Leadership ‘Chain’

The supply chain is one of the most crucial functions in connecting the product to the customer. Perhaps nobody knows this as well as E Balaji, Chief Human resources officer, TVS Logistics Services Ltd. His extensive knowledge about the field and astute observations are fascinating and insightful. At an event at a leading University in Pune, Corporate Citizen sat down with E Balaji as he shared his experiences of working in the supply chain industry, his journey of success and some words of advice for youngsters waiting in the wings

"There Are Some Interesting Initiatives I Have Handled. I Have Handled A Few Mergers And Acquisitions In My Career Which Were Very Interesting. I Have Interacted With Private Equity Players"

Importance of a supply chain

A supply chain is defined as the entire process of making and selling commercial goods, including every stage from the supply of materials and the manufacturing of the goods through to their distribution and sale. Successfully managing supply chains is essential to any company hoping to compete. An efficient optimised supply chain is important to the fulfilment of customer orders for a company. But when managed correctly, it can also result in much lower costs and a faster production cycle. SCM is the umbrella term that covers product development, sourcing, production, procurement, logistics and more when it comes to operations in the supply chain. Without it, companies run the risk of reducing their customers and losing a competitive edge in respective industries. Efficient supply chains will work with an effective returns process. It has been found that customers are 71% more likely to become returning customers if they are happy with the way their return process was handled. SCM isn’t just about creating the most efficient process possible, it’s also crucial to mitigate risks and ensure everything runs smoothly

Each step of this process carries countless risks and possibilities to derail an entire customer order. Minimising delay, optimising the time of day that goods are moved, the length of time that inventory is held for and the order dispatch process are all points that can have huge impacts on the operation.

As can be seen, the supply chain is a critical component of the journey of a product from the manufacturer to the consumer. A sector as indispensable as this comes with its own set of challenges, especially for a CHRO. With this perspective in mind, we begin the riveting chat with E Balaji.

"We Need To Be Clear About Which Skill Set Has Longevity And Which Skillset May Be Just A Fad. A Lot Of Things Which Trend For A While Tend To Be Forgotten In A Couple Of Years"

Take us through your career.

I started working straight after graduating out of business school. My first job was with a relatively small company called Ma Foi Management Consultants. Today such a company would be called a startup, but at that time we didn’t know the concept of a startup. The company I worked for started with an objective to look at HR, Recruitment, Consulting and talent scouting in a different and unique way. I had a long stay in the company, during its different stages of evolution. When I joined it was relatively a small company with limited resources and a bootstrap operation. Then we attracted some key venture capital investments. Finally, the company was acquired by a global major called Randstad. I was then promoted to MD and CEO of Ranstad. After a long stint, I decided to move on. I transitioned to take over as the CHRO and President HR of the TVS supply chain, and in the last five years, I have been doing this job.

Tell us about TVS Supply Chain.

At TVS Supply Chain, we are approximately a $1 billion business, and we have a presence in 16 countries and we have about 18,000 employees working with us. I look after holistically the entire gamut of the HR function. This includes various facets such as leadership HR, Leadership development and Talent Management.

India’s automotive sector is going through a rough patch recently. Is that something that poses a challenge to TVS at this juncture?

I believe this is nothing but a cyclical downturn. Every sector goes through its ups and downs. It is, of course, a challenging time. A lot of automotive companies are announcing no production days. As a company, we are taking certain mitigating steps. We are having a sharper focus on cost and reducing discretionary expenditure wherever possible. We are also focussing on productivity enhancement. These are just some of the measures we are taking to tide over during this downturn period.

One of the reasons for these challenges is that there is also a migration towards electric vehicles. Going forward, is that an area TVS is looking at?

We are a supply chain service provider to our customers. If our customers are going to migrate from producing petrol and diesel vehicles to electric vehicles, we are ready to supply them with the required parts. There will, of course, have to be changes made. But I believe the government is talking about this transition and it is an important agenda for the government but we will have to see the pace of the transition on the ground. Electric vehicles have to have the infrastructure (for example charging stations) to support them. We are prepared to embrace the change if our customers migrate from conventional vehicles to electric ones.

The supply chain side is one of the most crucial areas in the industry. No matter the industry, it is impossible to go-to-market without a reliable supply chain in place. However, it is an industry not perceived as very glamorous for students. Do you think this perception is changing?

Let me put it this way. Warren Buffet always invests in boring businesses. Because there might be businesses which may be perceived as glamourous, but at the end of the day, the business has to be robust. It has to earn returns. The business has to give dividends to shareholders. Also remember that, Tim Cook, the CEO of Apple, one of the most glamorous and successful companies in the world, is also a supply chain guy. The supply chain may not be as glamorous as advertising or investment banking, but this is a very fundamental industry to be in.

Up until recently, the shelf life of a particular acquired skill would be at least 5-10 years. Students had the confidence that what they learnt wouldn’t be obsolete so soon. Today, technology is changing rapidly. How do students and institutions keep abreast of the changes?

I think there are two things to consider. We need to be clear about which skill set has longevity and which skillset may be just a fad. A lot of things which trend for a while tend to be forgotten in a couple of years. This happens to technologies and skillsets. Today, we are talking about analytics, machine learning and big data. A couple of years back, people were talking about blockchain. Today, we don’t hear about it so often. You no longer hear about blockchain. Five years ago, everyone was talking about SMAC-Social, Mobility, Analytical and Cloud Computing. It was everywhere. Today, you don’t hear too much about SMAC. So the way I look at it is that you should be aware of the new trends, but you should also be willing to let go, unlearn and relearn new things. Your ability to constantly read, learn, change and adapt is important. We can’t say for sure what will stay for the next 10 years. Something may have the staying power or it may be obsolete in the next 3-5 years. But you should try and understand it nonetheless.

You have had an accomplished a successful career. What are some of the initiatives you have taken which you consider the highlights of your career?

There are some interesting initiatives I have handled. I have handled a few mergers and acquisitions in my career which were very interesting. I have interacted with private equity players. That is a very different experience in itself. I have moved from a line role to a functional role. I have had the opportunity to interact and work with people from 20 nationalities. Everyone comes with different approaches, different thinking, and different values. I have recruited some people and seen them grow, prosper and succeed, particularly people who come from diverse backgrounds. I once recruited a person who was a lawyer and he did very well in sales and marketing. I recruited a person who was a very well trained beautician. She became a superb head of customer service. Some of these are bets which pay off and you feel very good when that happens. You trust your gut and put your faith in someone and when they rise to the challenge it is great. I treasure all these experiences.

Are women adequately represented in your company in particular and the industry in general?

No, they are not adequately represented. Because unfortunately, women’s participation in the supply chain industry in India is very low. It is probably in single digits in India. Comparatively, in our operating companies in the US and the UK, it is as high as 30%. So, I believe that we are driving some gender diversity initiatives. We are looking at having more women in various levels of the company. We believe that this will help bring a better balance going forward.

If you look at the ITeS sector, employees are given several options such as flexible timings and work from home. That may not be possible in the supply chain industry. Is there any other form of flexibility offered there or is that not feasible at all?

You have to be very clear about the context in which you are working. What is working beautifully for a bank may not work as well for an oil and gas company. What is working for an oil and gas business will not work for financial services. So we believe in bringing the contemporary practices in our industry. We have processes like Shadow Board, though which we identify young talent and treat them almost like board members. We draw inspiration from the Westminster shadow cabinet in the UK. We identify young talent and give them exposure, we put them through training programmes and so on. It is our own way to develop talent internally. We have several such initiatives. For example, for the last year and a half, we have been working with McKinsey on a transformation process. It is a very interesting experience for all of us. Leadership development is one of the core components of it. We do some of these things as well.

"Some Bets Pay Off And You Feel Very Good When That Happens. You Trust Your Gut And Put Your Faith In Someone And When They Rise To The Challenge It Is Great. I Treasure All These Experiences"

You visit several educational institutes. Do you perceive a gap between the educational output of students and the requirements of the industry? If so, how do we bridge this gap?

I think progressive institutes are taking steps to bridge the gap. A lot of institutes are inviting guest faculty, having industry institute-interfaces, asking the students to go and do projects and internships, faculties taking live projects and working with industries. A lot of such great initiatives are happening, although it is still a work in progress. It is an ongoing journey. I have been hearing about this ‘industry-education’ gap for almost 25 years. It’s not a new thing.

What is your philosophy or mantra in life?

I try to keep things simple. I try not to complicate matters. I believe in being a life-long learner. This doesn’t necessarily mean you should have to only read books. You can be a learner in whichever way that suits you. You can learn by meeting people and talking to them, by travelling, and by doing different things. This can also be achieved by living life in a holistic manner and giving attention to many facets of life such as your career, finances, family and health. Some people will ignore some facets of their life like health and only give attention to their career. This is wrong. You should give adequate attention to everything in life.

You must have a very busy schedule. Are you able to strike the right work-life balance?

I don’t watch television at all. That gives me a lot of time (laughs). My consumption of news is through apps and newspapers. People spend at least 2-3 hours a day on TV or OTTs. By not spending time on these, it gives me more time to spend with family.

What is your idea of relation?

I go for long walks, which I find very relaxing. I also like to meditate, although I wish I did it more frequently than I am able to. I read very eclectically. I read different types of books. Reading is very relaxing for me. I also like to go to places of historical importance which have a lot of history.