GWE case study
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Transcript of GWE case study
A Presentation On
Presented By
Anshul Vuppuloori
Naseer Khan
Smruthi Rayudu
Sarat chandra
Introduction
GWE was incorporated in 1987 in collaboration with a Swedish MNC
By 2001, it employs more than 1000 employees with a turnover of INR 150 million.
The organisation operates four manufacturing plants with world class R&D support.
GWE is the second largest player in welding industry in India – 27% market share
Product Range
Standard Consumables
Special Consumables
Reclamation Consumables
GWE Welding Equipment
Medical Gas Equipment
Cutting Systems
Manufacturing Facilities
Four Manufacturing Facilities
Kolkata : 2 Facilities General-purpose electrodes and reclamation electrodes Welding equipments
Nagpur : MIG (Metal Insert Gas) welding consumables
Chennai : Welding Consumables
Market Segments
Lower Segment : Consumes less than Rs. 25,000 worth material per
annum
Middle Segment : Consumes Rs. 25,000 – Rs. 2,00,000
Upper Segment : Consumes more than Rs. 2,00,000
Question 1
The leading player (No.1) in the welding trade industry is maintaining inventory levels of 22/25 days. How, according to you should GWE go about to achieve that level?
Logistics Network before 1987Primary Transporters
(4)
(83)
(350)
(10600)
New logistics system:-
(4)
(160)
15000
How to reduce inventory level
The inventory depends upon the demand in the region.
GWE must reduce the replenishment lead time.
They must revise Order Cycles and Order Quantities.
The primary transportation needs to be outsourced.
Continued
Number of dealers should be reduced.
They can also increase the speed of their operations.
Replenish based on market demand
Question 2
Does GWE need to further reorganize its marketing-distribution system to overcome its current problems?
Answer 2
Yes GWE should restructure their marketing-distribution system.
They should conduct surveys to understand the market demand before sending the stock to the dealer
They must shift to e-commerce platform to do direct selling also. This will not incur much cost and also give them a new platform to sell
Continued
GWE must have their own forecast from a field survey agent to know the proper demand in the market
Question 3
Do you recommend a change in the marketing set-up (reporting structure)? If yes, how?
Answer 3
The reporting structure is highly decentralised
The Dealers should be encouraged to buy on an online platform so as to use Business Intelligence tools to analyze and predict the actual demand.
Apart from that, the reporting structure is very well structured.