Supply Chain Management - Navneet Publications_Supply Chain Drivers,Value Chain of Navneet books,Inbound Logistics and Outbound Logistics of Navneet,Integretated Supply Chain, Push-pull view of supply chain,Cycle View Of Navneet Supply Chain.

1. SUPPLY CHAIN MANAGEMENT
Name :- Snehal Nemane
Roll No :- H-91(iFEEL)
Organization Name :- Navneet
Deliverables :- Workbooks
Company Background
Incorporated in 1984, NPL was promoted by the Gala family as Book wing Publication
India Ltd. Its name was changed to Navneet Publications in 1992. The company is a
publisher of educational and children books. It also manufactures paper and non-
paper stationery products. The company has a leading position in the premiere
stationery markets in India. The company exports stationery to the Middle East, parts
of Africa, the USA and Europe.
Navneet is the leader in the text book publication business in India, with a
74%market share of the organized market. Three segments that drive growth are:
 PUBLISHING: Navneet provides supplementary books (work books, guides
and 21 question sets) to students in Maharashtra and Gujarat. It has also
ventured into textbook publication for CBSE students across India and has
recently acquired Encyclopaedia Britannica India to cater to the CBSE text-
books segment.The major products of the company are sold under the brand
names “Navneet”, “Vikas”, “Gala”, “FfUuNn”, “Boss” and “Navneet Nxt”. NPL
also produces various titles in the children and general books category, which
are not based on syllabus, such as activity books, board books, story books,
health related books.
 STATIONERY: Provides paper and non-paper stationery across India
through 85,000 retail outlets. Paper stationery accounts for 94% of total
stationery revenues, of which 45% are derived from exports.
 E-LEARNING: This includes digital content for B2B and B2C segments. B2B
products include digital content for tate curriculum of Maharashtra and
Gujarat, while B2C products include Pen drives, CDs and Tablets loaded
with State & CBSE curriculum

2. Business operations

The company commands a significant market share of 65% in the western
India (65% in Maharashtra and 70% in Gujarat) in the supplementary text
books segment , focussed on the state syllabus . Navneet has also ventured
into providing text books for CBSE and ICSE board students in states like
A.P, Karnataka, TN, Delhi NCR region and Kerala. Navneet has more than
225 authors and 2,500 titles.
 Expect 21.7% revenue CAGR over FY17-19E
 Revenue from Operations : 1,09,831 Lacs (In 2016-2017)
 Revenue from Educational Books : 55,379 Lacs (In 2016-2017)

4. Stationery segment – A detailed overview
Organizational Strategy :-
Main agenda for the company is to grow as much as possible in content business
and digital business because the demand for these products is very high compared
to stationery products.
Supply chain strategy :-
Is to support Organizational Strategy by going forward in the growth in digital
content and to match the publication growth is coming from the orders received
from the State Government of Maharashtra and Gujarat.

5. Supply Chain Drivers
Facilities:-
 Navneet also has 5 manufacturing units that follow Kaizen practices and it’s
entire business Runs on SAP systems.
 Publishing Plants:
Dantali – Gujarat
Santej - Gujarat
 Stationery Plants:
Vasai – Maharashtra
Silvassa - (U.T.)
Daman - (U.T.)
 It have Flexible manufacturing systems
 Excess capacity and responsive
 The in-house manufacturing setup is one of the key competitive advantage

6.  Equipments : Today, Navneet has a state-of-the-art printing facility with a
capacity to convert 100 tons of paper per day. Their fleet of machines includes
3 two colour Rotary Harris machines, 1 four colour Rotary Harris machine, 1
Planeta 4 colour machine, 1 Planeta 5 colour machine, Kolbus Perfect binding
machine (binding capacity of 50,000 books per day). They have an ultramodern
auto-stacker warehouse facility to store upto 5,000 tons of inventory.
Their ultramodern paper stationery manufacturing plant with capacity of
processing 150 tons of paper per day houses 3 ECH Will machines, 4 Linomatic
machines, 1 Planeta 4 colour machine and 1 Kugler binding machine. They
have a binding capacity of over one lac books with 3 Bindomatic sewing
machines and one Womaco spiral binding machine.
Sourcing: Sourcing is set of business processes required to purchase goods and
services. The Suppliers for Navneet are TNPL ,ITC Limited and The West Coast
Paper Mills etc
Inventory:
 All of the raw materials, work in process (WIP),and finished goods within the
supply chain. Inventory cycle is from October till April end. The size of the
cycle inventory is the result of the production, transportation, or purchases in
lots. With the increase in lot size the carrying cost also increases.
 High level of Inventory
 Wide range of items

7. Transportation :–
 Responsiveness can be achieved by a transportation mode that is fast and
flexible such as trucks and airplanes. Efficiency can be emphasized by
transporting products in larger batches and doing it less often.
 The transportation of Finished Goods and Raw materials are mainly through
Rail and Trucks.
 Water ways are used for exporting Navneet products.
Information :–
Navneet have Integrated Information sharing network throughout its Supply
chain. The power of this driver grows stronger each year as the technology for
collecting and sharing information becomes more wide spread, easier to use, and
less expensive. Information, much like money, is a very useful commodity because
it can be applied directly to enhance the performance of the other four supply chain
drivers. High levels of responsiveness can be achieved when companies collect
and share accurate and timely data generated by the operations of the other four
drivers.

8. Value Chain of Navneet Workbooks
Roles of Entities in Value Chain :-

9. Inbound Logistics and Outbound Logistics of Navneet

10. Inbound Logistics/Material Management :
Material management is concerned with the acquisition and storage of raw
materials, parts, and supplies. 40% of total publishing cost of Navneet accounts
for main raw material i.e Paper. To elaborate, material management supports the
complete cycle of material flow—from the purchase and internal control of
production materials, to the planning and control of work-in-process, to the
warehousing, shipping, and distribution of finished products, Inventory control,
Warehouse and storage
Outbound Logistics/Physical Distribution :
Physical distribution encompasses all outbound logistics activities related to
providing customer service. These activities include order receipt and processing,
inventory deployment, storage and handling, outbound transportation,
consolidation, pricing, promotional support, returned product handling, and life-
cycle support

11. Integretated Supply Chain
Navneet works on Integrated Supply Chain which is a process wherein every
phase from procurement of raw materials to production, quality control to
packaging, distribution or supply to eventual delivery is streamlined and
inseparable. It is a holistic collective of the various processes, which is under
complete control of one company or multiple partners will come together to have
collective control over the integrated process. Integrated supply chain or supply
chain integration has several advantages such as :
 Increase in Revenue
 Controlled Costs
 Quality Control
 Competitive Edge
Navneet Integrated Supply Chain looks at entire supply chain process and focus
globally than local. It looks at Integrated rather than Fragmented Approach.
Demand Uncertainty on Supply Chain
 There is less demand uncertainty on Navneet Supply chain due to Integration
and Statistical Data analysis of target population. But if there is any demand
uncertainty its most portion is absorbs by Manufacture i.e Navneet
Publications.
 Here as Manufacture absorbs most of the Implied Uncertainty it should be
Responsive while supplier,distributor and retailer absorbs less implied
uncertainty should be Efficient.

12. Just-in-Time Inventory
 Retailers working with Navneet Publication often use just-in-time inventory
systems to help mitigate these problems associated with uncertain demand.
 JIT involves a closely coordinated stock replenishment process between
retailers and vendors. By sharing inventory data through software programs
with vendors, retailers allow for more rapid replenishment of stock. This
enables to keep lower inventory levels on hand and make smaller, more
frequent orders.
 While JIT helps there are still risks of stock outs if demand spikes quickly.
Plus, more frequent orders leads to higher shipping costs.
Push-pull view of supply chain
Push view of supply chain
 As push view depends on the speculation of customer demand it tries to push
as many products into the market. In this they take lot of time to react to the
changes in the market. Forecast plays vital role in push view. Long term
forecasting helps the company to manufacture optimum level of products. The
speculative nature of the push process results in high production cost, high
inventory cost and high transportation cost because firm would like to have
buffer at every stage.

13. Pull view of supply chain
 Production and distribution in the firm are depending on the demand. Firm is
having reactive supply chain in this view. Thus it is having fewer inventories
and less variability. It reduces the lead time in the entire process. The biggest
drawback of this view is it can’t reduce the cost by scaling up the production
and operations. Work books offer lesser margins (c20%) to the vendors
as it follows pull strategy.
Cycle View Of Navneet Supply Chain
ProcurementCycle
 The Procurement Cycle occurs between the manufacturer and supplier. It
includes all processes to ensure the availability of materials and components
at the time and place required in the production and maintenance schedule.
These processes include supplier production scheduling and component
manufacturing, shipping, and receiving.
 The cycle is triggered by requirements of the manufacturer's production
schedule, the maintenance activity’s repair schedule, or the restocking policy.
This cycle may repeat several times between several tiers of suppliers.
ManufacturingCycle
The Manufacturing Cycle is found between a manufacturer or repair activity and the
next downstream (toward the customer) member of the supply chain. This next
downstream member may be a wholesaler, a retailer, or the customer. The cycle
begins when a customer, retail activity, or wholesaler places a replenishment order,

14. or when a manufacturer forecasts customer demand. Processes in this cycle include
production and maintenance scheduling, and product repair, shipping, and receiving.
ReplenishmentCycle
The Replenishment Cycle occurs between the retailer and the distributor or
wholesaler and includes all processes for replenishing retail inventory: retail order
entry, fulfillment, and receipt. The distribution network for Navneet is strong
with 1,200 distributors, 16 C&F and 3 Mother depots. This cycle begins with the
retail order trigger, which is a policy that starts the replenishment order placement.
Its stationery products reach over 85,000 retail outlets in more than 600
towns across 23 states and three union territories in India.
Major Book Retailers( Online):-
• Amazon.com
• Flipkart.com
• Infibeam.com
Major Distributors :-
• International Book House
• India Book House
• India Book Distributors (IBD)
CustomerOrderCycle
The Customer Order Cycle sits at the interface between the customer and retailer
and includes all processes for receiving and filling of customer orders: customer
arrival, order entry, fulfillment, and receipt