Wednesday, June 18, 2008

Supply Chain at Marico

The company with 6 factories & about 1000 employeers, currently has 9 brnads, produces 125 SKU's with its 15 subcontracting manufactuers, selling through 3500 distributors to 1.6 million retail outlets. Thus it becomes crucial for the company to have an efficient supply chain management. With the increase in competition & product mix the company faced tremendous challenge in mainting the same service levels which resulted in stock out, rising inventory, inaccurate forecast, delays in response to market requirement causing dissattisfied customers. To overcome this the company implemented my sap SCM across all locations in a big bang way. The implemention started in 1999 and was completed in 2 years time. The result was improved forecasting, reduced forecast cycle from 30 days to 15 days, enhanced decision making, decreased stock outs, reduced lost sales, low inventory and improved customer satisfaction. In future the comany plans to implement my SAP VMI (vendor managed inventory) which will link the distributors to companies system thus further reducing the forecasting cycle to 10 days leading to further boost to Maricos top & bottomline

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