CapGrid helping firms make smart procurement
CapGrid’s AI-powered platform and deep network of suppliers allows manufacturers to significantly reduce the complexities in the direct material sourcing and procurement
CapGridwas founded by Dheeraj Kumar Tiwari and Himanshu Singh Raghuvanshi in July 2020. CapGrid's AI-powered platform and deep network of suppliers allows manufacturers to significantly reduce the complexities in the direct material sourcing and procurement process.
These capabilities allow manufacturers to expedite the sourcing of the high complexity categories five times and consolidate the supplier base for the low complexity precision components. Dheeraj Tiwari, Co-Founder and CEO of CapGrid in an interview with Bizz Buzz, says, "Every day we are working with more and more manufactures and showcasing the relevance of leveraging technology to provide transparency and traceability to both customers and supply partners. Next key platform we are building is focusing on automating quality reKumud Das
Explain about the enabled B2B marketplace offering end-to-end sourcing and procurement services facilitating higher quality output in a short period of time?
CapGrid consolidates the source-to-procure-to-deliver cycle for direct material B and C parts, consolidating 100s of suppliers and 1000s of parts for automotive and industrial manufacturers. CapGrid is able to leverage its proprietary tech-product to seamlessly discover and develop suppliers about 10 times faster than the traditional way. It provides complete inventory visibility and traceability to customers thus improving efficiency multi-fold.
How CapGrid is helping industry players with procurement of direct material?
For our customers, on day one, procurement cost becomes zero, complexity around logistics, gate entries, invoice processing comes down by 90 per cent, inventory reduces by 50 per cent and frees up their bandwidth to be utilized for new product launches, other strategic categories. Consolidation also places CapGrid to leverage economies of scale at source to bring down costs too. For supplier partners, CapGrid acts as a strategic partner helping them focus on core manufacturing removing hassles of jumping hundreds of hoops to reach out to a customer.
How many precision parts have been sourced and delivered?
More than 3500 SKUs and 5 crore plus parts have been delivered to the assembly line so far.
How CapGrid is ensuring a vast supply pool and discovering matching suppliers using AI algorithms?
India is the under-rated manufacturing hub of the world with more than 50,000 suppliers capable to cater to the automotive industry alone. AI has helped CapGrid create a dynamic capability intelligence of over 20,000 suppliers from India and another 10,000 from more than 15 best cost countries for sourcing through a wide breadth of intelligence from online and offline sources. AI also assists in mapping requirements to supplier capabilities anywhere in the world.
Highlight the brand's partnerships, associations and initiatives…
CapGrid is working with leading automotive and EV manufacturers. Some of the prominent ones being VST Tillers & Tractors, Captain Tractors, Case New Holland, LML to name a few. On the supply side CapGrid is working with Sundaram Fasteners, CEAT and 150 other partners. It has partnered with Om Logistics and a few more other players for the national warehousing and logistics.
How CapGrid is reducing complexity in procurement management?
CapGrid consolidates demand that was earlier being procured from 100s of suppliers. Consolidation of this fragmented spend eliminates hidden and handling costs and drives the OEMs to focus on new product launches, other strategic parts and components.
Where will CapGrid lead the supply chain and vendor management segment in the next five years?
CapGrid is revolutionizing the way source-to-procure-to-deliver is being run. CapGrid's proprietary tech products are helping create the supplier-to-logistics-to-delivery transparency not just in terms of real-time inventory but also in quality. A head of supply chain would have a real-time control tower view of what is happening to 1000s of parts and components along with the quality visibility. OEMs will only focus on strategic parts, initiatives, branding and new product launches.
What measures you are implementing to stay relevant with changing times?
CapGrid was born in the middle of the pandemic out of key global megatrends realigning the way supply chain operates. Every day we are working with more and more manufactures and showcasing the relevance of leveraging technology to provide transparency and traceability to both customers and supply partners. Next key platform we are building is focusing on automating quality reporting during the production process at supplier partner end and while it is under transit.
How tech infusion is enhancing sourcing, enabling cost optimization for businesses.
In the current dynamics with product cycles shortening, frequent product launches, speed matters. The cost of manual supply chains not only restrict velocity but also prevent optimization. Data generated lies in individual desktops, emails, excel sheets. Tech helps CapGrid carry out sourcing five times faster with insights from data constantly optimizing the cost and quality assessment. Real-time alerts and visibility ensures a predictive approach rather than a reactive one where you are caught napping with supply chain risks.
Responsible startups are switching to resource and cost optimization through tech intervention. What do you have to say?
CapGrid is helping improve the capacity utilization of supplier partners from currently 50 per cent (avg capacity utilization in India in automotive and industrial supplier) to 70-80 per cent. This is bringing immense optimization in the supply chain.porting during the production process at supplier partner end and while it is under transit".