Tony Augustine submitted a document about Marico, an Indian consumer goods company founded in 1991 that produces edible oils, hair oils, and skin/fabric care products. The document discusses Marico's supply chain operations, noting it faced issues like poor data visibility, forecasting inaccuracies, and high inventory/stock outs prior to implementing SAP software. The SAP implementation helped Marico improve forecasting and relationships with distributors, lower costs and inventory levels, and gain more efficient outbound and inbound supply chain operations.

1. Submitted by,
Tony Augustine
1527729
Christ university

2. MARICO
Founded – 1991
Head quarters – Mumbai
Products – Edible Oil, Hair Oil, Skin Care, Fabric Care
Edible Oil – Saffola Gold, Saffola Total , Saffola Active
Overseas Presence – 10 offices
Usage of Losorb Technology
Backend Supply Chain :
1. Procurement – Inbound Supply
2. Manufacturing
3. Distribution – Outbound Supply
4. Logistics
5. Global Decisions
1999 - Sap SCM & 2005 - Sap VMI

3. Marico Presence

5. Poor data
visibility
Low forecast
accuracy
Long planning
cycle
Unreliable
unresponsive
production data
Poor response
to market
changes
Skewing of sales
High inventory and stock outs
High delivery costs
Low attention to smaller brands
Excess inventory and
stock outs
Outbound Supply chain problems

6. Outbound Supply chain performance
improvements
Distributor
stock-outs
30% of SKUs 20% 15%
Marico stock-
outs
21% of SKUs 13% 9%
Excess inventory
at distributors
29days 26 days 22 days
Excess inventory
at distributors
43m Rs 29m Rs 22m Rs
Annual supply
chain costs
13.5m Rs 8.1m Rs 4.8m Rs
BEFORE
IMPLEMENTATION
END OF FIRST YEAR
END OF SECOND
YEAR

7. Conclusion
• Forecasting and distribution errors impacted
company’s cash flows and hindered expansion
• By effective implementation of SAP, forecasting
and distributor relationship improved, costs
and inventory levels went down
Marico’s Outbound
Supply Chain
• Marico faced increased costs of procurement
and frequent supply disruptions due to many
levels in supply channel
• Disintermediation and IT assisted process
improvement led to reduced costs,
procurement lead time and efficient operations
Marico’s Inbound
Supply Chain