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Asian Paints - Supply Chain Project
Transcript of Asian Paints - Supply Chain Project
Started in 1942 by four entrepreneurs:
Suryakant Dani and
Arvind Vakil as
“ASIAN OIL & PAINTS COMPANY.”
Within three years, their turnover reached 3.5 lacs.
Started with a strategy “Going to where Consumer is”.
In 1967, Asian paints became the 10th largest paint company in the world.
Asian Paints- Today
India’s largest and Asia’s third largest paint company
Turnover of Rs. 109.70 billion
Asian Paints operates in 17 countries and has 25 paint manufacturing facilities in the world servicing consumers in over 65 countries.
Asian Paints has always been a leader in the paint industry, pushing new concepts in India like Colour Worlds, Home Solutions, Colour Next, and Kids’ World.
Asian Paints in South Asia (India, Bangladesh, Nepal and Sri Lanka)
SCIB Paints in Egypt
Berger in South East Asia (Singapore), Middle East (UAE, Bahrain and Oman), Caribbean (Jamaica, Barbados, Trinidad & Tobago)
Apco Coatings in South Pacific (Fiji, Tonga, Solomon Islands and Vanuatu)
Taubmans in South Pacific (Fiji and Samoa)
Raw material Requirements
Paint Industry is raw material intensive with RM being 70% of production costs.
300 types of raw materials used in manufacturing process
The most critical ones are
Titanium Dioxide (TiO2) 30 %
Phthalic Anhydride (PAN) 20 %
Pentaerythritol (PENTA) 15 %
Outbound Logistics – Distribution Network
Ten manufacturing facilities are supported by 6 Regional Distribution Centers (RDC) and 100+ depots.
Each RDC and depot is taken by Asian Paints on lease and then further assigned to a C&F Agent.
Distributing the Asian Paints products to the 40,000 dealers all over the country.
Biggest Cost Component (more than 60%)
Variety of Raw Materials and RM Vendors
Imported and Locally sourced Raw Materials
Mix of Traditional and Automated Plants
25% of volume from Outside Processing Centers
Aggregation of demand of Slow-Moving SKUs
Remotely Managed Warehouses
1250+ inventoried SKUs
Supply Chain manages till depots
Planning and deployment at depot-SKU Level
Outcome of Efficient Supply Chain
Efficient Supply Chain has led to:
Improved operational efficiencies
Enhanced the flexibility of operations
Lowered output time
Reduced delivery costs
Improving customer-servicing levels and profitability.
The Supply chain Management is backed by IT that helps the company in:
Deriving optimal plant, depot and SKU combinations
Streamlining vendor relationships
Reducing procurement costs
Scheduling production processes for individual factories