OPTIMISATION

OF SMART COLOURS'
SUPPLY CHAIN
In-Company Project by:
Pooja Shah & Aakgash Sivanandam
Track:
ICP (Ex-Company Project) 2018-2019
Tutor:
Marina Masdeu Figa
Company Name:
Winsid Coatings (Referred to as Smart Colours)

OCTOBER 17, 2019

WELCOME

OCTOBER 17, 2019

Presentation

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Outline
1. About the company
2. Market and Competitors
3. Supply Chain (Supply)
4. Supply Chain (Demand)
5. Recommendations
6. Implementation
7. Conclusion
8. Appendix
Introduction to the
Company
- Established in 2016 in Bangalore
- Manufactures, sells and distributes
paints & coatings
- Modern manufacturing facility and 6
warehouse in different parts of India
- 6 depots nationwide
- USP: Highest quality at affordable price
INR 500 TWO BROAD Paints
BILLION
VALUATION
MARKETS:
The industry is
Industry in
($7 BILLION)
India
diveded into two
segments: Decorative
Expected to grow at and Industrial. The
12% and reach INR 700 Decorative segment is
billion by 2021-22 70% organised.

GROWTH MONOPOLISTIC
FACTORS COMPETITION
Includes manuacturers of
- Shift in consumer The market is
dominated by one
paints, varnishes, polishes,
preferences
- Development of monopolistic leader shellacs and stains
technologies (Asian Paints), and few
- Reduction in tax other strong players.
 Marketshare of
Competitors Other
Dulux s
India 2%
9%

Revenue in USD (Millions) Kansai Nerolac

Paints
15%
Asian Paints - 2,344
Berger Paints - 852
Asian
Kansai Nerolac - 771 Paints
Dulux India - 418 54%

Berger
Paints
20%
Supply Chain Flowchart
 THE STAGES OF SMART
COLOURS' SUPPLY CHAIN
Procurement - Outward Logistics

Procurement Manufacturing Inventory Logistics

- Over 200 - 60-70% available Management - 14 contractual
suppliers, 2-3 for in FG stock - Managed via ERP transport providers
each RM - No production - Packaging: 4.8%, - Always insured
- RM sourced halt RM: 35.7%, FG: - 98% error-free
locally and globally 59.5% shipment
 50% 50%
SUPPLY SIDE DEMAND SIDE
Supply Chain Flowchart
 DEMAND MANAGEMENT
Demand-side of the Supply Chain
Push-Based Strategy
Smart Colours pushes its products out into the market
through its retailers. Retailers are incentivised to promote
the products by offering them higher profit percentages
than Asian Paints, and awarding them a lucrative rewards
scheme. P B
N D
No Specific Growth / Marketing Strategy
Smart Colours is a young company and has not positioned
itself in the eyes of the its consumers. The present strategy
of the company is to provide paints that are higher in quality
than Asian Paints but cost 10% lesser.
Low Brand Awareness / Positioning
Smart Colours is presently managing its dealer's network
through word-of-mouth marekting and personal selling to
the retailers. Direct contact with consumers is low. Website
exists but it draws low users and has a high bounce rate.
No Demand Forecasting
Demand forecasting is not done at mutilple levels, and thus,
demand remains unreliable. Without forecasting, demand
and related pre- and post-sales activities cannot be
effectively planned.
Lack of Online
Presence
On the left, we can observe the Google
Analytics results for the Smart Colours'
website. The website has not been
optimised for search engines, and a lot
of the information available on the
website is difficult to understand.

Currently, the website is the only

platform that the company uses to
directly interact with the consumers.
Lack of visibility (improper use of
keywords) and poor retention of users
makes it hard for the company to
establish itself in the minds of the
consumers.
Recommendations
for Smart Colours
 STEER STRATEGY
FROM PUSH TO
PUSH-PULL
Empower retailers by driving
demand. Specifically,
improving upon digital
marketing (Instagram,
Facebook Adverts)
PERFORM DEMAND
FORECASTING
Estimate demand to reduce
volatility and increase EOS.
EXECUTE
STAKEHOLDER
MAPPING
Identify stakeholders with
high impact/influence and
develop risk management
strategy.
IMPROVE
REVIEW SALES
WEB PRESENCE
PROMOTION
Optimise website for
Measure the effectiveness of
better search engine
Sales Promotions and the
results: keywords, blogs,
review their performance.
page speed.
 IMPLEMENTATIONS OF
RECOMMENDATIONS
Target: 20th November, 2020
Steer Strategy from Push to
Push-Pull

Focus on Digital Marketing

Perform Demand
Forecasting on all levels

Review Effectiveness of Sales Promotion

Techniques

Execute Stakeholder Mapping

Upto 5 years Upto 6 months Upto 3 months Upto 1 month

WRAP UP

pu-gnidniW
Value Creation
Smart Colours Us (Students)
Deeper understanding
Food for thought and Extended our
reflection professional netwrok
Insights beyond Potential to support
recommendations Smart Colours during the
Recommendations implementation of
Validation recommendations
Identification of pain Sharing insights and
points formulating
recommendations
Added value to our
professional profile
 Great learning experience that
created value on both sides.

Final Notes
Starting point of our career.

A big thank you to the

company and Marina
 saicarG
THANK YOU
ANY QUESTIONS?
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Metrics to ascertain and improve:

Perfect Order Measurement - the percentage of orders that are error-free: >95% 
Cash to Cash Cycle - The number of days between paying for materials and getting paid for product: 90 days
Supply Chain Cycle Time - Time it would take if inventory levels were zero: 41 days 
Inventory Days of Supply - Number of days it would take to run out of supply if it was not replenished: FG = 30 days,
RM = 15 days 
Inventory Turnover - Number of times the inventory cycles per year: 3 - 4 
Inventory Turnover Ratio (ITR) - ITR helps us to measure the number of times we sell or turn our average inventory
kept in the warehouse: 4 
Days of Supply (DOS) – Number of days current inventory will last: 30 days 
Inventory Velocity (IV) - IV is the percentage of inventory we are projecting to be consumed within the next period:
Prev. period sales plus 30% 
Customer Order Cycle Time - How long it takes to deliver a customer order after the PO is received: Outstation - 24
hours, Local - <4 hours
Fill rate - Percentage of a customer’s order that is filled on the first shipment: >95% 
Freight bill accuracy - Percentage of freight bills that are error-free: >95% 
Freight cost per unit - Finished Goods = Rs. 1 to Rs. 3 per kg. Max Rs.5 per kg. Raw materials = Rs. 1 to Rs. 6 per Kg 
On Time Shipping Rate - Percentage of items, SKUs or order value that arrives on or before the requested ship date:
>95% 
Days Sales Outstanding - Measure of how quickly revenue can be collected from customers: 75 days 
Average Payment Period for Production Materials - Average time from receipt of materials and payment for those
materials: Sourced in India - 75 days, Sourced Internationally - Adv. Payment