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    Hul, P&G

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    Vikas J
    This document provides supply chain metrics for two companies, P&G and HUL, for fiscal years 2016 and 2015. It includes metrics such as days of raw material inventory, days of work in progress inventory, days of finished goods inventory, supply chain length, supply chain cost, supply chain inefficiency, supply chain working capital, supply chain working capital productivity, and return on assets. The qualitative analysis compares the metrics between the two years, noting that P&G's supply chain length and efficiency were relatively unchanged while HUL saw increased supply chain length but improved efficiency from 2015 to 2016. Both companies had negative working capital productivity due to high payables. Return on assets decreased for both as profit fell.

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    Hul, P&G

    Uploaded by

    Vikas J
    30 views7 pages
    This document provides supply chain metrics for two companies, P&G and HUL, for fiscal years 2016 and 2015. It includes metrics such as days of raw material inventory, days of work in progress inventory, days of finished goods inventory, supply chain length, supply chain cost, supply chain inefficiency, supply chain working capital, supply chain working capital productivity, and return on assets. The qualitative analysis compares the metrics between the two years, noting that P&G's supply chain length and efficiency were relatively unchanged while HUL saw increased supply chain length but improved efficiency from 2015 to 2016. Both companies had negative working capital productivity due to high payables. Return on assets decreased for both as profit fell.

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    This document provides supply chain metrics for two companies, P&G and HUL, for fiscal years 2016 and 2015. It includes metrics such as days of raw material inventory, days of work in progress inventory, days of finished goods inventory, supply chain length, supply chain cost, supply chain inefficiency, supply chain working capital, supply chain working capital productivity, and return on assets. The qualitative analysis compares the metrics between the two years, noting that P&G's supply chain length and efficiency were relatively unchanged while HUL saw increased supply chain length but improved efficiency from 2015 to 2016. Both companies had negative working capital productivity due to high payables. Return on assets decreased for both as profit fell.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    30 views7 pages

    Hul, P&G

    Uploaded by

    Vikas J
    This document provides supply chain metrics for two companies, P&G and HUL, for fiscal years 2016 and 2015. It includes metrics such as days of raw material inventory, days of work in progress inventory, days of finished goods inventory, supply chain length, supply chain cost, supply chain inefficiency, supply chain working capital, supply chain working capital productivity, and return on assets. The qualitative analysis compares the metrics between the two years, noting that P&G's supply chain length and efficiency were relatively unchanged while HUL saw increased supply chain length but improved efficiency from 2015 to 2016. Both companies had negative working capital productivity due to high payables. Return on assets decreased for both as profit fell.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 7

    Sl.

    No Item Description Symbol


    1 Raw Material Inventory RM
    2 Cost of RM CRM
    3 WIP Inventory SFG
    4 Cost of Pro CO
    5 FG Inventory FG
    6 Cost of Sales CS
    7 Totsl Inventory(RM+SFG+FG) INV
    8 Dist Cost DC
    9 Net Sales NS
    10 Acc Receivables AR
    11 Acc Payable AP
    12 PBT PBT
    13 T Assets (Fixed Assets+Current Asset) TA
    14 PAT PAT

    FY16 FY15
    Days of RM 12.5917380795 14.14953529
    Days of WIP 1.8664958781 0.915734296
    Days of FG 27.3167168343 26.16002129
    length of value chain 41.774950792 41.22529087

    Supply chain cost 19,159.60 20,470.40


    SC INEFFENCIENCY 0.08 0.09

    SC Working Capital 27,236 23,144


    SC Working Capital productivity 9.111763842 10.07721224

    ROA 1.3355425109 1.12095599

    Qualitative Analysis:
    1. Supply chain length - Minimum length of the chain would mean better performance of the supply chain. P&G's suppl
    length has maintanied the same FY16&15
    2. Supply chain inefficiency ratio - The supply chain efficiency of P&G has maintained which would mean the company
    efficient in managing the supply chain.
    3. Supply chain working capital productivity is as low as 9.111 in FY 2016 and 10.0772122 in FY 2015. Since P&G being
    leader in the industry, holds command over its suppliers and hence owes/has highter payables to its suppliers.
    4. ROA - It is the profitability ratio that measures the net income produced by total assets during a period. The ROA ha
    the PAT of P&G has fallen significantly.
    7
    Reference FY16 FY15
    BS 2,041 2,244 Cost of production FY16 FY15
    PL 59,163 57,886 Cost of RM 59,163 57,886
    BS 513 235 Employee benefit exp 11856 11329 note-44 not taken
    PL 100,319 93,668 Finance Cost 25 58 Only Bod, borrowings taken
    BS 10,194 9,428 Other exp
    PL 136,210 131,545 consumption of stores 2041 2244
    BS 12,748 11,907 power, fuel 1137 1218
    PL 16,610 18,089 proessing charges 5780 4901
    PL 248,168 233,227 Rent 619 608
    BS 14,962 11,394 Repairs 1023 1168 All included-repair others al
    BS 474 157 Insurance 44 38
    PL 63,654 50,081 Royalty 12338 11144
    BS 31,686 30,879 Misc exp 6293 3074
    PL 42,318 34,614
    Total 100,319 93,668

    DRM Cost of Sales


    DWIP Cost of prod 100,319 93,668
    DFG Adv and sales promo 18255 18792
    days No change almost Carriage and freight 16610 18089
    ICC-16 ICC-15 Travel and motor car expe 1026 996
    SCC 0.2 0.2 (As per book)
    SCI Slightly better 136,210 131,545

    SWC
    SWCP

    of the supply chain. P&G's supply chain

    which would mean the company is relatively

    22 in FY 2015. Since P&G being a market


    yables to its suppliers.
    sets during a period. The ROA has reduced as
    note-44 not taken
    Only Bod, borrowings taken

    All included-repair others also


    Sl. No Item Description Symbol
    1 Raw Material Inventory RM
    2 Cost of RM CRM
    3 WIP Inventory SFG
    4 Cost of Pro CO
    5 FG Inventory FG
    6 Cost of Sales CS
    7 Totsl Inventory(RM+SFG+FG) INV
    8 Dist Cost DC
    9 Net Sales NS
    10 Acc Receivables AR
    11 Acc Payable AP
    12 PBT PBT
    13 T Assets (Fixed Assets+Current Asset) TA
    14 PAT PAT

    FY16 FY15
    Days of RM 31.4201465957 29.84940979
    Days of WIP 8.1676136533 6.779322309
    Days of FG 21.2518425046 24.15555709
    length of value chain 60.8396027535 60.78428919

    Supply chain cost 2,076.14 2,029.76


    SC INEFFENCIENCY 0.0625455203 0.063485487

    SC Working Capital -1,708 -1,647


    SC Working Capital productivity -19.4359055432 -19.4097899

    ROA 0.2699637323 0.303257103

    Qualitative Analysis:
    1. Supply chain length - Minimum length of the chain would mean better performance of the supply chain. HUL's suppl
    length has increased from 60.839 to 60.784 in FY 2016.The days raw material has maintained the same. May be the com
    anticipating a spike in the future demand and hence is holding back the stock.
    2. Supply chain inefficiency ratio - The supply chain efficiency of HUL has improved which would mean the company is
    efficient in managing the supply chain when compared to FY 2015. A relatively significant increase in net sales when com
    increase in suppy chain cost resulted in the betterment of efficiency.
    3. Supply chain working capital productivity is as low as -19.435 in FY 2016 and -19.409 in FY 2015. Since HUL being a
    leader in the industry, holds command over its suppliers and hence owes/has highter payables to its suppliers.
    4. ROA - It is the profitability ratio that measures the net income produced by total assets during a period. The ROA ha
    as the PAT of HUL has fallen significantly.
    Reference FY16 FY15
    BS 1,031 1,028 Cost of production FY16 FY15
    PL 11,980 12,569 Cost of RM 11,980 12,569
    BS 376 318 Employee benefit exp 1723 1705 note-44 not taken
    PL 16,797 17,131 Finance Cost 4.54 1.09 Only Bod, borrowings taken
    BS 1,345 1,503 Other exp
    PL 23,100 22,706 consumption of stores 70.29 141.8
    BS 2,752 2,849 power, fuel 309.21 346.97
    PL 1,526 1,460 proessing charges 260 291.62
    PL 33,194 31,972 Rent 255.64 219.13
    BS 1,268 1,010 Repairs 131.68 121.59 All included-repair others also
    BS 5,728 5,506 Insurance 13.93 6.66
    PL 5,947 6,320 Royalty 903.55 751.19
    BS 15,165 14,430 Misc exp 1093.88 919.3
    PL 4,094 4,376 JV 51.53 57.85
    Total 16,797 17,131

    DRM Cost of Sales


    DWIP Cost of prod 16,797 17,131
    DFG Adv and sales promo 4595.18 3943.59
    days No change almost Carriage and freight 1525.71 1460.4
    ICC-16 ICC-15 Travel and motor car expe 182.32 170.99
    SCC 0.2 0.2 (As per book)
    SCI Slightly better 23,100 22,706

    SWC
    SWCP

    Fallen

    of the supply chain. HUL's supplu chain


    ntained the same. May be the company is

    which would mean the company is relatively


    cant increase in net sales when compared to

    9 in FY 2015. Since HUL being a market


    ayables to its suppliers.
    sets during a period. The ROA has reduced
    note-44 not taken
    Only Bod, borrowings taken

    All included-repair others also

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