CII Whitepaper on Indian Start-ups
- 1. Global Service Levels at Indian Cost: Are the Indian Supply Chain Start-ups ready? • Boardroom priorities and expectations • Deep dive into 50 Indian Start-ups • Challenges and opportunities of Indian Start-ups
- 2. Executive Summary 2 Tap boardroom challenges and priorities Cost overruns, Lack of visibility, and Legacy Systems are the top challenges. Priorities are Cost Optimization, Process Streamlining and Automation. Translate them to Global Supply Chain opportunities Exploring untapped avenues in Supply Chain cost reduction, Scaling up End-to-end visibility, and Technology solutions through Start-ups. Evaluate the fit of Indian Start-up solutions 90% of the C-suite professionals are upbeat about Indian Start-ups’ solutions on Sales & Operations, Warehousing, Marketplace(Sourcing/Transportation), Network Optimization, Mobility, and Cold Chain.
- 3. Background The Whitepaper evaluates key boardroom challenges faced by the Industry. CII conducted primary research, interviewing 50 Indian Start- ups and 50 C-Suite professionals to identify the priorities and opportunities. Data provided here are through CII’s primary research. The challenges from the boardroom were mapped with solutions being offered by the start-ups. Status in terms of current adoption level and willingness to explore Indian Start-up solutions have been captured as part of this initiative. CII Institute of Logistics Elite community’s C-Suite Professionals from Shell, BCG, Vedanta, Bayer and Blue Yonder were part of this whitepaper initiative 3
- 4. 4 Challenges & Opportunities Limiting factors and work arounds to access global audience Boardroom Agenda Priorities & Expectations Indian Start-ups Deep dive into 50 Indian Start-ups Understanding the Indian Supply Chain Start ups 4
- 5. Deep Learning Cloud computing Predictive Analytics Top Priorities for business Industry Perspective on Supply Chain - Viewpoint from 50 C-suite Professionals Technology levers to address cost optimization and process streamlining 5 Cost Optimization Without compromising service levels Process Streamlining Improvements for sustainable competitive advantage Automation Seamless transition from Legacy systems and filling up gaps “Business-oriented, continuous discipline to drive cost reduction and spending, while maximizing business value” “Mitigating unnecessary work-related tasks to enhance process efficiency” “Technology deployment to produce and deliver value with optimum human intervention.” Machine Learning IoT 69% 36% % of respondents 68%
- 6. 80% 33% 33% 22% 25% 25% 33% 33% Automobile Chemical Consumer Goods FMCG Manufacturing Pharma Technology Overall View from C-suite on Metrics that matter How far are you satisfied with End to End Supply Chain Visibility? Satisfaction level of OTIF (On Time In Full) Performance What is your satisfaction level on Supply Chain Agility? 60% 83% 67% 56% 33% 50% 83% 58% 20% 50% 50% 56% 58% 75% 67% 54% 6 IT - Hardware/Electronics For example, Respondents of Automobile vertical believe in substantial scope for improvement from the current level of Supply Chain Agility. This is, in spite of achieving a reasonable OTIF performance “Fragmented business approach and sub-optimal use of technology are the limiting factors for timely service” - Global FMCG company “As our Supply Chain partners use different technologies, synchronizing is a challenge. Our visibility is limited to 60%” - Leading Pharma company “Differentiated service levels for high value customers helped us to enhance customer satisfaction levels in terms of Order fulfilment.” - Global Manufacturing company “We drill down to granular level and come up with impactful solutions that help us to outperform Order fulfilment rate of our competitors” - Global IT Hardware player “Technology limitation and operational silos impact our supply chain agility. We see lot of scope for improvement. ” - Global Consumer brand
- 7. 7 C-suite engagement with Start-ups For example, Respondents from IT Hardware / Electronics industry have not engaged Start-ups due to high sensitivity towards Data and availability of in-house solutions. Moving forward, 50% are positive about engaging Indian Start-ups and 100% are confident on Indian Start-ups’ ability to offer global solutions IT- Hardware/Electronics “Indian Start-ups have the flexibility and talent pool in delivering solutions, both locally and globally. ” - Global Manufacturing company “Indian Start-ups provide excellent customizable solutions and are very economical when compared to big players.” - Global Electronics giant “Technical knowledge among Indian Start-ups is very high. But Supply Chain knowledge matters a lot when it comes to delivering solutions. With better tweaks, they can offer global solutions” - Global Chemical company
- 8. 8 Domain Focus Last Mile 17% Cold Chain 11% Network Optimization 11% Sustainability Warehousing & Distribution 15% 16% Marketplace 15% Mobility 8% S&OP 7% Technology Focus Analytics Artificial Intelligence/ Machine Learning Blockchain Internet of Things Focus of Indian Start-ups 85% of the Indian Start-up respondents focus on Last Mile, Warehousing & distribution, Sustainability, Network Optimization, Cold Chain and Marketplace.
- 9. X 76% of the start-ups need support in Industry connect 65% of the start-ups require platform to be visible to the potential clients. 9 Key Challenges for Indian Start-ups Industry Connect 1 Visibility & Client Awareness 2 Identity 3 “Cost of acquiring new customer is 30-40 %” - Startup Co-founder “Months pass by without feedback from potential clients after Proof of Concept” - Startup Founder “Diverse client requirements in India ensure robustness in our solution. It makes us a lot easier to step into overseas market” - Startup Founder
- 10. 10 CII Institute of Logistics has taken the following initiatives – ➢ 5x Moonshot program for Indian Start-ups with a commitment of 5 times revenue growth within 3-year period. ➢ Engagement such as podcast series(Tag Talks – Voice of Supply Chain) for promoting Indian start-up visibility. ➢ Create awareness among working professionals and top-notch business school students through boardroom challenge and case competition, by Indian start-ups ➢ Co-branded Start-up Performance Index with Dun & Bradstreet for global identity, which will support in wider adoption, increased visibility and funding for Indian Start-ups. Why: Scale up Technology adoption in India Supply Chain to make competition irrelevant How: Empower Start-up to achieve 5x revenue Growth within maximum 3 years What: Leverage IoT, Deep Learning, Machine Leaning, Predictive Analytics, Cloud computing, Blockchain for compelling Supply Chain solutions Support: Validation, Business connect, Market Intelligence Benefits: Faster customer reach-out, enhanced visibility & customer awareness. 5x Moonshot program A robust and comprehensive measurement -framework based on empirical evidence-Based approach to build a performance index for start ups providing supply chain solutions Benefits: Scaling up industry competitiveness, Performance & Risk Identification, Benchmarking & Analysis Start-up Performance Index Support from CII
- 11. 11 Perception of global organizations towards Indian start-ups is encouraging. 90% of the C-suite professionals are willing to explore Indian start-up solutions to address the boardroom challenges. CII’s Moonshot program and Start-up Performance Index present great potential for more Start-ups joining the Unicorn Club and to help solve the problems of tomorrow Conclusion
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