Supply chain management Click to edit Master subtitle style of ITC Limited

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PRESENTED BY: Deboprotim Borah (BAM11024) Kaushik Handique (BAM11025) Priyanka Deka (BAM11040)

A little about ITC Ltd.

The company was founded as Wills, Watkins & Co. by Henry Overton Wills I and his partner Watkins. A public conglomerate company headquartered in Kolkata, India. Its turnover is $6 billion and a market capitalization of over $30 Billion. The company is currently headed by Yogesh Chander Deveshwar

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Created sustainable livelihoods for more than 5 million people    3/23/13 . It employs over 26.000 people at more than 60 locations across India and is listed on Forbes 2000. 'water positive' and 'solid waste recycling positive’. It completed 100 years on 24 August 2010. the only company in the world of its size and diversity to be 'carbon positive'.

Product Range of ITC Ltd. 3/23/13 .

3/23/13 . The central ware house is situated at Lokhra. Guwahati-7.ITC Ltd. Guwahati   Regional office of ITC is situated at Ulubari.

Supply Chain Management spans all movement and storage of raw materials.A brief overview  It is the process of planning.SCM. Supply network or the supply web because they all show how each unit interacts with the others   3/23/13 . and finished goods from point-of-origin to point-of-consumption. implementing and controlling the operations of the supply chain as efficiently as possible. work-in-process inventory.

ITC already had a good understanding of distribution channels. Goods are produced at 15 different locations in India. Due to its tobacco business. ITC maintains common supply chain for all of its products including FMCG products.   3/23/13 .

3/23/13 .SCM at ITC Ltd.

Bangalore it is 10 days and Hyderabad it is 7 days.   3/23/13 .Inventory Management  Safety Stock: 10% more than the total demand for a particular month. Lead Time: The lead time basically depends on the distance from where goods are shipped. Generally lead for Kolkata it is 4 days.

 Inventory Storage: outsourced warehouses at different regions across India. Inventory Report: Daily stock report prepared. Inventory Management System: Uses SAP. Different Cost Functions: Ordering cost. Insurance Coverage: Insurance policy for stored as well goods in transit. carrying cost and stock out cost.     3/23/13 .

 ‘First in First Out’  SAP is used for preparing the invoices. loading sheet. stock level report etc. The stock level report is forwarded to the Bangalore Head Office  3/23/13 .

Information generation. Relationship with Distributors and Retailers. Financial Benefits and Customer Satisfaction.Role of Marketing in SCM  Availability of Product. Customer Satisfaction. dissemination and response.     3/23/13 .

Supply chain sales forecasting 3/23/13 .

  3/23/13 .production policy  The production estimate is done 3 months in advance. It takes place in 15 locations all over India. Production does not take place in the NorthEast region.

Stage of purchasing function. Credit period offered by suppliers. reduced inventories and   lowered stock 3/23/13 . coordinated activities.Purchasing process  Supplier’s selection.

Order processing.Role of logistics       Logistics department. Distributors. Wholesale distributor. Transportation. Mother hubs. 3/23/13 .

The Information system at a glance 3/23/13 .

How supply chain decision are implemented?  Centralized supply chain team  Team constitutes of members from different zones are implemented centrally  Decision 3/23/13 .

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Customer satisfaction survey . Making stock available at retail points.     Provide gifts and incentives to those who perform well in a specific time 3/23/13 .Customer Service in SCM  Grievance cell. ITC shares a very good relationship with its customers.

ITC conducts periodic survey on customer satisfaction.Performance of Supply chain of ITC  ITC classifies its inventory on the basis of different products and manages inventory on a periodic basis using SAP.   3/23/13 . The policy of ‘First in First Out’ is maintained while sending the goods out.

ITC has a Grievance cell which handles customer complaints.    3/23/13 . ITC’s SAP generates the sales forecasting The goods from factories are sent directly to the WSP (Warehouse Service Provider) using trucks. ITC has got a centralized supply chain team which takes all the decisions regarding their supply chain.

3/23/13 . It also helps in maintaining a good co-ordination between different departments of the company. SAP plays an important role in managing inventory for ITC.CONCLUSION  After studying the supply chain of ITC Limited. it can be concluded that co-ordination among the different functions of the supply chain is very much essential for a smooth flow of goods to the customers.

d. 2012.html  3/23/13 . www.). (2001). from http://itc.com/index. Retrieved September 18. J. Supply Chain Management. Response Books.SOURCES  Mentzer.itc. (n. T.com.

THANK YOU 3/23/13 .

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