THE EMERGENCE OF SCM EXCELLENCE

TEAM MEMBERSShalini Tripathy: DM16141Supam Das: DM161Ravi Agrawal: DM161Apoorva Singhal: DM161Hiranya Deshmukh: DM161

19% think that 6% think that

47% think that 28% think that

SCM

Logistics

SCM

Logistics

SCM

Logistics Logistics SCM

Consumer

Manufacturing plants

Distribution centres

Logistics

Retail outlets

INFO

RM

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INFO

RM

AT

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INFORMATION

CONSUMPTION

Effective tool for reducing transaction costs.

Better information sharing decreasing need for excess inventory while increasing sales.

Adds value to the customer service function.

Decreased time and costs adds to the competitiveness in the respective industry.

Adversarial

• P&G was too complex & inflexible

• It had 12 internal divisions

•Wal-Mart found it difficult to do business with

Transactional

• Focus on day to day sales

•No long term planning

•No customer needs identification

Fragmented

•No information sharing

• Activity limited to buying & selling function

•No dedicated team of P&G for Wal-Mart

Better IOIS (Inter organizational information sharing).

Channel partnership.

Category Management.

Continuous replenishment.

Process Co-ordination.

EDI (Electronic data interchange).

Collaborative planning forecasting replenishment (CPFR).

Wal-Mart & P&G shared long term business partnership through total information sharing to serve the mutual customer-the consumer.

They used technology for channel partnership

Joint scorecards

POS data sharing

Understanding consumer driven sales data

Cost cutting through automation

P&GDATA

WAL-MARTDATA

DATA DELIVERY HIGHWAY

Marketing analysis

Activity Based

costingReplenishment

Data sharing

Shelf mgmt

Categoryanalysis

ProfitabilityMarketing

Two companies were functionally interwoven at multiple points

1) Buying & selling

2) Production & product development

3) Finance

4) Logistics

The first collaboration was for JIT ordering of disposable Pampers & Luvs diapers.

Focus on efficient replenishment of products

Part of ECR (Efficient consumer response)

Goals

Increased inventory turns

Decreased inventory levels

Decrease stock outs

Boost warehouse efficiency

Increase customer service value

Standard for exchanging data via any electronic means.

Purchase orders, invoices, advanced shipment notification, and financial payments can all be managed through the EDI.

Innovation of a price checking tool to improve billing accuracy for accounts payable & receivables.

Understanding of the retailer, their customers and the consumers who buy your brand.

Integrating P&G market data, Wal-Mart POS data and third party market data helped P&G understanding consumer specific needs and make decisions accordingly

Critical for common expansion goals

Strategy & Planning: The Joint Business Plan then identifies the significant events.

Demand & Supply Management: Sales Forecasting, which projects consumer demand at the point of sale

Execution & analysis: Order generation & fulfilment and performance assessment

In 2009 Wal-Mart created a sustainability index to meet the need for sustainable produce practices

They created a three stage process wherein

1) An initial Supplier Sustainability Assessment program

2) The creation of a Lifecycle Analysis Database

3) The finalization of the Index and a presentation to customers

Procter & Gamble and Wal-Mart will prioritize reducing the "water per dose" for liquid laundry detergent by 25 percent

Wal-Mart has investments in renewable energy, leaders in phasing out toxic chemicals and creating the increasingly influential Sustainability Index

These are some of the examples of the retail giant towards green business practices.

Big bazaar and future group supply chains working in tandem for their motto of low price product offerings (isse sasta aur accha aur kahin nahi)

Channel partnership.

Usage of new edge technology for information & data sharing for managing inventory & sales.

Six software systems at work

1) ERP

2) Warehouse management system

3) Automatic print & apply system

4) Automatic packing

5) Online conveyor based weight check system

6) Sorting system

Q&A ???