Supply chain management Click to edit Master subtitle style of ITC Limited

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PRESENTED BY: Deboprotim Borah (BAM11024) Kaushik Handique (BAM11025) Priyanka Deka (BAM11040)

A little about ITC Ltd.

The company was founded as Wills, Watkins & Co. by Henry Overton Wills I and his partner Watkins. A public conglomerate company headquartered in Kolkata, India. Its turnover is $6 billion and a market capitalization of over $30 Billion. The company is currently headed by Yogesh Chander Deveshwar

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It employs over 26,000 people at more than 60 locations across India and is listed on Forbes 2000. It completed 100 years on 24 August 2010. the only company in the world of its size and diversity to be 'carbon positive', 'water positive' and 'solid waste recycling positive. Created sustainable livelihoods for more than 5 million people

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Product Range of ITC Ltd.

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ITC Ltd. Guwahati

Regional office of ITC is situated at Ulubari, Guwahati-7. The central ware house is situated at Lokhra.

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SCM- A brief overview

It is the process of planning, implementing and controlling the operations of the supply chain as efficiently as possible. Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption. Supply network or the supply web because they all show how each unit interacts with the others

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Goods are produced at 15 different locations in India. ITC maintains common supply chain for all of its products including FMCG products. Due to its tobacco business, ITC already had a good understanding of distribution channels.

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SCM at ITC Ltd.

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Inventory Management

Safety Stock: 10% more than the total demand for a particular month. Lead Time: The lead time basically depends on the distance from where goods are shipped. Generally lead for Kolkata it is 4 days, Bangalore it is 10 days and Hyderabad it is 7 days.

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Inventory Storage: outsourced warehouses at different regions across India. Insurance Coverage: Insurance policy for stored as well goods in transit. Inventory Report: Daily stock report prepared. Inventory Management System: Uses SAP. Different Cost Functions: Ordering cost, carrying cost and stock out cost.

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 First in First Out

SAP is used for preparing the invoices, loading sheet, stock level report etc. The stock level report is forwarded to the Bangalore Head Office

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Role of Marketing in SCM

Availability of Product. Information generation, dissemination and response. Customer Satisfaction. Relationship with Distributors and Retailers. Financial Benefits and Customer Satisfaction.

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Supply chain sales forecasting

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production policy

The production estimate is done 3 months in advance. Production does not take place in the NorthEast region. It takes place in 15 locations all over India.

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Purchasing process

Suppliers selection. Credit period offered by suppliers. Stage of purchasing function.

coordinated activities, reduced inventories and

lowered stock
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Role of logistics

Logistics department. Distributors. Order processing. Mother hubs. Transportation. Wholesale distributor.

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The Information system at a glance

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How supply chain decision are implemented?

Centralized

supply chain team

Team

constitutes of members from different zones are implemented centrally

Decision

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Customer Service in SCM

Grievance cell. Customer satisfaction survey . Making stock available at retail points. ITC shares a very good relationship with its customers.

Provide gifts and incentives to those who perform well in a specific time 3/23/13

Performance of Supply chain of ITC

ITC classifies its inventory on the basis of different products and manages inventory on a periodic basis using SAP. The policy of First in First Out is maintained while sending the goods out. ITC conducts periodic survey on customer satisfaction.

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ITCs SAP generates the sales forecasting The goods from factories are sent directly to the WSP (Warehouse Service Provider) using trucks. ITC has got a centralized supply chain team which takes all the decisions regarding their supply chain. ITC has a Grievance cell which handles customer complaints.

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CONCLUSION

After studying the supply chain of ITC Limited, it can be concluded that co-ordination among the different functions of the supply chain is very much essential for a smooth flow of goods to the customers. SAP plays an important role in managing inventory for ITC. It also helps in maintaining a good co-ordination between different departments of the company.

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SOURCES

Mentzer, J. T. (2001). Supply Chain Management. Response Books. www.itc.com. (n.d.). Retrieved September 18, 2012, from http://itc.com/index.html

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THANK YOU

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