2022

Team Shooting Stars | FMS Delhi

Prabhat Chandra Akram Khan Mona Patel

Work Ex : Dr Reddy’s Lab Work Ex : Accenture Work Ex : KPMG
(Product manager Strategy (Business Consultant Intern
Intern- 2 months) (Management consulting - 2 months)
analyst Intern- 2 months)
Samsung R&D Institute SBI
(Senior Engineer) Commvault (Assistant Manager)
(Software Engineer)
Capgemini Tata Technologies
(Associate Consultant) Cohesity (PLM Developer)
(MTS)
 Chemical Industry Problems Client Problems
Raw Material
Shortage
Rising raw
material cost
Sanction &
Regulation due to
Industry
wars
Problems
Emissions from chemical
industries attracts
lawsuits & penalties
Improper
Worker unions leading to Low Logistics Line Suppliers
Planning of Raw
strikes & production Performance Unavailability Selection
downtime Material

Prioritization of Problems Hypotheses Generation & Validation High End Solutions

Distributing Improved Inbound

01 Line Unavailability Week-wise (16 inbound trucks to outbound truck
weeks)Identific Comparison Calculating over the month utilization & cost
with ideal Analyzing effect on
ation of issue new OTIF savings
supply chain quantity produced
Continuous
& delivered Better planning
02 Raw Material Shortage Procurement of
Raw materials would avoid
7% stockouts
4%
Increase Due to Increasing the
Due to 3%
in OTIFs Line line availability to Improved line
03 Truck Unavailability RM Due to Truck meet quantity efficiency
Unavail shortage unavailability demanded
ability
 As is state of supply chain in terms of sustainability

Most of our suppliers have sustainability score

01 less than 7 which results in higher penalty from
world bank and decreased sales %
We are highly dependent on Supplier 1 in terms of
02 volumes (~50%). So there is high risk if they change
price or if there is any issue.

Inbound to outbound truck utilization is only 23%,

03
which can be improved for better sustainability
Weighted avg. sustain. Score - 7.7

Ways to improve sustainability in supply chain

Scope 3 & Supplier Selection (as per our calculation) Scope 1

❖ Supplier 3 have very less sust. score , So we need to avoid raw ❖ Continuous improvement in efficiency
materials procurement from them. ❖ Advanced chemical recycling
❖ Maximised purchase from supplier 1 because of high sustainability ❖ Bio Based organic building blocks
score leading to increase in sales. ❖ Carbon capture & storage
❖ Cost of raw materials from supplier 4&5 is less. Hence, we should
procure from them at their maximum capacity.
❖ Increase # suppliers to guard against inflation & logistic issues Scope 2
❖ Using AI and forecasting tool, we should plan procurement on ❖ Use of renewables
weekly basis. ❖ Use of Blue, green & turquoise hydrogen
❖ Supplier 4&5 sustainability score is low; Hence investing in them ❖ Fuel Switching
Source:https://www.kearney.com/chemic
als/article/-/insights/how-chemical-comp will lead to better profit margin & scope 3 emission improvement. ❖ Waste heat capture
anies-can-reduce-scope-3-emissions-now
 APPENDIX

● Excel for data analysis

https://docs.google.com/spreadsheets/d/1KuCjEJjv_-FKdDVZ0dUgSSaYZ9Q_dG2tZ_x-UniUBwI/edit?u
sp=sharing
● https://www.kearney.com/chemicals/article/-/insights/how-chemical-companies-can-reduce-scope-3
-emissions-now
● https://www2.deloitte.com/xe/en/insights/industry/oil-and-gas/chemical-industry-emissions-reducti
on.html
Identify critical addressable problems the client and the industry are facing today

Industry problems:

● · Raw material shortage due high demand after 2020 and supply chain fragilities
● · Rising raw material cost has led to decline in companies’ profitability
● · Above factors have led to raw material stockouts, high lead time.
● · Various sanctions and regulations due to Russia- Ukraine war and China’s energy rationing policy.
● · Chemical Industries are generally categorised as environmentally polluting industries.

o Material Waste and gas emissions contaminate multiple water bodies

o The industry face class-actions lawsuits and have paid severe penalties.

● · Customers have become aware and are willing to switch to sustainable suppliers.
● · Worker Unionization and Power holidays. There is risk of production downtimes with strikes and large-scale
resignations.
● · Government mandated necessary allocation to some regional suppliers. If this condition is not met, huge
penalties could follow.
Client Problems
Client Specific Problem
1. Logistics Performance - Increase the Inbound to outbound logistics ratio
(Improve OTIF)
●
2. Maximum capacity available to be effectively utilised of the supplier
maintaining the sustainability score
3. Landed Prices offered by the supplier to be strategized
4. Downtime due to MRO unavailability
5. Storage capacity (finding the BEP)
6. Scope 3 - Suppliers selection can be controlled for quick reduction in Carbon
emissions