SUPPLY CHAIN INITIATIVE

BY TANISHQ

Presented by(group-6):
Sudarshan Singodia
Sudhanshu Singodia
Sudhanshu Madhav
Urvashi Mishra
 INTRODUC
TION
Tanishq is a brand of jewellery retail stores in India.

The brand is the property of Titan Company, which is back by Tata Group and TIDCO.

The first production plant launched in August 1992, and Tanishq's first store opened in 1996.
Tanishq was the first jewellery retail brand in India.

Tanishq made the beauty pageant crowns for the Femina Miss India 2007.

In 2011, the Tanishq group launched the sub-brand called Mia for working women.

By June 2014, Tanishq had 167 retail stores nationwide, and announced the opening of
30 more by the end of 2015.

In 2017, Tanishq launched a sub-brand called Rivaah targeting the wedding segment.

In April 2017, Tanishq launched the sub-brand Mirayah to cater to women under their 40s.In
December 2017, Tanishq launched the Aveer line, its first line of products for men .
 Company Boutiques: 300 in 189
cities.

 Franchise : 226

 Heavy asset business.

 In FY 2000 – On the verge of
Bankruptsy.
 In FY 2001 – Got
Breakthrough in Market
 In FY 2002 – rebuilds its
market and sales & and also
setup its SCM function.
FACTS about
Tanishq :
SCM Initiatives taken:
 Improving the bottom line through
Supply Chain initiative.
 Cross functional team for short
and long term.
 Project ASPIRE for improving its
supply chain performance.
 Inventory management and
responsive supply chain.
 Four prolonged strategy applied:
 Clean inside out.
 Introduction of new channel.
 Remodel order generation and fulfillment
process.
 Strategic outsourcing.
 CLEAN INSIDE–OUT PLAN
 Revamping Internal supply chain.
 Slow moving categories rationalized.
 Non-potential product phased out.
 Stock turn based trade margin were introduced.
 For franchises performance incentives and
disincentives were given for stock turn. 4 step mechanism under this
 Non moving stocks were recalled or recycled or
marked down.
plan:
 Aging products were displayed by best seller or display
 Campaign “Impure to Pure” exchange was was modified.
started.
 Non-moving designs are rationalised on annual basis.
 Discount sales for sludge is by “Tanishq value mart” or
“Tanishq on wheels” (greater than 15 months has to be
recycled).
 Permissible level of sludge and penalty are:
 Introduction of new
channels:
 Consignment sale:
 Prototype Enabled Sale: o Display of vendor stocks
o Prototype of high value o Range of design without any investments.
products.
o Range of design.
 Made to order:
o Reduced inventory.
o Considerable impact on Working Capital.
o Responsive business.
o Customer order with a lead time of one month.
o Hub & spoke with delivery in
o 8000 designs ( in 2 week).
one week
 Remodel OG and Fulfillment process:
 MADE TO
REPLENISHMENT SUPPLY
CHAIN:
 TO PREVENT STOCK OUTS
 FROM REACTIVE TO PRO ACTIVE
SUPPLY CHAIN.
 CYCLE STOCKS AT BOUTIQUE/
 SAFETY OR REPLENISHMENT
STOCK AT Factory. MADE TO BOUTIQUE INDENT SUPPLY
 USE OF TOTALLY AUTOMATED IT CHAIN:
TOOLS.  BETTER DISCIPLINE WITH INTRODUCTION OF BOUTIQUE-
WISE OR CLUSTER-WISE STOCK NORMS IMPLEMENTATION.
 TRANSPARENT SYSTEM OF TRACKING SYSTEM.
 REDUCTION IN INDENT PROCESSING TIME.
 HELP DESK SET UP TO SINGLEPOINT CONTACT WITH
SUPPLY CHAIN MANAGEMENT WITHIN COMPANY.
 BEFORE
SUPPLY CHAIN

REMODELLED
SUPPLY
CHAIN
STRATEGIC
OUTSOURCING:

 Utilization of market potential

 Reduce cost rather than investing and
increasing production capacity.
 Provided assistance to vendors for business,
with technology support, material and
processing document.
 KARIGAR PARKS:
 Company developed ancillary units. Helped in
controlling cost of operation & helped in
introducing new designs into the market thus
increased sales and profitability.
 Management of Enterprise & Development Of
Women. Initiative started with SHGs
assembling the discrete links of bracelets
resulted into outsourcing.
 Responsive “Supply Chain”

The “Before” Supply Chain

Production plan Indent
Order Processing

Company Boutiques
Suppliers Manufacturing Inventory C&FA Management Agents
Franchisee Boutiques

The “Redesigned” Supply Chain

Production plan Supply Chain Indent

Management
Stock Control GIT Control
Company Boutiques
Suppliers Manufacturing Inventory C&FA Management Agents
Franchisee Boutiques
IMPACTS OF SUPPLY CHAIN AND OTHER
INITIATIVES:
Tangible benefits of Tanisq
 Few more initiatives
taken:
 Supplier Network Planning
• Through a portal orders can be placed on the
vendors; they will upload information daily on the
portal helping the company to keep a track on
production in real time. This ensures the effective
utilization of resources.
 Use of Web Application
• Titan has a network of spares distributors across
the country, and stays connected using a web
application . In fact, they are able to place
approximate orders before the production begins,
thus helping Titan produce closer to market
requirements.
 Integrated Supply Chain Management
• ISCM provides better work environment and
upgrades the environment outside the
manufacturing unit.
• A dedicated Technology Cell has also been
established to ensure that cutting-edge technology
is constantly tracked and infused into the business.
Integrated Supply Chain Management (IScM) is
backed by high-end machinery. The product
development cycle is based on state-of-the-art
CAD/CAM technology that enables seamless
integration of various stages: styling, three-
dimensional solid modelling, engineering design,
tool design, tool making and prototype making
IMPACTS:
Key performance measures are total FG inventory including GIT against norm, delivery alignment. Managing logistics
and reducing cost, tracking non-moving stock and stock turn at every retail point

CHALLENGES: SOLUTION:
• Gather insights from franchisee model two boutiques
• Poor Stock Management
• Tanishq SCM is the owner of total FG Inventory
• Lack of Ownership of FG Inventory
• Tanishq SCM encompassing the whole value chain
• High lead-time for order fulfillment
• Weekly indenting system was introduced
• Irregular Indenting
• Poor delivery alignment • Improvement of delivery alignment from 70% to 90%

• Lost sales due to stock-out • MTR Supply Chain was to prevent stock-outs
• High non-moving stock • Tracking non-moving stock using IT systems
• Poor visibility of stock and sale • IT initiative “Gold Mine” for visibility of stock and
sale
• No single point contact
• Help Desk became the single point contact for SCM
queries
Presented
by(group-6):

Sudarshan Singodia
Sudhanshu Singodia
Sudhanshu Madhav
Urvashi Mishra