KLE TECHNOLOGICAL UNIVERSITY,

HUBBALLI-580031, KARNATAKA

DEPARTMENT OF MECHANICAL ENGINEERING

“Assignment on case study of Supply

Chain Management”









Submitted by:-
Satvik Kamat
01FE19BME033
Roll no. 204
‘B’ Div.
Case study: Amul

Amul Milk Union Limited or Amul India got established on 19 December 1946 in
the town of Anand in Gujarat in India. It was a move against the brokers and
agents who arbitrarily determined the milk prices and exploited the milk
producers. It was the time when Polson, another dairy company, was dominating
the business. The government had given the company control in the work of
collecting milk from Kaira and supplying it to Mumbai and its sub-areas. Polson
brought the milk at low rates from the farmers. These unfair trade practices
made the farmers very angry. Sardar Patel advised the farmers to set up a
cooperative (Kaira District Co-operative Milk Producers Union) and supply milk
directly to the Mumbai milk division, not Polson. Initially, the butter from Kaira
cooperative was just simple, but they had to give a name to it. So as Dr. Kurien
narrates, the marketing unit thought of many names. Then they came across
Anand Milk Union Limited (Amul). In Sanskrit also, ‘Amulya’ means ‘priceless,’
but his marketing specialists were doubtful as it is an Indian name and would not
sell. But Dr. Kurien was sure, and he decided upon it. The joint efforts of Patel,
Dalaya, and Kurien led to the development of the National Dairy Development
Board (NDDB) in 1965. The Prime Minister named Dr. Varghese Kurien as its
founding Chairman. And this spread a wave of milk across India. Many
cooperatives were set up in Gujarat itself. On January 13, 1970, Operation Flood
was launched. The Amul supply chain model of dairy development is a three-
tiered structure with the dairy cooperative societies at the village level federated
under a milk union at the district level and a federation of member unions at
the state level. Amul stays away from “hard core” marketing and advertising.
Interestingly, it places most spotlight on just two products – Amul Butter and
Amul Cheese. This is because the company allocates only 1% of revenue on
Amul’s digital marketing and advertising strategy. It became the largest dairy
development program in the world. Its main aim was to imitate the Anand model
in all parts of India. As a result, we got about 0.1 million cooperatives and 5
million milk farmers. Dr. Kurien developed other dairy products also, like powder
milk. He focused on improving the health of cattle and vaccine development. In
1973, he created an individual marketing unit of Amul, Gujarat Cooperative Milk
Marketing Federation, in order to promote the brand in India and Abroad. He is
also the man behind the foundation of IRMA (Institute of Rural Management
Anand), as he wanted future generations to benefit from the knowledge. Amul's
revenue stood at INR 38,550 crores (US$5.4 billion) in 2020.


Questions

1) How does the supply chain in Amul work?

The Amul supply chain model of dairy development is a three-tiered structure

with the dairy cooperative societies at the village level federated under a milk
union at the district level and a federation of member unions at the state
level. In fact, the success of dairy co-operative business in Gujarat and the
core concept behind launching the Operation Flood programme were the
adoption of “Anand Pattern”. On the other hand, the district cooperative
union federating the village societies is the kingpin of the entire business and
integrates production, procurement and processing and undertakes
marketing activities, whereas State federation coordinates all the district
level unions.

My perspective
There is information being sent in both ways such that the feed back of
customer is heard and responded effectively. Amul has a huge network of
inventories across the country resulting in easy access of its product to the
people, therefore assuring its dominance in the market.

2) How does Amul transport its products to customers?

In the first step, the milk is taken to the VCS by the farmers on foot or bicycles
in small quantities. The second step involves the transportation of milk from
the co-operatives to the manufacturing units. This is done in special trucks
which are equipped with tankers to carry milk. Downstream Channel It is the
distribution part of the supply chain. From the manufacturing units to the
retailer, the first leg of transport is from the manufacturing unit to the
company depots. This is done using trucks any lesser quantity will be
uneconomical to the company there fore is some time the quantity ordered is
lesser then club loading is done which means that the product ordered is
supplied with some other products. Frozen food the temperature of these
trucks is kept below -18˚C Dairy wet the temperature of these trucks is kept
between 0-4˚C Second leg is from the depot to the WD’s, this transport is
carried out in insulated TATA here a permanent dispatch plan (PDP) is
prepared where the distributor plans out the quantity of various products to
be ordered on a particular date. Third leg this is the flow of good from WD’s
to retailers, a beat plan is prepared and transportation is done on auto-
rickshaws, rickshaws and bicycles.
 My perspective

Here, Amul avoids middlemen totally. Amul gets its raw material from
farmers and is processed to a product which is directly sold to the customer
in multiple shops such as grocery or supermarket. These products are brought
to shops using vehicles which is capable of storing their products in suitable
environment. The transport network of Amul is highly efficient as products
are delivered as per schedule.

3) What are the marketing strategies of Amul?

Amul stays away from “hard core” marketing and advertising. Interestingly,
it places most spotlight on just two products – Amul Butter and Amul Cheese.
This is because the company allocates only 1% of revenue on Amul’s digital
marketing and advertising strategy. This is how its pricing stays successfully
affordable. With creatively executed hoardings, the Amul Girl tickles the mind
with tongue-in-cheek ads that melt butter and current affairs. These topical
ads are also going viral on social media like Twitter, Instagram and Facebook
as generations Like and Follow a beloved household brand. Amul’s popularity
on social media is admirable – 326K Insta followers and counting. Amul is also
known to take customer connect and care via social media very seriously. The
brand has made a very powerful integration of digital marketing strategy to
their traditional marketing strategy and reaped the benefits.

My perspective

Amul has a policy of strategic and cost efficient marketing policy. Its most
advertising platforms are digitally and using catchy phrases are its main
objective such that brand name gets into every person’s tongue. This is an
ingenious idea to use platform which have most users to advertise and bring
awareness about its product and quality.

4) What factors helped in the success of Amul?

Powerful Brand – Amul follows the road of Branded House Architecture and
promotes everything in it; they promote it under a common brand name:
Amul. The focus is on promoting the parent brand rather than individual
products, which helps them build brand awareness and reduce marketing
and advertising costs.

Efficient supply chain – Amul follows the three-level cooperative structure of

the village-level dairy cooperative society, which is connected to the regional
 dairy cooperative, which is part of the state-level dairy association. A rural
dairy product company acquired and processed in the regional dairy
association and sold in the national dairy association. This model ensures the
efficiency and speed of operation.

Diversified product portfolio – With a diversified product portfolio, Amul can

meet the needs of all market segments. By providing benefits to target
market segments, Amul has built strong brand relationships with its
customers over the last years.

My perspective

There was various reason which lead to its rise majorly being brand
recognition and diversified portfolio in which its butter and cheese are high
seller. Amul has started Increasing its product variety in other consumables
thereby growing its branch.

Case study: Britannia Good Day

Sunil Alagh, the former managing director and CEO of the Britannia Industries
Ltd. spearheaded the brand and said Good Day was born out of both hindsight
and foresight. Good Day tempted consumers with butter and dry fruits.

How It All Started

Good Day was born at the time when indulgence in biscuits was a little known
treat. The manufacturer of the biscuit is Britannia Industries Limited. The
Britannia company was established in 1892 and headquarter of the brand was
setup in Kolkata; West Bengal. It is an Indian food products corporation. In 1954,
Britannia pioneered the high quality sliced and rapped bread industry in India
and after sometime it ventured cake portfolio. It is one of the largest bakeries in
the private sector.

Launching

Recently the company completed 100 years and it is one of the few examples of
brands and able to sustain its reputation for over a century now. 25 years ago,
most of the India was crunching into ‘functional’ glucose biscuits at teatime
breaks and bit into cream biscuits in special occasion. In indulgence, the team
launched two varieties of biscuits but received a tepid response as consumers
found them ‘hard’ to bite. In addition, they develop a softer cookie in the form of
Good Day in October 1986. After launching the biscuit, the brand is now largest
and fastest growing for Britannia and is estimated to have a two-market share
in the indulgence segment value at 3,300 crores.

Conclusion

Good Day biscuit has the potential to grow manifold. In 1986, the turnover
increased by 19.4% over the previous year to Rs. 192.15 crores. In 1997, the
company undertook to diversify into cheese and Dairy whitener. Sales of biscuits
in terms of volume have registered a satisfactory growth. It has launched during
the year met with good market response. The Britannia brand is the
manufacturer of variety of biscuits like Little Hearts, Fifty-Fifty, ‘Britannia Indian
Pearl’ (Basmati Rice), Tiger biscuit, Parle-G Biscuit, Pure Magic Biscuit and more.
There are many other achievements and inventions; the brand is doing through
many decades. Through Good Day cookies the market of the product is still rising.
Questions

1) How does Good Day compete with other competitors?

Good Day Biscuits is considered a power brand by its owner company as its
estimated worth is nearly one hundred crores. It faces stiff competition from
several rival companies in the consumer market. The brand has taken note of
its competitor’s prices and consumer’s reaction to those price ranges. After a
complete evaluation, it has developed a competitive pricing policy for its
products that will help in undermining the efforts of rival companies to reach
out to its loyal consumer base. As the brand wants to penetrate in every nook
and corner it has decided on a penetration policy and has
adopted economic pricing policy. This will help in making products affordable
and inexpensive and will thus lead to larger sales volume and ultimately
greater revenues.

My perspective

Good day had huge advantage by giving advertisements in every form such
as TV and digital marketing. Its prices are also cheap or affordable compared
to its competitors. Its loyalty and quality based attitude as earned the
customers trust in its long run. Its innovation in taste, flavors and packaging
also helps it to look out of the rest.

2) What are the promotion strategies of Good Day?

Britannia Good Day Biscuits have adopted an aggressive marketing

strategy of intensive nature to market its products in the consumer market.
It has created some catchy taglines that have helped the brand in making a
positive impact on consumer mindset. It’s a Smile that makes it a Good
Day and Har cookie mein kayi Smiles are some of its popular taglines. The
brand has a new logo, attractive packaging and smiley design for its products
that increases its product visibility. Britannia has adopted Umbrella
Branding for Good Day and all its campaigns emphases on its unique taste,
rich ingredients and distinctive flavours. Its ads are telecast on national
television, radio, newspapers, magazines and social media platforms
like YouTube. The company has roped in famous actor Deepika Padukone as
its brand ambassador and she is also seen in its various ads.

My perspective
 Good day has a good promoting strategy which included catchy phrases and
animated videos which bring positive vibes in customers. It uses youtube,
radio, tv and magazines as its platform for advertisement. They have multiple
storied ads which target different age groups there by making sure its
knowed and loved by all.

3) Explain the distribution of Good Day.

Good Day is one of the most popular and recognised brands of Britannia
and markets its products through the wide-spread distribution network of its
parent company. The brand has appointed distributors who are in charge
of dealers and retail outlets. Products have a reach in both rural and urban
parts of India and are easily available in grocery stores, corner shops,
supermarkets, hypermarkets, discount stores, and convenient stores, modern
outlets like D mart and Big Bazaar and institutional organizations like airlines,
hotels and railways.

My perspective

Good day uses an intricate transport system which has good responsiveness
as well as effectiveness due its good feed back system. The brand has its own
suppliers/ dealers which helps the firm in spreading its product across India.
One of the main function of its suppliers is to distribute the product where
ever necessary rapidly and effectively.

4) What innovation or changes does Britannia hope to bring in Good Day?

Britannia is expanding the product portfolio of its most-penetrated brand

Good Day by adding three more variants in the premium segment.
Britannia will launch Good Day Harmony and two other variants in the
premium segment, which is growing fast after the pandemic. The launch of
the variety Good Day Harmony, which will be much larger cookies with four
types of nuts. Then, there are two more varieties coming through in the next
three months. However, there are no plans to extend brand Good Day beyond
cookies as of now. The all-new Good Day biscuit design will sport different
kinds of smiles from the dimpled smile to the small smile, from the big smile
to the double dimpled smiles.

My perspective
 Good day has many plans on increasing its looks, packaging and flavors to
look different from other of its competitors. There are many variations that
company plans or experiments on the biscuit for it to be liked by the
customers in order to be saled in mass. These type of changes and variation
lead to customer’s excitement and increase in sales.

KLE TECHNOLOGICAL UNIVERSITY,

HUBBALLI-580031, KARNATAKA

DEPARTMENT OF MECHANICAL ENGINEERING

“Assignment on case study of Supply

Chain Management”







Submitted by:-
Satvik Kamat
01FE19BME033
Roll no. 204
‘B’ Div.

Case Study: Dell
US-based Dell Inc., one of the leading PC manufacturers in the
world, pioneered a unique model of selling PCs directly to the
consumers, bypassing the resellers. The model is popularly
known as the Direct Model. The case describes this model in
detail and explains how it enabled Dell to manage its supply
chain efficiently. In the third quarter of 2006, Dell's major
competitor HP had overtaken the company in terms of market
share to become the top PC manufacturer in the world. Industry
experts opined that lack of new products, poor customer service,
increasing support costs, lack of retail presence and the
limitations of the Direct Model were some of the reasons for
Dell's poor performance. Dell's Direct Model, which was
company's strength, lost its sheen, with the competitors gaining
better supply chain efficiencies and opting for a mixed sales
model. The case examines how Dell planned to consolidate its
supply chain and manufacturing activities globally and venture
into retail business in order to regain its leadership status. In
February 2007, US based computer hardware manufacturer Dell
Inc. announced that Michael Cannon (Cannon) had been
brought into the company to assume responsibility as the Head
of Global Operations Organization (GOO). GOO is Dell's center
for consolidating its global manufacturing, procurement and
supply chain activities. The company aimed to integrate its
supply chain and achieve higher efficiency and quality
through GOO. Overlapping activities would be eliminated, and
new manufacturing and distribution models to focus on the
requirements of the customers spread across the world would be
introduced as a part of GOO. Cannon was made responsible
for Dell's existing facilities in five countries and proposed plants
in India, Poland, and Brazil. Earlier, all Dell's factories had been
managed regionally, and procurement functioned as a separate
division. The changes were made after Michael Dell (Michael)
returned as CEO on January 31, 2007. The changes were part
of an effort to regain the company's position as the #1 PC
manufacturer in the world. Dell had been the top PC
manufacturer till the second quarter of 2006. But in the third
quarter of 2006, HP overtook Dell (Refer Table I for worldwide
PC shipments by major players during 2006). According to Brent
Bracelin, Analyst with Pacific Crest Securities, Portland, "This
(the introduction of changes) is a first step in perhaps Dell trying
to regain the supply chain advantage they had and lost. Dell had
pioneered a unique direct model of selling PCs bypassing the
conventional model of selling them through the reseller channel.
In the conventional model, resellers purchased PCs from
manufacturers and distributed them to the customers. Using the
direct model, Dell provided consumers with tailor-made
products, built only after procuring the order from them. In the
process, it was able to reduce inventory costs and overheads as
it didn't need any intermediaries. Through this model, Dell was
able to provide its customers the latest available technologies,
performance, and superior value at competitive price. Industry
experts were of the view that with Dell's competitors also
improving their supply chains to match Dell's direct model, the
company had been losing its competitive advantage. Another
point they made was that the company was not focusing enough
on R&D, innovation and customer experience - which consumers
were beginning to value more and more. Analysts said it was
time for Dell to move into PC retailing by establishing exclusive
stores and selling PCs through retailers. Sam Bhavnani,
Research Director, Current Analysis, said, "We believe there is
a high-level belief at Dell that customers in the consumer market
need to experience (i.e. touch and feel) the products more than
in the business segment. Retail is the next logical step. In 1983,
Michael was a freshman at the University of Texas, Austin. He
used to upgrade IBM compatible PCs in his spare time. It was
not long before he realized that by buying and assembling
components, he could make cost effective PCs. This led to the
establishment of PC's Ltd. and its incorporation on May 03, 1984.
The firm sold computers based on the direct marketing business
model, eliminating retailers. It offered customers, systems that
were built to order, and priced competitively. In its first full year
of operations, Dell's sales reached US$ 6 million.
Questions

1) What is the model used by Dell?

A) Dell's direct selling model traces its origins to Michael's idea

of selling computers directly to the consumer eliminating the
need for middlemen and distributors. Michael believed that by
selling PCs directly to the consumers, the company would be
able to better understand the needs of its customers. The first
computer that the company introduced in 1985 - Turbo PC, was
advertised in computer magazines and sold directly to
customers. Dell also began employing computer literate sales
personnel, who guided consumers in their choice of systems.
Each system was assembled according to the preferences of the
customers. This option helped customers to get computers at a
price lower than other brands.

2) What are the roles of dell suppliers?

A) In order to manage its operations with low inventory levels,

Dell collaborated closely with its suppliers. The company's
procurement decisions were based on four criteria - quality, cost,
delivery and technology. Suppliers were selected on the basis of
cost (given a weightage of 30%) and quality, service and
flexibility (with a weightage of 70%).

3) How does Dell manage to balance its demand and supply?

A) Dell maintained a database to track the purchasing patterns

of corporate customers and their budget cycles, in order to
forecast demand. It also maintained a similar database for
individual customers in order to cater to their future requirements
for PCs. Through its forecasting techniques, Dell was able to
forecast demand with 75% accuracy. Thrice a day, the changing
demand patterns were communicated to the major suppliers. In
all the countries in which Dell operated it had a direct sales force,
which was directed by the marketing department located at the
headquarters.

My perspective

Dell has managed to get rid of bullwhip effect by creating really

good communication with the upper and lower stages of the
supply chain. Due to this there is no over stock pile of goods
when its not needed and scarcity of goods when its in high
demand thereby, making sure of maximum profit.

4) What are the processes for Dell’s production?

A) Dell received orders via the telephone, Internet, e-mail, etc.

Orders were received by business units, which downloaded the
orders every 15 minutes. With advancement in technologies, the
choices available for the consumers also widened. Customers
could use Dell's website www.dell.com, to configure their
customized computer and place an order for it. Customers could
choose from a variety of products ranging from desktops,
notebooks, servers, printers, etc. The website catered to
different segments of customers like individuals, home office
customers, small businesses, medium businesses, large
businesses and public sector customers like Government
departments, educational institutions and healthcare institutions.

Case study: TATA Indica

The history of Telco, India's leading automobile manufacturer

dates back to the early 1920s. The location of the Telco plant
originally belonged to Peninsular Locomotive Company
(Peninsular), which was established in Tatanagar, Jamshedpur
in 1923. In 1927, Peninsular was taken over by East India
Railway to manufacture passenger carriage underframes for the
Indian Railways. In 1945, Tata Sons purchased the plant from
the Government of India for manufacturing steam locomotive
boilers and other engineering products, under the name Tata
Locomotive & Engineering Company. Initially the company
manufactured broad gauge open wagons for the Indian
Railways. By 1947, it started producing boilers for imported
locomotives. The company also entered into collaborations with
Marshal Sons (UK) to manufacture steam road roller, and with
Krauss Maffei (West Germany) to manufacture steam
locomotives. In 1954, the company entered into a technical
collaboration with Daimler-Benz to manufacture automotive
vehicles. The association with Daimler-Benz helped the
company build up a strong in-house R&D center (Engineering
Research Center - ERC) at Pune, Maharashtra. In 1960,
company's name was changed to Tata Engineering &
Locomotive Company Ltd. By 1961, it was manufacturing
construction equipments. Over the years, the company acquired
technology from several collaborations and co-operation
agreements with international companies. In 1961, Telco
produced its first crane in collaboration with M/s Pawling &
Harnischfeger (P&H), U.S.A. In 1966, it acquired Investa
Machine Tools Co and set up a machine tools division at Pune.
In the same year, it started its Press Tool Division and vehicle
manufacture facilities at Pimpri and Chinchwad (Pune). The first
commercial vehicle was produced in 1977. In 1983, Telco started
producing heavy commercial vehicles. In 1986, the company
rolled out its first light commercial vehicle - TATA 407 that had a
completely indigenous design. In 1991, Telco produced
indigenously - designed passenger cars - Tata Sierra and Tata
Estate and in the same year it started its assembly and training
plant at Lucknow (Uttar Pradesh). The product range of the
company included passenger cars, heavy commercial vehicles,
trucks and buses. By the late 1990s, Telco had emerged as a
leading name in commercial vehicles, passenger vehicles,
construction equipment, metal cutting and grinding machines,
industrial shutters, high quality steel, alloy castings and other
related products. In 2000, commercial vehicles accounted for
94% of its gross revenues; vehicle spare parts accounted for 5%;
and hire purchase income, 1%. In the early 1990s, Telco's
Chairman Ratan Tata (Tata), was flirting with the idea of
developing a small car. By mid-1994 a rudimentary design was
in place. In 1995, Telco announced that it planned to build a car
which would be priced close to the Maruti 800, shaped like the
Zen, and spacious as an Ambassador. Producing the new small
car - Indica - represented a different kind of challenge for Telco.
Should Tata succeed, he would change the face of Telco. As a
truck-maker, Telco was so integrated that it even made it own
castings and forgings. As an automaker, it would have to focus
on the value chain that stretched between raw materials and
after-sales service as well as assembling the parts into the
complete automobile. For its new venture, Telco outsourced
80% of the components (1,200 of its 1,500-plus parts), from 200-
odd vendors. To develop the Indica, Telco had to combine the
learnings from its predecessors with its own unique supply chain
management strategies to ensure a sustainable low-cost
platform.
Questions

1) What was the outsourcing strategies of Indica?

A) For Telco, outsourcing seemed to be one of the most difficult

aspects of producing the Indica. Unlike global automobile
majors, Ford Motors or General Motors, which had a global
vendor-base that could be replicated on a smaller scale in India,
Telco had to create a vendor-base from scratch. Moreover, it did
not have the expertise either to design a car or to build an engine
for it. Against this background, Telco had to take its primary
'make-or-buy' decisions for the key inputs-design, engine, and
transmission. Telco decided to shop globally for the best deals
and use its own expertise to make whatever modifications were
needed.

2) How did Indica develop its vendor?

A) Once Telco made its make-or-buy choices, the next step was
to identify the vendors. Most of the parts that went into making
Telco were sourced locally. Except for some sheet metal parts,
cylindrical gaskets, and belts--which accounted for 2% of the
component value, the Indica was totally indigenous. K. Mahesh,
CEO, Sundaram Brake Linings, said, "Localisation of
components is the most important challenge a new manufacturer
faces. It is a time-consuming and painstaking process.".

My perspective

One of the major part of supply chain is transportation and

distribution hence selection of vendors must be done carefully.
Vendors were chosen who could bring maximum profit in the
supply chain and vendors who would equally take the risks were
preferred.

3) What is the supply chain of Indica?

A) To keep its transaction costs low, Telco configured its supply
chain on a just-in-time basis. All high-value components were
delivered daily, and in the case of nearby suppliers, twice a day.
Vendors who were located far away from Pune set up local
warehouses near the plant. The rationale for the relocation:
transportation costs alone accounted for 45% of the total
logistics costs for a company, delays in supplies added to costs
in terms of machine down-time at the plant. Meanwhile, on the
shop floor, where the assembly line was located, Telco had done
away with the traditional store function.

4) How did Indica leverage its supply chain?

A) Indica marked the beginning of Telco's drive into India's auto

market as an integrator with a multi-product portfolio. Analysts
felt that the competencies that Telco had grown in the process
of marketing Indica would be the core around which it would build
its future car business. Analysts also felt that Tata would use the
supply chain that fed the Indica to feed a whole range of Telco
cars of the future.