Enabling low-cost innovation and value creation in procurement

Enabling low-cost innovation and value creation in procurement

September 6, 2021 adminPress release0

Procurement organisations in India will have to assume a much bigger role in value engineering in a post-pandemic world. Any consignment remains stationary for 80 percent of the time in the supply chain journey.

When a consignment remains motionless, it appears not in the market where the end customer is waiting to access it, but in different warehouses and data management systems. This is the biggest supply chain paradox. This is the Keynesian “unintended accumulation of inventories” that has negative consequences on cash flow, cash conversion cycles, and inflation of warehousing real estate rentals and logistics. It also results in wastage of utility and lost sales opportunities.

Ease of doing business through the lens of procurement agility in the supply chain

One of the chief reasons behind this inertia is to be found in the digital divide facing procurement. Typically procurement organisations that operate with offline processes take anywhere between two to three hours to complete a procurement transaction, whereas those that operate with digital procurement platforms take three to five minutes.

Coming out of the pandemic, procurement organisations in India will have to assume a much bigger role in value engineering than being caught up in routine tasks. These include collaboration across the end-to-end value chain; enabling low-cost innovation; and ensuring faster completion of industrial projects.

Enabling low-cost innovation by sourcing mission-critical components

Procurement organisations will have to leverage sourcing of components and sub-assemblies to make low-cost innovation a reality. The rollout of low-cost innovative goods has the potential to invite the interest of large OEMs to make in India for the rest of the world. A great example of such affordable innovation is the low-cost air ventilator recently developed by the IIT Kanpur consortium; a life-saving product for patients in the face of Covid-19.

The future of supply chain and procurement in India

Procurement systems create a favourable feedback loop that percolates to the downstream supply chain by enabling faster go-to-market. Ease of procurement will be integral to unlocking demand at all levels in the supply chain for enabling faster rebound of economic growth.

AI and ML accelerating the growth trajectory at Moglix

September 2, 2021 adminPress release0

In an exclusive interview with Analytics India Magazine, Sandeep Goel, Senior Vice President, Strategy and Operations, Moglix, shares his insights and experience in the tech industry.

“Today, every organization is developing solutions specific to their needs. Still, portable models will become available over a period where models developed by one organization will be easily reusable by others, bringing speed to the deployment of AI/ML solutions,”
says Sandeep Goel

By leveraging artificial intelligence and machine learning algorithms, Moglix has been able to achieve major objectives such as clean data, accurate search results, data-driven decision making, cost optimization, 4X better efficiency, and better governance.

“At Moglix, our focus is on building products and solutions for our internal consumption and customers. Our experience in supply chain digitization, master data management, data mining, and procurement analytics is the core of our business,”
says Sandeep

Some of the programming languages used predominantly by our data science/analytics team are Java, Scala, PHP, Python, Angular.

Our tool stack includes Scikit, SpaCy, RabbitMQ, Cassandra, Mongo, ElasticSearch, and Apache. Other libraries include Pandas, Numpy, FBProphet, NLTK, SciPy, PDFminer, Pytesseract, APScheduler. For database management, we use an SQL server. Also, we use Matplotlib, Seaborn, Plotly for visualization, and GitHub for tracking.

Moglix Expands Business to the UAE

August 19, 2021 adminPress release0

Moglix enters the UAE as part of its global expansion plans. We will enable enterprises across the Manufacturing, Oil & Gas and Infrastructure sectors to transform their end-to-end supply chain, from procurement to distribution. Through our digital platform, supplier and buyer network, and logistics strength,
we bring down cost, enhance sales, improve operational efficiency, and make the supply chain touchless.

“We are excited to enter the UAE. UAE is a gateway to the GCC and a major hub of global commerce and innovation with a vision to transform into a Digital economy. The UAE government’s mission and investment in digital upskilling is unmatched and we are looking to collaborate with local talent to jointly drive digital transformation. Our vision to build the operating system for commerce is closely aligned with the Digital UAE initiative to make the UAE a Smart Country and we are looking forward to empowering stakeholders to achieve this goal.“
says Rahul Garg, CEO and Founder, Moglix

Moglix recently raised its Series E round of funding led by Falcon Edge Capital through their Abu Dhabi based Alpha Wave Ventures, becoming the first B2B Commerce unicorn in the manufacturing sector, with a total funding of $220 Million and a valuation of $ 1 Billion

Moglix expanding ESOPs Pool by $10M covering 300+ employees

July 27, 2021 adminPress release0

Moglix has expanded its ESOP pool further by $10 Million to include more than 300 employees under the program. We have also announced an ESOP buyback program worth $3 Million for all eligible employees with vested stocks on the heels of its recent fundraise. Employees will be able to sell up to 25% of their vested shares during the buyback.

“We believe ESOPs represent ownership mindset and belief in the vision. Typically B2B and Manufacturing are not seen as attractive sectors for talent. But through our ESOP program and our work culture, we want to make it rewarding and meaningful to work in B2B. We want to enable long-term wealth creation for employees and recognize their contribution and commitment.”
says Rahul.

One of the early joiners, Pankaj Kumar, who heads engineering and has been with Moglix for five years, shares, “Participating in the ESOP buyback was my “KBC” moment. You don’t imagine the scale of impact ESOPs can make in wealth creation, it can bring multi-generational change in just a few years. I have not encashed most of my ESOPs, as I know that no other investment can give these kinds of returns, and this is the confidence I have in the potential of Moglix.”

Moglix recently entered the unicorn club with the latest fundraising round from Falcon Edge Capital and Harvard Management Company. With end-to-end supply chain operations from sourcing to financing, 30+ warehouses, and a team strength of ~1000 employees, Moglix is Asia’s largest and fastest-growing B2B Commerce company focused on manufacturing and infrastructure

Moglix CEO on building the Catalogue for India

July 27, 2021 adminPress release0

“India operated pretty much without catalogues pre-Moglix. I would take the liberty of saying that Moglix is the catalogue for India.”

This is a powerful statement. But in his 15 years of professional career and six years of entrepreneurial journey, Moglix Founder and CEO Rahul Garg has proved that it can be the most disruptive company in the manufacturing sector globally.

“I started with the goal to bring the same level of convenience, technology, and supply chain efficiency that we see in our consumer world to the B2B world. And that is how we will build the infrastructure and capabilities, which will be required in the next 20 to 50 years for our country to become a manufacturing infrastructure powerhouse across the world,”
says Rahul.

Rahul’s ambition is to see India become a $10 trillion economy over the next 10 years, but that would need a collective effort from the country, he says.

While Moglix is busy strategising its global expansion plans, Rahul emphasis that the dent is far smaller given the size of the sector.

Strengthening the supply chain of essential equipment and vaccines

July 20, 2021 adminPress release0

After leaving a trail of death and disaster the second wave of Covid-19 is finally showing signs of abating. This is a golden opportunity for all stakeholders in India’s manufacturing supply chain to act now to delay the third wave.

The only long-term solution to fight Covid is vaccination. Central consolidation of vaccine procurement to the tune of 75%, with a 25% window for private hospitals will resolve several vaccine supply chain challenges. As seen in the case of Operation Warp Speed in the United States, a centrally administered vaccine procurement model will alleviate the bad Nash equilibrium emanating competition among state governments to procure vaccines on their own and foster greater collaboration.

Long-Term Focus: A National Supply Chain Stress Test for Critical Resources

A national supply chain stress test for critical resources may be conducted every financial quarter.

It should consist of three layers of descending priority levels:

To encompass items covered under the Essential Commodities Act.
To include the raw materials required by vaccine manufacturers deployed in the COVID19 vaccine.
To cover materials required in the infrastructure vertical.

Mukund Vasudevan joins team Moglix as SVP :Strategic Partnerships

July 14, 2021 adminPress release0

Mukund Vasudevan joins Moglix as SVP, Strategic Partnerships. He will be leading large transformation initiatives for Moglix customers and vendors globally. Vasudevan brings over 28 years of global leadership experience in the manufacturing and chemical sectors

I am passionate about manufacturing and making in India for the world. I am excited about Moglix’s vision to create the operating system of the future for the manufacturing sector. I look forward to being a part of the Moglix journey to make B2B supply chains more efficient through the use of technology,
Vasudevan said.

B2B Commerce Unicorn Moglix Acquires Vendaxo

July 7, 2021 adminPress release0

Moglix is proud and delighted to announce our recent acquisition of Vendaxo, an e-commerce platform for buying and selling used machinery. In a quest to build the operating system for the manufacturing sector, this acquisition will bring together complementary portfolios of manufacturing assets and will enable us to provide faster and scalable solutions to a larger number of customers at ease.

Vendaxo provides used machinery liquidation solutions to MSMEs and companies like Siemens, Arvind India, Marico, Raymond, and Torrent Pharma. This integration of Vendaxo in the Moglix ecosystem will prove to be a significant step in strengthening the vision of creating a sustainable and capital-efficient manufacturing ecosystem.

Supply Chain Consulting

July 4, 2021 adminGlossary0

Supply Chain Consulting

Home Glossary Supply Chain Consulting

What is Supply Chain Consulting

Supply chain consulting is a practice where consultants help companies make their supply chains effective and efficient. These consultants are often experts in the management of inventory and vendors. They have years of experience in procurement of raw materials, negotiating prices, and management of freight. Given the complexity of supply chains, you can significantly benefit from supply chain consulting.

How Does Supply Chain Consulting Help Companies?

A supply chain is the network of suppliers that companies have, from getting raw materials to supplying the product to their customers. Consultants can help them with every step of the supply chain process. Consultants can help companies with:

a. Planning the number of resources that will be needed at various times to meet the demand of customers. Consultants can lend their expertise to you in planning how much resources are required at different times.

b. Choosing the vendors to provide raw materials. Consultants might use their skills to make this step of the process more economical for you. They might suggest decreasing vendor ranges to increase efficiency. Buying in bulk to take advantage of economies of scale is another solution that consultants facilitate.

c. Coordinating delivery and logistics to supply the goods produced.

d. Creating a system to take back unwanted, discarded, and defective goods.

Importance of Supply Chain Consulting

Supply chain consultants have years of experience in supply chain management. They can utilize their skills to assess your supply chain and implement solutions to reduce costs. To ensure the flawless flow of goods and services from the point of purchase to the point of consumption, you should consider hiring a consultant. By

Consultants often implement tried and tested strategies like vendor consolidation where the range of vendors is reduced and the best vendors are selected. This strategy reduces the cost of purchasing, transaction costs, and increases efficiency.

Inventory management is another area where consultants can provide immense value. There are numerous practices you can implement to manage inventory. Consultants can help them decide which practice will be best given their operations.

Benefits of Supply Chain Consulting

Benchmarking
The most effective way of sorting your supply chain is by measuring where it stands and where its strengths and weaknesses lie. Benchmarking uses relevant metrics to accurately assess the performance of your supply chain. It provides you with tangible metrics that you can use to find out various bottlenecks so that you can implement solutions. Consultants can help you accurately perform a benchmarking test.
Companies can leverage the expertise of consultants
Supply chains are complex and tricky. You might find it tough to get supply chain management right. Consultants can solve a variety of problems by implementing innovative solutions that they have learned from their years of experience.
Dealing with disruption
Supply chains were massively affected after nearly the entire world was locked down because of the pandemic. Since the chain is increasingly connected nowadays, any disruption in the chain can cause a domino effect and devastate supply chains the world over. In situations like these, consultants can step in to offer solutions so that you do not have to stop operations because of supply chain disruptions.
Technology
Many businesses are hesitant to try new and innovative technology. Consultants can implement solutions like RFID tags, WMS, Pick to Light, etc., to make management easier as well as reduce errors. However, choosing which solutions to implement is tough to decide. Moreover, the whole process involves significant costs. Here is where consultants can help companies in implementing the most relevant and appropriate technological solutions your company needs.

Conclusion

Supply chain consulting is one of the ways you can get ahead of your competition. By solving supply chain problems and addressing bottlenecks, you can reduce costs and increase profitability.

Industries & Impact

My vision for Moglix is to change the face of industrial commerce: Rahul Garg

Now and Next in the Infrastructure Sector

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Moglix enabled Agile MRO Procurement at Scale through Workflow Digitization of large EPC company

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Spend Management

July 4, 2021 adminGlossary0

Spend Management

Home Glossary Spend Management

What is Spend Management?

In simple terms, spend management is all about controlling the spending of your business. It is the process of accumulating, maintaining, and analyzing the spending data of an organization. The prime motive is to reduce costs, boost efficiency, and manage compliances.

Spend management is a holistic approach process that affects multiple functions across the business procurement cycle. It covers requisition processing, planning, budgeting, supplier management, and inventory management. Apart from this, it also includes sourcing, contract management, and product development.

Are Spend Management and Expense Management the Same?

No, spend management is different from expense management. Expense management is all about controlling employee-related expenditures. At the same time, spend management is more about controlling variable and discretionary business spending.

5 Ways Spend Management can Add Value to Your Business

Higher Savings and Profitability

Spend management assists in detecting duplicate procurements.
It sheds light on different expenditures across verticals, and
You can negotiate on bulk orders leading to direct savings.

Improved Compliance

Spend management improves spend visibility by tracing, organizing, classifying, and documenting different types of expenditures.
It, in turn, helps in maintaining crisp spend data reports for auditors and other regulatory bodies.

Mitigate Cycle Times

The best part about spend management is that it helps in reducing product cycle times.
It regularises recurring decisions by defining ground rules and metrics for them.
All this further helps in whittling down the options and making faster decisions.

Strategic Benefits

Spend management promotes better transparency in the procurement process.
It also gives higher financial control to the managers through accurate statistics.
It improves organizational agility, productivity, and profitability.

Manage Risk

Spend management keeps track of vendors’ credibility and financial performance.
It helps in identifying risk beforehand and amending procurement plans.

What are the Steps of Spend Management?

Step 1: Identify the Major Sources of Spending

The first step includes identifying the major expenditures in the organization like utilities, marketing, and more. At the end of this exercise, you will get a bird’ eye view of the spend statistics. It is also an excellent way to identify hidden savings options.

Step 2: Centralise Data

Ensure you appoint a team to centralize and maintain all the critical and sensitive data in one place. Apart from this, they must further analyze the data to get an integrated view of the business spending structure.

Step 3: Cleanse and Verify Data

You need to analyze further, interpret, and confirm the data to reach logical solutions. And how are you going to do it? By validating all the payment entries, deleting duplicate information, checking inventories, and more.

Step 4: Categorise Your Spend Data

Grouping data is crucial for the spend management process. All you need to do is make different categories and start allocating expenditures to them. You can also do it by creating versatile formats and data structures. At the end of the exercise, you will have a crystal clear expenditure status of every category on a single page.

Step 5: Analyse Expenditures

Using machine learning and artificial intelligence to analyze spend data will be a wise move for businesses. It will highlight the repetitive expenditures and help managers in creating spend benchmarks.

Step 6: Strategize and Execute Changes

Once you get everything straight on the table, it is the right time to strategize and implement changes. For the changes to be successful, it needs participation and acceptance of all the stakeholders.

Bottom Line

Unfortunately, many companies fail to understand the importance of spend management in current times. The result is time-consuming and inefficient processes. Thus, it is high time businesses get serious about managing their spending. No matter how big the business’s profits are, controlling expenditures is an excellent way to save money, effort, and time.