Posted on: October 25, 2011
New Delhi – Alleviating classrooms as an interface with the industry, The Kirlosker Institute of Advanced Management Studies, invites people with real life experience to share their understanding of issues that exist at the ground level. This interaction helps management students have a feel of the challenges that lie ahead and prepare them to face the ruthless world once they are out of the institute.
Among other industry leaders KIAMS management invited Mr Jeevan Rao Sahib, chief executive officer, of Bangalore headquartered INDeLOX Services Pvt Ltd, a third party logistics services, to share his experience of the logistics industry. INDeLOX Services, started operations about 7 years ago, has with branches in Chennai, Hyderabad & is now expanding operations in North India.
Mr Rao, while sharing his experience with KIAMS students in the logistics services domain explained few processes that would help build a sustainable business model. Simplifying the processes (for students’ understanding) that were being followed in the logistics service industry, Mr Rao said, “Best Practice in logistics business will have to consider different aspects of the functions involved and its inter-dependence on the final outcome.”
He also explained as to why certain practices being followed in companies such as CISCO, and Maruti Suzuki are considered the best in the industry. CISCO’s practices in reverse logistics and spares management is the best, while Maruti Suzuki has an unparalleled market service programme. Rao, however, said that companies now need to constantly upgrade their services to remain ahead of competition as the best practices are imitated by others in no time.
Speed of delivery is the first and the foremost criteria in logistics services industry. “In IT infrastructure, spare part is provided in 4 hours to keep the network running. Imagine the loss of Bombay Stock Exchange or Reserve Bank of India network handing for over 30 minutes. Hence, speed becomes one of the critical components to appreciate best practice,” Rao said.
Consistency of services delivered is the key to success. Firms that have developed a strong brand name for themselves, have shown consistency over a period of time. The delivery of services should be irrespective of the individual of who is carrying out the process.
Underscoring the need to be cautious about the image of the company, Rao cited Nokia’s case where the company exchanged the battery of its phone which was found to be defective to convey its intention. “Nokia went through extensive media coverage and replaced the battery at its own cost — an action undertaken to save the image of the company,” he said.
A process, if made flexible to adapt and accommodate the changes needed, will differentiate the practice from the lot. Certain processes in ERP environment are so rigid that it does not make the system a learning experience for users to fully utilize the potential. Concluding his thoughts, Rao said one has to find the right mix of configuration to form the ‘Best in Class’.
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