SlideShare a Scribd company logo
1 of 7
Download to read offline
Submitted by,
Tony Augustine
1527729
Christ university
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
Marico Presence
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
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
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

More Related Content

What's hot

ST Presentation- RAKIB
ST Presentation- RAKIBST Presentation- RAKIB
ST Presentation- RAKIBRakib Bappy
 
Barilla Spa: A case on Supply Chain Integration
Barilla Spa: A case on Supply Chain IntegrationBarilla Spa: A case on Supply Chain Integration
Barilla Spa: A case on Supply Chain IntegrationHimadri Singha
 
Marico - Over the wall
Marico - Over the wallMarico - Over the wall
Marico - Over the wallRohit Kumar
 
P&G Supply Chain Management
P&G Supply Chain ManagementP&G Supply Chain Management
P&G Supply Chain ManagementKunal Singh
 
S Deshpabde Group Purchasing
S Deshpabde Group PurchasingS Deshpabde Group Purchasing
S Deshpabde Group PurchasingGordon Renouf
 
Final Scm Presentation
Final Scm PresentationFinal Scm Presentation
Final Scm Presentationbhardwajakshay
 
Barilla spa case analysis
Barilla spa case analysisBarilla spa case analysis
Barilla spa case analysisSoumendra Dalai
 
Supply Chain Analysis of Nestle
Supply Chain Analysis of NestleSupply Chain Analysis of Nestle
Supply Chain Analysis of Nestlealok kumar
 
Ath microtechnologies
Ath microtechnologiesAth microtechnologies
Ath microtechnologiesSMRITI0001
 
Halden Zimmermann - Barilla Case Study Final
Halden Zimmermann - Barilla Case Study FinalHalden Zimmermann - Barilla Case Study Final
Halden Zimmermann - Barilla Case Study FinalHalden Zimmermann
 
Halden Zimmermann - Barilla spA case analysis Part 1
Halden Zimmermann - Barilla spA case analysis Part 1Halden Zimmermann - Barilla spA case analysis Part 1
Halden Zimmermann - Barilla spA case analysis Part 1Halden Zimmermann
 
Brilla spa ( case study )
Brilla spa ( case study )Brilla spa ( case study )
Brilla spa ( case study )Deepak Kalhan
 

What's hot (20)

ST Presentation- RAKIB
ST Presentation- RAKIBST Presentation- RAKIB
ST Presentation- RAKIB
 
The bis corporation anubhaw
The bis corporation   anubhawThe bis corporation   anubhaw
The bis corporation anubhaw
 
Barilla Spa: A case on Supply Chain Integration
Barilla Spa: A case on Supply Chain IntegrationBarilla Spa: A case on Supply Chain Integration
Barilla Spa: A case on Supply Chain Integration
 
Marico - Over the wall
Marico - Over the wallMarico - Over the wall
Marico - Over the wall
 
Quick response and ECR
Quick response and ECRQuick response and ECR
Quick response and ECR
 
Group 7
Group 7Group 7
Group 7
 
P&G Supply Chain Management
P&G Supply Chain ManagementP&G Supply Chain Management
P&G Supply Chain Management
 
S Deshpabde Group Purchasing
S Deshpabde Group PurchasingS Deshpabde Group Purchasing
S Deshpabde Group Purchasing
 
Final Scm Presentation
Final Scm PresentationFinal Scm Presentation
Final Scm Presentation
 
Quick response
Quick responseQuick response
Quick response
 
Barilla spa case analysis
Barilla spa case analysisBarilla spa case analysis
Barilla spa case analysis
 
Supply Chain Analysis of Nestle
Supply Chain Analysis of NestleSupply Chain Analysis of Nestle
Supply Chain Analysis of Nestle
 
Barilla supply chain
Barilla supply chainBarilla supply chain
Barilla supply chain
 
Ath microtechnologies
Ath microtechnologiesAth microtechnologies
Ath microtechnologies
 
Halden Zimmermann - Barilla Case Study Final
Halden Zimmermann - Barilla Case Study FinalHalden Zimmermann - Barilla Case Study Final
Halden Zimmermann - Barilla Case Study Final
 
Toyota
ToyotaToyota
Toyota
 
Halden Zimmermann - Barilla spA case analysis Part 1
Halden Zimmermann - Barilla spA case analysis Part 1Halden Zimmermann - Barilla spA case analysis Part 1
Halden Zimmermann - Barilla spA case analysis Part 1
 
Brilla spa ( case study )
Brilla spa ( case study )Brilla spa ( case study )
Brilla spa ( case study )
 
Barilla
BarillaBarilla
Barilla
 
Barilla sp a
Barilla sp aBarilla sp a
Barilla sp a
 

Similar to Marico

United Plantations Strategic Analysis
United Plantations Strategic AnalysisUnited Plantations Strategic Analysis
United Plantations Strategic AnalysisSirene Alsarmini
 
Yale Integrated Leadership Case Competition 2016 - Presentation by National U...
Yale Integrated Leadership Case Competition 2016 - Presentation by National U...Yale Integrated Leadership Case Competition 2016 - Presentation by National U...
Yale Integrated Leadership Case Competition 2016 - Presentation by National U...Mehak Chadha
 
The Hidden Asset - Effective SRM
The Hidden Asset  - Effective SRMThe Hidden Asset  - Effective SRM
The Hidden Asset - Effective SRMBravoSolution
 
EC plan 2014 Final Revision
EC  plan 2014 Final Revision EC  plan 2014 Final Revision
EC plan 2014 Final Revision Abiodun Toriola
 
Implementation of TQM in Manufacturing Industries in the Kingdom of Saudi Arabia
Implementation of TQM in Manufacturing Industries in the Kingdom of Saudi ArabiaImplementation of TQM in Manufacturing Industries in the Kingdom of Saudi Arabia
Implementation of TQM in Manufacturing Industries in the Kingdom of Saudi ArabiaHiba shaikh & Varda shaikh
 
HKUST Nanyang MBA Banana Farms
HKUST Nanyang MBA Banana FarmsHKUST Nanyang MBA Banana Farms
HKUST Nanyang MBA Banana FarmsAnkit Agarwal
 
AFRICA RISING−NAFAKA: Postharvest management activities and achievements 2018...
AFRICA RISING−NAFAKA: Postharvest management activities and achievements 2018...AFRICA RISING−NAFAKA: Postharvest management activities and achievements 2018...
AFRICA RISING−NAFAKA: Postharvest management activities and achievements 2018...africa-rising
 
Detailed Project Report on Setting up a Polypropylene Filament Yarn Manufactu...
Detailed Project Report on Setting up a Polypropylene Filament Yarn Manufactu...Detailed Project Report on Setting up a Polypropylene Filament Yarn Manufactu...
Detailed Project Report on Setting up a Polypropylene Filament Yarn Manufactu...IMARC Group
 
Get a Sneak Peek at SQF Edition 8
Get a Sneak Peek at SQF Edition 8Get a Sneak Peek at SQF Edition 8
Get a Sneak Peek at SQF Edition 8TraceGains
 
B_Bilancio-Sostenibilità_M_30-0_GB
B_Bilancio-Sostenibilità_M_30-0_GBB_Bilancio-Sostenibilità_M_30-0_GB
B_Bilancio-Sostenibilità_M_30-0_GBSimonetta Dusi
 
B_Bilancio-Sostenibilità_M_30-0_GB
B_Bilancio-Sostenibilità_M_30-0_GBB_Bilancio-Sostenibilità_M_30-0_GB
B_Bilancio-Sostenibilità_M_30-0_GBCristina Stefani
 

Similar to Marico (19)

Marico.pdf
Marico.pdfMarico.pdf
Marico.pdf
 
United Plantations Strategic Analysis
United Plantations Strategic AnalysisUnited Plantations Strategic Analysis
United Plantations Strategic Analysis
 
Marico supply chain
Marico supply chainMarico supply chain
Marico supply chain
 
Yale Integrated Leadership Case Competition 2016 - Presentation by National U...
Yale Integrated Leadership Case Competition 2016 - Presentation by National U...Yale Integrated Leadership Case Competition 2016 - Presentation by National U...
Yale Integrated Leadership Case Competition 2016 - Presentation by National U...
 
AO
AOAO
AO
 
FNG Company Book no frame -1
FNG Company Book no frame -1FNG Company Book no frame -1
FNG Company Book no frame -1
 
The Hidden Asset - Effective SRM
The Hidden Asset  - Effective SRMThe Hidden Asset  - Effective SRM
The Hidden Asset - Effective SRM
 
EC plan 2014 Final Revision
EC  plan 2014 Final Revision EC  plan 2014 Final Revision
EC plan 2014 Final Revision
 
Pakistan Mango
Pakistan MangoPakistan Mango
Pakistan Mango
 
Competition ppt1
Competition ppt1Competition ppt1
Competition ppt1
 
Implementation of TQM in Manufacturing Industries in the Kingdom of Saudi Arabia
Implementation of TQM in Manufacturing Industries in the Kingdom of Saudi ArabiaImplementation of TQM in Manufacturing Industries in the Kingdom of Saudi Arabia
Implementation of TQM in Manufacturing Industries in the Kingdom of Saudi Arabia
 
HKUST Nanyang MBA Banana Farms
HKUST Nanyang MBA Banana FarmsHKUST Nanyang MBA Banana Farms
HKUST Nanyang MBA Banana Farms
 
AFRICA RISING−NAFAKA: Postharvest management activities and achievements 2018...
AFRICA RISING−NAFAKA: Postharvest management activities and achievements 2018...AFRICA RISING−NAFAKA: Postharvest management activities and achievements 2018...
AFRICA RISING−NAFAKA: Postharvest management activities and achievements 2018...
 
Detailed Project Report on Setting up a Polypropylene Filament Yarn Manufactu...
Detailed Project Report on Setting up a Polypropylene Filament Yarn Manufactu...Detailed Project Report on Setting up a Polypropylene Filament Yarn Manufactu...
Detailed Project Report on Setting up a Polypropylene Filament Yarn Manufactu...
 
2016 - Company Presentation
2016 - Company Presentation2016 - Company Presentation
2016 - Company Presentation
 
Pidilite
PidilitePidilite
Pidilite
 
Get a Sneak Peek at SQF Edition 8
Get a Sneak Peek at SQF Edition 8Get a Sneak Peek at SQF Edition 8
Get a Sneak Peek at SQF Edition 8
 
B_Bilancio-Sostenibilità_M_30-0_GB
B_Bilancio-Sostenibilità_M_30-0_GBB_Bilancio-Sostenibilità_M_30-0_GB
B_Bilancio-Sostenibilità_M_30-0_GB
 
B_Bilancio-Sostenibilità_M_30-0_GB
B_Bilancio-Sostenibilità_M_30-0_GBB_Bilancio-Sostenibilità_M_30-0_GB
B_Bilancio-Sostenibilità_M_30-0_GB
 

Marico

  • 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
  • 4.
  • 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