BATA INDIA LIMITED

Incorporated as Bata Shoe Company Private Limited in 1931, the company was set

up initially as a small operation in Konnagar (near Calcutta) in1932. In January 1934,

the foundation stone for the first building of Bata's operation - now called the Bata. In

the years that followed, the overall site was doubled in area. This township is

popularly known as Batanagar. It was also the first manufacturing facility in the

Indian shoe industry to receive the ISO: 9001 certification. The Company went public

in 1973 when it changed its name to Bata India Limited.

Today, Bata India has established itself as India's largest footwear retailer. Its retail

network of 1250 stores gives it a reach/ coverage that no other footwear company

can match. The stores are present in good locations and can be found in all the

metros, mini-metros and towns Bata's smart looking new stores supported by a

range of better quality products are aimed at offering a superior shopping experience

to its customers. And the new face of Bata India is now visible to the industry as well

as its customers. Today, backed by a brand perception of experience, the company

is working towards positioning itself as a vibrant and contemporary young brand. It

has significantly transformed its retail formats to become more lifestyle-oriented,

which has helped change consumer perceptions to a large extent.

BATA INDIA - TODAY

Sells over 45 million pairs of footwear every year

Serves over 120,000 customers every day

Sells through over 1200 retail stores

Operates 5 manufacturing facilities

Employs more than 6800 people

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VISION

To grow as a dynamic, innovative and market driven domestic manufacturer and

distributor, with footwear as our core business, while maintaining a commitment to

the country, culture and environment in which we operate

MISSION

To be successful as the most dynamic, flexible and market responsive organization,

with footwear as its core business.

SUPPLY CHAIN MANAGEMENT OF BATA, INDIA

Transformational process

In order to handle the increasing complexity of distributed industrial manufacturing

systems, there is a strong demand for methods and tools that support the designer in

the analysis and optimisation of flexible infrastructures for the automation of

production processes. We are currently investigating how emerging standards and

advanced simulation techniques can be exploited successfully in the production of

custom made shoes.

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Nowadays, many different approaches, methodologies and computer aided design

tools can be employed in the analysis and optimization of complex industrial

systems. As a consequence, the selection of the most appropriate techniques and

tools for a particular system is critical. Before making any final decision, it is

necessary to investigate the functionalities offered, compliancy with existing

standards, and capacity for interoperability with non-proprietary instruments. We are

currently working on a methodological approach to the structured design and

simulation-based analysis and optimisation of manufacturing plants. The methods

and tools used during the different phases of the design are illustrated with reference

to an application in the shoe manufacturing sector. In particular, we describe an

innovative plant for the production of customized shoes. This plant is located at the

ITIA-CNR laboratory in Vigevano (Italy) and constitutes the pilot plant of a large

European research project called EUROShoe, which began in March 2001 and is

scheduled to finish in June 2004.

BATA SUPPLY CHAIN:

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raw materia

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cutting department

upper cutting

upper closin

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bottom

cuttingbottom frbricati

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componet store

finishing/packing

dispatch

Raw Material Stock

Bata is using its raw materials from his different suppliers. Some of the suppliers are

local while some are from Indonesia. Along with their own production, they are also

out sourcing for some of their products. They are keeping a check on the quality of

the products from outsourcing and using their own brand name.

The raw material which includes the chemicals used for making cement

adhesive,rubber latex and sole (both inner and outer),cloth(bought from Bombay

Dyeing) used for making upper, material used for making binding,thread and the

packing cartons etc. are stocked in the warehouse. Inventory of all the above items

is properly maintained with the help of a ‘Material stock position’ chart made on the

walls of the warehouse and a computerized inventory Database.

Every department has been allocated a maximum stock limit beyond which they

cannot store the raw materials for themselves. It has to be used as frequently as

possible. Every fortnight, the stock and usage is reviewed. The transmission of raw

material from stock warehouse to respective departments is recorded and same is

done with the transmission between various departments. All this data is readily

available for review to all departments and can be checked anytime.

Cement And Latex Manufacturing:

The cement adhesive and rubber latex are the main chemicals used to paste

together the different part of a shoe, are manufactured in the plant itself. Both these

materials are produced keeping in mind the exact requirements and also the correct

specification, which is the right mix of chemicals to make it the best pasting element

and get the desired quality.

Cutting department (Sole Pull Manufacturing)

The inner and outer shoe required in the shoe are also produced in-house. Huge

rubber sheets measuring 3ft.x2ft. having a thickness of approx. 2 cms. are first

heated to high temperature and then placed in a curing chamber for 8 minutes where

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they are again processed at high temperature of around 170oC. At such a high

temperature the sheets expand and then sent for vulcanization where it is

processed for 3 hrs. to set the shrinking limit of rubber. These sheets can be cut only

after two weeks of vulcanization. This is known as seating process.

Making Binding:

A binding is required on the outer of the shoe to bind the edges of cloth upper. This

binding material is also made within the plant, using cloth. It is machne stitched onto

the cloth upper.

Folding, Cutting And Stamping:

The cloth that forms the shoe upper is produced from Bombay Dyeing. It is first

folded into huge lots and then cut into pieces of uniform sizes according to the

different size lots.These cloth pieces are then stamped with what may be called a

batch number and the shoe size. An example of a batch number may be “F-

3218422”. In this code, F represents plant code of the Faridabad factory, 321 is the

code of the particular workstation and assembly line, 8 represents the year of

manufacturing, 42 the week and 2 signifies the day of the week in which production

has been done.This stamping particularly helps if there is a defect found out in the

shoe after sale. After stamping is done ,the upper is sent for stitiching.

Stitching:

The cloth received after stamping is set for stitching and making it into a proper

upper of the shoe. The stitching process starts with folding of the piece and stitching

it in a particular fashion to give the shape of an upper. Next, it is sent for stitching the

binding onto the edges of the sgoe. After the binding on the edges has been done,

the shoe is transferred further where lace holes and flips used under that are stitched

onto the upper. The last step in the stitching process is to put laces into the shoe,

which is done by hands. The upper of the shoe is now ready to sent for assembling

process.

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Assembly (component store and packing) :

A fact worth noting is that the conveyer does not have a linear arrangement of

workstations; rather it is an ellipsoidal conveyer with different workstations positioned

all around it. At first glance, it is not easy to comprehend as to wherefrom where the

process begins. However ,a closer look reveals that fully assembled shoes are hand

picked away from the conveyer at one particular point on the conveyer. Despite it

unconventional designe, it is a very well organized and systematic assembly line

configuration where none of the employee sit idle at any point of time , thus

minimizing idle time losses.

Dispatch

They are their own distributers and they have their own stores all over INDIA. They

have four types of store concepts.

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City Store

The Bata City Store gives you unique shopping experience as it showcases the latest

collections for footwear of local and international brands. The store ambience is designed

to create a lifestyle store that reflects and responds to your needs and expectations. The

Bata City stores are located in top shopping malls in big city centers.

Family store

Bata is the world's leading family chain thanks to the wide assortment of every fashion

footwear available in our stores. The products are primarily the Bata brand, with a carefully

selected assortment of articles from both local and international brands.

Superstore

Bata Superstore offers a wide assortment of fashion, casual and athletic for the entire

family. Located primarily in urban and suburban shopping center, these spacious stores

offer the best value by providing good quality shoes at great prices. Service is fast thanks

to a self-selection shopping environment with qualified staff to serve and assist.

Factory store

Factory stores are the largest and the most value-oriented stores of our retail chain.

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NIKE

Nike, Inc. is an American multinational corporation that is engaged in the design,

development and worldwide marketing and selling of footwear, apparel, equipment,

accessories and services. The company is headquartered near Beaverton, Oregon,

in the Portland metropolitan area, and is one of only two Fortune 500 companies

headquartered in Oregon. It is the world's leading supplier of athletic shoes

and apparel and a major manufacturer of sports equipment, with revenue in excess

of US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, it

employed more than 44,000 people worldwide. The brand alone is valued at $10.7

billion making it the most valuable brand among sports businesses.

The company was founded on January 25, 1964 as Blue Ribbon Sports by Bill

Bowerman and Phil Knight, and officially became Nike, Inc. on May 30, 1978. The

company takes its name from Nike (the Greek goddess of victory. Nike markets its

products under its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike

Skateboarding, Umbro and Converse. In addition to manufacturing sportswear and

equipment, the company operates retail stores under the Niketown name. Nike

sponsors many high-profile athletes and sports teams around the world, with the

highly recognized trademarks of "Just Do It" and the Swoosh logo.

VISION STATEMENT

“To carry on his legacy of innovative thinking, whether to develop products that help

athletes of every level of ability reach their potential, or to create business

opportunities that set Nike apart from the competition and provide value for our

shareholders.”

MISSION STATEMENT

To bring inspiration and innovation to every athlete* in the world.

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Nike have developed innovative processes and tools to move their supply chain

vision toward reality. The following four elements, when taken together, form

sustainable supply chain vision.

Lean: Better manufacturing

Green: Improving performance at every step

Equitable: Toward Economic Security

Empowered: Workers Unlock Value

SUPPLY CHAIN OF NIKE

The raw materials like rubber, fabric and other raw materials is collected when

product development or order is entered and if the product is already developed one

then after collection of raw materials they are moved towards manufacturing section

and then to assembled the products. After the finished good is formed that is new

than the marketing of the same is done using various promotional tools. If the

product is the existing one like sport shoe then it is forwarded to departmental stores

from where the customer can get the product. If the order is placed through online

media or if the customer visit to nike’s branded store, the same backward procedure

explained above is done. Finally, the feedback of customer is also taken into

consideration during new product development and even before shoe manufacturing

and assembly activity.

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Nike’s supply chain management focused on its process innovation to do their

products different from other shoe producers, continuous improvement by

maintaining its relationship with its suppliers to be able to do its production process

better, and execution discipline by doing things right, adhering to the corporate and

governmental laws and policies (IBM and Stanford University, 2006). Nike’s supply

chain consist of all the activities, functions and facilities directly and indirectly

involved in the flow and transformation of goods and services from the raw material

stage, manufacturers, parts suppliers, assembly, warehouse and distribution to the

end-user whose primary goal is to maximize the value and shareholder wealth of the

company (Sridharan, Caines and Patterson, 2005).

Nike’s supply chain had certain benefits :

Costs from outsourcing allowed Nike to focus on its core competencies such as

product design, marketing, and Air Sole technology. Nike’s relationship with its

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suppliers made it possible for them to have quality product with low costs due to

reduced administrative and payroll costs. The flow of their products reduced time in

initial design, production and distribution from sending new designs to suppliers who

produces the shoe parts, to forwarding the shoe parts from suppliers to companies

assembly and finally in shipping the finished products for worldwide distribution.

Nike’s diversity of 860 suppliers allowed them flexibility, faster service in cases of

emergencies and quality assurance. Nike’s technologies in transferring of data,

orders, communication through internet and databases allowed them to perform and

meet the needs of its customers in a timely manner and have a good inventory and

monitoring control.

Nike’s supply chain had some disadvantages:

such as an expensive implementation of technical components; having too many

suppliers can lead to losing control of inventory and operations management; a

breakdown of some shoe parts suppliers can cause delay in its supply chain

process; suppliers non implementation of Nike’s Code of Conduct can once again

destroy the public perception of Nike; and trend forecasts and unstable economy can

affect consumers demand. According to Lim and Phillips (2008), the governance of

global value chains (GVCs) dominates the political economy and management

revealing that major retailers do not own manufacturing facilities and instead has

contracts with multiple suppliers in less developed countries (LDCs). These retailers

regularly play them against each other to attain the best price, highest quality, and

quickest delivery. Although this benefits the buyer and consumers, the competitive,

market-oriented GVC pushes suppliers toward lower wages and sweatshop-like

labor/environmental standards. Nike’s Future Vision restructured the supply chain by

consolidating contractors into five Manufacturing Leadership Partnerships (MLPs). In

contrast to competitive market-oriented contracting, MLP is similar to a collaborative

partnership distinguished by a high level of interdependence underpinned by

goodwill and trust. The MLP facilitated the information sharing between suppliers

within the GVC. Nike’s Future Vision partnership also addressed CSR monitoring at

the contractor and component supplier levels. Nike send manufacturing expatriate

technicians and a CSR team to evaluate environmental and labor conditions and

rectify problems to the MLP factories. The MLPs then sent CSR officers to keep an

eye on their vendors’ operations. The suppliers had to be on Nike’s Approved

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Vendors List requiring them to observe the Code of Conduct aside from being

technically qualified. Nike gave each MLP an exclusive production relationship by

guaranteeing a minimum orders monthly assuring a good relationship through good

and bad times and the bond is expected to last as long as Nike exists.

Nike’s supply chain technology:

consists of Electronic Data Interchange (EDI) which transmits the data between

different companies using networks, such as VAN or the Internet; Value Added

Network (VAN) is a private network provider that leases communication lines to its

subscribers and the internet as the backbone for supply chain links companies to

their suppliers and vice versa (Web portals) and is also used to connect with

customers (Nike’s home page); and the Enterprise Resource Planning (ERP) which

is a business management system that incorporates all component of the business

as well as planning, manufacturing, sales, and marketing. Internet and the web

technologies can enhance effective communication.

To run their supply chain, Nike’s uses HP servers, software, and consulting services

as HP’s single platform is capable of running both UNIX and Microsoft Windows NT

systems (Sridharan, Caines and Patterson, 2005). HP is able to provide Nike with

the right technology needed to operate successfully its global supply chain. This

technology helps Nike review its supply chain past performance, monitor current

performance and predict when and how much of certain products need to be

produced. The innovative opportunities of electronic commerce (e-commerce)

through the internet increases information technology (IT) whose primary goal is to

link the point of production effortlessly with the point of delivery or purchase. The

information trail from IT allows planning, tracking and estimating lead times based on

real data which is accessible in the system where managers analyze, plan activities

and make decisions based on information from the entire supply chain. According to

Sridharan, Caines and Patterson (2005), the key elements of a successful supply

chain management are clear communications and quick responses to those

communications. To be effective in its operations, the information is shared among

vendors, customers and internal departments.

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BIBLIOGRAPHY

BATA:

1. www.bata.com

2. http://www.google.co.in/url?

sa=t&rct=j&q=supply+chain+management+of+bata+shoes&source=web&cd=

1&ved=0CDkQFjAA&url=http%3A%2F

%2Fwww.besplatniseminarskiradovi.com%2FENManagement

%2FManagement%2FBata%2520Shoe%2520Organization-Term-

Paper.doc&ei=7GpJUePzCMmmrAeE2YDIBQ&usg=AFQjCNE1rz7iZOUI7btA

R_-3NUkcc1vqfw.

3. http://books.google.co.in/books?

id=A3s9mwvYISkC&pg=PA338&lpg=PA338&dq=supply+chain+management

+of+bata+shoes&source=bl&ots=gJG1I4eME6&sig=MAxS9Z9oBo03BYTULT

zYgHI4r0M&hl=en&sa=X&ei=l0JJUZ7sHMq8rAevyIGYDw&ved=0CEEQ6AEw

Aw#v=onepage&q&f=false

NIKE:

1. www.nike.com

2. http://en.wikipedia.org/wiki/Nike,_Inc.

3. http://www.emeraldinsight.com/content_images/fig/2610360406005.png.

4. http://www.google.co.in/url?

sa=t&rct=j&q=supply+chain+of+nike+shoes&source=web&cd=9&cad=rja&ved

=0CFgQFjAI&url=http%3A%2F%2Fdrhornsby.com%2Fuop%2FMBA

%2520550%2Fweek%25206%2FSupply%2520Chain%2520Nike

%2520wk6.doc&ei=7FdJUe2uC4PirAff7oHwBw&usg=AFQjCNFhtJHyh_mrIm

yZ3J7UCH8YLT_NiQ&bvm=bv.44011176,d.bmk

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