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Case Study: 

Case Study Sales and Distribution Management

Asian Paints : 

Asian Paints Blending Technology and Distribution

Company Profile: 

Company Profile India’s largest and Asia’s third largest paint company It has a turnover of 54.63 billion Operates in 20 countries Has 28 mfg facilities Serves consumers in more than 65 countries

Case Summary : 

Case Summary Asian Paints Ltd. (APIL) is a leading company in its industry The company has a vast supply chain This industry requires high working capital because of need to store large number of shades Company had around four manufacturing facilities in India with 2,800 stock keeping units, six regional distribution centers which 55 depots and 14,500 dealers in 2001

Case Summary : 

Case Summary APIL implemented technological innovations in its supply chain management They developed in-house applications software, branch computerization, VSATs, supply chain management systems, ERP, etc Company invested Rs. 290 million in these

Case Summary : 

Case Summary All these helped in assessment of stock at vendors and suppliers at any time and forecast demand accurately thereby reducing stock and working capital Company saved around Rs. 100 million and 25% saving in finished goods inventory

Case Summary : 

Case Summary New technological developments were introduced like Tinters and Special Tinters System which can create different shades from the white colored paint itself Majority of the company’s sales were generated through these outlets Company also focused on towns with clusters of villages around them

Case Summary : 

Case Summary APIL’s field officers dealt directly with the dealers APIL also have a strategy to maintain relations and motivate its extensive dealer’s network It gave yearly targets to its dealers with an extra incentive of 0.25% to 0.5%

Case Summary : 

Case Summary APIL was awarded for its excellent management of supply chain for better productivity and increased customer satisfaction

Questions & Answers: 

Questions & Answers

Q-1: APIL was well known for its continuous investment in technology to improve its operations. In the 1990’s it implemented supply chain management systems along with ERP. Highlight the benefits of these initiatives in the operations at APIL. : 

Q-1 : APIL was well known for its continuous investment in technology to improve its operations. In the 1990’s it implemented supply chain management systems along with ERP. Highlight the benefits of these initiatives in the operations at APIL.

Q-1: APIL was well known for its continuous investment in technology to improve its operations. In the 1990’s it implemented supply chain management systems along with ERP. Highlight the benefits of these initiatives in the operations at APIL.: 

Q-1 : APIL was well known for its continuous investment in technology to improve its operations. In the 1990’s it implemented supply chain management systems along with ERP. Highlight the benefits of these initiatives in the operations at APIL. ANS : APIL was one of the first companies to implement technological innovations in its supply chain management year on year APIL went on improving technology like development of inhouse application software for manufacturing and mineral planning. This software helped to offer a variety of shades and packs for its industrial and non industrial customers.

Q-1: APIL was well known for its continuous investment in technology to improve its operations. In the 1990’s it implemented supply chain management systems along with ERP. Highlight the benefits of these initiatives in the operations at APIL.: 

Q-1 : APIL was well known for its continuous investment in technology to improve its operations. In the 1990’s it implemented supply chain management systems along with ERP. Highlight the benefits of these initiatives in the operations at APIL. ANS : Branch computerization was implemented to help the zonal distribution centers to get the stock positions on a daily basis. This data could also be used to analyze the performance of individual dealers also. APIL installed VSATs which connected the factories to the depots, thereby ensuring better accounting and planning procedures.

Q-1: APIL was well known for its continuous investment in technology to improve its operations. In the 1990’s it implemented supply chain management systems along with ERP. Highlight the benefits of these initiatives in the operations at APIL.: 

Q-1 : APIL was well known for its continuous investment in technology to improve its operations. In the 1990’s it implemented supply chain management systems along with ERP. Highlight the benefits of these initiatives in the operations at APIL. ANS : In the 1990,s APIL implemented supply chain management systems along with ERP. Benefits of these initiatives in the operations at APIL are; 1 .It simplifies the processes across its operations. 2. It helped in connecting all the vendors and suppliers, so as to assess there stock as and when necessary.

Q-1: APIL was well known for its continuous investment in technology to improve its operations. In the 1990’s it implemented supply chain management systems along with ERP. Highlight the benefits of these initiatives in the operations at APIL.: 

Q-1 : APIL was well known for its continuous investment in technology to improve its operations. In the 1990’s it implemented supply chain management systems along with ERP. Highlight the benefits of these initiatives in the operations at APIL. ANS : 3. It helped in the company to forecast demand accurately, thereby reducing stock and working capital costs 4. APIL was able to save Rs 100 million during 1999-2000 5. Reducing inventory of finished goods by 25% resulting in significant savings.

Q-2: Apart from pruning its supply chain systems, APIL also laid emphasis on dealer relations. This was very critical as the point business required an extensive dealer network. What are the various measures that the paint major has taken to improve relations with dealer? What other measures would you suggest to the company to further strengthen the dealer network?: 

Q-2: Apart from pruning its supply chain systems, APIL also laid emphasis on dealer relations. This was very critical as the point business required an extensive dealer network. What are the various measures that the paint major has taken to improve relations with dealer? What other measures would you suggest to the company to further strengthen the dealer network?

Q-2: Apart from pruning its supply chain systems, APIL also laid emphasis on dealer relations. This was very critical as the point business required an extensive dealer network. What are the various measures that the paint major has taken to improve relations with dealer? What other measures would you suggest to the company to further strengthen the dealer network?: 

Q-2: Apart from pruning its supply chain systems, APIL also laid emphasis on dealer relations. This was very critical as the point business required an extensive dealer network. What are the various measures that the paint major has taken to improve relations with dealer? What other measures would you suggest to the company to further strengthen the dealer network? ANS : As we all know paints business is mainly seasonal, most of the sale is during festival season i.e. near diwali , so the supply chain systems of the company should be perfect to ensure availability of raw material. The company needs to stock huge quantity of finished products as the production is carried on throughout the year but sales are mainly during a particular season.

Q-2: Apart from pruning its supply chain systems, APIL also laid emphasis on dealer relations. This was very critical as the point business required an extensive dealer network. What are the various measures that the paint major has taken to improve relations with dealer? What other measures would you suggest to the company to further strengthen the dealer network?: 

Q-2: Apart from pruning its supply chain systems, APIL also laid emphasis on dealer relations. This was very critical as the point business required an extensive dealer network. What are the various measures that the paint major has taken to improve relations with dealer? What other measures would you suggest to the company to further strengthen the dealer network? ANS : The dealers and retailers will never keep the stock in full fledge throughout the year. They will only stock it in the price season. So the company is maintaining such a supply chain so as to to ensure that the retailers keep stock of less than their average sales turnover of four days. Stockists were also ensured of supply within a day from warehouses situated nearby. This minimized inefficiencies in the supply chain.

Q-2: Apart from pruning its supply chain systems, APIL also laid emphasis on dealer relations. This was very critical as the point business required an extensive dealer network. What are the various measures that the paint major has taken to improve relations with dealer? What other measures would you suggest to the company to further strengthen the dealer network?: 

Q-2: Apart from pruning its supply chain systems, APIL also laid emphasis on dealer relations. This was very critical as the point business required an extensive dealer network. What are the various measures that the paint major has taken to improve relations with dealer? What other measures would you suggest to the company to further strengthen the dealer network? ANS : The paint business requires an extensive dealer network because if the company go for opening its own retail outlet it will not be a feasible solution for the company because opening and maintaining a large number of outlet is practically impossible for the company because many more goods are sold by the dealers or retailers so as to run the shop properly throughout the year. Rather by doing this companies main focus will divert from its core business of manufacturing paint.

Q-2: Apart from pruning its supply chain systems, APIL also laid emphasis on dealer relations. This was very critical as the point business required an extensive dealer network. What are the various measures that the paint major has taken to improve relations with dealer? What other measures would you suggest to the company to further strengthen the dealer network?: 

Q-2: Apart from pruning its supply chain systems, APIL also laid emphasis on dealer relations. This was very critical as the point business required an extensive dealer network. What are the various measures that the paint major has taken to improve relations with dealer? What other measures would you suggest to the company to further strengthen the dealer network? ANS : So in order to overcome all this problem the company need to maintain a cordial relationship with its dealer and ensure extensive dealer network because if there products are not available in the market, the customers will not wait for it they will buy paints of other good company available in the market, as there is good saying “Customer and death never waits”. So if they do not make available there products to each and every store it is sure to loose customers.

Q-2: Apart from pruning its supply chain systems, APIL also laid emphasis on dealer relations. This was very critical as the point business required an extensive dealer network. What are the various measures that the paint major has taken to improve relations with dealer? What other measures would you suggest to the company to further strengthen the dealer network?: 

Q-2: Apart from pruning its supply chain systems, APIL also laid emphasis on dealer relations. This was very critical as the point business required an extensive dealer network. What are the various measures that the paint major has taken to improve relations with dealer? What other measures would you suggest to the company to further strengthen the dealer network? ANS : Moreover if the dealers are not given proper commission or incentives they will not take initiative or show interest in selling the products of Asian paints rather they will sell the products of those companies with interest which offer them better commission as well as better commission as well as provide with better terms and conditions of the business.

Q-2: Apart from pruning its supply chain systems, APIL also laid emphasis on dealer relations. This was very critical as the point business required an extensive dealer network. What are the various measures that the paint major has taken to improve relations with dealer? What other measures would you suggest to the company to further strengthen the dealer network?: 

Q-2: Apart from pruning its supply chain systems, APIL also laid emphasis on dealer relations. This was very critical as the point business required an extensive dealer network. What are the various measures that the paint major has taken to improve relations with dealer? What other measures would you suggest to the company to further strengthen the dealer network? ANS : APIL also had specific strategies to maintain relations and motivate its extensive dealer network. It gave early targets to its dealers with an extra incentive of 0.25% to 0.5% which bound them to the company.

Q-2: Apart from pruning its supply chain systems, APIL also laid emphasis on dealer relations. This was very critical as the point business required an extensive dealer network. What are the various measures that the paint major has taken to improve relations with dealer? What other measures would you suggest to the company to further strengthen the dealer network?: 

Q-2: Apart from pruning its supply chain systems, APIL also laid emphasis on dealer relations. This was very critical as the point business required an extensive dealer network. What are the various measures that the paint major has taken to improve relations with dealer? What other measures would you suggest to the company to further strengthen the dealer network? ANS : Suggestions to further strengthen the dealer network Rewarding the dealer with maximum sale with a special gift. On shop delivery to dealers.

Q-2: Apart from pruning its supply chain systems, APIL also laid emphasis on dealer relations. This was very critical as the point business required an extensive dealer network. What are the various measures that the paint major has taken to improve relations with dealer? What other measures would you suggest to the company to further strengthen the dealer network?: 

Q-2: Apart from pruning its supply chain systems, APIL also laid emphasis on dealer relations. This was very critical as the point business required an extensive dealer network. What are the various measures that the paint major has taken to improve relations with dealer? What other measures would you suggest to the company to further strengthen the dealer network? ANS : providing the dealers with appropriate support as and when needed. providing facility of reverse logistics to dealers. with the help of IT, the company can integrate all the dealers together as well as the dealers can place the order online

Q-2: Apart from pruning its supply chain systems, APIL also laid emphasis on dealer relations. This was very critical as the point business required an extensive dealer network. What are the various measures that the paint major has taken to improve relations with dealer? What other measures would you suggest to the company to further strengthen the dealer network?: 

Q-2: Apart from pruning its supply chain systems, APIL also laid emphasis on dealer relations. This was very critical as the point business required an extensive dealer network. What are the various measures that the paint major has taken to improve relations with dealer? What other measures would you suggest to the company to further strengthen the dealer network? ANS : Company can arrange for get together of dealers all over the world once in a year so that they can share the problems and final solutions. Facilitate transfer of stock of paints which a particular dealer is unable to sell, to the dealers place who has enough demand of that particular product, so as to ensure the dealers capital are not blocked unnecessarily.

Conclusion: 

Conclusion Asian Paints India Ltd. is recognized for its excellent management of the supply chain for better productivity and customer satisfaction, for this it was awarded “ Cheminor Award 2002”. By its continuous initiatives the company builds a great brand image in the eyes of customers, retailers as well as dealers. They managed there business in a very recognized manner by making proper coordination between dealers and retailers. No doubt this company is a leading players in paint industry but if the above mentioned suggestions would be taken into consideration it will further add to the performance of the company.

Thank You !!!: 

Thank You !!! Gourav Gupta (FI - 0845) Praveen Kumar Choudhary (FI - 0830) Sanjay Kumar Prajapati (FI - 0840)