Supply Chain Blog

Exclusive interview with Deepak Chandrashekar(Asia Purchasing) Rolls Royce, Razum Rajan (M.D) View, ground report at Novotel Juhu, more...

by Team View

Posted on May 15, 2017 at 04:00 PM

Today we are here on the grounds of CPSCM course, I have Mr. Deepak Chandrashekhar working as the global category Manager with Rolls Royce.
Deepak I welcome you to the CPSCM TM forum and it is just a short discussion, which we are going to have.

Q.1. Tell me about your experience, with Rolls Royce?
Ans. Thank you very much! For inviting me to be a participant of this prestigious program. With respect to my view and experience of working with Rolls Royce is wonderful. I would be happy to say that its my pleasure to work with such a wonderful company which gives great exposure and its very employee friendly and all in all it’s a great opportunity to work with Rolls Royce.

Q.2. When you attend a public seminar and you have different companies as a part of the seminar with all Director’s, VP’s and Head’s. Do you find these kind of seminars beneficial than internal training in any organization. Which one is more beneficial like the public or internal seminars?
Ans. Well It depends upon the intension of the seminar. We conduct lots of seminars to build internal team e.g. Its’s good for Employees who are based out of different geographical locations of the world, they get opportunity to involve and understand each other. They can work together getting involved with equivalent and same kind of credential of other companies will also make major impact in day-to- day decision making of a person. Therefore, both are very important from my point of view and they are very much required for team building activities within internal companies and it shouldn’t be restricted to that. Also, allow the team members to go out, interact, and attend such seminars so that they get exposure to the external environment of different industries.

Q.3. While interacting with all the category professionals in the same function. How do you see the difference being in a particular sector and having a discussion with a similar company?
Ans. When it comes to a conceptual part it remains one and the same. Any purchasing starts with requisition and purchase order or payables. However, what falls between the starting from ARP that a the concept they are using are following, Supplier management they are doing contractual agreement, the way they are working and geographical presence. Global suppliers are involving, so obviously there are lot of things to earn and every formulae is different and has its own essence and is shown importance. Therefore, it is very important to focus on such things and learn what we can take away.

Q.4. Since you are a part of purchasing team so how do you see the purchasing role is evolving and adding value to a corporate profitability of any organization. How do you see this?
Ans. Specifically very few companies have realized having a dedicated purchasing team and giving them the required authority and empowerment which is very important. Still today, many purchasing department are reporting to the finance or sometime HR or corporate functions also. I would not say that the reporting line or anything will be really affecting, their functionality empowerment and having a Purchasing Director at a top level will really help any purchasing department to really function in an effective manner. It should not be treated as controlling body or transactional body but more of a value addition. Today purchasing is no more cost centric it is becoming a profit centric. So the purchasing department has closely started working with the suppliers and not just negotiating, driving the suppliers into savings, but also bringing new technologies and new concepts to the internal business so purchasing is playing a very important role.

Q.5. Since you said that the purchasing department still report to several other functions. Therefore, importance of Negotiation to you is?
Ans. In India, I have seen two types of companies where they go too deep into negotiation; supplier will be in such a position that he never makes any money. There are many instances like that. He compromises with either the quality or delivery. Driving the suppliers partnership most of then thing of win-win situation for both the parties and gaining in a long run So in that way it is very important for the Indian companies to learn the lesson not just negotiating with the price with the value addition. There are lot of interrelated parties involved in many of the purchasing contracts.

Q.6. Since you just attended one of the purchasing training and its world’s most prestigious and advanced supply chain program. How do you see when you go back to the organization?
Do you have the objectives and strategies which you would apply and what are the next steps you are going to take when you return to the organization.

Ans. CPSCM™ is really a very good certification program. What I feel today, I have really achieved something precious for my career. Obviously it carries a lot of in depth steps in right way of approaching a purchasing department. There is a list of things that I am planning to implement or give a contribution to my own organization specifically in the areas of Negotiation, Contract Management and Supplier’s Relationship. There are many things I really acknowledge, it is a very required course for any senior management-purchasing professional and implement such ideas and practices very rigorously. We are doing many things but we are not doing in a structured way, this program will help us to do it in a structured way and gain more.

Q.7. So it again brings back to the same statement I have been making like “The way Purchasing and procurement is being done its damaging organization”. Like the knowledge and strategy is there it’s just we need to do it in the right direction. Do you think that the format of discussion, role-plays and case studies should be followed in India during a training program?
Ans. From past 2-3 years Yes, many corporates are following this process they are making their employees be placed in one roof and more of a presentation they are getting involved in case studies and team building activities, that is really helpful. We are trying to move out from the traditional way of learning the things, which does not allow everyone to participate. Therefore, this is one of the accepted concept that is followed by the corporates today.

Q.8. There are not many training institutes or certificate provider that entitles as a specialized person in a supply chain, so whatever learning opportunity is there, it’s only on the job learning. Do you see the need of such training programs for supply chain and procurement professional even to the people who are in strategic sourcing? Do you see the need is there or it is just arising?
Ans. Whoever I met so far most of them have accidently landed up in this purchasing. It’s not that they want to become a purchasing professional. It is all accidently as if they got an opportunity to work in a purchasing department and they started making a career in this. Whatever they learn today is more of a practical experience. Having such courses really improves their value chain and avoid mistakes to the companies. The mistakes will not be repeated, lessons learnt, and in today’s world, we do not have time to make mistakes.

Q.9. Do you see a need of rising CPO, who steps in whenever mistakes happen and is it the CPO who comes and fix things. Do you see the role of a CPO in India is arising? Do you have one in your organization?
Ans. As I said earlier Yes, including any other global organization now, I really find that important. Yes, in my organization we do have a CPO from couple of years. But still there are many organizations which does not have a CPO. So it is very important to have such roles, because it’s not more of a cost centered but it is a profit centered or cost saving centered.

Q.10. I heard trainer saying that most of the negotiation ends, before they start. What importance do you plan when you are in Negotiation, planning negotiation and at the time of negotiation weightage in planning the actual negotiation?
Ans. Preparation for negotiation is very important. We have to be clear about our strategy, what exactly we want and need to understand the supplier’s viewpoint. Understand both party’s requirement and needs and later can negotiate on terms, conditions, and it is better to negotiate as a full package. To begin the from price is not the right way but either should start with the delivery date and then coming back to the contracted terms and price, so first we need to understand what we need and what supplier needs. Some of the contracts take 6 months to put a proper strategy involvement, so good negotiation skills is much needed.

Q.11. Do you think the value is worth the course Investment?
Ans. Yes, I would say 100% Yes! For this, Yes! There is lot of value addition. Thank you so much for taking all the efforts and risk in conducting such an innovative and a new Introduction Course in the Indian Market. I wish success to your team, conduct more courses and be very successful. Thank you!