 The metals industry, particularly the Steel sector, has always
faced the challenge of high lead times and high process uncertainties. In the recent
years, consolidations, globalisation, relentless cost pressure and constant changes in
demand and supply patterns have made the Supply Chain even more complex. In one of his
lecture sessions for Tata Steel, Dr Eli Goldratt has drawn attention to how the Steel
Industry has always been plagued with the “60 day syndrome.” Despite all the
investment in technology, service levels in the industry are still a cause of great
concern.
 The challenge before every supply chain
practitioner and his organisation is how best to understand and fulfill demand
accurately. While predicting demand, the further the demand horizon the more inaccurate
the forecasts. Buyers want just-in-time deliveries, which translate into large inventories
to ensure high service levels and no stock outs.
Tata Steel’s strategy for
Flat Product is to be a dominant player in the automotive and construction segment. The
auto industry is among the most demanding, requiring faster and just-in-time delivery and
cut to length sizes. Steel is certainily not a commodity for this sector. With thousands
of customised steel sizes delivered day-after-day to make a mind boggling number of
automobiles, whose variety keeps getting more complex, steel makers, who are suppliers to
this industry, have to face new challenges by the hour.
i2 Solutions for Tata Steel has enabled best practices including :
- Improved delivery performance
to customer
- Reduced manufacturing and
inventory costs
- Increased efficiency in
supplier relationships
- Optimised product mix
- Reduced order lead time.
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 In order to build a
world class supply chain supporting efficiencies in delivery, a Task Force was created by
Tata Steel to conduct a Business Process Re-engineering (BPR) study. The BPR work was
carried out in three phases with IBM Business Consulting Services as a business partner.
The leading supply chain solutions available in the market were evaluated and those best
suited to the Flat Product business of Tata Steel identified. i2 Technologies were
selected as the technology solution provider. The implementation of i2 was encapsulated in
Project SPEED (Supply Chain Programme Enabling Excellence in Delivery), which was
initiated in February 2005. All key modules of the suite are now live. A presentation on
the Supply Chain Management vision for Flat Product, the next generation Supply Chain and
System Launch was conducted on June 24. The Chief Guest at the function was Mr Ishaat
Hussain, Executive Director, Finance, Tata Sons Limited. The launch was also attended by
the top management of Tata Steel including the Managing Director, Mr B Muthuraman and
senior executives of the Company.
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