Beruflich Dokumente
Kultur Dokumente
Saroja Asthana
Information
Producers
Distribution
Customer
F.G
Packaging
Quality
P&S
Delivery P&S Price
Delivery
Satis.
Inventory
Inventory
Cash
12%
6%
0%
1994
1996
1998
2000
2002
2004 2006
Urban (%)
Toothpaste
17.4
12.2
Shampoo
10.3
14.6
Coconut Oil
22
13.5
Hair Oil
20.4
14.3
% Proportion of Cost
China
18
Thailand
16
India
13
EU
11
Japan
11
U.S.A.
10
Service
providers
Input
services
tax
Import of
Custom
duty/service tax
RM/Services
services tax
City/Hub
FG manufacture
(Inter state)
(Tier I)
Entry
tax/
Octroi
Domestic RM
CST/entry
tax/
Octroi
Domestic
Distribution
Customer
supplier (Tier I)
suppliers
center
LST/VAT,
International
suppliers
(imports)
Service tax
City/Hub
Custom
duty/
services tax
VAT= Value Added Tax, MODVAT=Modifi ed VAT, CST=Central Sales Tax, LST=Local
Sales Tax, Octroi=TAX on sales inside city limits
(Intra state)
USA (%)
India (%)
34
44
Transportation Cost
62
52
USA (%)
India (%)
Driver cost
39
Fuel cost
33
61
Equipment cost
28
24
USA
1.9
Canada
2.0
Japan
3.7
Europe
5.5
India
Brazil
China
India
18
24.2
32.5
Time (hrs.)
India
84
Hong Kong
Singapore
Manufacturing
What is the optimal manufacturing configuration, with
and without excise and IT?
What is the tradeoff between tax and logistics on the
manufacturing footprint?
Does the existing manufacturing footprint have enough
capacity to support demand for the next five years?
What is the impact of closing certain manufacturing
plants on the overall cost?
What is the optimal production footprint: assignment
of products, number/capacity of lines at each plant?
Post tax sunset, is it beneficial to move manufacturing
to a non-fi scalbenefi t area for logistics reasons?
Transportation
What are the incremental costs and risks
incurred by closing certain lanes?
How does centralized distribution affect
transportation costs?
How do service level requirements impact the
transportation footprint?
What are the net in-transit holding costs and
average in-transit inventory in the supply
chain?
Warehousing
What is the optimal distribution footprint - number,
location and configuration of warehouses?
What is the impact of CST/VAT on the warehousing set
up?
What are the average inventory levels across the
supply chain?
To what extent is a reduction in inventory achievable
by moving to a centralized distribution system?
Is it beneficial to outsource warehousing to a third
party provider?
Potential dist.
Potential manufacturing
Excise/IT
Baseline
model
CST/VAT
Future demand
Baseline model validation
solution
Optimal
Incremental
Global
optimal footprint