I interviewed Ajay Sapra who discussed Inventory Management and Innovation.
I'm Ajay Sapra who is [inaudible 00:00:04] from [inaudible 00:00:05] in [inaudible 00:00:06] steam, and later on, I did my MBA in international business from another government university called [inaudible 00:00:16]. I have a diploma in export marketing also from the most [inaudible 00:00:23] of the country. We call it IIFT, Institute of Foreign Trade [inaudible 00:00:27]. In 1985, I started my career with a company called [inaudible 00:00:33]. [inaudible 00:00:34] I was to look after the sales operations and support sales people in terms of submitting [inaudible 00:00:43], [inaudible 00:00:43], and [inaudible 00:00:45] without that company must supply their products.
Basically, that was a trading company, was importing various commodities, various components from, various products from foreign countries selling it into Indian market as well as the Indian government agencies. So I worked there for 14 years, and then I got an opportunity to work with the LD electronics, the [inaudible 00:01:12] in the consumer industry. So I joined that in year 2000. I was there for almost 10 years. I was general manager of imports and during various stages of my career LD, I was promoted to the rank of general manager, complete supply chain and sourcing planning which included sourcing from domestic sources as well as imports.
Later on, my profile got added with [inaudible 00:01:44] also, and I used to look after the export logistics dealing with shipping lines, airlines, and also, I have been involved in dealing with government license. In Indian, it's [inaudible 00:01:55] as far as the permissions are concerned, for exports and as well as the incentives need to be claimed. So there are long procedures [inaudible 00:02:05] so I got involved various reforms, industry reforms, in presenting to the government what benefit can be extended to the industry to simplify the procedures. So there I got a fair knowledge of taxation as well as understanding of import/export policy of the country.
So after 10 years working, I worked with another company, shifted to another company called [inaudible 00:02:31]. [inaudible 00:02:32]. But my stint was very short over there, for only two years. Then I got the opportunity to work with the FrigidZone, the name was [inaudible 00:02:43] FrigidZone, which is a [inaudible 00:02:46], which is a very famous [inaudible 00:02:49].
And my last stint was with Intex Technologies. They're an organization manufacturing mobile handsets in India and other accessories like charges and earphone sector. So I worked there, as, again, the general manager of supply chain.And very recently, I started my own. Only a couple of months back, I started my own small organization where I'm manufacturing mobile accessories in India and creating a supply chain to channel sales across the country for distribution of these products.
So this is my brief review and my experience on innovation which was created with the help of the team, with the help of experience and the many men [inaudible 00:03:42] was how best we control the supply chain, how best we innovate the supply chain. And I think on occasions that there are huge [inaudible 00:03:54] for components and spare parts and other material lying in the factory, the raw material, which is lying unused. And only because those were imported in excess than requirement. Or those were imported, those were procured other than thoserequired, which is [inaudible 00:04:14] that the company has to spend money on warehousing. The company has to get their goods insured. And of course, there is the lifecycle of these products, which starts going down day by day. And of course, if there is technology in all of this, not every day [inaudible 00:04:30] and technology. So once you keep something in stock, it belongs to the technology which was [inaudible 00:04:38] on that day.
So last on various, I can say, [inaudible 00:04:42], only the [inaudible 00:04:44] only when the person in charge over there is unable to welcome the policy of a very sensitive, I can say, a very [inaudible 00:04:55] supply chain, which means that one has to get a as [inaudible 00:04:59] as possible focus from the respective sales team, that what we are going to sell for the next month — one month, two months, three months — depending on the kind of production, the kind of commodity they are dealing in.
I take an example of electronics. Since the company was manufacturing various [inaudible 00:05:21] electronics like refrigerator, washing machine, air condition, microwave oven, televisions, computer panels, and most of the products, most of the components — I'm sorry — were being imported either from South Korea or China and some parts were from a [inaudible 00:05:39], manufactured also.
So the total [inaudible 00:05:45] time, the total time required from the day we placed the order to the goods received in the factory was 60 days. So we had to plan everything 60 days before it is acquired in the plant.
Then after the works are received, the production cycle is there. Then the solution cycle is there [inaudible 00:06:04] to the final customer, you need another 30 days, which means we are [inaudible 00:06:09] in advance to ensure that on the 90th day, the goods that are available in the market, and they is no shortage, no scarcity of the product, which means the sales standard that is required from the sales team [inaudible 00:06:25]. So based on availability, lead time also, some components are being secured locally. Some are being procured by [inaudible 00:06:34], some are procured by [inaudible 00:06:35] and each and every segment has a different lead time.
And then there are suppliers who are very occupied, preoccupied. They need an order six months in advance like sheet metal, [inaudible 00:06:52] metal sheets, for refrigerator doors, etc.
So considering all of these operations, all of these metrics in mind, we are to work really very, I guess, [inaudible 00:07:03] to ensure that everything is available on time and the thing is coming before it is required. So at the same time, metrics was being created on an— I can say — simple XL sheet where we had the benefit of [inaudible 00:07:18] organization. But still we've performed that [inaudible 00:07:20] intervention and [inaudible 00:07:21] intelligence that it required to ensure the minimal possible [inaudible 00:07:27] in terms of maintaining or keeping their inventory in stock. And it is for the [inaudible 00:07:32] with what the sales team has said that they will sell X product after three months. [inaudible 00:07:38] percent. It never could be.
So let's say exporting the models, they confirm they will sell 100 units, but actual sales after three months was only 80, 85, which means you had excess inventory of 15 or something like that. So that also kept in mind, whatever inventory has happened then that also needs to be carried forward.
So I think somebody who is in position to look after all these sectors and calculate and then after compilation, he creates the ordering system, I think that is going to help any other nation to grow and to generate profits and outsource with minimal load off the inventory in stocks. I think this is very important. So this is my take with that because I want [inaudible 00:08:37] on this inventory management [inaudible 00:08:39].
About Ajay Sapra
Global Supply Chain Management Professional