SVP Supply Chain and IT
Implemented a key metric driven change program in supply chain operations and IT in this division of Harman International, (NYSE: HAR ~ $4.2 billion), that manufactures and markets loudspeakers and audio electronics with brands such as JBL, Infinity, Harman-Kardon, Revel, Mark Levinson etc. Reporting departments include Inventory Control, Procurement for finished goods and service parts, Logistics & Warehousing, & Transportation for Asia and the Americas; Information Systems and IT Infrastructure globally for the division.
- Reduced inventory by 45% while maintaining service levels for current FG products >95% and repair parts Out of Stock at below 2%, doubling overall FG turns to 7. Set up a global supply planning and S&OP process to optimize procurement & inventory across all markets.
- Set up rolling 25 week CPFR based commitment process with factory/contract manufacturers for optimal production scheduling and capacity planning for meeting global demand.
- Introduced comprehensive vendor reviews, built around key metrics, and collaborative planning processes to focus on continuous improvement.
- Introduced new product planning and handover process integrated with global Sales and Operations Planning (S & OP) process.
- Conducted multi stage RFP and evaluation for outsourcing operations to a 3PL several times. Selected providers and structured SLA metric based contracts. Implemented the transition and change, facilitating combination of several independent customer-facing departments which reduced SGA Expenses. Order processing lead times down from 3-4 days to less than 24 hours.
- Simplified and streamlined processes in logistics and operations reducing staff expenditure 50% by reducing the size and staffing in reporting departments. Integrated returns, reverse logistics and refurbishment processes to the warehouse. Reduced lead times from Asian and North American vendors from 3-4 months to 45 days and introduced flex plan based on better visibility. Lead time reduction initiative was strengthened around material & commodity acquisition process among vendors.
- Executed cross docking operations at entry ports reducing transportation costs and time to market. Order fulfillment lines for web orders set up and integrated with parcel carrier systems.
- Made an immediate impact on Operations budget reducing warehousing and transportation costs by 40% over previous FY. As a percentage of net sales logistics & transportation cost came down by more than 2.5% of net sales. Overall, variable selling expenses were down 8% over 4 years. Consistent year on year operational cost reductions and warehousing currently at a best in class level of 1.58% of net sales.
- Implemented a $5 mm annual cost reduction global network revamp with 2 new DC’s being rolled out to consolidate warehousing across all divisions supported by a cross enterprise WMS.
- Introduced inbound and outbound freight contracts eliminating intermediaries, which reduced costs by 35%. Also consolidated global contracts into a single RFP process leveraging global volume and built long term relationships with top transportation providers.
- Introduced container utilization improvement program that improved container capacity utilization reducing freight costs by 20%.
- Negotiated complex parcel carrier contracts which reduced expense by 10%.
- Converted purchase terms to FCA vendor location and took charge of origin transportation and handling to reduce costs and improve visibility.
IT and Systems Improvement:
- Articulated vision and executed a consolidation of the Global IT infrastructure of the ConsumerGroup into one SAP instance with standardized global processes. Reduced hardware infrastructure cost, set the stage for globally leveraged applications, consolidated financial reporting and reduced staff redundancies. Tight program management enabled on time, under budget execution with no transition issues or business interruptions.
- Configured, coordinated and managed implementation of SAP’s WMS module in <5months>99.7% and order processing at >99% within 24 hours.
- Upgraded SAP release to current ECC6.0 from R/3 and introduced the MRP and SOP modules. Also executed Business Information Warehouse to aid data analysis. Integrated a subsidiary into SAP instance. Currently executing SAP forecast/demand planning in APO & on demand TMS.
- Developed and implemented electronic order management with dealers and vendors with Extranets, improving supply chain visibility, facilitating automated order processing for dealer and E-Commerce orders. A metric database to evaluate vendors based on data captured through the vendor extranet was also designed. Electronic ordering went from 30% to 80% of all orders.
- Implemented EDI collaboration with transportation providers to improve supply chain visibility and expanded EDI with customers for CPFR. Developed RFID implementation plan for retail mandate
- Co-managed complete outsourcing of IT infrastructure, help desk and database management off shore to Wipro. Implemented on site off shore applications development model.
- Developed comprehensive procurement contracts with outsourced contract manufacturers.
- Maintained leading position in customer execution metrics. Recognized for Supply Chain Excellence by Circuit City 2003. On time right quantity >90% with Best Buy.
- Mentored, coached and developed several subordinates to take up leadership positions.
- Performed multiple distribution network optimization analyses evaluating locational strategies for product distribution in the US. Uncovered significant savings opportunity in changing network structure in transportation and DC costs. Budgeted savings through the reorganization amounted to more than $5 million p.a., while improving customer service levels from 60% of orders taking > 3 days to deliver to 98% of orders delivered in less than 3 days. Expanded scope to a multi divisional shared DC network with a new common WMS to facilitate process standardization and visibility across facilities globally.
- Set up a consolidation center in Hong Kong for servicing Asian and US market. Expanded program further moving DC to Futian to lower costs. Direct vendor shipments are leading to $1 mm freight save per year and significant reduction in service time to customers.
- As CIO of Harman Consumer and member of the Inter divisional IT Leadership team defined strategic direction and priorities of the corporation’s IT resources. Developed IT Systems Roadmap to define IT strategy, channel resources effectively and to align IT closer to business goals. Enforced trade compliance.