Anil Shipley, Executive President of Polycab India Ltd, shares insights on streamlining supply chains and promoting sustainability in the wire and cable industry
Managing a chain of suppliers, especially in the wire and cable industry, is a huge task. In an exclusive conversation with ET Edge Insights, Anil Shipley, Executive President, Polycab India Ltd, talks about efficient supply chain management amidst challenges like plastic usage. The following discussion covers a streamlined replenishment model that adapts to changing factors. We also touch on sustainability initiatives aimed at reducing plastic usage while optimising efficiency.
As manufacturers in the cable and wire manufacturing industry, how do you efficiently integrate and manage your supply chain?
In our distribution scenario, we connect distributors to warehouses across the country, with 25 factories producing various items and suppliers in the background. We’ve implemented a replenishment model, ensuring items sold are replenished from the previous node. This one-directional flow of information and material simplifies the system. Warehouse stock levels depend on lead times from the previous node, making them dynamic and adaptable to changing seasons and other factors. The system adjusts automatically, increasing stock for items in demand and reducing it for slow movers using algorithms. It’s a daily process of stock correction, maintaining accuracy at 100%. This interconnected, feedback-driven approach optimises our supply chain management.
Is this system based on artificial intelligence (AI), considering the described supply chain and replenishment model?
Let me explain this in simple terms. AI functions as an enabler, much like the water distribution system in a city. Imagine a city with a main water tank (akin to my factory), a society water tank (one of my large warehouses), and individual flat owners with their water tanks. When a flat owner uses one litre of water, it’s replenished from behind. If a flat doesn’t use water, there’s no replenishment. This concept is quite similar to what gets sold and what doesn’t get sold in our context. The use of AI isn’t necessary for this.
When we discuss simplicity, how do you integrate it into your leadership and effectively convey it to your team or the final stakeholders?
You’ve posed two questions: One regarding the system and the other concerning people. To answer your first one – for the system to function effectively, it must be interconnected. The challenge lies with people, as they are always fascinated by complexity. Present them with a complex solution, and they may applaud it. But if you offer a simple solution, they might respond with, “We already knew that.” However, implementing a straightforward system isn’t necessarily easy. I can describe it, but actual implementation requires effort. The system operates much like a water distribution network, where each sale triggers material replenishment information. Buffers are strategically placed in between, and a dynamic system continuously adjusts for seasonality and other factors.
How do you promote diversity, equity, and inclusivity in your team?
First and foremost, diversity and inclusivity are essential components because they provide the necessary nuance. To illustrate this, consider a simple example: if the designers or suppliers lack diversity, they won’t fully understand the needs of a diverse customer base. So, when your customers are diverse, it’s imperative that your team reflects that diversity. Otherwise, you may overlook important aspects. Take the iPhone, for instance; it was highly advanced, but for a considerable time, it lacked features related to women’s health, such as menstrual cycle tracking. This gap existed because there were no women involved in the design process. To effectively serve a diverse customer base, you require a wide range of perspectives within your team.
Could you share some sustainable initiatives you’ve implemented in the cable and wire industry, especially considering the industry’s significant plastic usage?
When it comes to sustainability, the approach matters. If you treat sustainability as an external project, you allocate only a limited amount of time (let’s say x) to it. However, when sustainability is ingrained within the system, it becomes an ongoing process. In our system, rejections and wastages are significantly lower than industry standards, practically non-existent. We achieve this through a stage gate system that prevents items from proceeding if they are not up to standard, minimising waste. We’ve also invested substantially in assets and environmental protection. Currently, our assets operate at 100% capacity, with the potential to reach 200% using the same asset base. Philosophically speaking, sustainability is crucial for long-term survival and competitiveness. Contrary to common belief, it doesn’t necessarily increase costs; it often leads to cost savings when viewed from a global optimisation perspective, rather than a localised one.
