ASSESSMENT 3

HAVELLS
ABOUT THE COMPANY
Havells India Limited is an Indian electrical equipment company based in Noida.
In business since 1958, the company has products ranging from home and kitchen
appliances, lighting for domestic, commercial and industrial applications, LED
lighting, fans, modular switches and wiring accessories, water heaters, industrial
and domestic circuit protection switchgear, industrial and domestic cables and
wires, induction motors, and capacitors among others.
Havells India owns some brands like Havells, Lloyd, Crabtree, Standard Electric,
Reo and Prompt tech.

The company has 23 branches / representative offices with over 6,000 workers in
over 50 countries.
India's first Lloyd's exclusive outlet is acquired by businessman Mr. RAJAN
BANSAL.
The store is situated in western part of New Delhi, Paschim Vihar.
As of 2016, it has 11 manufacturing plants in India located at Haridwar, Baddi,
Noida, Faridabad, Alwar, Neemrana, and Bengaluru.
In 2014, Havells was listed 125th among 1200 of India's most trusted brands
according to the Brand Trust Report 2014, a study conducted by Trust Research
Advisory.

SWOT ANALYSIS OF HAVELLS

 Strengths in the SWOT Analysis of Havells India

1. High recall and loyalty
2.Preferred choice for electrical Products
3.Huge product range
 4.Global Presence
5.Good Command on fast growing countries.

 Weaknesses in the SWOT Analysis of Havells India

1.Debt Ratio
2. Small Market Share at the Global Level
3.The slow down of Real Estate.
4. Global market performance

 Opportunities in the SWOT Analysis of Havells India

1.Globally emerging market
2.Focus on Weak Segments
3.Chinese firm Acquisition
4.Increase in customer market
5.Business Diversification

Threats in the SWOT Analysis of Havells India

1.Delay with power projects
2.Unorganized market
3.Changing Government opportunities
4. A single entry for the business.

PRODUCTS MAUFACTURED BY THE COMPANY

1.Lighting
2.Applicances
3.Water Heater
4.Air Cooler
5.Water Purifier
6.Personal Grooming
7.Llyod consumer durable
8.Solar
9.Pump
10. Switches
11.Switch gear
12. Flexible Cables
Inventory management strategies deployed by the organization.

1) Min-Max plan:
In this plan analyst lays down a maximum and minimum for each stock Services.
Minimum level establishes the reorder point and order is placed for quantity of
material, which will bring it to themaximum level.
2) Order Cycling System:
In this system, quantities in hand of each Services or class of stock are reviewed
periodically. In that, if it is observed that stock level of a given Services will not be
sufficient till the next schedule review keeping in view of its probable rate of
depletion, an order is placed to replenish its supply.
3) The ABC Analysis:
With the numerous parts and materials that enter into each and every industrial
production, inventory control leads itself, inventory and foremost, to the problem
of analysis. Such analytical approach is popularly known as ABC (ALWAYS
BETTER CONTROL) Analysis. This Plan is based upon segregation of material
for selection control. It measures money value i.e. cost significance for each
materials Services in relation to total cost and inventory value. The logic behind is
that the management should study each Services of stock in terms of its usage,
lead-time, technical or other problems and its relative money value in the total
investment in inventories.
Critical, i.e. high value Services deserve very close attention, and low value
Services need to be devoted minimum expense and effort in the task of controlling
inventories.
4) Use of Control Ratios:
Inventory turnover ratio helps management to avoid capital being locked up
unnecessarily. This ratio reveals the efficiency of stock keeping.
Inventory turnover ratio=Cost of materials consumed / Cost of average stock held
during the
period Where,
Cost of average stock = [Cost of opening stock + Cost of closing stock]/2
Inventory turnover ratio [in days] =Days during the period /Inventory turnover
ratio.
5) Review of slow moving and non- moving Services:
Stock turnover ratio should as high as possible. Loss due to obsolescence be
eliminated or these .Services used in some profitable work. Slow moving stock
obsolescence be eliminated or these services used in some profitable work. Slow
moving stock should be identified and speedily disposed off. The speed of
movement should be increased.
The turnover of different Services of stock can be analyzed to find out the moving
stocks.
Organization's supply and demand management.

Supply chain management (SCM) plays an essential role in collaborating with

partners (from finished goods to Tier 2 to nth sub-components) and improving
value creation across the supply chain. The company is heavily dependent on
contract manufacturing model and a resilient supply chain is essential for making
finished goods available on timely basis. Going forward, the company strives to
sustain a geographically diverse partner base and rely on newage technologies to
automate supply chain processes & maintain strong relationships with its partners.
It also aims to increase the visibility of the supply chain, from sub-component
suppliers to the distributor level. further aspires to improve overall profitability,
deliver superior quality products, decrease time to market, introduce innovative
and unique products, and reduce its environmental footprint. management, and
inventory management through the integration of advanced technology and
automated processes.
At the core of the network will be 2 large ultra-modern warehouses located near
Delhi and Mumbai. It will be equipped with the latest technology and automated
facilities to enhance productivity and efficiency

How the organization can further improve their supply chain mangement?

1. Make the move to real-time supply chain planning

When using ERP systems and spreadsheets for planning, companies typically rely
only on historical data, resulting in little wiggle room for changes should any
disruptions occur in demand or supply.

2. Unify supply chain planning with enterprise planning

A vital second step is connecting traditionally siloed supply chain planning to sales
and operations planning and financial planning. Companies can benefit from
synchronizing their shortterm operational planning with their wider business
planning processes to make real-time updates to inventory forecasts and supply.
Deploying real-time S&OP solutions that enable enterprise-wide collaboration
means that key stakeholders across the business can create new scenarios and
quickly assess how to use their resources to optimize profitability when an
unforeseen event happens.

3. Anticipate the demand of the end customer

When changing consumer sentiments can be rapidly identified and changes to
demand for the product assessed, the company, partners, and customers benefit
from improved profitability, margins, and lead time.

4. Leverage real-time data across all points of the supply chain

Because supply chain planning typically involves a myriad of suppliers, channels,
customers, and pricing schemes, models can become large and potentially
unwieldy—especially when spreadsheets are the primary planning tools.
Incorporating a solution that uses real-time data allows planning with great
accuracy and reduces the risk of stock-outs or surplus inventory.

5. Ensure the flexibility to cope with change

When technology facilitates efficient planning and quick reactions, disruptions
aren’t disruptive because re-planning and re-forecasting is easy—resulting in time
and money saved and increased profitability.
.