Introduction to the

Supply Chain
 Industry Analysis
• Estimated size of the paints market in India is
at Rs 170 bn
• Contribution of the organised and
unorganised segments in the ratio of 65:35
• Domestic paints industry has tremendous
potential
 Leaders Of Paint Industry
• Asian Paints 37.0%
• Kansai Nerolac 15.9%
• Berger Paints
13.9%
• Akzo Nobels (Formerly ICI) 11.0%
 Growth Of GDP (India)
Vs
Growth Of Paint Industry
 Growth/ Demand Drivers
• Uncertainty Of Demand
• Brand Endorsement
Government Role / Intervention
Structure Of SCM (Paint Industry)
 Supply Chain

Manufacturing

Contract Manufacturing Plants

Commercial Production

Quality Assurance Quality Assurance

Production Engineering

Administration

Human Resources

Safety Health Environment

 Supply Chain

Materials

Purchase Logistics Development Initiatives

RM Planning New Products

PM Distribution Vendor Development

Imports Engineering New Initiatives

Administration

Human Resources

Safety Health Environment

 Supply Chain

Supply Chain Resource Centre

Safety Health Environment Process Management

Quality
 Supply Chain

Manufacturing Materials

CMD Plants Purchase Logistics

Planning & procurement of spares, Forecasting of the Demand for Paint : Depot –
consumables & fuels. SKU – month

Planning and despatch of resins and raw Inventory planning of FG to meet the committed
and packing materials to the OPCs Service Level

Scheduling & Production of tinters,
resins and emulsions
Scheduling & Production of paint
Ensuring quality of the output
Planning for production: Plant – Shade - month.
Formulation of paint
Planning for despatch of paint: plant-depot-
month

Ensuring safety, health and environment Inventory and procurement planning of raw &
standards packing materials

Despatch of paint to the depots Procurement of raw & packing materials: plant–
material-month

Planning for despatch: Plant – SKU - month.

Ensuring the committed Service Level`
 SCM CYCLE
CUSTOMER RETAILERS

MARKETING
& SALES DEPOTS

MFG
PLANNING PLANT

PROCUREMEN
T
 RECEIPT OF ORDER
• Requirement comes when customer put their
intention to buy.
• Collection of information from Depots &
retailers.
• Salesmen visiting to the interior parts to bring
new requirements.
• Requirement given to the Planning
department.
 GENERATION
• Demand can be viewed in Demand planner
system.
• Generation checks whether the Required RM &
PM available at the right location
• Vendor availability check up.
• Errors are forwarded to procurement
department for necessary correction
• Same should be reverted to Generation
department.
• Once it is done Generation shoots the
requirement for procurement
 PROCUREMENT
• Conversion of PR to PO
• Target given to the vendor on FN basis.
• Commitments taken from the vendor
• Status of the material receipt to be given to the
planning department.
• Schedule compliance report generated.
• Vendor performance file is maintained on
monthly basis
• Order compliance to get the good opening at the
beginning of the FN.
 Planning Data Flow
DP

SCP
FP
DEMAND
PLANNER RPS
Gives the SUPPLY
aggregate CHAIN
depot demand PLANNER FACTORY RHYTHM
Converts PLANNER PRODUCTION
Demand into Procurement SCHEDULER
FG reqmnt. plans for Schedules based
RM/PM on plant resources