Operations Prep Book

Placements 2024

Prepared By
Issue details and copyright
Prep Material, Optima Club, IIM-A, 1/e

© 2024, Optima Club, IIM-A. All rights reserved.

Notice
No part of this publication may be reproduced or transmitted in any form or by any means
–electronic or mechanical, including photocopy, recording or any information storage and
retrieval system –without permission in writing from the Optima Club, IIM Ahmedabad.

First edition: January 2023

2
Introducing the IIMA Operations Prep Material

This year, the Optima Club, IIM Ahmedabad, is delighted to present the 1st
edition of the IIM A Operations Prep Material. This comprehensive document
combines all essential resources needed to excel in operations interviews into a
single, ready-to-use document. This preparatory document's purpose is to give
the readers a comprehensive comprehension of the concepts that comprise a
significant portion of operations interviews.

This book is characterized by its dual approach, which combines fundamental

knowledge with corporate practical insights. Five essential operations concepts
have been presented and analysed in detail, providing a solid foundation for
comprehending the complex workings of operations management. To establish a
connection between theory and practice, we have diligently curated
comprehensive profiles of twelve unique companies, providing insight into the
operational strategies that propel achievement. The 'Know Your Company'
section delves beyond a mere synopsis and provides an in-depth analysis of the
operational mechanisms of these organizations. It reveals the strategies,
obstacles, and successes symbolic of the business realm. By integrating
theoretical foundations and practical insights, this distinctive combination
strengthens one's analytical capabilities and effectively empowers one to
confront the complex complexities inherent in operations management.

Whether you are an aspiring operations enthusiast or an experienced professional

aiming to expand your knowledge, this Prep Material is your ideal companion.
It's not just about learning; it's about evolving into a strategic thinker, ready to
make your mark in the dynamic world of operations. Dive into this treasure trove
of knowledge and embark on a journey of learning, discovery, and
transformation. The Optima Club IIMA team deserves tremendous credit for
their relentless work and unwavering commitment to creating this priceless
resource!”

Pradeep Guribelli,
Coordinator, Club Optima, 2024-25

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Acknowledgement

The industry's landscape of operations management roles has been witnessing a

remarkable uptick, a trend shaped by the growing presence of companies leveraging

digitalization, AI, IoT, and a broadened spectrum of opportunities extending to

graduates. Nevertheless, the lack of specialized preparatory materials that apply to the

Indian context has proven to be a significant obstacle. It was a formidable undertaking to

address this need; it could only have been accomplished through the collaborative efforts

of numerous contributors throughout this endeavour.

We want to express our profound gratitude to the Optima Club (2024-25) and the

conscientious individuals who participated in the rigorous cycle of brainstorming,

compiling, and refining the materials to their current standard. Additionally, we extend

our sincere appreciation to the broader community, comprising club, student, and

alum members, whose insightful feedback has substantially enhanced this content. The

placement and publication teams merit particular recognition for their thorough efforts in

moulding the ultimate deliverable. Additionally, we extend our gratitude to the 60th

Students' Affairs Council (SAC) and our warden, Professor Naman Desai, for their

unwavering support and encouragement.

Lastly, we extend our sincere appreciation and anticipation to you, the reader, for your

invaluable contribution to this undertaking and for consistently motivating our team to

strive for improvement and excellence in operations management.

Optima Club,

IIM Ahmedabad

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Table of Contents
Topic Pages
Chapter 1 - Supply Chain Basics 6-9
Chapter 2 - Inventory Management 10-13
Chapter 3 - Operations Management 14-17

Chapter 4 - Logistics Management 18-21

Chapter 5 – Important Concepts 22-26

Know Your Company
Airtel 28-30
Amazon 31-35
Flipkart 36-38
HUL 39-41
Udaan 42-43
Uber 44-46
Walmart India 47-48
Reliance 49-50
Aditya Birla group 51-52
Sun Pharma 53-54
PepsiCo 55-57
Value Chains
E-Commerce 58-60
Pharma 60- 62
Automobile 63-66
IT Services 66-68
Technology In Operations 69-79
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Chapter 1
Supply Chain Basics

What is Supply Chain Management?

Supply Chain (SC) is the sequence of business processes and information that provides a
product or service from suppliers through manufacturing and distribution to the ultimate
customer.

Supply Chain Management (SCM) is a set of approaches utilized to efficiently integrate

suppliers, manufacturers, warehouses, and stores so that merchandise is produced and
distributed in the right quantities, to the right locations, and at the right time in order to
minimize system-wide costs while satisfying service level requirements.

The supply chain network includes

• Material flow from suppliers and their “upstream” suppliers at all levels.
• Transformation of materials into semi-finished and finished products (internal process).
• Distribution of products to customers and their “downstream” customers at all levels
.

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Based on the movement of products and services, a supply chain has three flows: material,
information, and capital.

Downstream Upstream
Material: products, parts Material: returns, repairs, after-sales service
Information: capacity, delivery schedules Information: Orders, Point of Sales data
Capital: Invoices, pricing, credit terms Capital: Payments

Why Supply Chain?

Supply chain management is essential in this competitive era when businesses work
persistently to increase productivity and cut costs. Typically, a company's supply and logistics
expenditures make up between 20 and 25 percent of its total costs.

What are the various Elements of the Supply Chain?

Customer Initiation
A supply chain commences with a customer's purchase decision. This triggers a sales order
specifying product quantity and delivery date. If the product requires manufacturing, the order
becomes a production requirement.

Production Planning
Accumulated sales orders are consolidated by the planning department into a production plan.
This necessitates procuring raw materials to support manufacturing.

Procurement
The purchasing department obtains a list of required raw materials and services from
production. Purchase orders are issued to suppliers for timely delivery of materials.

Inventory Management
Incoming raw materials undergo quality checks before storage in the warehouse.
Concurrently, suppliers send invoices for delivered items. Materials are held until production
needs arise.

Manufacturing
Based on the production plan, raw materials are transferred from inventory for product
creation. After quality assurance, finished goods are returned to the warehouse pending
shipment.

Distribution
The shipping department optimizes product delivery methods to meet customer deadlines.
Upon delivery, the company issues an invoice to the customer.
Companies adopt Supply Chain Management processes and associated technology to ensure
that the supply chain operates as efficiently as possible and generates the highest level of
customer satisfaction at the lowest possible cost.

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Supply Chain Management broadly addresses four key issues

• Distribution Network Management

This involves managing various production facilities, warehouses, and distribution centers.
Effective integration of numerous suppliers, distributors, and storage facilities is crucial for
organizational efficiency.

• Distribution Channels
This encompasses strategies such as cross-docking, direct shipment, pull or push strategies,
and third-party logistics. These methods define the various distribution channels used.

• Information Channels
This entails integrating various systems and processes within the supply chain to share
valuable information. It includes predicting demand, forecasting, and managing inventory
and transportation.

• Inventory Management
This involves managing the quantity and location of inventory, including raw materials,
work-in-process, and finished goods, from service providers to consumers.

Supply Chain Management has three levels of activities that different parts of the
company will focus on

• Strategic
At this level, company management focuses on high-level decisions affecting the entire
organization. This includes determining the size and location of manufacturing sites,
forming partnerships with suppliers, deciding which products to manufacture, and
identifying sales markets.

• Tactical
Tactical decisions aim to achieve cost benefits by adopting industry best practices. This
involves developing a purchasing strategy with preferred suppliers, collaborating with
logistics companies to create cost-effective transportation solutions, and establishing
warehouse strategies to minimize inventory storage costs.

• Operational
Operational decisions are made daily and affect the movement of products along the
supply chain. These decisions include making production schedule adjustments,
establishing supplier purchasing agreements, processing customer orders, and managing
product movement within the warehouse.

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What are the various activities of the Supply chain Manager?

• Planning and scheduling daily operations to improve process efficiency.

• Conducting demand planning and forecasting.
• Collaborating with customers and suppliers to ensure accurate demand forecasts, reducing
inventory storage costs.
• Managing inbound operations, such as transportation from suppliers and inventory receipt,
and outbound operations, including transportation to customers.

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Chapter 2
Inventory Management
What is Inventory?

The inventory means the aggregate of those items of tangible personal property, which
• are held for sale in the ordinary course of business.
• are in the process of production for such sales.
• they are to be currently consumed in the production of goods or services to be available for
sale.

Simply, Inventory means Raw materials Inventory, Stores and Spares,

Work-in-Process/Semi-Finished Goods Inventory, and Finished Goods Inventory.

Why to Keep Inventory?

• To Stabilize Production
Inventory is kept to manage fluctuations in demand due to factors like seasonality and
production schedules, ensuring smooth production.

• To Meet Demand During Replenishment

Inventory is maintained to cover demand during the procurement period, accounting for
lead time factors such as source location and demand-supply conditions.

• To Take Advantage of Price Discounts

Bulk buying often comes with manufacturer discounts. Inventory is kept to benefit from
these price advantages, even if the materials are only needed after a period of time.

• To Prevent Loss of Orders (Sales)

To meet delivery schedules and avoid losing sales in a competitive market, organizations
maintain inventory to ensure a 100% service level.

What is Inventory Control?

Inventory control refers to a system that ensures the supply of the required quantity and quality
of inventory at the time necessary and simultaneously prevents unnecessary investment in
inventories.

Inventory control deals with two problems:

• When should an order be placed? (Order level), and

• How much should be ordered? (Order quantity)

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What are the benefits of Inventory Control?

• Ensures high-quality products and tracks vendor performance to minimize returns.

• Enhances inventory and tax audits by accurately tracking assets and writing off obsolete
items.
• Provides real-time visibility of inventory levels to optimize operations and reduce errors.
• Organizes warehouses efficiently to boost performance and improve logistic flow.
• Streamlines stock ordering to minimize costs, reduce errors, and maximize profits.

What are various techniques for Inventory Control?

Inventory is maintained in any organization, depending on the type of business. The control can
be for order quality and order frequency. Various prominent techniques used are:

1. ABC Analysis
2. VED Analysis
3. FSN Analysis

Always Better Control (ABC) Analysis

• This technique divides inventory into three categories A, B & C based on their annual
consumption value.
• It is also known as the Selective Inventory Control Method (SIM).
• This method is a means of categorizing inventory items according to the potential amount to
be controlled.
• ABC analysis has a universal application for fields requiring selective control.

Each class has no fixed threshold; different proportions can be applied based on objectives and
criteria. ABC Analysis is similar to the Pareto principle in that the 'A' items typically account
for a large proportion of the overall value but a small percentage of the number of items.

Example of ABC class

‘A’ items -20% of the items account for 70% of the annual consumption value of the items.
‘B’ items -30% of the items account for 25% of the annual consumption value of the items.
‘C’ items -50% of the items account for 5% of the annual consumption value of the Items.

Advantages of ABC Analysis

• Helps to exercise selective control.
• Gives rewarding results quickly.
• Helps to point out obsolete stocks easily.
• In case of “A” items careful attention can be paid at every step such as estimate of
requirements, purchase, safety stock, receipts, inspections, issues, etc. & close control is
maintained.
• In case of “C” items, recording & follow up, etc. may be dispensed with or combined.
• Helps better planning of inventory control.
• Provides sound basis for allocation of funds & human resources.

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Disadvantages of ABC Analysis
• Proper standardization & codification of inventory items are needed.
• Considers only the monetary value of items & neglects the importance of items for
production, assembly, or functioning.
• Periodic review becomes difficult if only ABC analysis is recalled.
• When other vital factors make it obligatory to concentrate on “C” items more, the purpose of
ABC analysis is defeated.

VED Classification
VED: Vital, Essential & Desirable classification
VED classification is based on the criticality of the inventories.

• Vital items – Its shortage may cause havoc & stop the work in the organization. They are
stocked adequately to ensure smooth operation.
• Essential items -Here, reasonable risk can be taken. If not available, the plant does not stop,
but the efficiency of operations is adversely affected due to expediting expenses. They
should be sufficiently stocked to ensure a regular flow of work.
• Desirable items – Their non-availability does not stop the work because they can be easily
purchased from the market as & when needed. They may be stocked very low or not stocked.
• It is helpful in capital-intensive industries, transport industries, etc.

VED analysis can be better used with ABC analysis in the following pattern:

FSN Analysis
• FSN: Fast moving, slow moving & Non-moving.
• Classification is based on the pattern of issues from stores & helps control obsolescence.
• Date of receipt or last date of issue, whichever is later, is taken to determine the number of
months lapsed since the previous transaction.
• The items are usually grouped in periods of 12 months.
• It helps to avoid investments in non-moving or slow items. It is also helpful in facilitating
timely control.
• For analysis, the issues of items in the past two or three years are considered.
• If there are no issues with an item during the period, it is an “N” item.
• Then, up to a specific limit, say 10-15 issues in the period, the item is an “S” item.
• The items exceeding such limit of no. of issues during the period are “F” items.
• The period of consideration & the limiting number of issues varies from organization to
organization.

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What is EOQ? How it is calculated?

Economic Order Quantity (EOQ) is the optimal order size that minimizes the total costs of
inventory, including ordering and holding costs.

The quantity to order at a given time must be determined by balancing two factors:
1. The cost of possessing or carrying materials and
2. The cost of acquiring or ordering materials.

EOQ = √2CO/S

Where;
C = Annual consumption of the material
O = Ordering cost per order
S = Annual storage cost per unit

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Chapter 3
Operations Management
An organization consists mainly of four functional subsystems, viz. marketing, production,
finance, and personnel, as shown in the following figure.

The marketing function promotes products to generate sales orders, which are communicated
to the production subsystem for managing resources and production. According to production
plans, the function organizes resources like raw materials, equipment, labor, and capital. The
finance function authorizes and controls financial resources for all subsystems, ensuring
effective money utilization. The personnel function is supported by planning and providing a
workforce through recruitment and training programs.

About

The main activities of operation and production management (POM) can be listed as:

• Specialization and procurement of input resources: management, material and labor,

equipment, and capital.
• Product design and development to determine the production process for transforming the
input factors into output goods and services.
• Specialization and control of the transformation process for efficient production of goods
and services.

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Types of Production Method Job

The various production methods are not associated with a particular production volume.
Similarly, several techniques may be used at different stages of the overall production process.

Job Method
With Job production, the complete task is handled by a single worker or group of workers.
Jobs can be small-scale/low technology and complex/high technology.

Low technology jobs: The production organization is extremely simple, with readily available
skills and equipment. This method enables the customer’s specific requirements to be included,
often as the job progresses. Examples include hairdressers and tailoring.

High technology jobs: High technology jobs involve much greater complexity - and, therefore,
present more significant management challenges. The critical ingredient in high-technology job
production is project management or project control.

The essential features of reasonable project control for a job are:

• Clear definitions of objectives – How should the job progress (milestones, dates, stages)
• Decision-making process - How are decisions taken about the needs of each process in the
job, labor, and other resources?

Examples of high technology / complex jobs are film production and large construction
projects.

Batch Method
As businesses grow and production volumes increase, it is not unusual to see the production
process organized so that "Batch methods" can be used.

Batch methods require that the work for any task is divided into parts or operations. Each
operation is completed through the whole batch before the next operation. By using the batch
method, it is possible to specialize labor. Capital expenditure can also be kept lower, although
careful planning is required to ensure that production equipment is active. The main aims of the
batch method are, therefore, to:
• Concentrate skills (specialization)
• Achieve high equipment utilization

This technique is the most used method for organizing manufacture. A good example is the
production of electronic instruments.
Batch methods have their problems. There is a high probability of poor workflow, mainly if the
batches are outside the optimal size or if there is a significant difference in productivity by each
operation in the process. Batch methods often result in the buildup of substantial "work in
progress" or stocks (i.e., completed batches waiting for their turn to be worked on in the next
operation).

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Flow Methods
Flow methods are like batch methods - except that the problem of rest/idle production/batch
queuing is eliminated.
Flow has been defined as a "method of production organization where the task is worked on
continuously or where the processing of material is continuous and progressive."

The aims of flow methods are:

• Improved work & material flow
• Reduced need for labor skills
• Added value / completed work faster

Flow methods mean that as work on a task at a particular stage is complete, it must be passed
directly to the next stage for processing without waiting for the remaining tasks in the "batch."
When it arrives at the next stage, work must start immediately on the following process. For
the flow to be smooth, the times that each task requires on each stage must be of equal length,
and there should be no movement of the flow production line. In theory, therefore, any fault or
error at a particular stage.
So that flow methods work well, several requirements must be met:

• There must be a substantially constant demand (If demand is unpredictable, it can lead to
excess stock and storage issues; businesses often "build for stock" during low-demand
periods)
• The product and/or production tasks must be standardized (Flow methods are inflexible and
cannot handle product variations effectively, except for minor differences applied at the
end of production)
• Materials used in production must be to specification and delivered on time
(The continuous flow production line requires consistent materials and timely delivery to
avoid costly disruptions)
• Each operation in the production flow must be carefully defined and recorded in detail
• The output from each stage of the flow must conform to quality standards

Capacity management
The capacity of a production unit (e.g., machine or factory) is its ability to produce or do what
the customer requires. In production and operations management, three types of capacity are
often referred to:

Potential Capacity: The capacity that can be made available to influence the planning of
senior management (e.g., in helping them to make decisions about overall business growth,
investment, etc) This is a long-term decision that does not influence day-to-day production
management.

Immediate Capacity: The production capacity that can be made available in the short term.
This is the maximum potential capacity, assuming that it is used productively.

Effective Capacity: An important concept. Not all productive capacity is used or usable.
Production managers need to understand what capacity is achievable.

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Measuring capacity

Capacity, the ability to produce work in a given time, must be measured in the unit of work.

For example, consider a factory with 10,000 " machine hours" capacity per 40-hour week. This
factory should be capable of producing 10,000 "standard hours of work" during a 40-hour week.
The actual volume of product that the factory can produce will depend on:

The amount of work involved in production (does a product require 1/5/10 standard hours?
Any additional time required in production (e.g., machine set-up, maintenance).
The productivity or effectiveness of the factory.

Constraints on capacity

There are usually two potential constraints in capacity management - TIME and CAPACITY.

Time may be a constraint where a customer has a particular required delivery date. In this
situation, capacity managers often "plan backward." In other words, they allocate the production
tasks' final stage (operation) to the required delivery period, the penultimate task one period
earlier, and so on.

Production Scheduling

Scheduling is arranging, controlling, and optimizing work and workloads in a production

process. Companies use backward and forward scheduling to allocate plant and machinery
resources, plan human resources, plan production processes, and purchase materials.
Forward scheduling is planning the tasks from when resources become available to determine the
shipping or due date.

Backward scheduling is planning the tasks from the due date or required-by date to determine the
start date and/or any changes in capacity required.

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Chapter 4
Logistics Management
Logistics management is the part of the supply chain process that plans, implements, and
controls the flow and storage of goods, services, and related information from the point of
origin to the end of consumption to meet customer requirements.

Ex: Dabbawallas’ of Mumbai, The Indian Postal Services

From the above figure, various functions of Logistics Management are Order processing,
Inventory planning and Management, Warehousing, transportation, and Packaging.

How does Logistic add Value?

Logistics delivers value to the customer through three main phases:

• Inbound logistics: These are the operations that precede manufacturing. These include the
movement of raw materials and components for processing from suppliers.
• Process logistics: These operations are directly related to processing. These include storing
and moving raw materials and components within the manufacturing premises.
• Outbound logistics: These operations follow the production process. These include
warehousing, transportation, and inventory management of finished goods.

Objectives of Logistics Management

• Cost Reduction and Profit Maximization:

Logistics management lowers costs and boosts profits through improved material handling,
safe and economical transportation, and optimal warehouse locations.
• Efficient Flow of Manufacturing Operations:
Inbound logistics ensures a smooth manufacturing flow, the timely delivery of materials, and
the proper utilization of materials and semi-finished goods in production.

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• Competitive Edge:
Logistics enhances a company's competitive edge by increasing sales through better customer
service, ensuring rapid and reliable delivery, and minimizing order processing errors.
• Effective Communication System:
Developing an efficient information system and logistics management facilitates continuous
supplier interaction and quick responses to customer inquiries.
• Sound Inventory Management:
Logistics management ensures sound inventory management, alleviating major production
and financial management concerns by maintaining optimal inventory levels.

What is 3PL? Explain various logistic service providers.

First Party Logistics

First-party logistics companies are companies that do their own logistics activities.

Second Party Logistics

Second-party logistics people provide their own assets, such as truck owners, warehouse
operators, etc.

Third-Party Logistics
Third-party logistics providers (3PLs) perform logistics services on behalf of other companies.

3PLs provide management skills along with the physical assets, labor, and systems technology
to provide professional logistics services, relieving companies of the responsibility of
performing these services themselves. A 3PL is a contract logistics service provider that
manages inventory/material flow between companies and encompasses all processes and
activities, such as transportation, warehousing, and documentation.

Standard 3 PL functions are:

Transportation Management
3PLs fleet (or alliance partners) offer an optimized network to serve customers.
3PLs plan load management, routing, equipment, and driver management by Shipment
Management System (SMS).

Warehouse management
3PLs run and manage warehouses using Warehouse Management Systems, radio frequency
scanning, and bar code labeling.
3PLs manage and track the movement of goods from initial receipt to outbound shipment.
Real-time, periodic, and accurate information can be provided to manage inventory and demand
better.
Additional services, such as advanced shipment notifications, can be generated to inform the
retail partners in the supply chain.

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Packaging
• 3PLs often can do final product packaging in their warehouse, thus eliminating the need to
ship products to offsite packaging companies. This, in turn, means reduced product handling,
reduced cycle time, and reduced costs.
• 3PLs can offer various packaging services like custom pallets, display shippers, inserts and
coupons, labeling and printing, repackaging/conversion, and wrapping and bundling.

Advantages to companies by using 3PL services:

• Focus on core competencies: Outsourcing enables companies to focus on the core

businesses and strengths. The company’s limited resources can be saved, and it can remain
focused on what it can do best.
• Lower Investment: Organizations can outsource and save a significant amount required for
building logistics assets, networks, and facilities such as warehouses. As an alternative to
these investments, the companies can outsource these requirements by outsourcing and
investing in their core processes.
• Enhanced technological capabilities and flexibility: Utilizing technological capabilities has
enhanced the efficiency of logistics operations. However, it may not always be feasible for
companies to invest in newer systems or upgrade their existing systems. However, deploying
third-party logistics providers can prevent such technological changes. 3 PL often invests in
such technologies to provide competitive services.
• Best practices: Outsourcing logistics to third-party logistics enables companies to implement
best practices and allows organizations to achieve the best performance.

Essential characteristics of a 3 PL
• Solutions Orientation
• Logistics Know-how
• IT Capability
• Management and Organizational Skills
• Innovativeness
• Independent and best-of-breed approach

What are the various types of 3PL providers?

Third-party logistics providers include freight forwarders, courier companies, and other
companies integrating & offering subcontracted logistics and transportation services. Hertz and
Alfredsson (2003) describe four categories of 3PL providers.

Standard 3PL provider: This is the most basic form of a 3PL provider. They would perform
activities such as picking and packing, warehousing, and distribution (business) – the most basic
logistics functions. The 3PL function is not the main activity for most of these firms.

Service developer: This type of 3PL provider will offer their customers advanced value-added
services such as tracking and tracing, cross-docking, specific packaging, or providing a unique
security system. A solid IT foundation and a focus on economies of scale and scope will enable
this 3PL provider to perform these tasks.

20
The customer adapter: This type of 3PL provider comes in at the customer's request and
completely controls the company's logistics activities. This 3PL provider dramatically
improves logistics but does not develop a new service. The customer base for this type of 3PL
provider is typically relatively small.

The customer developer: This is the highest level that a 3PL provider can attain with respect
to its processes and activities. This occurs when the 3PL provider integrates itself with the
customer and takes over their entire logistics function. These providers will have few
customers but will perform extensive and detailed tasks for them.

Fourth Party Logistics

Information technology plays a key role in logistics and supply chain management. Logistics
integration, a complex exercise, is completely dependent on IT support. Third-party logistic
suppliers provide logistics solutions to clients based on the domain knowledge they have
acquired over the years. 4 PL companies provide logistics solutions built around the domain
knowledge provided by third-party logistics companies. Thus, 4 PLs have emerged out of the
vacuum created by 3PLs.

4 PLs see the process and what is required to succeed. A 4PL is a supply chain manager &
enabler who assemblies and manages resources and builds capabilities and technology with
those of complimentary service providers. They are the first point for delivering unique and
comprehensive supply chain solutions. 4PL leverages combined capabilities of management
consulting and 3PLs. They act as integrators, assembling the resources, capabilities, and
technology of their own organization and other organizations to design, build, and run
comprehensive supply chain solutions. 4 PL is an emerging trend, a complex model offering
more significant benefits in economies of scale.

21
Chapter 5
Important concepts
Six Sigma

Six Sigma is a business improvement approach that seeks to find and eliminate causes of defects
and errors in processes by focusing on outputs that are critical to customers. Six Sigma is based
on a statistical measure equating to 3.4 or fewer errors or defects per million opportunities
(DPMO)

• Six Sigma was introduced by Motorola, USA, in 1981, and it aims to deliver “Breakthrough
Performance Improvement” from current levels in business and customer-relevant operational
and performance measures.

• Six Sigma believes that:

o Continuous efforts to achieve stable and predictable process results (i.e., reduce process
variation) are vital to business success.
o Manufacturing and business processes have characteristics that can be measured, analyzed,
improved, and controlled.
o Achieving sustained performance and quality improvement requires commitment from the
entire organization, particularly from top-level management.

• Features that differentiate Six Sigma apart from previous quality improvement initiatives
include
o A clear focus on achieving measurable and quantifiable financial returns from any Six Sigma
project.
o An increased emphasis on strong and passionate management leadership and support.
o A particular organization infrastructure of "Champions," "Master Black Belts," "Black Belts,”
“Green Belts,” etc., to lead and implement the Six Sigma approach.

Six Sigma has two critical methodologies: DMAIC and DMADV

1. DMAIC is used to improve an existing business process.
2. DMADV is used to create new products or process designs.

DMAIC problem solving method

Define: Sets the context and objectives for project improvement (goals and customer
(internal/external) deliverables).
Measure: Determines the baseline performance and capability of the process you’re improving.
Analyze: Uses data and tools to understand the cause-and-effect (root causes) of your
performance problems.
Improve: Develop the modifications that lead to a validated improvement (creating
performance breakthroughs).
Control: Establishes plans and procedures to ensure that the improvements are sustained in the
future.

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DMADV Project Methodology

• Define design goals consistent with customer demands and the enterprise strategy.
• Measure and identify CTQs (Critical to Quality characteristics), product capabilities,
production process capability, and risks.
• Analyze to develop and design alternatives, create a high-level design and evaluate design
capability to select the best design.
• Design details, optimize the design, and plan for design verification. This phase may require
simulations.
• Verify the design, set up pilot runs, implement the production process, and hand it over to
the process owner.

Lean manufacturing
Lean is a strategy for remaining competitive by identifying and eliminating wasteful steps in
products and processes. The primary goal is to get more done with less by minimizing
inventory at all stages of production, shortening cycle times from raw materials to finished
goods, and eliminating all sorts of waste.

There are seven types of wastes (7 deadly wastes) defined as

1. Unnecessary Transportation: This waste refers to any unnecessary transportation, such as

that commonly associated with the transit of materials or parts. Transportation is not an
additional activity as it does not help transform the product according to customer
requirements and can add further problems through delays, damage, or lost items.

2. Unnecessary Processing: Over processing is typified as carrying out more work on a

product than is required. This might involve using more precision tools than are necessary,
such as office activity and bureaucratic approval systems for documents requiring multiple
signatories or reviews. Removing over-processing requires careful consideration to
ascertain the actual requirement and ensure the process is engineered to meet this without
any further burden.

3. Unnecessary Motion: An effective working environment can help reduce motion for a
given process. This may entail providing tools and equipment at the point of use or making
material handling processes more efficient. A standard tool used to analyze motion is the
spaghetti diagram, which can effectively highlight issues.

4. Inventory: Any parts or materials that are not immediately required are considered waste –
Inventory is one of the seven wastes that are easiest to spot in that it is easy to see around
the business physically. Inventory is waste as it ties up resources to manage it, such as
storage space, personnel, capital outlay, and processing.

5. Waiting Time: It is widespread –look at your business. Are parts stacked up, waiting for
the next part of the assembly process? Are office in-trays piled high with documents
waiting to be processed? Several causes can result in waiting – often with product batch
sizes being a primary trigger.
23
6. Defects: Getting it wrong results in waste – whether manufacturing faulty parts that require
rework or, at worst, being scrapped or documents that are incorrectly completed, which can
result in confusion or mistakes. Defects have a genuine impact on the bottom line of your
business and can be one of the key contributors to inefficiency.

7. Overproduction: Producing more of something than is required by the customer is a waste

– close attention to batch sizes and change over time can be imperative in not
overproducing. The impact of overproducing can be considerable – not only is extra material
consumed, but extra processing and storage requirements add to the problem, causing
another of the seven wastes – inventory.

Lean - Advantages

• Inventory Cost & Space Reduction

• Robust process

Lean – Disadvantages

• High Cost of Implementation - Change of plant setup and systems

• Lack of acceptance by employees - requires constant employee input on quality control
• Customer Dissatisfaction - dependent on supplier efficiency, any disruption in Supply chain
will adversely affect customers

Lean Six Sigma:

Lean Six Sigma

Identify problems in the flow. Improve the capability of steps that
add value.
Helps to identify steps that don’t add Improving capability can eliminate
value and provide tools to eliminate additional steps and time.
them

Together, Lean and Six Sigma provide a holistic approach to process improvement.

5S

A successful 5S program is an excellent predictor

of the greater Lean Initiative success.

• Seiri (Sort): Clearout and Classify

• Seiton (Set In order): Configure
• Seison (Shine): Clean and Check
• Seiketsu (Standardize): Conformity
• Shitsuke (Sustain): Custom and Practice

24
Just in time (JIT)

It is an inventory management strategy that strives to improve a business's return on investment

by reducing in-process inventory and associated carrying costs. Just in time is a type of
operations management approach that originated in Japan in the 1950s by Toyota Motor
Company

Advantages of Just-In-Time Inventory

• Reduced Setup Time (Cutting setup time allows the company to reduce or eliminate
inventory for "changeover" time)

• Improved Flow of Goods (Smaller lot sizes reduce lot delay inventories, simplifying
inventory flow and management)

• Efficient Use of Multi-skilled Employees (Employees trained in different parts of the

process can be moved where needed, increasing efficiency)

• Synchronized Production Scheduling (Production is aligned with demand, saving money on

overtime and allowing workers to focus on other tasks or training)

• Enhanced Supplier Relationships (Strong supplier relationships are crucial to prevent part
shortages in a system with minimal inventory)

• Regular Supply Intervals (Supplies are synchronized with production demand, reducing the
need for storage facilities as parts move directly to assembly)

• Minimized Storage Space (Reduced need for storage space)

• Lower Risk of Inventory Breakage/Expiration (Smaller chance of inventory breaking or

expiring)

Disadvantages of Just-In-Time Inventory

Dependency on Timely Supplier Deliveries (A supplier failing to deliver on time and in the
correct amounts can disrupt the production process.)

Vulnerability to Natural Disasters (Natural disasters can interfere with the flow of goods,
potentially halting production immediately.)

Investment in Information Technology (Investment in IT is necessary to link company and

supplier systems for coordinated deliveries.)

Inability to Meet Unexpected Demand (A company may struggle to meet a sudden large order
due to having minimal stocks of finished goods.)

25
Theory of Constraints
The Theory of Constraints (TOC) is an overall philosophy usually applied to running and
improving an organization.

The Theory of Constraints states that every system must have at least one constraint limiting its
output.

What is a constraint?
A process or process step that limits throughput.
Anything that limits a system from achieving higher performance versus its goal.
A constraint is a factor that limits the system from getting more of whatever it strives for.

Consequences of the Theory

The more complex the system, the fewer independent process paths exist, so the lower the
constraints. (Usually, complex systems have only one constraint at a given time.)
A system of optimum processes can’t be an optimum system.
An optimum system runs the constraint (or bottleneck) at optimum capacity (focused on the
system's goal), and all other process steps must have excess capacity.

How does TOC help companies?

• Focuses improvement efforts where they will have the most significant immediate impact on
the bottom line.
• Provides a reliable process that insists on follow-through.
• TOC postulates that the goal is to make (more) money.
• It describes three avenues to this goal: Increase Throughput, Reduce Inventory, and Reduce
Operating Expenses.

To achieve the goal, there are also 5 Focusing Steps:

IDENTIFY the system’s constraint: You must first identify it to manage a constraint.

Decide how to EXPLOIT the system’s constraint. Once the constraint is identified, the next step
is to focus on how to get more production within the existing capacity limitations.

SUBORDINATE everything else to the above decision: Exploiting the constraint does not
ensure that the materials needed next by the constraint will always show up on time. This is often
because these materials are waiting in order at a non-constraint resource running a job that the
constraint does not need. Subordination is necessary to prevent this from happening.

ELEVATE the system’s constraint: After the constraint is identified, the available capacity is
exploited, and the non-constraint resource has been subordinated, the next step is to determine if
the output of the constraint is enough to supply market demand. If so, there is no need to elevate
because this process is no longer the system's constraint. If not, elevate by adding resources.

If the constraint has been broken in the previous step, Repeat Step 1.

26
KNOW YOUR
COMPANY

27
 KNOW YOUR COMPANY

AIRTEL
Introduction:
Bharti Airtel Limited, commonly known as Airtel, is an Indian
multinational telecommunications services company based in New
Delhi. It operates. L in 18 countries across South Asia and Africa, as
well as the Channel Islands. Currently, Airtel provides 5G, 4G and LTE
Advanced services all over India. Currently offered services include
fixed-line broad band, and voice services depending upon the country of
operation. Airtel has also rolled out its Voiceover LTE (VoLTE)
technology across all Indian telecom circles. It is the second-largest
mobile network operator in India and the second-largest mobile network
operator in the world. Airtel was named India's 2nd most valuable brand
in the first-ever Brands ranking by Millward Brown and WPP plc. Airtel
is credited with pioneering the strategic management of outsourcing all
its business operations except marketing, sales and finance and building
the 'minutes factory' model of low cost and high volumes. The strategy
has since been adopted by several operators. Airtel's equipment is
provided and maintained by Ericsson, Huawei, and Nokia Networks,
whereas IT support is provided by Amdocs. The transmission towers are
maintained by subsidiaries and joint venture companies of Bharti,
including Bharti Infra tel (merged with Indus Towers) and Indus Towers
in India. Ericsson agreed for the first time to be paid by the minute for
installation and maintenance of their equipment rather than being paid
upfront, which allowed Airtel to provide low call rates of ₹1 (1.3¢
US)/minute.

Source: https://en.wikipedia.org/wiki/Bharti_Airtel

28
 Overview Description
Name Airtel
Type Private/ Public
Website www.airtel.in
Establishment 1995
Founder Sunil Mittal

Chairman/ CEO Chairman - Sunil Mittal; CEO - Gopal Vittal

Revenue ₹151,417.8 crore (US$18 billion) for FY20241

EBITDA ₹39,275.70 crore (US$4.7 billion) for FY20241

Employees Over 86,900 (including 63,297 workers) as of March 20241

Airtel India, Airtel Payments Bank Limited, Airtel digital TV, Airtel
Subsidiaries Sri Lanka, Airtel Bangladesh, Airtel Africa, Airtel-Vodafone, Wynk,
Robi

Operated regions 17 countries across Asia and Africa

Competitors Reliance Jio, Vodafone – Idea

Business Model:
Airtel focuses only and solely on two things – customer acquisition and
servicing (retention)and business development/expansion. ALL other
functions – hardware, network management, backend applications (billing,
etc.), value-added services and even telecom infrastructure – are outsourced.

Source:
https://www.airtel.in/press-release/?icid=footer
https://www.moneycontrol.com/india/stockpricequote/telecommunicationsservi
ce/bhartiairtel/BA08

29
 Vision and Mission of Company:
To enrich the lives of our customers. Our obsession is to win customers for
life through an exceptional experience. Mission: Hunger to win customers
for life PRODUCTS & SERVICES 5G, 4G and LTE Advanced services,
mobile commerce, fixed line services, high-speed home broadband, DTH,
and enterprise services, including national and international long-distance
services.

Effect of COVID’19:
Source:
https://in.reuters.com/article/bharti-airtel-results/bharti-airtel-quarterly-re
venue-rises15-on-higher-data-usage-tariffs-idINKCN24U283
Bharti Airtel Ltd reported a 15.4 per cent rise in first-quarter revenue as
customers consumed more data during the coronavirus crisis, even at higher
rates. Airtel posted a consolidated loss of Rs 15,933 crore in the quarter,
compared with a loss of Rs 286 crore a year earlier.

Latest News:
1. Wayanad Landslides Relief Measures: Airtel has announced relief measures
for users affected by the Wayanad landslides. They are offering free data
and calls, and extending postpaid bill deadlines to support the victims12.

2. Sunil Mittal’s Remuneration Increase: Bharti Airtel chairman Sunil Mittal’s

remuneration saw a significant increase of 92% to Rs 32.27 crore for the
fiscal year 2023-243.

3. Price Hikes: Airtel has raised the prices of its mobile plans by 10-21%
following a similar move by Reliance Jio. The new prices became effective
from July 3, 20244.

30
AMAZON

Introduction:
Amazon is an American multinational technology company focusing on
e-commerce, cloud computing, online advertising, digital streaming, and
artificial intelligence. It has been often referred to as "one of the most
influential economic and cultural forces in the world” and is often regarded
as one of the world's most valuable brands. It is one of the Big Five
American technology companies, alongside Alphabet, Apple, Meta and
Microsoft.

Name Amazon.com, Inc.

Type Public

Website Amazon.com

Establishment 1994

Founder Jeff Bezos

Chairman/ CEO Andy Jassy

Revenue $574.8 billion (2023)

EBITDA $36.85 billion (2023)

Employees Approximately 1,525,000 (2023)

Subsidiaries Whole Foods Market, Zappos, IMDb, Twitch, Audible, Amazon

Web Services (AWS), and more

Operated regions Worldwide

Competitors Walmart, Alibaba, eBay

31
Business Model:
Amazon in India works on very complex business challenges to innovate and
create an effective solution for enabling various businesses, including
transportation, website and payment support, digital products like Kindle tablets
for e-readers. Apart from the challenges it offers great services to the customers
which according to the customer’s behavior. Amazon faced the legal hassle in
India, as the state tax collectors are arguing with the e-tailer dealers to pay extra
tax in spite of sales tax. Now, it’s India the most emerging e-commerce market
with making more business than any other countries like China and Europe. The
e-commerce industry generally consists of eight key components i.e. market
opportunity, value proposition, competitive market, revenue model, competitive
advantage, market strategy, management team and organizational development

Vision & Mission of Company:

To be Earth's most customer-centric company, where customers can find and
discover anything they might want to buy online and endeavours to offer its
customers the lowest possible prices. Values – 14 Leadership principles
1. Customer Obsession Leaders start with the customer and work backwards.
They work vigorously to earn and keep customer trust. Although leaders pay
attention to competitors, they obsess over customers.
2. Ownership Leaders are owners. They think long term and do not sacrifice
long-term value for short-term results. They act on behalf of the entire
company, beyond just their team. They never say, “that is not my job."

32
3. Invent and Simplify Leaders expect and require innovation and invention
from their teams and always find ways to simplify. They are externally aware,
look for new ideas from everywhere, and are not limited by “not invented here."
As we do new things, we accept that we may be misunderstood for long periods.
4. Are Right, A Lot Leaders are right a lot. They have strong judgment and
good instincts. They seek diverse perspectives and work to disconfirm their
beliefs.
5. Learn and Be Curious Leaders are never done learning and always seek to
improve themselves. They are curious about new possibilities and act to explore
them.
6. Hire and Develop the Best Leaders raise the performance bar with every hire
and promotion. They recognize exceptional talent and willingly move them
throughout the organization. Leaders develop leaders and take seriously their
role in coaching others. We work on behalf of our people to invent mechanisms
for development like Career Choice.

7. Insist on the Highest Standards Leaders have relentlessly high standards -

many people may think these standards are unreasonably high. Leaders are
continually raising the bar and drive their teams to deliver high quality products,
services, and processes. Leaders ensure that defects do not get sent down the
line and that problems are fixed, so they stay fixed.

8. Think Big Thinking small is a self-fulfilling prophecy. Leaders create and

communicate a bold direction that inspires results. They think differently and
look around corners for ways to serve customers.

33
9. Bias for Action Speed matters in business. Many decisions and actions
are reversible and do not need extensive study. We value calculated risk
taking.
10.Frugality Accomplish more with less. Constraints breed
resourcefulness, self-sufficiency, and invention. There are no extra points
for growing headcount, budget size or fixed expense.
11.Earn Trust Leaders listen attentively, speak candidly, and treat others
respectfully. They are vocally self-critical, even when doing so is awkward
or embarrassing. Leaders do not believe their or their team’s body odour
smells of perfume. They benchmark themselves and their teams against the
best.
12.Dive Deep Leaders operate at all levels, stay connected to the details,
audit frequently, and are skeptical when metrics and anecdotes differ. No
task is beneath them. PRODUCTS & SERVICES Amazon.com, Amazon
Alexa, Amazon Appstore, Amazon Luna, Amazon Music, Amazon Pay,
Amazon Prime, Amazon Prime Video, MGM+, Twitch, Ring, Amazon
Web Services, Amazon Robotics.

Effect of COVID’19:
Amazon.com Inc. said its India operations were the worst affected by the
covid-19 pandemic as the government ordered the company to halt sales of
almost all items but groceries during a 40-day lockdown. Amazon has
been allowed to deliver essential goods during the lockdown. These items
form a small part of their overall business, which relies heavily on the sale
of electronic goods, mobile phones and fashion products.

34
LATEST NEWS
1. Amazon Stock Rises: Amazon’s stock saw a significant increase after reports
that the company is expanding its one- and two-day delivery options into
underserved parts of the U.S.2.
2. Amazon Responsible for Recalling Dangerous Products: A federal agency
ruled that Amazon is responsible for recalling over 400,000 dangerous
products sold on its website3.

35
FLIPKART
Introduction
Flipkart Private Limited is an Indian e-commerce company, headquartered in
Bangalore, and incorporated in Singapore as a private limited company. The
company initially focused on online book sales before expanding into other
product categories such as consumer electronics, fashion, home essentials,
groceries, and lifestyle products. The service competes primarily with
Amazon India and domestic rival Snapdeal. As of March2017, Flipkart held a
39.5% market share in the Indian e-commerce industry. Flipkart has a
dominant position in the apparel segment, bolstered by its acquisition of
Myntra, and was described as "neck and neck" with Amazon in the sale of
electronics and mobile phones. Source: https://en.wikipedia.org/wiki/Flipkart
Overview
Name Flipkart Private Limited
Type Subsidiary
Website flipkart.com
Establishment 2007
Founder Sachin Bansal and Binny Bansal
Chairman/ CEO Kalyan Krishnamurthy
Revenue Revenue: ₹56,013 crore (US$6.7 billion) for FY2022–231

EBITDA EBITDA: Not explicitly mentioned, but the net income was
₹−4,834 crore (US$−580 million) for FY2022–231

Employees Employees: Approximately 22,000 (excluding Myntra) as of

January 20241

Subsidiaries Subsidiaries: Cleartrip, Ekart, Flipkart Health+, Flipkart

Wholesale, Myntra, Shopsy1
Operated regions Primarily India

Competitors Amazon India, Snapdeal

36
Business Model:
The online platform of the Flipkart is a B2C (buyer to consumer) model
which provide sample shopping opportunities to the Indian consumers in
an effective manner. As a popular online marketplace, Flipkart also allows
various sellers from across the country to sell their products under different
categories on the online platform. It also encourages the sellers to provide
various attractive discounts to the buyers or the consumers such that their
products are sold off and they earn substantial profits. The sellers get
certain amounts from Flipkart after the deduction of the commission by
Flipkart for the services provided to the sellers. The various options taken
by Flipkart while formulating its business model include: Enhancing the
overall website of Flipkart.

•Introducing the web app to the users.

•Introducing the mobile app to the consumers and the optimization of the
same.
•Promotions of the products and services on the various social websites like
Facebook, YouTube, Twitter, Instagram and much more.
•Proper offline advertisements and promotions based on the banners and
the TV advertisements.
•Making use of affiliate networks like coupon websites, review websites,
bloggers and much more. As per the progressive business model offered by
Flipkart, the percentage of the commission charged by Flipkart from
various sellers on its online portal might vary from the type of products
and the type of sales. It usually ranges from around 5-20 percent based on
the type of services availed by the sellers. In the business model, Flipkart
has also introduced the various other forms of income like the marketplace,
charging the listing and convenience fees, logistics from the consumers,
digital media like the co-advertised products, Myntra – another-commerce
website owned by Flipkart and much more

37
Values of Company:
1. Customer First
2. Integrity
3. Inclusion
4. Audacity
5. Bias for action

Products and Services:

Baby care, Books, e-books & media, apparels, electronics, sports &
fitness, Video Streaming, Payment etc.

Effect of COVID’19:
40-day full lockdown impact on Flipkart ‘negatively’ affects Walmart
International’s growth inQ1 2020.

Latest News:
∙ Flipkart launches FlipInTrends: Flipkart has introduced a new
initiative called FlipInTrends, featuring Bollywood actress Mouni
Roy and stylist Rhea Kapoor. This initiative is available on the
Flipkart app1.
∙ Massive discounts on Google Pixel 8 and Pixel 8 Pro: Ahead of the
Pixel 9 series launch, Flipkart is offering significant discounts on
the Google Pixel 8 and Pixel 8 Pro2.
∙ Flipkart consolidates financial offerings with Flipkart Pay: Flipkart
has launched Flipkart Pay, aiming to increase efficiency and
optimize the usage of its fintech suite3.

38
HUL

Introduction
World’s 2nd largest FMCG Co. In India, HUL’s precursor was Lever
Brothers formed in1933, mainly selling personal care products. Later, in
1956, became HLL and in 2007renamed HUL. It is the firm which places
the most ads on TV. Their mantra is to meet every day needs for nutrition,
hygiene and personal care with brands that help people feelgood, look good
and get more out of life. HUL is the market leader in Indian consumer
products with presence in over 20 consumer categories such as soaps, tea,
detergents and shampoos amongst others with over 70 crore Indian
consumers using its products. Its parent company is Unilever, which is a
British-Dutch transnational consumer goods company cohead quartered in
London, United Kingdom and Rotterdam, Netherlands. Its products include
food and beverages, cleaning agents and personal care products. It is the
world’s largest consumer goods company by revenue.
Overview
Name Hindustan Unilever Limited
Type Public
Website hul.co.in
Establishment 1933
Founder Lever Brothers
Chairman/ CEO Rohit Jawa
Revenue ₹62,707 crore (2024)
EBITDA ₹13,924 crore (2024)
Employees 27,764 (2024)
Subsidiaries GlaxoSmithKline, Consumer Healthcare, Lakme,
Pureit

Operated regions India

Competitors Procter & Gamble, ITC, Dabur

39
Business Model- Unilever’s Supply Chain
• HUL is ranked in the Top 10 supply chains in world by Gartner
(number one in Europe).
• HUL is one of the largest contract logistics companies in the world,
second only to DHL
• HUL has 150,000 customers globally whom we serve with a range of
almost 60,000 products
• HUL sources more than 200,000 different materials from 160,000
suppliers who work with up to a million smallholder farmers.
• HUL runs more than 250 factories which produce 130,000 tea bags
every minute, 1 billion deodorants annually and 2 billion Magnums
every year.
• HUL collaborated with the Lotus F1 Grand Prix team to build a
performance culture in our Supply Chain.

Values of the Company:

• INTEGRITY is essential for us because it is the main building block of
our reputation. Therefore, we will there never be compromising. It
determines how we behave, wherever we operate. Itis our guiding
principle to do the right thing for Unilever's success in the long term.
• RESPECT is our top priority, because we believe that people should be
treated respectfully, fairly and equitably. We welcome the diversity of
people, and we respect people for who they are and what they contribute.
• RESPONSIBILITY: We want to carefully deal with our consumers,
customers, and employees, as well as the environment and the
communities where we operate. We will always do what we say.

40
• PIONEERING Our pioneering spirit is what has made us, and what still
our engine is. It gives us the passion to win and create a better future. It
means that we are always willing to take calculated risks.

Products & Services:

In total HUL has more than 400 brands, 12 of which each have sales of
more than of €1billion a year. Our more than 250 factories produce, 130,000
tea bags every minute, 1 billion deodorants annually. and 2 billion
Magnums every year with the help of cutting-edge technology and
innovation. A majority of HUL’s brands have long-standing social missions,
of which our employees proudly are a part of, such as Lifebuoy's drive to
promote hygiene through hand washing with soap.
Categories: HUL sells products in 5 primary categories: Personal Care,
Home Care, Foods, Beverages, Water purifiers.

LATEST NEWS
HUL’s Q1 Results: The company’s Q1 results are expected to be muted
due to the impact of the heatwave, price cuts, and stable commodity
prices1.

Brokerages Raise Targets: HUL has inspired confidence among

brokerages, which have raised their targets based on rural demand
recovery and a focus on premium products2.

Profit Booking: After HUL’s Q1FY25 results beat estimates, the stock saw
some profit booking, with analysts noting that it had already reached a
52-week high3.

41
UDAAN
Overview
Name Udaan
Type Private
Website Udaan.com
Establishment 2016
Founder Amod Malviya, Sujeet Kumar, Vaibhav Gupta
Chairman/ CEO Vaibhav Gupta
Revenue Not publicly disclosed
EBITDA Not publicly disclosed
Employees 1,001-5,000
Subsidiaries None
Operated regions India
Competitors Jumbotail, ShopX

Business Model:
Udaan is a Bangalore-based B2C marketplace and is owned and operated
by Hiveloop. Its is founded by Amod Malviya, Sujeet Kumar, and Vaibhav
Gupta and currently, Vaibhav Gupta has been appointed as the CEO of Udaan.
All three were working together at Flipkart when they all decided to work
together on this idea. Udaan is a B2B trade platform that brings manufacturers,
traders, retailers, and wholesalers onto a single platform. According to the
reports, the startup has attained soaring heights with a valuation of $7.5
Billion.
Udaan aims to reduce the middlemen among the clients and the manufacturing
units so that the client receives the products at exceptional prices. Udaan
desires to resolve credit score problems, B2B logistics, income and marketing.
Their end goal is to cover all the clients and the retailer. Udaan confirmed its
individuality through the capital infusion of around $225 million from its
present investors — DST Global and Light speed Venture Partners.

42
Vision & Mission of Company:
Source: https://udaan.com/careers
Mission: Our mission is to empower small businesses and accelerate India’s
Commerce PRODUCTS & SERVICES. The application helps traders,
wholesalers, retailers, and manufacturers to connect directly with each
other on a single platform, as well as facilitates buying and selling with
secure payments and logistics, enabling businesses to discover customers,
suppliers, and products across categories.

Effect of COVID’19:
Source:
https://tech.economictimes.indiatimes.com/news/internet/udaan-lays-off-at-lea
st3000-contract- workers/75393544
Udaan laid off about 10-15% of its contract staff, affecting at least 3,000 jobs,
company executives and staffing agencies told ET requesting anonymity. The
downsizing is largely driven by the Covid-19 pandemic significantly denting
the company’s top line across nonessential categories including electronics,
and apparel.
Latest News:
1. JITO Queen’s Necklace Chapter Organises UDAAN 2.0-Monsoon
Mania: This event was held at the World Trade Centre and featured
various activities and programs1.
2. Maharashtra: Woman Found Dead on Udaan Panvel Highway: A tragic
incident where a woman, missing for two days, was found dead on the
Udaan Panvel highway2.
3. President Murmu Receives First Copies of Four Books: One of the books
is titled ‘Aashaon Ki Udaan’ and was presented to the President at the
Rashtrapati Bhavan3.
4. Udaan’s Road to IPO: Udaan, the B2B e-commerce platform, saw sales
of over 2.25 billion products in 2023 as it prepares for its initial public
offering4.

43
UBER
Introduction
Uber Technologies, Inc. (commonly referred to as Uber) provides ride-hailing
services, food delivery, and freight transport. It is headquartered in San
Francisco and operates inapproximately 70 countries and 10,500 cities
worldwide. The company has over 131million monthly active users and 6
million active drivers and couriers worldwide and facilitates an average of 25
million trips per day. It has facilitated 42 billion trips since its inception in 2010
and is the largest ridesharing company in the United States.
Overview
Name Uber Technologies, Inc.
Type Public
Website uber.com
Establishment 2009
Founder Garrett Camp, Travis Kalanick
Chairman/ CEO Dara Khosrowshahi
Revenue $37.281 billion (2023)
EBITDA $1.110 billion (2023)
Employees 30,400 (2023)
Subsidiaries Uber Eats, Postmates, Drizly, Cornershop
Operated regions Worldwide

Competitors Lyft, Ola, Didi

Business Model:
Source:https://www.investopedia.com/ask/answers/013015/how-do-
ridesharing-companiesuber-make-money.asp

Uber makes money by running a ride-hailing service and takes a cut of

the fares. The company also has a food order and delivery business, Uber
Eats, and a freight shipping business, Uber Freight. These work similarly
to ride-hailing, except that they match people with delivery drivers and
freight shippers, respectively.

44
Vision and Mission of the Company:
Source:
https://businessmodelanalyst.com/uber-mission-and-vision-statement/
Vision:
To ignite opportunity by setting the world in motion. Mission: To provide
transportation as reliable as running water, everywhere, for everyone.

Values
1. Being Customer Obsessed
2. Building globally
3. Celebrating differences.

Products & Services:

Aggregation application for cabs, food ordering and freight services. They
have also invested heavily in R&D for self-driving cars.

Effect of COVID’19:
Source:
https://www.wionews.com/business-economy/uber-rides-take-a-hit-durin
g-coronaviruspandemic- but-food-delivery-business-doubles-318719
The customers of Uber Technologies Inc more than doubled their orders
from the company's food-delivery service in the second quarter but
demand for ride-hailing trips only marginally recovered from when it hit
the rock-bottom. The company said that despite those larger challenges it
is sticking to its goal of being profitable on an adjusted basis before the
end of2021 thanks to stringent cost-cutting measures and a strong
balance sheet. Uber recorded an adjusted loss in earnings before interest,
taxes, depreciation and amortization of $837 million(636 million pounds)
in the second quarter.

45
Uber recorded an adjusted loss in earnings before interest, taxes,
depreciation and amortization of $837 million(636 million pounds) in the
second quarter. Ride-hailing trips, in the past responsible for nearly
two-thirds of Uber's revenue, increased 5 percentage points from their low
in April, but gross bookings remained down 75% from last year. In Hong
Kong and New Zealand, ride bookings at times exceeded pre-COVID-19
levels, while trip requests in Germany, France and Spain have improved to
just a 35% decline from a year ago.

Latest News:
Uber and BYD collaborate to bring 100,000 EVs to global ride-hailing
platform.

Key takeaways:
∙ Uber partners with Chinese automaker BYD to introduce 100,000
electric vehicles (EVs) to its global ride-hailing platform12.
∙ The initiative will start in Europe and Latin America and expand
to the Middle East, excluding the US13.
∙ This strategic partnership aims to boost BYD’s overseas expansion
drive despite tariffs on Chinese car exports45.

46
WALMART INDIA
Introduction
Overview
Name Walmart India
Type Subsidiary
Website walmart.com
Establishment 2007
Founder Walmart Inc.
Chairman/ CEO Judith McKenna (Walmart International)
Revenue Not publicly disclosed
EBITDA Not publicly disclosed
Employees Not publicly disclosed
Subsidiaries Flipkart, Myntra, Flipkart Wholesale
Operated regions India
Competitors Amazon India, Reliance Retail

Business Model:
Walmart's business in India is membership-based and we have more than
one million members, majority of whom are small resellers and kinaras
(mom & pop stores). Other business segments who are our members are
hotels, restaurants, offices, and institutions.

Vision and Mission of the Company:

Walmart’s mission statement is “to save people money so they can live
better.” It shows how the company seeks to implement critical strategies
that can bring a remarkable difference in anything it touches. Some of the
elements that relate to this

47
Mission Statement:
•Improving people lives
•Financial liberation •Exceeding expectations

Values of Company:
Each of our four values – Service to the Customer, Respect for the
Individual, Strive for Excellence and Act with Integrity – has a set of three
corresponding behaviors that, when practiced daily by every associate, can
help us deliver business results and create a culture of inclusion.

Products and Services Segments:

Reseller, Offices & Institutions (O&I), Hotels, Restaurants and Caterers
(HoReCa)

Latest News:
1. Boost in India Sourcing: Top global brands like Walmart may
increase their sourcing from India following import duty relief1.
2. Commitment to India’s Ecosystem: Walmart’s leadership team
visited Bangalore to reinforce their commitment to building an
ecosystem of suppliers and partners in India. They aim to source $10
billion of India-made goods annually by 20272.
3. Mentorship for MSMEs: Walmart Vriddhi mentors are empowering
over 58,000 MSMEs in India through digital training, mentorship, and
business growth initiatives3.

48
RELIANCE

Introduction:
Reliance Industries Limited (RIL) is a behemoth in the Indian corporate
landscape, founded by the visionary Dhirubhai Ambani in 1966. It has
grown to become a diversified conglomerate with interests spanning
petrochemicals, refining, oil, telecommunications, and retail. RIL is known
for its significant contributions to India’s economic growth and its
innovative business strategies.
Overview
Name Reliance Industries Limited
Type Public
Website ril.com
Establishment 1973
Founder Dhirubhai Ambani
Chairman/ CEO Mukesh Ambani
Revenue ₹7.92 trillion (2023)
EBITDA ₹1.25 trillion (2023)
Employees 236,334 (2023)
Subsidiaries Jio, Reliance Retail, Reliance Petroleum
Operated regions Worldwide
Competitors Tata Group, Adani Group

Business Model:
RIL’s business model is characterized by its extensive vertical integration,
which allows it to control various stages of production and distribution. This
integration spans from oil exploration and production to refining and
retailing. The company has also made substantial investments in digital
services through its subsidiary, Jio, which has revolutionized the
telecommunications sector in India.

49
Vision and Mission Statement:
∙ Vision: To be a globally admired company.
∙ Mission: To create value for all stakeholders by leveraging technology
and innovation. RIL aims to drive growth through sustainable practices
and by fostering a culture of excellence and innovation.

Effect of COVID’19:
The COVID-19 pandemic posed significant challenges for RIL, particularly in
its oil and retail sectors due to reduced demand and supply chain disruptions.
However, the company’s digital arm, Jio, experienced a surge in demand as
more people relied on digital connectivity for work, education, and
entertainment. This helped offset some of the negative impacts on other
business segments.

Latest News:
1. Quarterly Revenue Growth: Reliance Industries reported a gross
revenue of Rs 2.57 lakh crore ($30.9 billion) for Q1 FY25, marking an
11.5% year-on-year increase. This growth was driven by higher oil and
product prices and strong volumes in the oil and gas segment1.
2. Stock Performance: Recently, Reliance Industries’ stock closed at Rs
3010.85 with strong trading volume. Despite some fluctuations, the stock
has shown resilience and continues to be a significant player in the
market2.
3. Market Share Expansion: Reliance, in partnership with BP, has
increased its market share in the local diesel market. The joint venture
retailed 73% more diesel last quarter, expanding its market share to
4.24% from 2.48% a year ago3.
4. Strategic Investments: Reliance has received government approval for
additional investments to raise gas output from the KG-D6 block. This
move is expected to enhance India’s gas production significantly4.

50
ADITYA BIRLA GROUP (ABG)
Introduction:
The Aditya Birla Group is a prestigious multinational conglomerate with a rich
history dating back to 1857. Founded by Seth Shiv Narayan Birla, the group has
evolved into a global powerhouse with operations in metals, cement, textiles,
carbon black, telecom, and financial services. ABG is renowned for its
commitment to excellence and innovation.

Overview
Name Aditya Birla Group
Type Conglomerate
Website adityabirla.com
Establishment 1857
Founder Seth Shiv Narayan Birla
Chairman/ CEO Kumar Mangalam Birla
Revenue $60 billion (2023)
EBITDA Not publicly disclosed
Employees 140,000 (2023)
Subsidiaries UltraTech Cement, Aditya Birla
Capital, Grasim Industries
Operated regions Worldwide
Competitors Tata Group, Reliance Industries

Business Model:
ABG’s business model is built on diversification and a strong global
presence. The group operates in over 36 countries, leveraging its extensive
network to drive growth and innovation. ABG places a strong emphasis on
sustainable business practices and corporate social responsibility, ensuring
that its operations benefit all stakeholders.

51
Vision and Mission Statement:
∙ Vision: To be a premium global conglomerate with a clear focus on each
business.
∙ Mission: To deliver superior value to customers, shareholders, employees,
and society at large. ABG aims to achieve this through innovation,
operational excellence, and a commitment to sustainability.

Effect of COVID-19:
COVID-19 Impact: ABG faced challenges in its manufacturing and retail
segments but saw growth in its financial services and telecom sectors.
The pandemic had a mixed impact on ABG’s diverse portfolio. While sectors
like manufacturing and retail faced significant challenges, the group adapted
by accelerating its digital transformation initiatives and focusing on cost
optimization. This helped mitigate some of the adverse effects and positioned
ABG for recovery and growth in the post-pandemic era.

Latest News:
1. Launch of Branded Jewelry Brand “Indriya”: The Aditya Birla Group
has entered the branded jewelry market with its new brand, “Indriya.”
This move is seen as a direct competition to Tata’s Titan. The group has
invested Rs. 5,000 crore in this venture12.
2. Revenue Targets: ABG has set an ambitious target to achieve $25 billion
in revenue from its consumer businesses by 2028. This announcement
came alongside their entry into India’s branded gems and jewelry market,
which is currently valued at Rs 6.7 lakh crore3.
3. Market Capitalization Milestone: The Aditya Birla Group recently
crossed the $100 billion market capitalization milestone. This
achievement was driven by the successful follow-on public offering
(FPO) of Vodafone Idea and strong performances from other group
companies like UltraTech Cement and Grasim4.

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SUN PHARMACEUTICAL
INDUSTRIES
Introduction:
Sun Pharmaceuticals is a leading pharmaceutical company in India, founded
by Dilip Shanghvi in 1983. The company has grown to become one of the
largest generic drug manufacturers globally, with a strong presence in both
domestic and international markets. Sun Pharma is known for its commitment
to quality and innovation in healthcare.

Overview
Name Sun Pharmaceutical Industries Ltd.
Type Public
Website sunpharma.com
Establishment 1983
Founder Dilip Shanghvi
Chairman/ CEO Dilip Shanghvi
Revenue ₹43,000 crore (2023)
EBITDA ₹10,000 crore (2023)
Employees 36,000 (2023)
Subsidiaries Ranbaxy Laboratories, Taro
Pharmaceuticals
Operated regions Worldwide
Competitors Dr. Reddy’s Laboratories, Cipla

Business Model:
Sun Pharma’s business model revolves around the development,
manufacturing, and marketing of pharmaceutical formulations and active
pharmaceutical ingredients (APIs). The company places a strong emphasis on
research and development, investing heavily in innovation to bring new and
affordable medicines to market. Sun Pharma’s global footprint and diverse
product portfolio are key drivers of its success.

53
Vision and Mission Statement:
∙ Vision: Reaching People and Touching Lives Globally as a Leading
Provider of Valued Medicines.
∙ Mission: To enhance the quality of life through innovative and
affordable medicines. Sun Pharma aims to achieve this by focusing on
patient needs, maintaining high standards of quality, and fostering a
culture of continuous improvement.

Effect of COVID-19:
The COVID-19 pandemic created both challenges and opportunities for
Sun Pharma. On one hand, the company faced supply chain disruptions
and regulatory hurdles. On the other hand, there was increased demand for
certain medications, particularly those related to COVID-19 treatment and
management. Sun Pharma’s agile response and robust supply chain
management helped it navigate these challenges effectively.

Latest News:
1. Q1 Results: Sun Pharmaceuticals reported its first-quarter results,
showing US formulation sales of $466 million for the April-June
quarter, which is a 1% decline from the same quarter last year. However,
India sales were up by 16.4%1.
2. Profit Expectations: Sun Pharma’s first-quarter profit exceeded
analysts’ expectations, driven by strong sales of chronic therapy and
specialty dermatology drugs in the U.S. and other key markets2.
3. R&D Spending: Analysts expect Sun Pharma’s research and
development spending to impact margins, but profits are still anticipated
to rise by 10% year-on-year3.
4. Stock Performance: Sun Pharma’s stock has seen fluctuations recently,
with a slight decline in value. Despite this, the stock has delivered
impressive returns over the past three years4.

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 PEPSICO

Introduction:
PepsiCo is a global leader in the food and beverage industry, formed in
1965 through the merger of Pepsi-Cola and Frito-Lay. The company offers
a wide range of products, including beverages, snacks, and packaged
foods, and is known for its iconic brands such as Pepsi, Lay’s, Gatorade,
and Quaker.

Overview
Name PepsiCo, Inc.
Type Public
Website pepsico.com
Establishment 1965
Founder Donald Kendall, Herman Lay
Chairman/ CEO Ramon Laguarta
Revenue $86.39 billion (2023)
EBITDA $13.5 billion (2023)
Employees 309,000 (2023)
Subsidiaries Frito-Lay, Gatorade, Tropicana, Quaker
Operated regions Worldwide
Competitors Coca-Cola, Nestle

Business Model:
PepsiCo’s business model is centered on product diversification, global
reach, and strong brand recognition. The company leverages its extensive
distribution network and marketing prowess to maintain its competitive edge.
PepsiCo also places a strong emphasis on sustainability and innovation,
aiming to create products that meet evolving consumer preferences and
contribute to a healthier planet.

55
Vision and Mission Statement:
∙ Vision: To be the global leader in convenient foods and beverages by
winning with purpose.
∙ Mission: To create more smiles with every sip and every bite.
PepsiCo aims to achieve this by delivering delicious and nutritious
products, fostering a culture of inclusivity and diversity, and making
a positive impact on the environment and society.

Effect of COVID-19:
The pandemic had a significant impact on PepsiCo’s operations, particularly
in the foodservice sector, as restaurants and cafes faced closures and reduced
foot traffic. However, the company saw increased demand for its packaged
foods and beverages in retail channels as consumers stocked up on
essentials. PepsiCo’s strong supply chain and adaptability allowed it to meet
this surge in demand and continue serving its customers effectively.

Latest News:
1. PepsiCo’s Second Quarter Profits: PepsiCo reported
higher-than-expected earnings for the second quarter of 2024.
However, the company acknowledged that after raising prices for
more than two years, customers are buying fewer snacks and drinks.
North American demand for Frito-Lay snacks was subdued, and sales
volumes dropped by 4%1.
2. Sustainability Initiatives: PepsiCo Europe has partnered with Yara
to decarbonize crop production. This initiative is part of PepsiCo’s
broader efforts to enhance sustainability across its supply chain2.

56
3. Recognition and Awards: Buffalo Rock Company was named PepsiCo’s
2023 Donald M. Kendall North America Bottler of the Year. Additionally,
Cooper Flagg and Sadie Engelhardt were named Gatorade Best Players of
the Year2.
4. Challenges in France: A major French retailer, Carrefour, has dropped
PepsiCo products over high prices. This decision comes as the retailer
claims that PepsiCo has kept its food prices “unacceptably” high despite
falling inflation3.

57
 VALUE CHAIN OF E-COMMERCE
The e-commerce value chain in India encompasses several key stages, including product
sourcing, warehousing, order processing, distribution, delivery, and after-sales services.
Here's a high-level overview:

1. Product Sourcing: Manufacturers, wholesalers, or importers supply the products.

2. Warehousing: Goods are stored in warehouses and fulfilment centers.
3. Order Processing: Orders are received and processed in the system.
4. Distribution: Products are picked, packed, and shipped from warehouses.
5. Delivery: Last-mile delivery to the customer.
6. After-Sales Services: Includes returns, exchanges, and customer service.

2) DETAILED DESCRIPTION OF THE VALUE CHAIN

Product Sourcing
∙ Manufacturers: Companies like Hindustan Unilever, Samsung, and local artisans.
∙ Wholesalers: Entities that purchase in bulk and sell to retailers or directly to
e-commerce platforms.
∙ Importers: Companies importing products from other countries.

Warehousing
∙ Centralized Warehouses: Large storage facilities located in key areas.
∙ Fulfillment Centers: Operated by e-commerce companies to facilitate quick order
processing.

Order Processing
∙ Inventory Management Systems: Keep track of stock levels and automate reordering.
∙ Payment Gateways: Secure online payment processing systems like Razorpay and
Paytm.
∙ Order Management Systems: Handle order tracking, updates, and customer
notifications.

Distribution
∙ Logistics Partners: Companies like Delhivery and Blue Dart handle bulk
transportation.
∙ In-house Logistics: Amazon's own delivery network, Amazon Transportation Services.

Delivery
∙ Last-Mile Delivery Partners: Services like Ecom Express and Shadowfax.
∙ In-House Delivery: Companies like Zomato and Swiggy use their delivery personnel.
After-Sales Services
∙ Customer Service: 24/7 support via call centers, chatbots, and email.
∙ Returns and Refunds: Systems to handle product returns and customer refunds
efficiently.

58
3) STRATEGIES OF FEW COMPANIES

Amazon
∙ Prime Membership: Offers free delivery, exclusive deals, and Prime Video.
∙ AWS Integration: Uses its cloud computing platform to optimize operations.
∙ Seller Services: Provides tools and services to help sellers grow their business.

Flipkart
∙ Big Billion Days Sale: Major sales event to attract customers with discounts.
∙ Local Language Support: Supports multiple Indian languages to cater to a wider
audience.
∙ Private Labels: Offers products under its own brands like MarQ and SmartBuy.

Meesho
∙ Social Commerce: Enables individuals to resell products via social networks.
∙ Low-Cost Model: Focuses on affordability and low-cost logistics.
∙ Empowerment Programs: Supports women entrepreneurs and small businesses.

Myntra
∙ Personalization: Uses AI for personalized fashion recommendations.
∙ End of Reason Sale: Major sales event to boost sales.
∙ Omnichannel Strategy: Integrates online and offline shopping experiences.

Zomato
∙ Zomato Pro: Membership program offering discounts at restaurants and priority
delivery.
∙ Hyperpure: Supplies high-quality ingredients to restaurant partners.
∙ Expansion into Grocery Delivery: Entered grocery delivery to diversify
offerings.

Swiggy
∙ Swiggy Genie: Hyperlocal delivery services from groceries to documents.
∙ Subscription Models: Offers Swiggy Super for free deliveries and discounts.
∙ Cloud Kitchens: Operates its own cloud kitchens to optimize food delivery.

Blinkit (formerly Grofers)

∙ Quick Commerce: Focuses on delivering groceries and essentials in 10-15 mins.
∙ Private Labels: Offers a range of products under its own brands.
∙ Localized Inventory: Stocks items based on local demand patterns.

4) COMPARE AND CONTRAST THESE STRATEGIES

Amazon vs. Flipkart

∙ Amazon: Focuses on technology integration, global reach, and premium services.
∙ Flipkart: Emphasizes local market adaptation, major sales events, and private labels

59
Meesho vs. Myntra
∙ Meesho: Targets social commerce and affordability.
∙ Myntra: Focuses on fashion, personalization, and an omnichannel strategy.

Zomato vs. Swiggy

∙ Zomato: Offers a wide range of services, including grocery delivery and restaurant
memberships.
∙ Swiggy: Emphasizes convenience with services like Swiggy Genie and cloud kitchens.
Blinkit vs. Traditional E-commerce
∙ Blinkit: Prioritizes quick commerce with ultra-fast delivery.
∙ Traditional E-commerce: Focuses on a broader range of products with standard
delivery times.

VALUE CHAIN OF PHARMA INDUSTRY

The pharmaceutical value chain in India includes several key stages, such as research and
development (R&D), clinical trials, manufacturing, quality control, marketing and
distribution, and post-marketing surveillance. Here's an overview:
1. Research and Development (R&D): Discovery and development of new drugs.
2. Clinical Trials: Testing new drugs for safety and efficacy.
3. Manufacturing: Production of pharmaceuticals.
4. Quality Control: Ensuring drugs meet regulatory standards.
5. Marketing and Distribution: Promoting and distributing drugs to healthcare providers
and pharmacies.
6. Post-Marketing Surveillance: Monitoring drug safety and effectiveness after release.

2) DETAILED DESCRIPTION OF THE VALUE CHAIN

Research and Development (R&D)
∙ Drug Discovery: Identifying potential drug candidates through various scientific
techniques.
∙ Preclinical Testing: Laboratory and animal testing to evaluate safety and efficacy.
∙ Regulatory Approval: Obtaining approval from regulatory bodies like the Drug
Controller General of India (DCGI).

60
Post-Marketing Surveillance
∙ Pharmacovigilance: Monitoring and evaluating adverse drug reactions.
∙ Feedback Loop: Gathering and analyzing data from healthcare providers
and patients to improve products and practices.

3) STRATEGIES OF FEW BIG COMPANIES

LOCAL PLAYERS

Sun Pharmaceutical Industries

∙ Diversified Portfolio: Offers a wide range of products including generics,
branded generics, specialty drugs, and over-the-counter (OTC) products.
∙ Global Expansion: Acquired international companies like Ranbaxy to
expand its global footprint.
∙ Focus on Specialty Drugs: Investing in specialty areas like dermatology,
oncology, and ophthalmology.

Dr. Reddy's Laboratories

∙ Affordable Generics: Focuses on producing affordable generic
medications.
∙ Biosimilars: Investing in the development of biosimilars for complex
diseases.
∙ Global Partnerships: Collaborates with global companies for research,
development and distribution.

GLOBAL PLAYERS

Pfizer
∙ Innovation in R&D: Significant investment in research and development to
discover new therapies.
∙ Strategic Acquisitions: Acquires companies to strengthen its product
pipeline and market position.
∙ Patient Access Programs: Initiatives to improve patient access to
medicines, especially in developing countries.

Novartis
∙ Focus on Innovation: Prioritizes cutting-edge research in areas like gene
therapy and personalized medicine.
∙ Digital Transformation: Leveraging digital technologies to improve
efficiency and outcomes.
∙ Global Reach: Strong presence in both developed and emerging markets.

61
4) COMPARE AND CONTRAST THESE STRATEGIES
Local Players vs. Global Players
∙ Local Players (e.g., Sun Pharma, Dr. Reddy's):
o Generics Focus: Emphasize affordable generic drugs to cater to a price-sensitive
market.
o Local Market Understanding: Deep understanding of local regulatory and
market dynamics.
o Global Expansion: Expanding into international markets through acquisitions
and partnerships.
∙ Global Players (e.g., Pfizer, Novartis):
o Innovation and R&D: High investment in innovative R&D to develop new
therapies and advanced treatments.
o Strategic Acquisitions: Acquire smaller companies to enhance their product
pipeline and market presence.
o Patient Access and Digital Transformation: Focus on improving patient access
to medicines and leveraging digital technologies.
Sun Pharma vs. Dr. Reddy's
∙ Sun Pharma: Focuses on a diversified portfolio including specialty drugs and global
expansion through acquisitions.
∙ Dr. Reddy's: Emphasizes affordable generics and biosimilars, with strategic global
partnerships.
Pfizer vs. Novartis
∙ Pfizer: Strong focus on R&D, strategic acquisitions, and patient access programs.
∙ Novartis: Prioritizes innovation in areas like gene therapy, digital transformation, and
maintaining a global presence.
In summary, while local players in the Indian pharma industry focus on affordability,
generics, and understanding local markets, global players emphasize innovation, strategic
acquisitions, and leveraging technology. Both strategies aim to expand market reach and
improve patient outcomes but differ in their approach and focus areas.

62
 VALUE CHAIN OF THE AUTOMOBILE INDUSTRY

Research &
Inbound Manufactur Outbound Marketing After-sales
developme
logistics ing logistics & Sales service
nt

RESEARCH AND DEVELOPMENT (R&D)

● Innovating New Technologies: Continual advancement in electric vehicles (EVs),
autonomous driving, and AI integration.
● It Systems: Implementing IT systems to support manufacturing, logistics, sales, and
R&D activities.
● Developing New Models: Introduction of new vehicle lines to meet market demands
and regulatory requirements.

INBOUND LOGISTICS:
● Procurement of Raw Materials and Components: Efficient sourcing of high-quality
materials and parts.
● Supplier Relationship Management: Building strong partnerships with suppliers to
ensure reliability and quality.
● Inventory Control and Just-In-Time Delivery: Minimizing inventory costs while
ensuring timely availability of parts.

MANUFACTURING:
● Manufacturing and Assembly Processes: Streamlined production processes using
advanced manufacturing techniques.
● Use of Advanced Manufacturing Technologies and Automation: Adoption of
robotics, AI, and IoT to enhance precision and efficiency.
● Quality Control and Lean Manufacturing Practices: Rigorous quality checks and
continuous improvement to reduce waste and defects.

OUTBOUND LOGISTICS:
● Distribution of Finished Vehicles: Efficient transportation and logistics management to
deliver vehicles to dealers and customers.
● Logistics and Transportation Management: Optimization of logistics networks to
reduce costs and delivery times.
● Dealer Network and Inventory Management: Effective management of dealership
relationships and inventory levels.

63
 VALUE CHAIN OF THE AUTOMOBILE INDUSTRY

MARKETING AND SALES:

• Brand Management and Marketing Strategies: Building a strong brand image through
strategic marketing and advertising.
• Digital Marketing and Customer Engagement: Utilizing digital platforms to reach and
engage customers.
• Sales Channels and Customer Relationship Management (CRM): Developing diverse
sales channels and maintaining strong customer relationships.
SERVICES:
• After-sales services, Including Maintenance and Repairs: Providing high-quality
after-sales service to enhance customer satisfaction.
• Spare Parts Management: Ensuring availability and timely delivery of spare part.
• Customer Support and Service Centres: Offering comprehensive customer support
through various channels.
RECENT UPDATES IN THE AUTOMOBILE INDUSTRY
Electrification:
• Shift Towards Electric Vehicles (EVs): Increasing production and sales of EVs.
• Enagement: Ensuring availability and timely delivery of spare part.
• Customer Support and Service Centres: Offering comprehensive customer support
through various channels.
• Investments in Battery Technology and Charging Infrastructure: Developing advanced
batteries and expanding charging networks.
Autonomous Driving:
• R&D in Autonomous Driving Technologies: Continuous research to improve the safety and
efficiency of self-driving cars.
• Development of Self-Driving Cars: Leveraging AI and machine learning to create
autonomous vehicles.
Sustainability:
• Adoption of Eco-Friendly Manufacturing Processes: Implementing sustainable practices
to reduce environmental impact.
• Use of Recycled Materials and Reduction of Carbon Emissions: Incorporating recycled
materials and focusing on lowering emissions.
Digital Transformation:
∙ Integration of Digital Technologies in Manufacturing and Logistics: Using digital tools
to streamline operations.

64
 VALUE CHAIN OF THE AUTOMOBILE INDUSTRY

• AI for Predictive Maintenance and IoT for Connected Vehicles: Enhancing vehicle maintenance
and connectivity through advanced technologies.

MARKET COMPETITORS & THEIR STRATEGIES

Tesla
• Electrification Leader: Focus on battery technology and supercharging
infrastructure.
• Vertical Integration: Significant control over its supply chain.
• Innovation: Continuous advancements in autonomous driving and AI
technologies.

Toyota
• Hybrid Technology: Pioneer in hybrid vehicles with models like Prius.
• Lean Manufacturing: Known for the Toyota Production System (TPS),
emphasizing lean manufacturing and continuous improvement (Kaizen).
• Sustainability: Focus on reducing carbon emissions and hydrogen fuel cell
technology.

Volkswagen Group
• Electrification Strategy: Major investments in electric vehicles.
• Global Expansion: Strong presence in Europe, China, and the US.
• Digital Transformation: Focus on digital services and connectivity.

General Motors (GM)

• Electrification: Heavy investment in electric vehicles and battery
technology.
• Autonomous Driving: Development of autonomous vehicles through the
Cruise subsidiary.
• Global Presence: Strong market presence and brand recognition.

MARKET LEADERS

1. Tesla: Dominates the electric vehicle market with cutting-edge technology.

2. Toyota: Leads in hybrid technology and efficient manufacturing.
3. Volkswagen: Making significant strides in electrification and digital services.
4. General Motors: Investing in both electric and autonomous vehicle technologies.

65
Comparison Chart:
Here is a comparison chart summarizing the strategies of the leading companies in the
automobile industry:

Digital
Company Electrification Autonomous Driving Sustainability
Transformation
Tesla Leading Advanced High focus High integration
Toyota Hybrid Pioneer Developing Leading Moderate
Volkswagen Investing heavily Moderate High focus High integration
GM Investing heavily Advanced (Cruise) Moderate Moderate

Value Chain of the IT Services:

INBOUND LOGISTICS:
∙ Resource Acquisition: This includes acquiring the hardware, software, and
infrastructure required to provide IT services.
∙ Vendor Management: Effective management of suppliers and vendors ensures timely
delivery of quality materials and resources.
OPERATIONS:
∙ Software Development and Maintenance: Core activities such as software
development, application maintenance, and IT infrastructure management.
∙ Process Optimization: Continuous improvement and optimization of processes to
enhance service delivery and operational efficiency.
∙ Quality Assurance: Ensuring services meet predefined quality standards through
rigorous testing and validation.
OUTBOUND LOGISTICS:
∙ Service Deployment: Delivering IT services to clients, including software deployment,
system integration, and cloud services.
∙ Technical Support: Providing ongoing technical support and maintenance services to
ensure smooth operation of IT systems.
MARKETING AND SALES:
∙ Market Research: Understanding client needs and market trends to tailor IT services
accordingly.
∙ Sales and Marketing Strategies: Develop strategies to promote IT services, acquire
new clients, and retain existing ones.
∙ Client Relationship Management: Building and maintaining solid client relationships
to ensure satisfaction and loyalty.

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SERVICE DELIVERY:
∙ Consulting Services: Offering expert advice and solutions to clients' IT-related
challenges.
∙ Managed Services: Providing comprehensive management of clients' IT infrastructure
and applications.
∙ Training and Support: Educating clients on using IT systems effectively and providing
ongoing support.
SUPPORT ACTIVITIES:
∙ Human Resource Management: Recruiting, training, and retaining skilled IT
professionals.
∙ Technology Development: Investing in new technologies and innovations to stay
competitive and meet client demands.
∙ Procurement: Efficient procurement processes for acquiring necessary tools, software,
and other resources.
∙ Firm Infrastructure: Establishing a robust organizational structure, including
management, finance, and legal departments to support IT service operations.

RECENT INDUSTRY TRENDS AND COMPETITIVE STRATEGIES

The IT service industry is undergoing rapid transformation due to several factors:

• Digital Transformation: Organizations increasingly adopt digital technologies to improve
operations and customer experience. This creates opportunities for IT service providers to
offer digital transformation services.
• Cloud Computing: The shift to cloud-based infrastructure is reshaping the IT landscape. IT
service providers focus on cloud migration, management, and security services.
• Cybersecurity: Growing cyber threats have increased the demand for cybersecurity
services. IT service providers are investing in cybersecurity solutions and expertise.
• AI and Automation: AI and automation transform IT operations, increasing efficiency and
productivity. IT service providers are incorporating these technologies into their service
offerings.
• Global Delivery Model: The rise of global delivery models has led to increased
competition. IT service providers focus on cost optimization, talent acquisition, and cultural
adaptation.
• Competitive Strategies: IT service providers are adopting various strategies to compete in
this dynamic market:
• Cost Leadership: Focusing on operational efficiency, process automation, and offshore
delivery to offer competitive pricing.

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• Differentiation: Offering unique value propositions through specialized services, industry
expertise, and innovation.
• Focus: Targeting specific industry segments or geographic markets to achieve a
competitive advantage.
• Hybrid Strategy: Combining elements of cost leadership, differentiation, and focus to
create a balanced approach

COMPETITOR'S UNIQUE POSITIONING

Accenture:
Strategic Focus: Accenture is leveraging its extensive AI and cloud services
expertise to offer comprehensive digital transformation solutions. The
company emphasizes innovation and the integration of advanced
technologies to enhance client operations and competitiveness.
Recent Initiatives: Accenture has been investing in expanding its
capabilities in AI and cloud, forming strategic partnerships with leading
tech firms to strengthen its service offerings.

Tata Consultancy Services (TCS):

Strategic Focus: TCS focuses on a holistic approach to digital
transformation, combining its strengths in IT services, consulting, and
business solutions. The company is known for its robust delivery models
and deep industry knowledge.
Recent Initiatives: TCS prioritizes investments in AI, machine learning, and
cybersecurity. The company also enhances its cloud capabilities to support
clients' multi-cloud strategies.

Infosys:
Strategic Focus: Infosys emphasizes innovation through its "Infosys Cobalt"
cloud services and digital platforms. The company is dedicated to driving
efficiencies and business value through its AI and automation solutions.
Recent Initiatives: Infosys has been expanding its digital capabilities,
particularly in AI and cloud, to support clients' digital transformation
journeys.

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 Technology In Operations
AI Transformation of Freeport-McMoRan: A Game Changer in Mining Operations

Artificial Intelligence (AI) is revolutionizing each and every industry around the world and an
experiment by Freeport-McMoRan has proved the same for the mining industry.
Freeport-McMoRan, a leading copper mining company based in Arizona had started the
integration of AI into its operations management.
The Initiative
The journey of AI transformation started when Freeport-McMoRan had simulated one of its
copper-ore concentrating mill’s operations using a custom-built AI model and loaded with
three years’ worth of operating data from the mill. The model was expected to lookout for
existing inefficiencies and further recommendations to maximise the production capacity of
the mill.
The analysts hired by the firm to check for these recommendations had stated that this is the
best efficiency possible, and no further improvements can be done. But the AI model's report
contradicted that. The model suggested that capacity can be increased if fed up with more ore
per minute.
The Breakthrough
The mill operators resisted this idea with concern of maintaining a minimum stockpile of ore.
After checking for all the possibilities and risks, the team decided to increase the pace of the
mill as suggested by AI. They invested to increase the mining and crushing capacity so that
ore stockpile doesn’t run out.
The results were astonishing. The AI model was right . The production speed increased
without any loss in efficiency. This led to a significant increase in production rate of the mill.
The Impact and widespread adoption
This success had revolutionized the paradigm about the traditional method of operations in
the mill. This initiative is just an example of how AI can change the traditional methods and
can transform the business for reducing costs of operations and enhancing competitiveness.
The firm had undertaken the initiative to follow similar procedures at other mining sites
across North America and South America. This widespread adoption was full of challenges to
be mitigated. One among them was the resistance to change. The risk of uncertainty of
outcomes has always been an issue for the operators. The effectiveness and relevance of the
model was customised for each site with its own properties and own data. The operational
conditions which are supplied as assumptions need to be within a specific range since excess
deviation can result in faulty recommendations from the model’s side.

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CONCLUSION
There is a cost to the company for implementing any new technology. The cost to develop
custom models and implement the recommendations are not insignificant so managing the
decision to use AI technology in operations always comes with a risk. However, when these
risks are mitigated with investing in quality data and continuous adaptability of AI models to
the changes in operational conditions, can bring in a new race of technological development
of operations for better outputs and efficiencies.
Source:
https://www.mckinsey.com/industries/metals-and-mining/how-we-help-clients/inside-a-minin
g-companys-ai-transformation
HOW MODERN TECHNOLOGIES CAN CHANGE
THE PARADIGM OF OPERATIONS

In today’s competitive landscape, technology has enabled the streamlining of operations to

such a degree that it has disrupted old norms and set higher standards and expectations from
businesses and consumers alike. Economic paradigm shifts are being led by technological
advancements. Businesses are now striving to integrate technology all across their supply
chains.
Some Advancements in Supply Chain Management and Predictive Maintenance like IoT,
Blockchain, Big Data and Cloud Computing have allowed businesses to enable supply
chain tracking, real-time data collection and demand forecasting. Cloud computing and
Blockchain technology for example, have found their application in the construction industry.
Software like Bluebeam and Autodesk Build enable construction teams, architects and
engineers access project documents on any device, collaborate in real time, and manage entire
construction projects in cloud using advancements like Digital Twins and Building
Information Modelling(BIM). Prominent construction companies like The Walsh Group and
Ribuna AG for instance, have completely integrated Bluebeam into their operations and it has
forever changed the way they design and construct projects. Additionally, Blockchain
technology is also helping contractors overcome the problem of insufficient cashflows as
found out in a hard way by one of UK’s biggest contractors, Carillion which collapsed under
heavy debt. Construction is a very asset heavy and fragmented industry across the entire
supply chain which is disproportionally affected by external macro-level events. As a result,
construction companies face problems with cash flow commitments and contractual disputes
with other stakeholders across the supply chain. Blockchain technology is now enabling for
use of project execution platforms which can record delays and accidents, initiate payments,
digitally provide approvals and enable compliance with so-called “Smart Contracts”, thus
levying the construction companies off the risk of not getting paid.

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The new emerging trend of Industry 4.0 enables the use of modern technology coupled with
traditional manufacturing practices to create smart factories which can leverage these
advancements to improve production processes. Smart Factories specialize in implementing
blockchain, IoT and Cloud facilities across their production and procurement processes.
Manufacturing Industry has long been using robots in assembly lines which help minimize
human error, improve efficiency and reduce costs. The next advancement in Industry 4.0 is
3-D printing which enables rapid prototyping and customizable orders, hence, disrupting the
traditional rigid ways of manufacturing. 3-D printing has found its applications in
Healthcare, Automobile Engineering, Bioprinting, Fashion among other sectors, and it
continues to improve at a rapid pace.
In the IT Industry, new advancements in software development processes and organizational
culture like DevOps, AIOps and DevSecOps have bridged the gap between developments
and IT operations enabling greater collaboration and automation. DevOps for instance, are the
continuous integrations and development pipelines which automate software delivery. AIOps
and DevSecOps, on the other hand, integrate machine learning performance predictions and
Security scans into Continuous deployment pipelines respectively. Integrating all these
processes ensures quality and timely delivery of the final products to the clients or customers.
In today’s ever-changing and volatile world, it is getting increasingly important to have in
place robust forecasting and analysis driven by AI based contextualization of large volumes
of varied and volatile data. Amazon heavily relies on AI for consumer demand forecasting,
product availability, optimized routes for delivery and also for tracking processes across their
supply chain.

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Netflix’s AI based recommendation algorithm is renowned as one of the best of its
kind and it utilizes user watch history. As per a study, Netflix manages to save
upwards of a billion dollars every year by utilizing AI. Technological advancements
like Process mining and Natural Language Processing (NLP) have allowed for
better analysis of valuable information from customer feedback and identification of
process bottlenecks, hence, greatly improving service delivery. Even in our
day-to-day lives, payment gateways like Paytm and Phonepe have streamlined
revenue collection and P2P lending.

Size and Growth Projections of Natural Language Processing market in India

Source - Statista. (n.d.). Natural Language Processing - India | Market forecast.
https://www.statista.com/outlook/tmo/artificial-intelligence/natural-language-processing/india

It's not all rosy however, technological advancements are still far from reaching penetration
across the globe. Wealth and knowledge consolidation remains a big challenge which create
un-equal distribution of the benefits of digital technologies. Digital transformation of
operations across supply chains has to be lead by higher level decision making regarding
business innovation and development policies. Indian government’s ‘Digital India’ initiative
is one such example of policy led supply chain digitization which has led to businesses being
able to better utilize technological advancements to improve their operations.
Sources:
1. How digital transformation is driving economic change. (2022, January 24). World
Economic Forum.
https://www.weforum.org/agenda/2022/01/digital-transformation-economic-change-tec
hnology/
2. Gaur, V. (2021, December 21). Bringing blockchain, IoT, and analytics to supply chains.
Harvard Business Review.
https://hbr.org/2021/12/bringing-blockchain-iot-and-analytics-to-supply-chains
3. Champ, H. (2022, November 10). Using cryptocurrency and blockchain to manage
construction cash flows. Built | the Bluebeam Blog.
https://blog.bluebeam.com/using-cryptocurrency-and-blockchain-to-manage-constructio
n-cash-flows/
4. Buuuk. (2023, March 27). Innovative Uses of AI: 10 inspiring business Examples.
Buuuk. https://buuuk.com/blog/ai-in-business-examples
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 IS OPERATIONS MANAGEMENT EVERYTHING ABOUT EFFICIENCY?

Yes and No. While Efficiency is an important metric to measure the success of any
operations management program, it doesn’t completely define it. In todays’ dynamic
landscape, success of a program is defined from a broader perspective keeping in mind
multiple stakeholders. For a layman, Operations Management could be as simple as getting
the maximum output from the minimum input, which although is not wrong, but it is a gross
underestimation of the complexity of modern operations management. A Successful
Operations management strategy aims to drive competitive advantage and improve overall
performance by delivering economical, high quality, customer and company-focused
solutions.
The Efficiency Imperative –
Efficiency of processes, machines, workers, employees etc. is undoubtedly one of the most
important metrics of OM. Businesses employ tools and techniques like process mapping,
lean manufacturing principles, waste minimization practices, data analytics among other
technological innovations to streamline operations across their supply chains. Efficiency
metrics such as utilization rates, throughput times, and cycle time aer commonly used to
evaluate a process’ efficiency. A relentless one-dimensional focus in efficiency can backfire.
Cutting corners to meet short term production quotas can lead to a quality compromise that
can impact customer satisfaction and business reputation in the long term. A strict focus on
maximizing output can have a negative impact on employee morale leading to high turnover
rates, training costs and compensation related expenses. An overarching focus on
maximizing efficiency out of existing processes, people and resources may lead to stifling of
innovation and lack of R&D focus.

THE HOLISTIC APPROACH

Operations management goes well beyond just efficiency. Some other key metrics that are
integral to operations management are –
• Customer focus – Within the context of operations management, customer satisfaction
takes precedence. Key factors include product attributes such as quality, compliance to
deadlines, responsiveness in terms of inquiries and after-sales services. Satisfied customers
are likely to purchase again and spread good word about the name leading to future
success.
• Financial Metrics: It is important for an operations manager to deal with costs, make sure
resource allocation is well optimized and ensure profit maximization. The financial
performance of operations can be assessed using financial metrics like return on
investment (ROI), cost of goods sold (COGS), gross margin among others which will also
help them identify areas that need improvement.
• Inventory Management Metrics: Inventory control serves a double role in minimizing
carrying costs and stockouts while allowing demand satisfaction. Optimization for
inventory levels can be achieved by using inventory management metrics such as
inventory turnover, days sales of inventory (DSI) and reorder point among others thus
improving cash flows.

73
 • Employee Satisfaction Metrics: A successful operation needs highly motivated articulate
employees who are actively involved in all aspects of the business. Among many other
factors that an operation manager must consider include employee job satisfaction;
work-life balance; training and development opportunities and employee retention rate
consequentially fostering productivity hence congenial workplace environment.
• Parameters of Quality: Performance of operations management is hinged on quality
assurance. The organization uses quality measures such as defect rates, customer
complaints and compliance of set standards like ISO 9001 to enhance their products and
services.
• Safety Metrics: Safety within the work place should be a priority in operations
management. Workers’ safety can be measured using indicators such as incident rates, near
misses or observance of health and safety regulations. Such statistics are useful for
identifying potential risks which could be managed through preventive actions.

However, even though efficiency continues to be important in operations management, it is

evident that attaining success in this field requires an all-inclusive approach that
encompasses numerous aspects and measurements.

AMUL-THE PIONEER OF DAIRY COOPERATIVE MODEL

Amul had started an evolution of milk distribution network development. The distribution
network had these features which bought them success:

Direct Engagement with Farmers:

• The Supply Chain of Amul eliminates middlemen and directly engages farmers
with the processor (dairy). This approach ensures transparency and fosters a strong
connection between the primary producers and the end consumers.
• Rural dairy producers are linked to urban consumers through a well-organized
network of dairy cooperatives, trucking networks, chilling plants, and processing
plants1.

Three-Tiered Cooperative Structure:

• Village-Level Cooperative Societies: These societies are responsible for milk
• production at the grassroots level.
• District-Level Milk Unions: Operating processing centres, these unions collect
• and process milk from various villages.
• State-Level Milk Federations: These federations handle consolidation and
• distribution, ensuring efficient movement of milk and milk products23.

Economies of Scale and Social Impact:

• o Amul achieves economies of scale through its simple supply chain, allowing it to
• produce and distribute dairy products efficiently.
• o Simultaneously, Amul’s model aims to redistribute wealth in society by creating
• opportunities for rural and weaker sections of India.

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 Figure 1: Cooperative network of Amul

IKEA’S SUCCESSFUL MODEL OF SUSTAINABLE SUPPLY CHAIN MANAGEMENT:

HOW DID THEY DO IT

IKEA is a renowned market leader in simplistic home furnishings and providing an immersive
shopping experience. It is also known for its incredibly comprehensive approach to Sustainable
Supply Chain Management (SSCM). Sustainability magazine has reported IKEA among the top
10 organizations to maintain a sustainable supply chain. With its vision “To create a better
everyday life for the many people”, it has continued to deliver high-quality furniture and many
other home décor items at an affordable price. Despite its efforts to focus on creating value for
customers, IKEA has also committed to sustainability in its everyday operations.
Before understanding IKEA’s SSCM, let’s discuss the frequently used SSCM framework. This
framework integrates social, economic, and environmental performance into supply chain
practices. It states that sustainability is at the heart of the intersection of these three dimensions.
IKEA is committed to enforcing all the practices in its supply chain by ensuring that it caters to
environmental, social and economic performances and follows a holistic approach.

75
IKEA launched the IWAY strategy in 2000, a rigorous supply code of conduct that scrutinizes
its inbound and operational logistics. The standards included in the IWAY are curated using
international principles like the UN Global Compact’s ten principles and ILO’s fundamental
principles of rights at work. IWAY has strict guidelines covering everything, from the code of
ethics and workers’ rights to law enforcement during compliance issues. This ensures that the
suppliers adhere to all these high standards throughout their operations. These standards are
not limited to tier-1 suppliers but are set over tier-2 and three suppliers, showing the
commitment with which IKEA operates.

Besides IWAY, IKEA's procurement processes also highlight their affinity towards
responsible sourcing. It sources materials such as cotton and wood, which are sustainable,
unlike plastic, and has supported the Better Cotton Initiative. Through the IWAY Forestry
standard, IKEA also ensures that all the raw materials are sourced ethically and sustainably.
In terms of outbound logistics, innovation in packaging is how they’ve tried to employ
sustainability in the process. They’ve brought OptiLedge, a lean and lightweight L-shaped
unit device not bound by the size of the goods to be shipped. This amazing idea replaces the
traditional wood pallets and adds much value to this operation. The material used in preparing
the OptiLedge is also recyclable Polypropylene.
IKEA’s dedication to promoting sustainability is further noticeable in how their marketing is
done and how they’ve enabled reverse logistics. The number of the company’s catalogues that
are circulated per year is about 100 million. IKEA has tried to make the papers in this
catalogue chlorine-free and use lightweight materials, reducing carbon emissions.
To complete the lifecycle of every product produced at IKEA, they’ve enabled the customers
to return cardboard material used for shipping and to donate/ return furniture so it can be
reused/ reduced/ recycled.
IKEA was a leader in home furnishing, although the general misconception is that it's hard to
maintain sustainability when the companies try to be cost-effective and financially viable.
IKEA has tried to incorporate best practices to maintain sustainable supply chain

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 management and still holds a competitive position. Despite many things that are not looked at
to understand if it's completely sustainable, it inspires many other organizations planning to
incorporate sustainability into their value chain.
Sources:https://sustainabilitymag.com/top10/top-10-sustainable-supply-chains-companies#
https://www.sciencedirect.com/science/article/pii/S1925209924002341

INDIA’S SEMICONDUCTOR DREAM

The semiconductor industry is vital in modern times, as it powers various gadgets, including
smartphones and advanced medical equipment. The demand for semiconductors is rapidly
increasing as the world shifts towards more sophisticated digital infrastructures that involve
numerous networked IoT devices. Its market size in 2023 was estimated to be USD 544.78
billion and is expected to grow to USD 1100+ billion by 2033. With its much-talked-about
vast engineering talent pool, India desires to become a significant player in this critical sector
and enjoy a pie of this market value. This article will investigate India’s quest to become a
semiconductor manufacturing hub.
The first question that arises is why India needs semiconductor fab labs. The reasons are
threefold: geopolitical tension, technological independence and economic gains. Let us have a
look at each of them.
1. Geopolitical tension: During COVID-19, the world experienced a semiconductor shortage
issue. The issue was big enough to negatively impact the manufacturing sector in India for
a long time. In the aftermath of the shortage, several countries like China and the US are
racing to upscale their semiconductor fab labs. As India has rough relations with its
neighbour China, it has to enter the money-guzzling race to ensure that its adversity does
not control the supply of such an important resource that may be critical during war.
2. Technological Independence: Semiconductors are the foundation of modern and emerging
technologies such as 5G, artificial intelligence, and quantum computing. India's tech
industry, including startups and established firms, requires a steady supply of
semiconductors to innovate and compete globally. The geopolitical landscape has
underscored the importance of technological self-reliance. Recently, a light tank project in
India was delayed due to Germany not supplying an engine, and a US alternative was to
be found afterwards. Thus, technological self-reliance is important for completing
ambitious indigenous projects on time and ensuring the country is not falling back on
industrialisation.
3. Economic gains: As the market for semiconductor chips is large and expanding, if India
could secure a portion of it, it would solve the world's semiconductor shortage and supply
chain issue and provide monetary gains for India. It will bring important foreign exchange
for the developing country facing a widening trade deficit in absolute terms.

77
 management and still holds a competitive position. Despite many things that are not looked at
to understand if it's completely sustainable, it inspires many other organizations planning to
incorporate sustainability into their value chain.
Sources:https://sustainabilitymag.com/top10/top-10-sustainable-supply-chains-companies#
https://www.sciencedirect.com/science/article/pii/S1925209924002341
After establishing the need for the industry, it is time we look at what resources are required.
Four types of resources are needed: land, labour, capital and technology.
1. Land: The availability of land and ultra-pure water is important for the semiconductor
industry. These resources are already scarce in India, but a positive government
intervention should not be a major problem for the industry. The positive sides of the
investment might be sufficient to pay for the temporary losses many times over.
2. Labour: A highly skilled workforce is essential for semiconductor manufacturing. This
includes engineers, scientists, and technicians specialized in semiconductor design,
fabrication, and testing. Several companies have their semiconductor designing centres in
India, but the country still lags in the expertise required to establish the fabrication labs.
This will necessitate hiring foreign experts to help establish the industry and train the
Indian workforce in daily production and maintenance. This will be a financial burden for
any company as the experts are in high demand and will demand a high salary.
3. Capital: Semiconductor fabs require significant investment in infrastructure, including
clean rooms, advanced manufacturing equipment, and reliable utilities. Clean rooms are
critical for preventing contamination during manufacturing, while advanced equipment is
necessary for the precision required in semiconductor fabrication. An investment of more
than USD 10 billion is needed to set up a modern state-of-the-art fabrication lab. Thus,
capital requirement is one of the most critical factors in setting up manufacturing units in
India.
4. Technology: Continuous innovation in semiconductor technology is driven by robust
R&D efforts. India must establish research centres focused on semiconductor materials,
fabrication techniques, and device engineering. Collaboration between industry,
academia, and government can foster an environment conducive to cutting-edge research.
India has several advantages over competitors like China and the US in establishing new
semiconductor manufacturing units. These are:
1. No sanctions on technology acquisition: China currently faces technology transfer
sanctions from the US. This might delay the development of China and provide India with the
much-needed time to develop the infrastructure before China runs away with a large market
share.
2. High-quality, low-cost labour: India has a good supply of high-quality but low-cost labour.
Thus, it has an advantage over other developed nations where the cost of labour will make
setting up plants more expensive and prohibitive.

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3. Many government incentives to establish manufacturing plants: Both central and state
governments in India are providing investment incentives to companies to set up their plants
in India. Incentives like the Semicon India Program and India Semiconductor Mission (ISM)
by the central government are responsible for an uptick in interest shown by various national
and international companies like Micron, Tata and CG Power in starting up manufacturing
plants.
However, even if the necessary investments are found, achieving the semiconductor dream is
not straightforward. There are several issues India has to address before it embarks on a very
ambitious journey. The most important of them are:
1. Competition: India will face stiff competition from established semiconductor
manufacturing hubs such as Taiwan, South Korea, and the United States. These countries
have mature ecosystems, extensive experience, and established relationships within the
global semiconductor industry.
2. Technological Complexity: Semiconductor manufacturing is one of the most
technologically complex processes. It involves multiple steps, each requiring precision and
control over environmental conditions. Achieving and maintaining high yields (the
proportion of functional chips) is a continuous challenge. India has to ensure that its
fabrication labs remain technologically competitive in the global market, which will require
continuous investment in upgrading the manufacturing units.
3. Supply Chain Dependencies: The semiconductor supply chain is global and highly
specialized. Key materials and equipment are often sourced from a few suppliers worldwide.
Ensuring a reliable supply of these inputs is critical to avoid disruptions in manufacturing.
Thus, India will be required to maintain healthy relations with various countries, which may
affect the self-reliance target India is aiming for.
CONCLUSION:
Establishing semiconductor fab labs in India presents significant economic growth,
technological independence, and innovation opportunities. While the challenges are
considerable, they can be effectively addressed through strategic investments, partnerships,
and supportive government policies. With its strong engineering talent and growing
technological sector, India is well-positioned to become a major player in the global
semiconductor industry. Additionally, understanding and planning for the increased
investment required for technological advancements, such as moving from 6nm to 4nm
manufacturing, will be crucial for sustaining long-term growth and competitiveness.
Sources:https://ism.gov.in/
https://thediplomat.com/2024/03/the-dawn-of-indias-semiconductor-era
https://www.power-and-beyond.com/a-closer-look-at-the-current-semiconductor-supply-chai
n-a-425f7d77d93bbc0408a65146c7e75983/
https://ide-tech.com/en/blog/why-water-sustainability-is-vital-for-the-semiconductor-industry
https://www.snrlaw.in/opportunities-in-the-semiconductor-industry-in-india

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