parachute marico supply chain ppt
Post on 13-Aug-2015
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Intro about marico…
• FMCG company providing health and beauty products.
• Sales revenue : 4686.52 crores.
• Net profit : 29% growth in net profit(160 crores)
• Head quarters : Mumbai (india).
• Leadership positions in : coconut oil, hair oils, premium refined edible oils, niche fabric care etc.
• Strategy : expand even more into small locales through even more brands
• Every month over 70 million consumer packs from Marico reach approximately 130 million consumers in about 23 million households.
• Wide spread distribution network with over 2.5 million outlets in India and overseas.
Why should Marico concentrate on SCM?
1995: focused on
brand developmen
t
For survival-increased efforts to
develop new brands
This expansion strategy created supply chain
problems
Strong distribution network in India....
plants
depots
distributer
retailer
customer
Super distribut
er
stockist
retailer
customer
Urban are
aRural area
Marico’s copra supply chain..
maricoMumbai based
brokers
Terminal market brokers
Supplier
network in
trmnl mrkt
Problems with copra supply chain..
• Increased cost of procurement due to presence of many intermediaries.
• Quality of copra brought from market is different from that of the ones which reached there.
• Quantity is also varying.
• Price and payment terms are dictated by brokers.
• Frequent supply disruptions.
Remedial actions..Disintermediation and IT…
• Disintermediation: buying office set up in Kozhikode(kerala) bypassing two layers of primary brokers in Mumbai and kerala.
• factories were also set up in goa and puduchery.
• New factories near to sourcing locations and markets.
• To further eliminate layers Marico started its own collection centers.
• Small farmers can sell directly to Marico unlike the large traders who wait for right price and quantity.
The IT push…..
• Marico’s copra suppliers are connected through web portal- Marico connect.
• Web based auctions: this challenge was met by
1. opening Rediff email ids for each vendor
2. training them to use rediff ids and tie-ups between vendors & cybercafes.
3. fast track payments.
4. enabled placing of bids through SMS.
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