The geopolitical developments, especially in the Asian continent, are having a direct impact on supply chains the world over. This challenging environment is leading numerous businesses to brace for further disruptions as strains intensify in key markets. Concurrently, India's ascent as a manufacturing hub, coupled with its ambition to ascend as the world's third-largest economy by 2027, is unveiling numerous prospects for growth and development. Helping to navigate these challenges and opportunities, Kartik Iyer, Vice President of Supply Chain, Customer Fulfilment, Logistics, & Warehousing, of one of the leading energy companies joins us for an exclusive interview. Kartik, a futuristic, forward-thinking leader, handles the company’s supply chain and warehousing operations. 

In conversation with Kartik Iyer, Vice President—Supply Chain, Customer Fulfilment, Logistics, & Warehousing  

Given the current geopolitical climate, regional conflicts and the lingering effects of the pandemic, how are supply chain leaders wading through?

Supply chain leaders are increasingly recognizing the importance of diversifying their supplier base. The dependence on local suppliers has become critical to mitigate the risks associated with long-distance shipments, especially via sea transportation. Recent disruptions, including the blockade of the Red Sea, underscore the necessity of developing a robust local supplier network, engaging in long-term contracts, and, when necessary, accepting higher costs to ensure supply chain continuity.

Moreover, it is essential to establish alternative supplier bases to avoid over-reliance on a limited number of sources. Cost management remains a priority, as the end consumer is unlikely to bear increased prices. Supply chain leaders must, therefore, identify cost-saving measures in other areas to offset potential price hikes.

Stockpiling products can be a strategy to consider, although it carries the risk of holding inventory that may exceed market value should prices fluctuate. Supply chain leaders must possess a keen understanding of market dynamics and geopolitical developments to prevent operational disruptions.

In conclusion, there is no singular solution to these challenges. A supply chain leader must navigate through various scenarios, assessing multiple strategies to determine the most effective approach for their organization. Agility and a comprehensive understanding of the market, supply chain, suppliers, operations, consumers, and pricing are imperative. This multifaceted knowledge enables the formulation of contingency plans, ensuring preparedness for any shifts in the global landscape.

How can leaders bring digital tools to this mix? What are the aspects they should focus on?

Digital tools have long been integral to supply chain strategy. The challenge is to discern the most appropriate digital tool that aligns with an organization's unique operational needs. As a supply chain leader, it is imperative to dedicate substantial time and effort to this selection process. Digital tools should not merely serve as advanced versions of existing systems, such as sophisticated spreadsheets, but rather as instruments capable of conducting predictive analyses beyond the scope of human computation.

The evaluation of digital tools involves rigorous analytics and algorithm testing to ensure their effectiveness and compatibility with the desired operational model. This process often includes a Proof of Concept (POC) to validate the tool's user interfaces and algorithms against the company's operational requirements.

Once a digital tool is selected, assessing its Return on Investment (ROI) is crucial. The tool must justify its cost through tangible benefits. This could manifest in various forms, including reduced manpower, lower inventory levels, decreased transportation costs, or enhanced customer satisfaction.

The implementation phase is equally vital, demanding adherence to the planned timeline and meticulous monitoring. Comprehensive training is another important key to ensure that the team can leverage the digital tool effectively in daily operations.

Ultimately, it is important to accept that the adoption of digital tools will not revolutionize a company's operations overnight. They are components of a broader system, and their success depends on the people managing them. Organizations must consider this reality when integrating digital tools into their supply chain strategy.

How do we address the hiccups and apprehensions when the team starts utilizing new technology? 

It is crucial to foster awareness about the role of digital tools within an organization. Open dialogue is necessary to convey that these tools are not intended to replace individuals but to augment their decision-making capabilities. This shift allows employees to redirect their focus toward strategic thinking, business development, and identifying opportunities for cost savings and efficiency improvements.

The integration of technology, particularly Artificial Intelligence (AI), can transform operations by providing predictive analytics, thus enabling employees to make informed decisions. While experience and intuition have traditionally guided decision-making, data-driven insights offer a more objective basis. However, we need to also conceive that data may not always capture the nuances of certain situations, such as unforeseen events or local disruptions. In such cases, it may be necessary to deviate from data-driven recommendations. However, for the majority of scenarios where decisions have been historically based on experience, a transition to data-centric decision-making is inevitable. Employees should be educated and reassured that technology is a tool to assist, not replace them. A supply chain leader's role is to embrace and disseminate this technology positively, positioning it as an ally rather than a threat to the workforce.

As a highly experienced leader in the segment, what strategies and efforts are required to establish oneself as a distinguished supply chain leader?

When it comes to the dynamic field of supply chain management, particularly within the oil and gas sector, maintaining a vigilant eye on market trends and competitor activities is paramount. As a supply chain leader, openness to change and the willingness to take decisive actions are essential for staying ahead. The landscape of the supply chain is in constant flux, often transforming significantly every five years. It is imperative for leaders to not only keep abreast of these changes but also to be proactive in adapting their supply chains in alignment with emerging market trends.

Rather than overhauling the supply chain in 10 to 15 years, a more effective strategy is to implement incremental changes regularly. This approach allows for the integration of new technologies and methodologies in a controlled manner, ensuring that the supply chain evolves in tandem with market offerings. However, it is crucial to be selective in adopting innovations, as indiscriminate experimentation can lead to inefficiencies.

I invest significant time in understanding and supporting my team's needs, encouraging motivation, and fostering a culture of respect and leadership within the group

A thorough evaluation of operational needs, available technologies, market trends, and customer expectations is necessary to determine the most beneficial advancements for the supply chain. The goal should be to enhance efficiency, customer satisfaction, and operational ease without necessarily incurring higher costs. 

Moreover, a strong commitment to sustainability and the pursuit of decarbonization initiatives are essential, reflecting a forward-thinking approach that not only meets current demands but also anticipates future challenges. 

How would you define your leadership style?

Embracing new ideas and being receptive to innovation are qualities I hold in high regard. I am always eager to implement sensible and progressive changes. A key aspect of my role as a supply chain leader is to stay informed about market trends and competitor strategies, as well as to understand customer needs intimately. This knowledge is crucial because, ultimately, we are here to serve the customer.

Building strong partnerships with suppliers is another cornerstone of my approach. Team development is also a priority. I invest significant time in understanding and supporting my team's needs, encouraging motivation, and fostering a culture of respect and leadership within the group. Interpersonal skills are vital in supply chain management due to the necessity of interacting with various internal departments. Maintaining excellent relationships with production, sales, finance, and procurement teams ensures a cohesive and efficient operation.

Lastly, having a clear vision for the future is essential. I set strategic goals for myself, my team, and the supply chain at large, envisioning where I want us to be in the next few years. This forward-thinking mindset keeps me motivated and guides the department toward long-term success.

 

Hobbies: Dancing practice (Salsa and Bachata), playing badminton, traveling and exploring new places, trying new cuisines, spending time with family and friends, visiting new restaurants, and keeping fit with gym workouts or running.

Favorite Travel Destinations: Alaska, Costa Rica, Jordan, Japan, Buenos Aires, Lima, South of Brazil, South of Spain, and Southern California

Favorite Cuisines: South Indian, Mumbai Street Foods, and Mexican