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Dora Tiles - a case study

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A SCM case study ppt on Dora Ceramic Tiles by students of Era Business School, New Delhi (PGDM 2012-14)

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Dora Tiles - a case study

  1. 1. 2012’14 Batch PGDM, Era Business School, New Delhi Era Business School Case Study on DORA CERAMIC TILES Preparing to Meet Supply Chain Challenges of Tomorrow A Presentation By Pulkit & AJ
  2. 2. 2012’14 Batch PGDM, Era Business School, New Delhi Aim & Scope • AIM – To analyse an organisation’s bid to gain competitive edge through initiatives related to SCM. • SCOPE – As under:– The operating Business Environment. – Company’s Profile and Progression. – Challenges. – Initiatives. – Outcomes. – Analysis.
  3. 3. 2012’14 Batch PGDM, Era Business School, New Delhi Operating Business Environment
  4. 4. 2012’14 Batch PGDM, Era Business School, New Delhi BE • • • • • • • • • Era of progressive lifestyle. High growth potential. From utility to decorative. Long way to go: 0.1sqm vs 3.5 sqm. 2% of world production & 0.05% ex. 10% of total market. Highly competitive and yet unorganised 80-85% cap utilisation. Johnson, Kajaria, Somany, Bell, Peddar, Orient, Spartek.
  5. 5. 2012’14 Batch PGDM, Era Business School, New Delhi Porter’s 5F Threat of New Entrants High Power of Suppliers Low Competition Intensive Org & Unorg Substitutes Many but Low Power of Buyers High
  6. 6. 2012’14 Batch PGDM, Era Business School, New Delhi Company & Progression
  7. 7. 2012’14 Batch PGDM, Era Business School, New Delhi Dora Ceramics…. • • • • • • • • • • 1990 – first plant in Gujarat. 50 k sqm annual cap. Tax holiday. Italian technology – wall & floor tiles. Dealer network + B2B. 20-25% sales growth in first five years. 6% market share. 1996- new plant in Karnataka @ 500m. Cutting edge dry technology; floor tiles Tax holiday continues.
  8. 8. 2012’14 Batch PGDM, Era Business School, New Delhi Progression • Price advantage. • Focus mainly on B2B; retail sector neglected while competitors moved in. • 2001 – bye to tax holiday- price advantage lost. • Loss of market share. • Identification of KSFs:– Product features – Product focus – Cost structure - Retail - Op focus. - Brand awareness. • Technological edge; better value. • Competitive edge not complete despite implementation of KSFs.
  9. 9. 2012’14 Batch PGDM, Era Business School, New Delhi Challenges
  10. 10. 2012’14 Batch PGDM, Era Business School, New Delhi Inescapable • Globalisation + increasing customer expectations + Competitive markets. • Total customer satisfaction must. • Foresight:– Product – More options, quality, P&S. – Market – Shakeouts, M&A, focus, value. – Channel – Demanding, after-sales, onestop solutions and power of retail chain. – Customer – More knowledge, DIY kits, customisation, one-stop solution. • Stale = Death in a dynamic environ.
  11. 11. 2012’14 Batch PGDM, Era Business School, New Delhi Intrinsic State Weaknesses Strengths *Cutting *Retail vacuum edge Dry technology *Under-utilisation of cap *Market share *Quality SWOT Opportunities Threats *Changing lifestyles *Competition *Growth opportunities *New price regime
  12. 12. 2012’14 Batch PGDM, Era Business School, New Delhi Initiatives
  13. 13. What Next 2012’14 Batch PGDM, Era Business School, New Delhi • Focus now on to SCM:– Capacity of dealers – variety and quantity. – Depot Concept; first mover. – Careful selection of depot sites. – Depot outsourced to C&F – merit based. – Depot responsibilities to include order processing, execution, collection, sample distribution and report generation. – DRP software and online connectivity. – DRP integrated with ERP. – Evaluation based on quality of work, minimum errors, average time for exec, inventory and o/s payments.
  14. 14. 2012’14 Batch PGDM, Era Business School, New Delhi Execution • 2.25% of sales for logistics. • Dora responsible for primary freight. • One 3PL firm per factory. – – – – Dedicated fleet of vehicles. Production and demand trends based FC. One week in advance. Mechanised loading and unloading. • MRP includes secondary transportation. • LIS. Generates reports in respect of:– Order ack - Daily & monthly sales. – Payment collection. - Rejection data. – Lorry tracking - Error reporting
  15. 15. 2012’14 Batch PGDM, Era Business School, New Delhi Outcomes
  16. 16. 2012’14 Batch PGDM, Era Business School, New Delhi Effects • The Change:– Order cycle down to 48 hrs from 02 weeks. – 40 branches, 20 depots, 1000 dealers and 3500 retailers. – Inventory levels down to 25 days vs 45. – O/S payments in 45 days vs 65. – Shorter design time. – Smarter customer feedback system. – Introduction of 8-12 designs per month. – Continuous feedback and performance appraisal for grading C&F agents.
  17. 17. 2012’14 Batch PGDM, Era Business School, New Delhi ANALYSIS
  18. 18. 2012’14 Batch PGDM, Era Business School, New Delhi Analysis • ‘OT’ utmost important. • Two trends made DC take notice:– Opportunities in terms of growth potential of the market. – Threats due to competition & cost escalations. • Holistic formulation of strategy:– Design and innovation. – Marketing. – SCM – cost cutting, CRM, overcoming hurdles related to blockage in pipeline.
  19. 19. 2012’14 Batch PGDM, Era Business School, New Delhi Way Forward • Retail-orientation must. • Optimisation of resource utilisation:– Capacity utilisation. – 2.25% expenditure; efficient utilisation. – Awareness campaign – in/out. – Tactical optimisation eg transport routes. – Operational optimisation – production schedule, transit damages, inventory, waste-control. • Challenges will never cease; important to visualise what may happen next!
  20. 20. 2012’14 Batch PGDM, Era Business School, New Delhi

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