Page 21 - Steel Tech India eMagazine Volume October 2020

81. Ŗ 01 Ŗ 1EVQDGT

Fig.2: What Why How Impact on Supply Chain
+P NKIJV QH VJG CDQXG QPEG YG NQQM CV VJG JQNKUVKE RGTHQTOCPEG OGCUWTGOGPV QH VJG UWRRN[ EJCKP
UQNWVKQPU VQ FTKXG EQORGVKVKXGPGUU YKVJKP VJG KPFWUVT[ NQIKUVKEU QH CP QTICPK\CVKQP
NKMG UVGGN CPF EGOGPV YG CTG TGSWKTGF VQ OCMG C (KPCNN[ KP QTFGT VQ TGOCKP TGNGXCPV EQORGVKVKXG CPF
EQPUEKQWU EJQKEG DGVYGGP EQPUKUVGPE[ EQPVTQN CPF TGURQPUKXG CP[ UWRRN[ EJCKP NQIKUVKEU UJQWNF CFQRV
EQUV 1HVGP KV JCRRGPU VJCV KP QTFGT VQ TGOCKP EQUV GKVJGT QT CPF QH VJG HQNNQYKPI G I
GHHGEVKXG EQORGVKVKXG CPF XCNWG FTKXGP YG CFQRV NGCP
NQIKUVKEU RTCEVKEGU VQ HQEWU QP SWCNKV[ RTQEGUU CPF QP 6TCEM OQPKVQT EJCPIGU KP EQPUWOGT EWUVQOGT
EWUVQOGT XCNWG DWV KP VWTP UCETKſEGU QWT NQIKUVKEU CIKNKV[ FGOCPF CU VJCV YQWNF FTKXG EQPUVKVWVKPI VJG
*GPEG QWT UVTCVGI[ UJQWNF DG VQ TGOCKP CIKNG CPF FQ PQV RTKOCT[ UVTCVGI[ CU VQ JQY FQ YG TGURQPF VQ CNN QWT
EQORTQOKUG VJG TGURQPUKXGPGUU YKVJ TGURGEV VQ NGCP UVCMGJQNFGTU KP VJG NQIKUVKEU EJCKP! UGEQPF YG
RTKPEKRNGU #RCTV YJKNG KV EQOGU VQ CFFTGUUKPI C ITGCVGT should explore reducing the supply across the chain
CPF NCTIGT XCTKCDKNKV[ KP VGTOU QH KPXGPVQT[ OCPCIGOGPV VQ RQUKVKXGN[ FKUTWRV VJG UWRRN[ EJCKP CPF QT UC[
DWNN YJKR GHHGEV VJG UVTCVGI[ UJQWNF HQEWU QP JQY TGXKUKV QWT NQIKUVKEU HQQVRTKPV UJQTVGP KV
VQ KORTQXG WRQP QWT FGOCPF HQTGECUVKPI VQ TGFWEG #NUQ OWNN QXGT VJG QRVKQP QH OQXKPI HTQO C EQORNGZ
such variability in inventories across the supply chain VQ UKORNG UWRRN[ NQIKUVKEU EJCKP VQ DG RTGEKUG HTQO
NQIKUVKEU E[ENG CU YG OQXG HWTVJGT CYC[ HTQO EWUVQOGT global to local supply chain
VQYCTFU VJG UWRRNKGT 6JG (KIWTG ENGCTN[ KNNWUVTCVGU VJG
EQPEGRVU CU YGŏXG GZRNCKPGF CDQXG 5VTCVGIKECNN[ FGEKFG UWRRNKGT UYKVEJKPI KP QTFGT VQ
TGFWEG UWRRNKGT QXGT FGRGPFGPE[ KH CP[ CPF ſPCNN[
0QY YKVJ TGURGEV VQ DWKNFKPI QWT JQNKUVKE NQIKUVKEU 6Q IQ CNN QWV HQT VGEJPQNQI[ CFQRVKQP CPF FKIKVK\CVKQP
UVTCVGIKGU YG PGGF VQ CUM QWTUGNXGU VJG SWGUVKQP CTG
YG FQKPI KV TKIJV! 6JG OQQV RQKPV JGTG KU VQ KPVGTPCNN[ #NN VJGUG YQWNF HCEKNKVCVG VJG ƀQY QH KPHQTOCVKQP DCEM
CUM JCXG YG VCMGP VJG TKIJV 56'2 5VTCVGI[ 6CNGPV HTQO GPF EWUVQOGT VQ VJG WNVKOCVG UWRRNKGT OCPWHCEVWTGT
'ZGEWVKQP 2GTHQTOCPEG CU [GV VQ OKVKICVG VJG including the supply logistics support service providers
TKUM 4 CPF QRVKOK\G VJG EQUV % YJKEJ KU VJG DCUKE KP CP KPFWUVT[ NKMG UVGGN CPF EGOGPV CPF VJWU JGNR
QDLGEVKXG QH CP[ UWRRN[ EJCKP NQIKUVKEU UVTCVGI[ DWKNFKPI VJG PGY CIG UWRRN[ NQIKUVKEU EJCKP VQ CNKIP
objective. Please see the exhibit 4 which clearly states EQPXGTIG CPF EQORGVG KP C 87%# XQNCVKNKV[ WPEGTVCKPV[
YJCV PGGFU VQ DG FQPG YKVJ TGURGEV VQ VJG HQWT RKNNCTU EQORNGZKV[ CODKIWKV[ GPXKTQPOGPV # ICOG EJCPIGT KP
QH UVTCVGI[ VCNGPV K G RGQRNG YJQ EQWNF WNVKOCVGN[ VGTOU QH NGXGTCIKPI QWT QYP TGUQWTEGU CPF EQPXGTVKPI KV
FGNKXGT VJG UVTCVGI[ GZGEWVKQP CPF VJWU NGCFKPI VQ KP VQ RTQOKUKPI HWVWTG QRRQTVWnities indeed.

STEEL TECH