Final Asian Paints Scm
Transcript of Final Asian Paints Scm
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Supply Chain Management of Asian
Paints
- Bhavesh Luhana (10MBA)
- Ashish Parekh (10MBA)
- Abhishek Shah (10MBA0!)
- "in#al Shah (10MBA0)
- Chintan $yas (10MBA11%)
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&lo' of Presentation
ntrou*tion to the *ompany Asian Paints +oay
Prou*t Categories
,lements of Supply Chain of Asian Paints
-a' Material -e.uirements
Ba*k'ar ntegration
/utboun Logisti*s istribution 2et'ork
Certain ssues
istribution Channel
istribution Strategy
mpli*ations of istributing Strategy
nventory Management
Supply Chain -e3engineering
Supply Chain Pro*ess
,nabling + a*ross the e*orative paints
mprove Pro*esses
-esults of -e3engineering
,ffe*ts on Profitability
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ntrou*tion
Starte in 145 by four entrepreneurs6
Champaklal *hoksey7
Chimanlal *hoksey7
Suryakant ani
Arvin $akil as
ASIAN OIL & PAINTS COMPANY
8ithin three years7 their turnover rea*he -s9 :9; lakhs
n 1!%7 Asian paints be*ame the 10th largest paint *ompany
in the 'orl
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VISION:
MISSION:+o be the largest e*orative paint *ompany
'orl'ie an to be the ;th largest paint
manufa*turing *ompany 'orl'ie9
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Asian Paints +oay
nia?s largest paint *ompany for nearly
four e*aes
/perates in 1% *ountries 'ith 54 paint
manufa*turing fa*ilities in the 'orl
servi*ing *onsumers in over !; *ountries9
Asia?s thir largest paint *ompany an
leaer in 11 *ountries
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Prou*t Categories
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,lements of Supply Chain of Asian Paints
:000 S+/C"",,P2@ 2+S
00 -A8
MA+,-ALS
(:;0 Materialsuppliers)
:00 PAC"2@
MA+,-AL
(140 Material $enors)
", SCC,SS&AC+/-S
&L,DBL,
/P,-A+/2S
L/8,-
/+P+ +M,
L/8 ,L$,-
C/S+
4 PLA2+S
! -,@/2ALS+-B+/-
C,2+-,S
:; E/B 8/-"C,2+-,S
%5 ,P/+S
1;000 ,AL,-S;00 2S+-AL
C/2SM,-S
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-a' material -e.uirements
Paint nustry is ra' material intensive 'ith-M being %0F of prou*tion *osts9
:00 types of ra' materials use inmanufa*turing pro*ess
+he most *riti*al ones are
+itanium io=ie (+i/5) :0 F
Phthali* Anhyrie (PA2) 50 F
Pentaerythritol3 (P,2+A) 1; F
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Ba*k'ar ntegration
Asian Pain prou*es PA2 an P,2+A
(:; F of prou*tion *osts)
Competitors are importing these parts till no'
Benefits 6Ba*k'ar integrations
mmuniGes Asian Paints to the flu*tuation in the pri*es
Material is transferre at lo' *ost to Asian Paints
,.uips the *ompany 'ith the ability to meet suen surges in eman
1H:r prou*tion is sol to other *ompanies9 +his gives strategi* ege
to Asian paints
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&our manufa*turing fa*ilities are supporte by
Si= -egional istribution Centers (-C) an
Seventy3t'o epots
,a*h -C an epot is taken by Asian Paints
on lease an then further assigne to a CI&
(Customs Clearing I &or'aring) Agent
istributing the Asian Paints prou*ts to the
1;7000 ealers all over the *ountry9
/utboun Logisti*s istribution 2et'ork
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Certain ssues
Movement of paints an haGarous goos
in*luing ra' materials have a series of safety
*he*ks to be ahere to7 starting 'ith a material
safety data sheet
All materials transport from fa*tories to the epots
is insure through a blanket insuran*e poli*y7
'hi*h fi=es a minimum liability for loss7 amage7
pilferage or leakage up'ars
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istribution Channel
Fast Moi!" #oods
&a*tory (4)
epots (%5)
ealers (1;000)
Slo$ Moi!" #oods
&a*tory (4)
-egional istribution Center (!)
epots (%5)
ealers (1;000)
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Asian Paints bypasse the bulk buyer segment an'ent to iniviual *onsumers of paints
t 'ent slo' on urban areas an *on*entrate on semi3
urban an rural areas
t 'ent retail
t 'ent in for an open3oor ealer poli*y
t vote for nation'ie marketing H istribution
istribution Strategy
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mpli*ations of istribution Strategy
@oing to niviual Consumers mplie 8ie Prou*t -ange
an Comple= istribution
Smaller Pa*ks proliferate the prou*t epth further
8ie Prou*t range mplie ,=pensive istribution
@oing retail mplie eep nvolvement in ChannelManagement
2ational Marketing ne*essitate nation'ie organiGation
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&a*ts6
Lo'est inventory *ost in inustry
Average inventory level of 5 ays sales against inustry
average of ;1 ays
+ranslates into 4; F lo'er inventory *osts
Sto*k of finishe goos is only %F of net sales half the
inustry average
nventory Management
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Asian Paints allo'e
1;351 ays *reit for ealers in ma#or to'ns
553:0 ays *reit for ealers in up*ountry regions
n*entive s*hemes to reu*e inventory
A spe*ial is*ount of :9; per *ent 3 is*ount for perfe*tion in payments
t 'as passe on at the en of the year7 provie ea*h an everypayment throughout the year 'as mae 'ithin the stipulate time
norms
A *ash is*ount of ; per *ent9 +his 'as pai for all outright *ash
pur*hases
t 'as given 'henever payments 'ere re*eive 'ithin 54 hours of the
supplyHinvoi*en respe*t of outstation a**ounts7 the payments have been mae in
avan*e by raft in orer to be eligible for the *ash is*ount
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/b#e*tive6
+o eliver prou*ts effi*iently to *ustomers
'ithout holing large amount of inventory
+o manage *ash *y*le to free up funing for
aggressive gro'th by a*.uisition strategy
Supply Chain -e3engineering
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Supply Chain Pro*ess
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istribution
Paint ispensing ma*hines
Altere the prou*tion pattern from shaes to prou*ing bases
-eu*e inventory an ,liminate reunan*y of sto*ks Appro=9 11000 *olor tinting ma*hines in*luing multiple ma*hines a*ross
some *ounters
Jas helpe e=pan the range of shaes for ea*h prou*t *ategory7 offering a
*hoi*e of shaes to *onsumers in the hunres9
&or the retailers it has eliminate the sales loss for 'ant of rangeHesire
shae
i5 istribution planner use to evelop istribution s*heules
base on *onstraints
,nabling + a*ross the e*orative paints
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$ieo
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Manufa*turing
sing i5 Master planner to ei*ie 'hi*h plant to manufa*ture 'hat
prou*t epening on
3 Capa*ity *onstraints
3 ,nvironmental *onstraints
3 "ey ra' materials
Jelps optimiGe the pro*ess su*h that least inventory is prou*e to
maintain the e=pe*tations of servi*e an safety sto*k
&a*tory S*heuler use for ma*hine by ma*hine an unit by unit
planning of prou*tion s*heules
mprove Pro*esses
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Pro*urement
i5?s fa*tory planner use to ientify the ra' material an pa*king materials
an 'ho to sour*e it from
Also provies the ieal formulations re.uire for manufa*turing prou*ts
A better materials planning system allo's the *ompany to *reate more
*omple= paint formulas
Jelps sele*t the best venor an manufa*turing metho for any given
situation
+he Supply Chain Management is ba*ke by + efforts that help the
*ompany in eman fore*asting7 eriving optimal plant7 epot an S"
*ombinations7 streamlining venor relationships7 reu*ing pro*urement *osts
an s*heuling prou*tion pro*esses for iniviual fa*tories
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-esults of -e3engineering
-eu*e &inishe nventory *y*le from % days to '( days
Business is *urrently ) times of that before BP-
n*rease in the number of shaes from %( to *'((
A*hieve an +,-.( /er0e!t seri0e leels for S" sales at the
lo*ation level
Built a *ompetitive avantage in terms of inventory management
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,ffe*ts on Profitability
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+JA2" /