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| Supply Chain Integration at a leading TV manufacturer | |||||||||||||||||||||||||||||||||||||||
One
of leading manufacturers of consumer durables in India, the company
was faced with increasing competition from Multinational companies
that were setting up their manufacturing bases in the country. While
the Company’s product was well accepted in the market, the
cost of ownership for the customer was high due to large inventory
holding within the supply chain. |
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Kaul
Associates was approached by the company to study the existing manufacturing
architecture, the supply chain network and recommend improved process
that would increase the velocity in their manufacturing plant as
well as the supply chain. |
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| Initial Study | |||||||||||||||||||||||||||||||||||||||
| Study of the current process revealed that | |||||||||||||||||||||||||||||||||||||||
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The
actual sales varied widely from the sales forecast; the variation
was as much as 50% of the plan in many of the high end products
where as in the low end products the sales often exceeded the forecast
leading to stock outs. |
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Many of the high valued components were imported and the lead times were as high as 90 days. | ||||||||||||||||||||||||||||||||||||||
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The planning was the push model with large batch size which often represented one month’s sales | ||||||||||||||||||||||||||||||||||||||
| Recommendations | |||||||||||||||||||||||||||||||||||||||
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Sales
and operations planning to align all the key business functions
in marketing, operations, R&D & Finance to one single operations
plan prepared 3 months in advance and rolled over each month. |
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Collect
daily feedback of sales from 37 distribution centres and use that
to drive the manufacturing / shipping / program. |
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Implement CPFR for the entire supply chain. | ||||||||||||||||||||||||||||||||||||||
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Implement Lean in all manufacturing plants. | ||||||||||||||||||||||||||||||||||||||
| Results |
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