Amity Business School

Company: Marico and Patanjali

Topic: Supply Chain Management 

Group Members:
Sanjai Krishna.B(320B11)
Sumer Singh(320B21)
Pratyush Pandey(320B48)

Under the guidance of

Dr. Sumeet Singh Jasial
Supply Chain Management Amity Business School
 Amity Business School
A Supply Chain Management is that discipline
corporates supplies and processes through
various stages of project product or business
that is to be delivered.
Every tiny little business requires With the assistance of SCM, they are
management to from the foremost of the ready to apply different artistic
resources that involved and therefore approaches to reinforce or integrate the
ultimate goal is to form it productive. flow of material, finances and knowledge.

The main goal of SCM is to

These sources include supplier, coordinate all the numerous parts
manufacturer, wholesaler, into cohesive picture that is
distributors and retailers. supplying raw materials to
delivering final goods and services.
 Amity Business School

Process of Supply
Chain Management
1. Customer
Relationship
Management

There must be a managed approach

to interact with the company’s
current and potential customer so as
to know what they need and expect.
 Amity Business School

Customer
Service
Managemen
t
 Supplier Relationship
Amity Business School

Management

Suppliers are likely to coming from a 3rd

party and people interaction must be
strategically planned for, this will increase
the worth and reduce the risk

Returns Management means management

of fast and straightforward returns,
automation and deciding the way to process
returned materials.
Logistic Management
Amity Business School

Logistic is defined as the

movement and storage of
goods and services and
Transportation, Warehousing
Inventory management to
handle to movement of goods
conveniently.
Points to keep in mind are:-
1. Cost of Losgistic
2. Quality
3. Speed
4. Flexibility
 Amity Business School

Importance of Supply Chain

Management

01 02 03 04 05
Develop better Improvise productivity Minimize warehouse Minimise Direct and Assist in adapting
customer relationship and business function and transportation Indirect cost. globalisation
and service. cost. challenges, economic
upheaval, expanding
customer expectation
and related
differences.
Amity Business School
 MARICO LTD. Amity Business School

• Marico Limited is one of India’s leading consumer goods companies

operating in the health, beauty and wellness space.
• With its headquarters in Mumbai, Marico is present in over 25 countries
across emerging markets of Asia and Africa.
• It nurtures leading brands across categories of hair care, skin care,
edible oils, healthy foods, hygiene, male grooming, and fabric care.
• In 2019-20, the company generated a turnover of INR 73.1 billion (USD
1.03 billion) through its products sold in India and chosen markets in
Asia and Africa. Marico touches the lives of 1 out of every 3 Indians,
through its portfolio of brands such as Parachute, Saffola, Saffola
FITTIFY Gourmet, Coco Soul, Parachute Advanced, Hair & Care, Nihar
Naturals, Livon, Set Wet, Set Wet Studio X, Veggie Clean, Kaya Youth,
Travel Protect, House Protect, Mediker, Revive and Beardo. 
• Marico has 8 factories in India located at Pondicherry, Perundurai,
Jalgaon, Guwahati, Baddi, Paonta Sahib and Sanand.
 Amity Business School
1995- Focus on
brand
development Extensive advertising, Expansion
Innovative promotion strategy-
schemes- Advertising introduced
expenditure increased more brands
steadily and tried to
increase reach-
This was in created supply
response to the chain problems
growing
Introduction of
international
more products
Competition
and more
from rivals-
brands-incur
uniliver and
cost
conAgra

For survival –
Increased Reduced reliance on 3
efforts to market leader brands
develop new Parachute coconut oil,
brands Saffola and Sweekar
 MARICO SUPPLY CHAIN Amity Business School

Marico Mumbai based Brokers Terminal Market Brokers in Kerala Supplier Network in Terminal Market
Prior to 1991, Copra purchase unit was in Mumbai Marico contracted brokers in Mumbai who in turn
contracted brokers in Kerala. Brokers in Kerala had their own trail of intermediaries (local brokers,
vandikkaran, Copra Converters, farmers) Copra buying is approximately 50% of Marico’s purchase
portfolio.

5
Factories

2 30 100 750 240 2500 1.6 18

wareho depts super distrib stocklist million million
use distrib utor s wholes retaile house
utor aler rs holds

15 Contract
Manufacturers

Initial Outbound supply chain

 Amity Business School

•To start with, Marico is looking to change its distribution and

supply chain as part of its efforts to streamline operations and
take advantage of digital platforms

•To change distribution and supply chain as part of its efforts to

streamline operations and take advantage of digital platforms
supply chain was improved.

•With the growth in FMCG sector slowing down to 6-8 per cent
from 10-12 per cent, Saugata Gupta, MD & CEO, Marico is
looking at a multi-pronged strategy to transform the company
to adapt to the changing business environment.
 Improved Supply Chain Amity Business School

Plants Factory
Stock Transfer

Depots Depot

Primary Data
Distributor Super Distribute Distributor

Secondary Data
Retailer
Retailer Stock list

offtakes
Consumer
Urban Consumer Retailer

Rural consumer

Outbound Supply chain For Rural markets Outbound supply chain transaction
 Improved Supply Chain Amity Business School

According to the manager of Marico “We see a change in the

traditional supply chain network. For example, 3-4 years from now,
we may not need a distributor salesperson to take orders because
there could be an App that does the job. Similarly, there are these
supply chain logistics providers who can do the fulfillment. There
are professional logistics who have economies of scale to do the
last-mile delivery,” Gupta told Business Line.
 Amity Business School

Suggestions:

• Using Technological support through highly integrated applications systems

• Timely sales and inventory information and managing distributor inventory by
replenishing stocks on the idea of distributor’s input of sales to retailers
• Partnership relation with distributors
• Replenishing stock on the idea of secondary sales
 Amity Business School

Benefits

Operational improvement:

• Planning circle are going to be reduced

• Improved forecast accuracy

• Improved delivery reliability

• Improved distribution consistent with prescribed inventory norms

 Learnings out of it Amity Business School

• Delivering products to the purpose of consumer demand may be a key

determinant of success within the FMCG industry. the distribution network
helps a brand flourish in volumes through increased penetration levels
• And by utilizing AI like Sap which provides a true time check on various
transactions emanating from various business processes of the corporate
• Then the role of logistics inherit play where the finished products are taken to
desirable destination.
• Disciplines like industrial engineering, systems engineering, logistics
management, operations management, information technology and marketing
are vital function of Supply chain management.
Amity Business School
 Amity Business School
PATANJALI
• Patanjali Yogpeeth in Haridwar, Uttarakhand is one of the
largest Yoga institutes in India and named after the ancient
Yog Guru Patanjali.
• The institute is flagship project of Swami Ramdevji Maharaj
and Acharya Balkrishnaji Maharaj and has been set up not
only for treatment, research and development in Yoga and
Ayurveda, but also for the manufacturing of ayurvedic
medicines.
• It is located on the Haridwar-Delhi highway at Kankhal,
Haridwar.
• Patanjali Yogpeeth is an institution for scientific research
and treatment which offers treatments for all.
 PATANJALI Supply Chain
Amity Business School

• Distribution channel of Patanjali Distribution channel is most

important for marketing department of Patanjali to reach at the
customer of bottom level.
• To provide products at the time customer want it becomes
important to have wide range of distribution channel.
• large number of competitors available in market for Patanjali it is
important to maintain market share in competitive environment
• Distribution channels of Patanjali helps to provide maximum
satisfaction to consumers by providing right quality, quantity and
at the right time when consumer wants it.
• Patanjali have widely spread distribution channel to cover every
corner of country. Model of distribution channel is as follows.
 Amity Business School

Patanjali follows a very smooth Supply chain

management. The three ideologies of supply chain are
product flow, cash flow and information flow. To
maintain these three components efficiently the
following distribution chain is followed

Farmer Producer Consumer

 Example Amity Business School

• They sell their products only through their own outlets

opened in almost every district/city of India.
• Each outlet sends its demand to central office at Haridwar.
• Then based on demand, different products are gathered from
various units of Patanjali viz. Divya Pharmacy, Patanjali
Ayurved, Patanjali Foods etc.
• Then the items are delivered to the respective outlets mainly
through Patanjali transport maintaining a good example of
efficient Supply chain management.
 Amity Business School
PATANJALI Supply Chain
Company

Central stock Holding Centre

State stock Holding Centre

District or Zonal Agent

Wholesaler

Retailer

Consumer
Detailed Analysis Amity Business School

Company

Central stock Holding Centre

State stock Holding Centre

District or Zonal Agent

Wholesaler

Retailer

Consumer
 Issues and Challenges Amity Business School

faced by the company

Quality Customer Service

The supply chain management is centralized on the requirements of the purchasers.
Costing:
Globally speaking, the costs of raw materials, energy and labor have increased because of
economical constraints.
 Issues and Challenges
faced by the company
Amity Business School

Supplier Relationship
By creating a mutually sound and harmonious relationship together with their partners or
suppliers, their will be ready to provide their customers with products of high standards during
a timely manner. This also allows them to make opportunities for improvement in terms of
performance.
Qualified Personnel
Over the years, it's become a challenge to seek out talent interested and hooked in to this line
of labor. Personnel hired during this field must have an understanding about the duties and
responsibilities needed.
Risk Management
Due to the constant change within the market, coming from a spread of sources like consumer
demands, political agendas and global sourcing, would cause major issues to the operations .
 Issues and Challenges Amity Business School

faced by the company

Unforeseen Delays
Procurement of materials and products could also be easy, but the delivery might not
always be 100% on time,
Fast-Changing Markets
It's quite difficult to remain in pace and adapt to the variability of innovations within
the market.
 Suggestions: Amity Business School

 Demand based production

 Setup manufacturing plants at close proximity

 ERP system to track real time stock levels and forecasting of demand

 Improve on exports
 Own retail stores and tie up with market giants like reliance and big bazaar
 Intense online platform

 Modern retail stores in shopping malls

 Amity Business School
Learnings
The objective is to balance supply and demand during a fashion that achieves the
financial and repair objectives of the enterprise.
Production planning addresses the assembly and manufacturing modules within an
organization.
Production/supply planning consists of:
•Supplier management and collaboration
•Production scheduling
• Supply chain determines the optimal quantity and timing of inventory to align it with
sales and production needs.
• Supply chain determines the assembly staff and equipment needed to satisfy the
demand for products.
 Amity Business School

THANK YOU