Connecting to New Growth Opportunities: The Gorakhpur Link Expressway
Connecting to New Growth Opportunities: The Gorakhpur Link Expressway
Packing a punch within a 91 km expanse, the Gorakhpur Link Expressway will have a total commercial outlay of INR 5876 crore. The expressway will connect the Gorakhpur district to the Purvanchal Expressway in Azamgarh district.
UP Government’s 3rd Major Infrastructure Development Roadway:
The Gorakhpur Link Expressway is the third announcement after the Ganga and Purvanchal expressway road projects announced by the state government in recent years. Clearances and inauguration were approved in 2018, and by January 2022, more than 50% of the earthwork had already been completed.
The chosen contractors (Apco Infratech and Dilip Buildcon) will build the expressway according to the Engineering, Procurement and Construction (EPC) model. It is expected to improve ground connectivity between Gorakhpur and Azamgarh and reduce travel time to less than 5 hours. The Gorakhpur link expressway will be linked with Varanasi through a separate link road in the future.
A Stellar Addition to An Ever-Impressive list of National Infrastructure Projects (NIP) in India:
The project is completely access controlled and will have relief service roads for local transport. It is expected to cover two toll plazas, three ramp plazas, 27 minor bridges, more than 50 vehicular underpasses for light vehicles, 16 vehicular tunnels and more than 30 pedestrian underpasses.
Highway to Economic Inclusion and MSME Growth:
The project was in danger of being severely delayed by the Covid19 pandemic and labor and supply chain issues caused by the two phases of the lockdown. However, through better planning and extraordinary efforts by the contractors, the project is expected to regain lost time to achieve its previous completion targets. The environmental footprint by reduced travel time and distance is enormous. It will also provide much-needed logistical relief to many industrial training and medical institutes expected to be built along the expressway.
Contractors dealing with a high complexity layer of suppliers for raw materials, expected delays, lockdowns and labor issues would do well to digitize their procurement backbone through a centralized platform for better visibility and predictability.
A Digital Procurement Solutions Approach for New-Age Contractors:
As one can imagine, a project of so many moving parts needs intense coordination in procurement and the supply chain of raw materials. A single missing link in the chain results in labor inefficiency, time delays and a bloated budget. Some key takeaways for contractors and suppliers to usher in a transformation in crucial infrastructure projects:
- Adopt a flexible, reliable and digital procurement solution to reduce the PR to PO cycle. A slight reduction in the time cycle can have a lasting impact on costs.
- Digital procurement enables end-to-end flexibility and transparency of the procurement chain, involving many materials like TMT bars, cement plates and ready mix concrete.
To know more about how an EPC solution can work for your construction or infrastructure project, reach out to Moglix. Explore the best raw material procurement solutions for infrastructure companies. Click here to know more: https://business.moglix.com/our-solutions/infrastructure
Leveraging Cloud and Data Science to Manage Demand Spikes
Leveraging Cloud and Data Science to Manage Demand Spikes
Noida-based Moglix has played a pivotal role in transforming B2B commerce since its launch in 2015. Having achieved the distinction of becoming the first unicorn in the industrial B2B commerce platform in the manufacturing space, the company is experimenting with a slew of technologies to manage data and the spikes between the business cycles while providing a consistent user experience.
“If you look at the 100% of the orders that we process in a month, the first half of the month is slightly leaner, where we would do about 25% of the transactions. Maybe in the next five days, we will do an additional 25%, and during the last 5-10 days, a big chunk of transactions will occur,”
says Puneet Kumar, VP Tech, Moglix
“There is much information moving to and fro between systems, and a lot of them are financial in nature, having very core data from the customer side, the supplier side. So, there is much focus on the security of the systems we take care of really well. As we start transacting with more and more businesses, the volume of data that we are storing is also going up. So, again, efficient cloud models will enable us to scale up those demands,”
Kumar adds.
The company says that it follows security at multiple levels, such as data encryption, which happens at the application and network level, two-factor authentication levels, and making data as granular as possible based on the user’s role. Kumar also talks about how Moglix ensures a consistent and integrated user-centric and cross-channel customer experience.
Leadership in 2022: Building Workplace Resilience
Leadership in 2022: Building Workplace Resilience
One of the leaders I have greatly admired is the late former prime minister Shri Lal Bahadur Shastri who was not only a phenomenal global leader but was also known for employing humility and good governance in his playbook to bring many structural reforms in the Indian economy and lead the way for India in times of crisis.
Every leader has a unique way of handling a crisis – and what differentiates good leaders from others is the way they lead in times of adversity, turn obstacles into opportunities, and navigate the way ahead for their workforce.
But it’s easier said than done.
Sometimes in adversity, leadership can be in a crisis too.
Adapt and Evolve
India, which did not manufacture personal protective equipment (PPE), went from just three lakh PPE kits in January 2020 to becoming the world’s second-largest PPE manufacturer, producing 450,000 units daily within a year. As the demand for PPE skyrocketed, Indian businesses leaned on innovative approaches to repurpose their own production lines to meet this excessive demand and ensure business continuity. While a number of alcohol manufacturers set up labs to manufacture sanitizers, some textile manufacturers repurposed their factories to churn out protective gear. This adaptive approach to leadership displayed by Indian manufacturers allowed them to understand the risks quickly, reduce dependence on external procurement, and emerge profitable.
Empathize and Nurture
Nurturing employee well-being also became critical to developing workplace resilience. Even when the pandemic ruptured our personal lives and health, proactive leaders were busy developing remote workflows and setting up flexible working environments to create clear and frequent lines of communication. Sharing tales of courage and countless stories of kindness rekindled hope and faith among employees while monthly meetings, informal virtual connect sessions and mental health programs created a positive momentum on overall employee wellbeing in the hybrid working model.
Building a future-ready business
Make products that your customers want and will need in the future. Innovation will be key to lead this transformation. For businesses to scale further in the post-pandemic environment, leaders will be required to employ strategic levers which will drive the maximum impact required for the business to thrive. They will need to experiment small and scale big, making sure the budgets are being utilized in the right way. They will have to get creative and explore newer distribution channels, tap into their network, and be unafraid to disrupt or get disrupted. Only then will we emerge stronger and lead the way for a revitalized supply chain business and leadership in 2022.
The Ganga Expressway Road Development Project: 5 Highlights
The Ganga Expressway Road Development Project: 5 Highlights
The 594 km long Ganga Expressway, a 6-lane wide (expandable to 8) expressway in Uttar Pradesh, will be the longest built under the DFBOT (design, finance, build, and operate) scheme. The expressway will connect Meerut to Prayagraj (erstwhile Allahabad).
A Gateway to the World-Famous Kumbh Mela:
The ambitious Ganga Expressway project was inaugurated in December 2021 and is expected to be completed in 2024. The expressway will run parallel alongside the river Ganga and connect the state’s west and east regions. It will pass through 12 districts of Uttar Pradesh, namely (from west to east), Meerut, Hapur, Bulandshahr, Amroha, Sambhal, Budaun, Shahjahanpur, Hardoi, Unnao, Raebareli, Pratapgarh and Prayagraj. It will connect Bijauli village near Kharkhauda on NH-334 in Meerut district with Judapur Dandu village near Soraon on NH-19 in Prayagraj district.
A Stellar Addition to an Ever-Impressive List of National Infrastructure Projects (NIP) in India:
The project will be a shining example of infrastructure development in India after completing both phases. Two private contractors (IRB and Adani Group) have won the right to execute the expressway as per the bidding rights that the UPEIDA awarded. The expressway has had special environmental clearance granted to it and is expected to serve as an artificial barrier alongside the banks of the River Ganga. The transit freeway will protect the flood-affected area in the districts it traverses.
Highway to Economic Inclusion and MSME Growth:
The Ganga Expressway project is a greenfield project estimated to be INR 36,000 crore in value, including land acquisition cost. It will cover 140 water bodies and have seven road overbridges, 17 interchange roads, 14 big bridges, 126 minor bridges, 28 flyovers, 50 vehicle underpasses, and 946 culverts. Suffice to say, the complexity in the procurement of raw materials across hundreds of suppliers is bound to increase the project complexity.
With special environmental clearance granted to the project, the raw material specifications and criticality of timelines will play a significant role in the successful and profitable completion of the project. The expressway is expected to cut short the travel time from Delhi to Prayagraj by almost 50%, besides providing impetus to the logistics needs of the agro-belt in the included districts.
A Digital Procurement Solutions Approach for New-Age Contractors:
As one can imagine, a project of so many moving parts needs intense coordination in procurement and the supply chain of raw materials. A single missing link in the chain results in labor inefficiency, time delays and a bloated budget. Some key takeaways for contractors and suppliers to usher in a transformation in crucial infrastructure projects:
- Adopt a flexible, reliable and digital procurement solution to reduce the PR to PO cycle. A slight reduction in the time cycle can have a lasting impact on costs.
- Digital procurement enables end-to-end flexibility and transparency of the procurement chain, involving many materials like TMT bars, cement plates and ready mix concrete.
To know more about how an EPC solution can work for your construction or infrastructure project, reach out to Moglix. Explore the best raw material procurement solutions for infrastructure companies. Click here to know more: https://business.moglix.com/our-solutions/infrastructure
Infrastructure Makeover in Progress: Bundelkhand ExpressWay
Infrastructure Makeover in Progress: Bundelkhand ExpressWay
The 296 km long Bundelkhand Expressway is a 4-lane wide (expandable to 6) under-construction access-controlled expressway in Uttar Pradesh, India. It is the 4th currently under construction expressway in India’s most populous state.
An Expressway to a Significant Cultural and Pilgrimage Center, Chitrakoot:
While the state government of Uttar Pradesh announced the Bundelkhand expressway project in 2017, the foundation stone ceremony took place in February 2020 at the hands of the Hon. Prime Minister Shri Narendra Modi. Bundelkhand Expressway will pass through 7 districts of Uttar Pradesh, i.e. (from north to south) Etawah, Auraiya, Jalaun, Hamirpur, Mahoba, Banda and Chitrakoot.
A Stellar Addition to an Ever-Impressive List of National Infrastructure Projects (NIP) in India:
The ambitious project will run a distance of 296 km. Its construction cost is estimated to be around INR 7,766 crores. The construction work is divided into six packages and awarded to 4 different contractors who will construct 4 railway-over-bridges (ROB), 14 major bridges, 268 minor bridges, 18 flyovers, 6 Toll Plazas, 7 ramp plazas and 214 underpasses. The real value add of the expressway will be the boost it will give to the cultural and religious tourism in the districts while also connecting some of the state’s most underdeveloped communities to the bustling National Capital Region (NCR).
Paving the Road to a Fast-Tracked Infrastructure Ecosystem in India:
Being built under the auspices of the National Infrastructure Pipeline, the Bundelkhand Expressway follows the recent trend of large infrastructure projects awarded on an Engineering, Procurement and Construction (EPC) model. The design, construction and handover of the complete expressway thus become the end-to-end responsibility of the contractors.
There are two significant challenges for contractors, suppliers and vendors associated with the project. First, the far-flung and underdeveloped nature of the districts represents logistical nightmares for a stable supply chain of raw materials. Second, the expressway is a critical element of the Defense Corridor development in Uttar Pradesh. Delays in construction translate to rising costs for the contractors and the government alike.
A Digital Procurement Solutions Approach for New-Age Contractors
As one can imagine, a project of so many moving parts needs intense coordination in procurement and the supply chain of raw materials, consumables, and made-to-order manufacturing solutions. A single missing link in the chain results in labor inefficiency, time delays and a bloated budget. Some key takeaways for EPC companies, contractors and suppliers to usher in a transformation in crucial infrastructure projects:
- Adopt a flexible, reliable and digital procurement solution to reduce the PR to PO cycle. A slight reduction in the time cycle can have a lasting impact on costs.
- Digital procurement enables end-to-end flexibility and transparency of the procurement chain, involving many materials like TMT bars, cement plates and ready mix concrete.
To know more about how an EPC solution can work for your construction or infrastructure project, reach out to Moglix. Explore the best raw material procurement solutions for infrastructure companies. Click here to know more: https://business.moglix.com/our-solutions/infrastructure
Last-Mile Delivery
Last-Mile Delivery
Last-Mile Delivery
What is Last-Mile Delivery?
With technology advancing so fast the world has become one giant tech village. Entertainment, communication, commerce has been facilitated, providing a consumer in any part of the world with a plethora of options to choose from, causing a frantic surge in the functions of b2b supply chains. It has generated cut-throat competition among sellers to provide the best customer experience with quality products, fast delivery, and grievance redressal.
Last-mile delivery is essentially the journey a product makes from a transportation hub to the final delivery destination, i.e. the consumer. This process may include shipment of the product from manufacturing departments to the warehouse shelf, travelling at the back of a cargo truck right up to the customer’s doorstep. The aim of last-mile logistics is to deliver items to the end-user as fast as possible.
What Is The Importance of Last-Mile Logistics?
One of the most prevalent problems of b2b and retailers is of the last mile. While it is the key ingredient to customer satisfaction, it is also the most costly and time-consuming. The popularity of e-commerce with the ever-increasing number of parcels each day increases customer expectation of fast and free delivery. In keeping up with competitors, retailers are forced to provide the option of free delivery to customers leaving the transportation and logistics intermediaries to shoulder these costs. Last-mile delivery costs make up a substantial portion of the overall cost of shipping — comprising 53% overall.
Other than costs, businesses need to be prepared for the time consumed to deliver the product to the end-user. Tracking the same is costly, and once the product is ‘out for delivery’ it seems to take ages. This process is severely inefficient and includes multiple stops with low drop sizes. In rural areas delivery stops on some routes may be extremely far apart, with only a couple or more parcels to be delivered which takes all day. While urban regions don’t have that issue, delays due to traffic congestion are rampant there.
What Is The Last-Mile Problem?
One of the most prevalent problems of b2b and retailers is of the last mile. While it is the key ingredient to customer satisfaction, it is also the most costly and time-consuming. The popularity of e-commerce with the ever-increasing number of parcels each day increases customer expectation of fast and free delivery. In keeping up with competitors, retailers are forced to provide the option of free delivery to customers leaving the transportation and logistics intermediaries to shoulder these costs. Last-mile delivery costs make up a substantial portion of the overall cost of shipping — comprising 53% overall.
Other than costs, businesses need to be prepared for the time consumed to deliver the product to the end-user. Tracking the same is costly, and once the product is ‘out for delivery’ it seems to take ages. This process is severely inefficient and includes multiple stops with low drop sizes. In rural areas delivery stops on some routes may be extremely far apart, with only a couple or more parcels to be delivered which takes all day. While urban regions don’t have that issue, delays due to traffic congestion are rampant there.
Optimizing The Last-Mile
Traditional transportation services such as UPS, USPS, or FedEx in the US or DTDC in India, are not equally successful and profitable in all regions of the world. B2b chains and retailers are beginning to realise this and are looking for alternatives to satisfy their growing needs. In this regard, the gig economy is actually a lifesaver. From taking a cab to reach one’s destination to getting flowers delivered to someone, or booking a hotel, crowdsourcing local services through online platforms like Uber, Zomato, Airbnb, etc extends to several industries like food, hospitality, transportation.
Retailers can use this crowdsourcing model to optimise their last-mile delivery issues. Retailers, logistics partners, and consumers can connect directly with local, non-professional couriers who use their own transportation to make specific deliveries. It reduces the time and gives freedom to make scheduled and on-demand deliveries. Other alternatives include click-to-collect locations, drones, etc. With the focus on last-mile delivery alternatives, retailers can adapt to the ever-changing retail environment.
Industries & Impact
My vision for Moglix is to change the face of industrial commerce: Rahul Garg
Now and Next in the Infrastructure Sector
Moglix enabled Agile MRO Procurement at Scale through Workflow Digitization of large EPC company
Ethical Procurement
Ethical Procurement
Ethical Procurement
What is Ethical Procurement?
The word “ethics” in buying and supply management refers to a wide range of issues. It ranges from trader business dealings. Some major themes that relate to ethics in organizations include fair trade and moral trading. It also includes social liability, social auditing, and corporate citizenship.
Ethical sourcing rules are active norms. An open-sourcing plan should also explain the procedures. It should also explain the methods used at each level of the procurement method. It helps in analyzing and interacting with a supply market to keep supplier relations.
What is the Use of Ethical Procurement?
Ethical procurement is a blend of source-chain dealing skills and satisfying legalities. Various societies have diverse views on the value of their profit.
Ethical procurement requires alertness of a company’s social and lawful tasks. It also needs a planned tactic to remove immoral behaviours from its procurement actions. A bribery outrage, for example, might result in huge penalties. However, long-term damage to a firm’s status might bring it to the doldrums if it loses its consumers’ trust. As a result, ethical procurement must be pursued.
How Does Ethical Procurement Work?
Ethical procurement would be the default state of things for businesses of all kinds and sorts. It is doing the right thing for the firm and society. But, of course, it isn’t fair to suggest that ethics and morals are equal. Instead, being moral is just fine and compatible with one’s beliefs. Real-world procurement experts know that even the strictest code of ethics may be put to the test in a world where conflicts of interest and other immoral events are all on the rise.
Ethical procurement works on the following principles:
- Globally declared human rights should be supported and respected by trades.
- It establishes that they are not implicated in any abuses of human rights.
- Companies should also help the actual salutation of shared trading rights.
- All types of forced and bound labour must be eliminated.
- The effective abolition of child labour.
- The removal of jobs and job discrimination.
- Ecological snags should be approached with prudence by industries.
- Take steps to inspire people to be more globally aware.
- Support creation.
- Support the spread of natural social skills.
- Companies should combat all types of corruption.
What are the Advantages of Using Ethical Procurement?
Integrity: It refers to maintaining expert honesty by refusing any fraudulent business practice. It ensures that information given in the course of work is precise and not misleading. It should never breach the privacy of information received. Our firm should strive for genuine, fair, and clear competition.
Compliance: We should follow the laws of the nations. We should also keep contractual promises.
Protection: This means protecting the profession by refusing to accept inducements or gifts. It means refusing to allow offers of hospitality. It can be perceived to influence any business decision. It fosters awareness of unethical practices. It helps in sensibly managing any business relations where corrupt practices exist.
Proficiency: Continuously learning and using the info to improve personal skills. The working group promotes the highest levels of expert ability among people in charge. It also maximizes the ethical use of funds for the benefit of the group.
An ethical procurement expert is someone who performs his occupation with honesty. He does not engage himself or his concerned business in partial practices. Public sector organizations must ensure the goods they procure are obtained sensitively. The teams that create these items work in a safe and fair environment. Ecological and social costs should always be measured.
Industries & Impact
My vision for Moglix is to change the face of industrial commerce: Rahul Garg
Now and Next in the Infrastructure Sector
Moglix enabled Agile MRO Procurement at Scale through Workflow Digitization of large EPC company
Direct Procurement
Direct Procurement
Direct Procurement
What is Direct Procurement?
Direct procurement is a method of acquiring resources to produce a company’s product or service. These acquisitions are usually made in bulk from a pool of vendors to get the highest price from the customers. It also helps maintain the quality and reliability of the products. The goods and services bought through direct procurement quickly make their way to the company’s end consumer or client. Companies cannot manufacture their goods and generate income if direct procurement ceases or encounters challenges. In other words, spending on services, interests, and materials that create profit, performance, and competitive advantage is direct procurement.
In practice, direct procurement consists of a series of related processes that span a product’s entire lifecycle and involve internal and external stakeholders from procurement, logistics, accounts, engineering, the supply chain management team, and the suppliers that comprise the supply chain. Direct procurement is mainly found in manufacturing industries, where raw materials are transformed into physical products.
What are the most significant aspects of direct procurement?
Long-term relationships – Direct procurement teams tend to cultivate long-term, collaborative relationships with their suppliers to boost quality and improve efficiencies over time. Delivery schedules and consistency directly influence production. The quality of raw materials impacts the final product’s quality and, consequently, the organization’s reputation and credibility. In this process, partnerships with suppliers are typically long-term and collaborative. As a result, companies can spend more time developing and managing supplier relationships.
Planning – Direct procurement manages the core supplies that the business requires to run its day-to-day operations. As a result, it requires special attention to ensure resilience. Hence, the companies must carefully plan the budget to avoid supply chain disruptions.
Inventory – Raw materials should be frequently retained in the capital when using direct procurement to enable continuous and defer-free production. It will ensure that the inventory is never empty and that the business grows unhindered.
Centrally automated – Direct procurement is based on a centralized system in which the category managers devote their time and talent to directly purchase specific goods and services. It enables quick acquisition of products without undergoing any hassle.
Saving costs – Direct procurement is carried out by a method in which the actual costs incurred for the offering of direct materials are calculated and compared to the price set during negotiations. This ensures complete transaction transparency.
Deep knowledge – Setting up and orchestrating a global supply network of numerous partners, who collaborate in complex processes, necessitates extensive knowledge and abilities. Because the stakes are high, direct supply chain execution systems must establish connections and visibility between manufacturers, BPO firms, logistics providers, raw material suppliers, banking partners, etc.
Boundaries – Because most businesses are geographically dispersed, the world is a tiny place for direct procurement. A direct procurement system usually operates worldwide and locally (local in terms of language, currency, user connectivity methods, etc.).
Supply chain environment – Direct procurement typically has a considerably larger supplier base, and the procedure sometimes requires longer lead times since more valuable items are at stake. As a result, errors in the case of direct procurement have far more weight, and process inefficiencies can cause significant disruptions in corporate operations and result in revenue losses. Hence, direct procurement management is influenced by supply chain mobility and supplier base health.
Technology – Direct procurement enables businesses to technologically manage their direct product order lifecycles, from funding the supply chain to final delivery. These services connect purchasing organizations with suppliers and provide anticipated billable sales ahead of schedule. They provide more precise and thorough lead-time estimates by offering visibility into the company’s activity and progress. Multiple-level ordering functionality and coordination tools enable enterprises to manage multi-tiered supply chains, making it easier to ship internationally, combine shipments, and keep track of shipping operations.
Industries & Impact
My vision for Moglix is to change the face of industrial commerce: Rahul Garg
Now and Next in the Infrastructure Sector
Moglix enabled Agile MRO Procurement at Scale through Workflow Digitization of large EPC company
Chief Procurement Officer (CPO)
Chief Procurement Officer (CPO)
Cheif Procurement Officer (CPO)
Who is the Chief Procurement Officer (CPO)?
A Chief Procurement Officer or CPO is in charge of managing the sourcing and procurement of a business. The primary job of a CPO is to ensure that the supply chain management is functioning smoothly. With the world becoming one giant tech hub, supply market risks, the pressure of compliance, automation in matters of procurement have suddenly put forth numerous challenges for b2b supply chains.
And it gave rise to the growing need for a procurement department with well-trained staff and an executive to oversee things. That executive is the CPO. There has been a rising demand to increase expenses under management and improve the visibility of the procurement division’s specialization to help in better cooperation among employees and departments.
What Are the Skills Required to Be a CPO?
From numerous surveys conducted, it has been observed that certain common skills are found and required in CPOs.
Excellent leadership skills are required to oversee the entire production process. Managing and mobilizing cross-functional teams has to be undertaken by a CPO.
CPOs are in charge of developing new products following the company’s vision and objectives. They have to answer for every new product formulated and manufactured. Thus they need to have a strategic vision for products.
A CPO must have good communication skills as they have to interact and coordinate with stakeholders, manufacturers, and customers. They need to be keenly empathetic to customer demands, grievances, and possible redressal. Due diligence is a make-or-break moment for a developing business.
A CPO has to deal with a lot of data regularly. They might be overseeing revenue and profits, churn rate and retention, product engagement, etc. Making data-driven and objective decisions is not always easy but such has to be the expertise of a CPO
What Are the Functions of a CPO?
The CPO holds an executive position and has to oversee numerous product-related activities as a strategic leader. Usually, a CPO is responsible for the administration as well as supervision of the company’s acquisition programs. They may be in charge of the contracting services and manage supply purchases, equipment, and materials. It is often their pre-defined responsibility to source goods and services and to negotiate for prices and contracts.
Some important functions of a CPO are to oversee product strategy, cultivate creative product designs, research on behavioral patterns and purchase tendencies of end-users, forecast the growth of a product in upcoming markets, advertising and marketability, making product analytics and metrics. It is also the CPO’s responsibility at times to interview, recruit, train and supervise employees in the production department. The CPO has immense responsibilities across the product cycle, from the idea of a new product to, right till it is realized and sold to consumers.
What Are the Other Functions of a CPO?
In a small company, the procurement officer may work alone, but often there is a team that executes the purchasing process. CPOs who work in multinational corporations have to manage a global team with widespread but varied resources. Some CPOs are in charge of finding optimum sources for supplies and services and developing good relations with suppliers.
CPO ensures that records of all vital information regarding purchases and services are preserved. They keep inventory levels up to date and take accountability for forecasting the upcoming supply needs of a business. CPO is the primary leader of the purchasing team and it is their responsibility to ensure that policies of the company regarding procurement are followed.
Industries & Impact
My vision for Moglix is to change the face of industrial commerce: Rahul Garg
Now and Next in the Infrastructure Sector
Moglix enabled Agile MRO Procurement at Scale through Workflow Digitization of large EPC company
Advanced Quality Planning
Advanced Quality Planning
Advanced Quality Planning
What is Advanced Quality Planning?
Advanced Quality Planning (AQP) is a set of procedures and techniques to standardize product quality requirements. It aims to ensure customer satisfaction. Advanced quality planning seeks to reduce the complexity of product quality planning by facilitating communication between all stakeholders (customers and suppliers).
It requires that all the identified processes and necessary steps are applied correctly. It also ensures that the expectations and needs of customers are met and that each stage of the product development process is carried out efficiently so that the quality, timing, and cost commitments are also achieved.
Beginning of Advanced Quality Planning
The beginning of AQP dates back to the 1980s when it was developed in the automotive industry. Initially, Ford, Chrysler, and General Motors published it jointly.
It was also included in the QS-9000 Quality Systems Requirement Manual. The intention was to develop universal quality planning principles to provide a common understanding to all their suppliers. The AQP guidelines establish principles and standards to ascertain that customer quality requirements are met.
Phases of Advanced Quality Planning:
There are 5 phases of advanced quality planning (AQP). These are listed below:1. Planning
2. Product Design and Development
3. Process Design and Development
4. Product and Process Validation
5. Feedback, Assessment, and Corrective Action
Why Do We Need Advanced Quality Planning?
Advanced quality planning is more than just establishing standards for quality planning and management. It touches every aspect of business, including suppliers. It detects and mitigates quality issues before they reach customers. Some far-reaching benefits of advanced quality planning include:
1. Better Quality and Standards: AQP allows customers to easily communicate and give feedback. These feedbacks and insights combined with advanced statistical tools, processes, and product parameters help to build quality products. It raises the brand value and provides a competitive edge.
2. Increased Customer Satisfaction: It streamlines the product development process. It helps in incorporating assessment and corrective actions to increase overall customer satisfaction. Disruptions are also avoided by continuously monitoring and implementing identified processes.
3. Faster Delivery: One of the positive outcomes of advanced quality planning is faster product delivery. Understanding the requirements of customers ensures efficient use of resources. The rapid development of products and faster delivery is achieved with minimal costs.
4. Cost Reduction: Strict adherence to advance quality planning eliminates waste. Accurate and efficient production saves money and time. AQP makes it much easier to control, monitor, and improve production operations.
5. Effective Communication: AQP facilitates communication between suppliers and consumers and also involves vendors. It is a basic requirement to maintain product conformity. Effective communication mitigates or reduces risks or misunderstandings.
6. Quicker Detection and Resolution of Problems: AQP helps detect and resolve issues as and when they arise. If problems are not detected in their early stages, they may reach customers and become unmanageable. This situation adversely affects brand value in the long term.
What Advanced Quality Planning is Not?
Almost all organizations have some levels and techniques of advanced quality planning. It is not something new or alien to a business. In some cases, it may be done informally. The aim of reducing problems and gaining customer satisfaction may not be written down, but all organizations are working towards it.
AQP is also not as complex as it is thought. It is not only a standardization practice or a standalone activity, it is also an integral part of business strategy to achieve the final goal of customer satisfaction. It is also not secondary to other business processes or activities.
Industries & Impact
My vision for Moglix is to change the face of industrial commerce: Rahul Garg
Now and Next in the Infrastructure Sector
Moglix enabled Agile MRO Procurement at Scale through Workflow Digitization of large EPC company
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