“We are beginning to see the new era for the tyre industry where we move beyond the core product and get into how it will enhance the end user experience. There are multiple facets of looking at TaaS Tyre-as-a- Service. The Pay per Kilometer model allows buyers to be relieved of all maintenance hassles and would allow them to only pay for how much they use. The upkeep maintenance stays with us – the tyre experts. In addition, we will also see Smart tyres make way in the future, which can share important data in real time – resulting in lesser damage and longevity of the tyres, thus, enabling customers to derive more value in the long run,” shares Vinay S. Chauhan, Head – Logistics and Supply Chain, Bridgestone India, during an exclusive interview…
I am sure the past six months must be harsh for the tyre industry in the wake of Covid pandemic. How did you survive and sustain the catastrophe?
With parts of the world being majorly affected, it was apparent that this is going to be a major disruptor globally. With this, some of Bridgestone operations in different parts of the world were also affected. However, through our global network, we were able to adapt their learnings in the Indian context and take necessary actions right from the start. The interesting part of handling the end-to-end supply chain is that you have the visibility of any issue from the start to the end. And this was a rare occasion where we were pressure tested at each & every link of the supply chain. For us, it was an opportunity to put to the test the 4S Framework (Secure, Streamline, Sustain and Shift) that we quickly adopted to navigate through this challenging situation as it evolved. It was about securing the Resources, Streamlining the chain, Sustain the supply chain so that once operations resume how do we manage and Shift to the new normal ways of work. As we worked towards streamlining and sustaining our operations, we still faced multiple challenges as certain parts of the country still remained under lockdown. This 4S approach however, had been critical in our ramp up and safeguarding our operations. It not only enabled a seamless collaboration within the team but also helped us to support our CNFs and suppliers during these tough times.
What were the challenges faced, and how did you address them?
The biggest challenge that we faced was the closure of shipping for some time. This resulted in some of the imports being delayed. The agility of the team and our global footprint enabled us to ensure the delays do not breach our production operations. During the lockdown, we quickly realized that though tyres are not under essential commodities, commercial tyres would be required for vehicles plying under essential commodity movement. Therefore, the team geared up for supply arrangement beyond our traditional method of delivery. Pune and Indore are where our manufacturing facilities are located. The pandemic had severely hit both these locations. Hence ramping up plant operations was a challenge. Our HR team and plant managers did a fantastic job to gradually ramp up operations while securing the safety of employees and partners. For Bridgestone, safety is at the core of everything we do, and this step was no different. Once the markets opened, we observed volatile forecasts and unpredictable demand situation and to manage this, our team started the weekly review of the demand & supply situation and ensured a closure connect with market to plan the logistics better.
How did you align your supply chain to cater to the changing dynamics?
The situation is still very fluid & dynamic and hence alignments if any cannot be done on a long-term basis. Our sourcing strategy, inventory, strategy and delivery strategy are all undergoing review & constant change.
How did you work towards enhancing connect with the distributors and after-sales service requirements?
Our supply chain team work closely with our sales team to know the market insights as well as the sentiments of our channel partners and we have been working towards translating this knowledge into action plans best suited as per the situation.
How did you work with your 3pl service providers in such tough times? How do you see the wheels of the game, changing?
Our prime concern was to sustain the safety of our employees. During the pandemic, we did not lose focus on communicating with all teams as learnings from the field, and other locations were also being shared. OEMs too had issued strict safety norms, and as responsible suppliers, we did abided by them. We also initiated contactless solutions to prevent the spread of infection to 3PL members. I would like to appreciate the way the 3PL partners rose to the occasion, evolved, adopted & ensured that we have seamless supply operations. It definitely helped us convert this crisis into an opportunity.
What are the five supply chain change points that you have worked upon to work towards the new normal?
The five change points are:
Great focus on Security & safety
Going contactless and leveraging the power of Digital
Handling work with increased work life balance
Agility to respond
More Proactive approach to possible eventualities.
What are the global best practices you have emulated from the parent company?
The focus on employee safety, adherence to compliance, and culture to serve society with superior quality are the philosophies, which are deeply ingrained in Bridgestone culture.
How has been the digital transformation taking place at Bridgestone over the years?
At Bridgestone, digitization has been a strong enabler for us and it has gained more traction in the new normal. The 360-degree application of digital has allowed us to not only manage the operations well but also create smarter solutions for our channel partners and consumers at large.
How is technology deployment taking shape to prepare for the post Covid era?
Technology is an extremely broad term. Its application starts with raw material tracking to the connected solutions to the customers. Without a doubt, the post COVID era will see an impetus to the rate of technology growth, which is already at the forefront for increasing efficiency & effectiveness
How can the tyre industry work towards sustainable expanse?
As the social and environmental impact of climate change, resource depletion and biodiversity loss has become more pronounced. Bridgestone Group established a framework for Sustainable Business, in harmony with nature. And this focus is seen throughout our value chain right from the way we source raw materials to creating sustainable products and solutions. Bridgestone Group has set a goal to reduce its absolute volume of CO2 emissions from its own immediate production activities. In addition, the Group will accelerate its contribution to the reduction of CO2 emissions through products and solutions. In this way, the Bridgestone Group will pursue CO2 reductions throughout its product lifecycle and entire value chain.
Where do you see the tyre industry going from here on?
We are already beginning to see the new era for the tyre industry where we move beyond the core product and get into how it will enhance the end user experience. There are multiple facets of looking at TaaS Tyre as a Service. The Pay per Kilometer model allows buyers to be relieved of all maintenance hassles and would allow them to only pay for how much they use. The upkeep and maintenance stays with us – the tyre experts. In addition, we will also see Smart tyres make way in the future, which can share important data in real time – resulting in lesser damage and longevity of the tyres, thus, enabling customers to derive more value in the long run. Overall, it's an exciting space to be present in.
What are the policy imperatives you seek from the government?
As long as we have a level playing field, government's best job is of governance. The government is taking the right steps in the aspect of governance and being an agent of change. Making custom faceless, encouraging DPD, focus on infrastructure, an aspiration to reduce the logistics cost in line with the global norms are some of the key areas of the work by the government.
How upbeat are you with the supply chain policy developments happening in the country? Your quick tips for the supply chain reset.
As explained above the policy developments are in the right direction. However, with digitalization, I see a lot of opportunities to improve efficiency in the operations. Collaboration with the right partner is the way forward. We look forward to businesses engaging with us to explore Win-Win propositions by collaborations.
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