SUBMITTED BY: ENROLLMENT NUMBER

PRIYA BHATTACHARYA – JN180106

MIRZA MORISH BEG - JN180085
MALKA NASIM - JN180079
SAURABH PATHAK – JN180133
NITESH KUMAR SINGH - JN180224
KUSHARG - JN180279
S.NO PARTICULARS

1 OBJECTIVE

2 SUPPLY CHAIN OF ITC

3 COMPETITIVE STRATEGY
IMPACT ON SUPPLY CHAIN
4 STRATEGY ON SUPPLY CHAIN

5 RECOMMENDATIONS
• ITC was incorporated on August 24, 1910 under the name Imperial Tobacco
Company of India Limited.
• ITC is a conglomerate Indian company having 5 segments”:-“
1. “FMCG”
2. “Hotels”
3. “Paperboards and Packaging”
4. “Agriculture Business”
5. “Information Technology
MISSION OF THE COMPANY”
• “To enhance the wealth generating capability in the globalizing environment,
delivering superior and sustainable stakeholder value”.”
“VISION OF THE COMPANY”
• “Sustain ITCS position as one of India’s most valuable corporations through
world class performance, creating growing value for the Indian economy and
the company’s stakeholder”.”
 • Kitchen of
India
FOODS • Aashirwaad
• Sunfeast

• Gold Flake
Cigarette • Classic
• India King

Lifestyle • Wills
Lifestyle
Retailing • John Players

Education •Classmate
•Paperkraft
& •Color crew
Stationary •Saarthi
1. The objective of this project is to study in detail about the
supply chain of ITC Limited. This study also tells about the
principles , methods , tools and technique used by ITC to
achieve an efficient supply chain management.

1. We will study about the structure used by the company to

maintain their supply chain. This study also talks about the
drivers of supply chain management like facilities , inventory ,
transportation , information , sourcing and pricing which plays
an important role in improvement of the network.
FACTORY WAREHOUSE DISTRIBUTOR RETAILER END CONSUMER

Area
SalesManager
1. Inventory Strategy:
• All ITC products were bar coded at the retail level
• ITC enabling implementation of first-manufactured-first-out
(FMFO) strategy, which means items manufactured first are
shipped out of the factory and the warehouse earlier than
products manufactured later.
2. Transportation:
• It consists of diverse categories with different priorities with more
than 1000+ stock keeping unit and buying value of $68MM

• Warehousing space of more than 3.5m SFT around 55+ locations

with products manufactured at 45 plus plants. More than 650 trucks
moved every day

• direct distribution from factories to Distributors & Indirect movement

through Regional Distribution Center Combination of Rail/Road/Sea
movement within the country depending on the product type
transportation
3. Cost Advantage:
• Sales and sales growth are high and Reserve and surplus are
high.

• Distribution channel is effective which is based on technology

(delivery van, computer, warehouse, sales force) and,

• Huge investment in advertisement and also does investment in

plant & machinery, computers, servers and other IT equipment's
1)ITC has a strong and experienced management

2) Strong brand presence, excellent products advertising

3) Diversified product and services portfolio which includes FMCG, Hotel chains,
paper & packaging and agro- business

4) Over 6500 E-Choupal CSR activities and sustainability initiatives enhance

ITC’s brand image reaching over 4 million farmers

5) ITC limited employees over 25,000 people

6) Excellent research and development facilities ITC Different from competitor

• PRICING STRATEGY
The pricing of the ITC food division depends upon the Customers’ demand
schedule, the cost function and the competitors’ price
The company follows the Going rate pricing
• PROMOTIONAL ACTIVITY
the local promotion scheme is decided by the Area Sales Manager
drop down promotion
• Competitive rivalry within an industry
“Using price competition”
“Staging advertising battles”
“Making new product introductions”
“Increasing consumer warranties or service”
“Advertising battles may increase total industry demand, but may be costly
to smaller competitors”
Individuals + Planet = Social + Environmental Responsibility
As per TBL hypothesis, organizations ought to work all the while on these three
primary concerns:

Benefit: The customary proportion of corporate benefit

the benefit and misfortune (P&L) account.

Individuals: Measures how socially capable an association has been all

through its activities
• ITC’s vision to sub-serve larger national priorities is realized by
the strategic approach of embedding sustainability in its core
business models.
• 1. Growth in the Sales Turnover
TABLE: LAST THREE YEARS SALES REVENUE

Sales(CR.)
48000
47000
Year Sales Growth Percentage 46000
45000
42074.59 44000
2016-17 9.706578 43000
42000 Sales(CR.)
42757.38
2017-18 1.622808446 41000
40000
47480.19 39000
2018-19 11.04560195
2016-17 2017-18 2018-19
• the actualization of its vision of sustainable development has to
necessarily take into account the environmental and social impact
within the supply chain

• ITC’s Triple Bottom Line approach along the supply chain that will
ensure long-term competitiveness through a balance between
creation of long term social & environmental value and the
economic viability of the businesses

• Sustainable Procurement process: This policy is meant for the issues

related to labour practices, human rights, bribery, corruption,
occupational health, safety and environment in the supply chain and
third party manufacturers like transporters, suppliers of agricultural &
non-agricultural materials and capital goods, franchisees, dealers
and distributors
Being as market leader ITC enjoys economies of scale in the supply chain which reduces their
transportation cost and stock holding cost and facility cost which resulted continuously earning the
profit at increasing rate and at the same time expense rate is also increasing but not deviated from
profit percentage.

Table of total expenses and PBT with growing rates

Year total expence Rate PBT Rate

23,682.74 14,958.39
2015-16

26,571.63 15,502.96
2016-17 12.19829293 3.64057

26,318.58 16,851.70
2017-18 -0.95233149 8.69989

29,036.03 18,444.16
2018-19 10.32521511 9.44985
 Total expenses and PBT

30,000.00 14

12
25,000.00
10
20,000.00
8 Total Expense
15,000.00 rate
total expence
6
10,000.00 PBT PBT rate
4
5,000.00
2
0.00
0
2016-17 2017-18 2018-19
-2
• To focus more on direct distribution to cut down costs and make higher profit margins.

• To compete with the commission rates of the competitors

• ITC need to work on its product visibility and on time delivery of the products in the market for
which they need to work on the improvement of the Supply Chain of the company

• “Mechanizing the go down operations which are the major activities in the value chain may be
adopted, stored leaf tobacco at their operation go downs is being delayed for threshing
operations therefore it is suggested to follow the first in first out inventory management method”

• Maintain the quality and brand perceptions of the company and following first in first out
method so that the supply chain of the company will get better outputs

• The company should work on improving the route planning which would help in reducing the
transportation cost of the company