Final Asian Paints Scm

8/13/2019 Final Asian Paints Scm

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Supply Chain Management of Asian

Paints

- Bhavesh Luhana (10MBA)

- Ashish Parekh (10MBA)

- Abhishek Shah (10MBA0!)

- "in#al Shah (10MBA0)

- Chintan $yas (10MBA11%)


2/25

&lo' of Presentation

ntrou*tion to the *ompany Asian Paints +oay

Prou*t Categories

,lements of Supply Chain of Asian Paints

-a' Material -e.uirements

Ba*k'ar ntegration

/utboun Logisti*s istribution 2et'ork

Certain ssues

istribution Channel

istribution Strategy

mpli*ations of istributing Strategy

nventory Management

Supply Chain -e3engineering

Supply Chain Pro*ess

,nabling + a*ross the e*orative paints

mprove Pro*esses

-esults of -e3engineering

,ffe*ts on Profitability


3/25

ntrou*tion

Starte in 145 by four entrepreneurs6

Champaklal *hoksey7

Chimanlal *hoksey7

Suryakant ani

Arvin $akil as

ASIAN OIL & PAINTS COMPANY

8ithin three years7 their turnover rea*he -s9 :9; lakhs

n 1!%7 Asian paints be*ame the 10th largest paint *ompany

in the 'orl


4/25

VISION:

MISSION:+o be the largest e*orative paint *ompany

'orl'ie an to be the ;th largest paint

manufa*turing *ompany 'orl'ie9


5/25

Asian Paints +oay

nia?s largest paint *ompany for nearly

four e*aes

/perates in 1% *ountries 'ith 54 paint

manufa*turing fa*ilities in the 'orl

servi*ing *onsumers in over !; *ountries9

Asia?s thir largest paint *ompany an

leaer in 11 *ountries


6/25

Prou*t Categories


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,lements of Supply Chain of Asian Paints

:000 S+/C"",,P2@ 2+S

00 -A8

MA+,-ALS

(:;0 Materialsuppliers)

:00 PAC"2@

MA+,-AL

(140 Material $enors)

", SCC,SS&AC+/-S

&L,DBL,

/P,-A+/2S

L/8,-

/+P+ +M,

L/8 ,L$,-

C/S+

4 PLA2+S

! -,@/2ALS+-B+/-

C,2+-,S

:; E/B 8/-"C,2+-,S

%5 ,P/+S

1;000 ,AL,-S;00 2S+-AL

C/2SM,-S


8/25

-a' material -e.uirements

Paint nustry is ra' material intensive 'ith-M being %0F of prou*tion *osts9

:00 types of ra' materials use inmanufa*turing pro*ess

+he most *riti*al ones are

+itanium io=ie (+i/5) :0 F

Phthali* Anhyrie (PA2) 50 F

Pentaerythritol3 (P,2+A) 1; F


9/25

Ba*k'ar ntegration

Asian Pain prou*es PA2 an P,2+A

(:; F of prou*tion *osts)

Competitors are importing these parts till no'

Benefits 6Ba*k'ar integrations

mmuniGes Asian Paints to the flu*tuation in the pri*es

Material is transferre at lo' *ost to Asian Paints

,.uips the *ompany 'ith the ability to meet suen surges in eman

1H:r prou*tion is sol to other *ompanies9 +his gives strategi* ege

to Asian paints


10/25

&our manufa*turing fa*ilities are supporte by

Si= -egional istribution Centers (-C) an

Seventy3t'o epots

,a*h -C an epot is taken by Asian Paints

on lease an then further assigne to a CI&

(Customs Clearing I &or'aring) Agent

istributing the Asian Paints prou*ts to the

1;7000 ealers all over the *ountry9

/utboun Logisti*s istribution 2et'ork


11/25

Certain ssues

Movement of paints an haGarous goos

in*luing ra' materials have a series of safety

*he*ks to be ahere to7 starting 'ith a material

safety data sheet

All materials transport from fa*tories to the epots

is insure through a blanket insuran*e poli*y7

'hi*h fi=es a minimum liability for loss7 amage7

pilferage or leakage up'ars


12/25

istribution Channel

Fast Moi!" #oods

&a*tory (4)

epots (%5)

ealers (1;000)

Slo$ Moi!" #oods

&a*tory (4)

-egional istribution Center (!)

epots (%5)

ealers (1;000)


13/25

Asian Paints bypasse the bulk buyer segment an'ent to iniviual *onsumers of paints

t 'ent slo' on urban areas an *on*entrate on semi3

urban an rural areas

t 'ent retail

t 'ent in for an open3oor ealer poli*y

t vote for nation'ie marketing H istribution

istribution Strategy


14/25

mpli*ations of istribution Strategy

@oing to niviual Consumers mplie 8ie Prou*t -ange

an Comple= istribution

Smaller Pa*ks proliferate the prou*t epth further

8ie Prou*t range mplie ,=pensive istribution

@oing retail mplie eep nvolvement in ChannelManagement

2ational Marketing ne*essitate nation'ie organiGation


15/25

&a*ts6

Lo'est inventory *ost in inustry

Average inventory level of 5 ays sales against inustry

average of ;1 ays

+ranslates into 4; F lo'er inventory *osts

Sto*k of finishe goos is only %F of net sales half the

inustry average

nventory Management


16/25

Asian Paints allo'e

1;351 ays *reit for ealers in ma#or to'ns

553:0 ays *reit for ealers in up*ountry regions

n*entive s*hemes to reu*e inventory

A spe*ial is*ount of :9; per *ent 3 is*ount for perfe*tion in payments

t 'as passe on at the en of the year7 provie ea*h an everypayment throughout the year 'as mae 'ithin the stipulate time

norms

A *ash is*ount of ; per *ent9 +his 'as pai for all outright *ash

pur*hases

t 'as given 'henever payments 'ere re*eive 'ithin 54 hours of the

supplyHinvoi*en respe*t of outstation a**ounts7 the payments have been mae in

avan*e by raft in orer to be eligible for the *ash is*ount


17/25

/b#e*tive6

+o eliver prou*ts effi*iently to *ustomers

'ithout holing large amount of inventory

+o manage *ash *y*le to free up funing for

aggressive gro'th by a*.uisition strategy

Supply Chain -e3engineering


18/25

Supply Chain Pro*ess


19/25

istribution

Paint ispensing ma*hines

Altere the prou*tion pattern from shaes to prou*ing bases

-eu*e inventory an ,liminate reunan*y of sto*ks Appro=9 11000 *olor tinting ma*hines in*luing multiple ma*hines a*ross

some *ounters

Jas helpe e=pan the range of shaes for ea*h prou*t *ategory7 offering a

*hoi*e of shaes to *onsumers in the hunres9

&or the retailers it has eliminate the sales loss for 'ant of rangeHesire

shae

i5 istribution planner use to evelop istribution s*heules

base on *onstraints

,nabling + a*ross the e*orative paints


20/25

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21/25

Manufa*turing

sing i5 Master planner to ei*ie 'hi*h plant to manufa*ture 'hat

prou*t epening on

3 Capa*ity *onstraints

3 ,nvironmental *onstraints

3 "ey ra' materials

Jelps optimiGe the pro*ess su*h that least inventory is prou*e to

maintain the e=pe*tations of servi*e an safety sto*k

&a*tory S*heuler use for ma*hine by ma*hine an unit by unit

planning of prou*tion s*heules

mprove Pro*esses


22/25

Pro*urement

i5?s fa*tory planner use to ientify the ra' material an pa*king materials

an 'ho to sour*e it from

Also provies the ieal formulations re.uire for manufa*turing prou*ts

A better materials planning system allo's the *ompany to *reate more

*omple= paint formulas

Jelps sele*t the best venor an manufa*turing metho for any given

situation

+he Supply Chain Management is ba*ke by + efforts that help the

*ompany in eman fore*asting7 eriving optimal plant7 epot an S"

*ombinations7 streamlining venor relationships7 reu*ing pro*urement *osts

an s*heuling prou*tion pro*esses for iniviual fa*tories


23/25

-esults of -e3engineering

-eu*e &inishe nventory *y*le from % days to '( days

Business is *urrently ) times of that before BP-

n*rease in the number of shaes from %( to *'((

A*hieve an +,-.( /er0e!t seri0e leels for S" sales at the

lo*ation level

Built a *ompetitive avantage in terms of inventory management


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,ffe*ts on Profitability


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+JA2" /

Documents

Final Asian Paints Scm