A
CASE STUDY
ON
SUPPLY CHAIN OF
PRESENTED BY
SWAPNIL JAISWAL
SUKUMAR PRADHAN
ABHINANDAN MOHANTY

:
About Marico
 Founded on 1987.
 Marico is one of India's leading Consumer Products

& Service Industry.
 Holds a number...
Initial Outbound Supply Chain
Challenges faced
Supply chain not scalable
with Expansion Plan

Forecasting Errors

Strategy:
• Expand continuously to rea...
Contd.
Planning issues

Business impact

• Planning cycle: 30 days
• Manufacturing: 2 weeks
• Distribution: 1 week
• Only ...
Outbound Supply chain redesign
 Solution: SAP business Intelligence
 Big bang approach for SAP implementation
(At Compan...
Comparison
Impact on the organization
 The implementation of VMl with key distributors resulted

in declining sales skew within a mo...
Benefits
CONCLUSION
 Marico has improved service by decreasing stock-

outs at the depot from 21 % to 9% and at the
distributor le...
THANK YOU
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SCM case study of Marico

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ITM B SCHOOL students on SCM of Marico

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SCM case study of Marico

  1. 1. A CASE STUDY ON SUPPLY CHAIN OF PRESENTED BY SWAPNIL JAISWAL SUKUMAR PRADHAN ABHINANDAN MOHANTY :
  2. 2. About Marico  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.  900cr company.
  3. 3. Initial Outbound Supply Chain
  4. 4. Challenges faced Supply chain not scalable with Expansion Plan Forecasting Errors Strategy: • Expand continuously to reach most Indian households. • Growth through new brands and product lines. • Penetrate more into rural areas – represents 70% of Indian population. • Entails more sales and market to track –more forecast to make ,more product to plan, more SKUs to track-more truckloads to configure. 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 depots increased.
  5. 5. Contd. Planning issues Business impact • Planning cycle: 30 days • Manufacturing: 2 weeks • Distribution: 1 week • Only one qualified planner • Spread sheet based planning • Result: • Inventory problems • Eroded distributor confidence • Expired products • Unresponsive to market changes • Supply chain not in tune with the marketing strategy • Losing competitive advantage • Losing image among supply chain components • Poor performance affected cash flows • Supply chain hindered expansion strategy of growth through more brands • Affected consumer’s image of company
  6. 6. Outbound Supply chain redesign  Solution: SAP business Intelligence  Big bang approach for SAP implementation (At Company factories, warehouses, business offices, contract manufacturers) • MIDAS (Marico industries distribution automation software) (Offline Solution) • MINET(Real Time Solution) MIDAS implemented for MINET implemented for SAP APO implemented for: capture and standardize transactions Dynamic and real time information Demand forecasting Received stock and sales in Feed data online Supply chain network planning
  7. 7. Comparison
  8. 8. 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.
  9. 9. Benefits
  10. 10. CONCLUSION  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.
  11. 11. THANK YOU
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