished products.
• 😀 A typical supply chain involves a focal company, its suppliers, and its customers, with demand flowing upstream and processes flowing downstream.
• 😀 The Volkswagen example demonstrates how supply chains work in practice, with 2,600 suppliers contributing to their manufacturing lines.
• 😀 The Audi R8, a premium sports car, highlights a supply chain where 25% of processes are manual, adding a human touch to the product's assembly.
• 😀 Even large companies like Volkswagen work with various suppliers for different components, creating complex, interconnected supply chains.
• 😀 People play a crucial role in the success of a supply chain, as seen in the case of a supplier in the South turning around its business by focusing on people and leadership.
• 😀 Steve Jobs' quote about the importance of people over tools illustrates how successful companies rely on the dedication and vision of their teams.
• 😀 The success of an event organized by the University of Strathclyde is attributed not just to tools and processes, but to the team behind it, reinforcing the value of people.
• 😀 A key takeaway is that regardless of how sophisticated the tools, systems, and processes are, the people involved are the driving force behind organizational success.

Q & A

What quote did Ha Gay Paula Lehmann make about people in a company?

Ha Gay Paula Lehmann, the co-founder of Banco Granita, stated, 'People are the most important asset of any company.'

Why did the speaker choose to move away from software engineering?

The speaker realized that coding and sitting in front of a PC was not their passion and they couldn't envision a career as a software engineer.

How did the speaker first learn about supply chain management?

The speaker was introduced to supply chain management through their older brother, a pilot in India, and further researched the field after finishing their engineering degree.

What event highlighted the importance of supply chain management during the speaker's time in Glasgow?

In 2010, Glasgow experienced a harsh winter, leading to food shortages as delivery trucks couldn't bring goods to supermarkets, which illustrated the critical role of supply chain management in real life.

How did the speaker's career in supply chain management begin?

After completing their master's in supply chain operations, the speaker joined Castle Precision Engineering as an intern, and later secured a full-time position that eventually led to a supply chain manager role.

What is the definition of supply chain management according to Investopedia?

Supply chain management is the centralized management of the flow of services and goods, including all processes that transform raw materials into finished products.

How does a typical supply chain work?

A typical supply chain consists of a focal company, its suppliers, their suppliers, and ultimately, the customers. The demand flows upstream, while the product and information flow downstream.

How does Volkswagen manage its supply chain, particularly for their manufacturing plants?

Volkswagen, one of the largest car manufacturers, operates a huge plant in Wolfsburg, Germany, where around 60,000 people work. The company relies on about 2,600 suppliers for parts and services, managing a complex supply chain.

Why does Audi maintain a manual production process for the R8, a premium sports car?

Audi uses manual production processes for the R8 to ensure a human touch, emphasizing the premium quality and uniqueness of the car, as opposed to fully automated production.

What role do people play in the success of supply chain management, according to the speaker?

The speaker emphasizes that people are the most important factor in supply chain success. Even if a company has the best tools and technology, it is the people who drive the vision, manage processes, and ensure efficiency.