SUPPLY CHAIN OF
Founded on 1987.
Marico is one of India's leading Consumer Products
& Service Industry.
Holds a number of brands including Parachute
, Saffola , Hair&Care, Nihar, Mediker, Revive,
Manjal, Kaya SkinClinic , Livon, Set Wet, Zatak,
Fiancee, HairCode, Eclipse, Xmen, Hercules, Caivil,
Code 78 and Black Chic.
Supply chain not scalable
with Expansion Plan
• Expand continuously to reach
most Indian households.
• Growth through new brands and
• Penetrate more into rural areas –
• Entails more sales and market to
track –more forecast to make
,more product to plan, more
SKUs to track-more truckloads to
To cater to the new areas with existing
supply chain – logistic challenge
• Low cost products – leading to
impulsive buying decisions.
• Product availability.
• Forecast accuracy was 70%.
• Distribution – suffered stock outs
leading to loss of sales 30%.
• On one hand – low level of service
level due to product availability.
• Other hand, excess inventory lying at
Marico and in the channel.
• Cost of errors in shipments to remote
• Planning cycle: 30 days
• Manufacturing: 2 weeks
• Distribution: 1 week
• Only one qualified planner
• Spread sheet based planning
• Inventory problems
• Eroded distributor confidence
• Expired products
• Unresponsive to market changes
• Supply chain not in tune with the
• Losing competitive advantage
• Losing image among supply chain
• Poor performance affected cash
• Supply chain hindered expansion
strategy of growth through more
• Affected consumer’s image of
Outbound Supply chain redesign
Solution: SAP business Intelligence
Big bang approach for SAP implementation
(At Company factories, warehouses, business offices, contract
• MIDAS (Marico industries distribution automation
software) (Offline Solution)
• MINET(Real Time Solution)
Dynamic and real
and sales in
Feed data online
Impact on the organization
The implementation of VMl with key distributors resulted
in declining sales skew within a month and reduction in
excess stocks and stock-outs at the distributor point.
MI-NET and SAP R/3 gave the field sales personnel access
to current information on order status, distributor
performance, and depot stock levels.
Sales force productivity improved significantly as a result
of the combination of SAP R/3, mySAP SCM, and the MINET initiative.
Marico has improved service by decreasing stock-
outs at the depot from 21 % to 9% and at the
distributor level from 30% to 15%. It also reduced
supply chain exception cost by 64% and average total
inventory by a fourth from 29 days to 22 days.
The company's turnover has moved up from 3% in
FY2000 to 18% in FY2004.