green supply · pdf filemarico : snapshot beauty & wellness ... •portal menu and sop...
Post on 06-Mar-2018
214 Views
Preview:
TRANSCRIPT
Green Supply Chain
1
MARICO PERSPECTIVE
2
Marico : Snapshot
� Beauty & Wellness Solutions
� Hair Care, Health Care, Skin Care, Male Grooming
� A leading Indian MNC Group INR USD
� Market Capitalization 31,000 Cr 4.7 Billion
� Turnover FY 16 6,132 Cr 920 Million
� Profit FY 16 573 Cr 110 Million
� Turnover from overseas : 22%
� Sustained Profitable Growth
� Turnover 16% Profits 19% (5 yr CAGR)
� Hair Care
� Hair Nourishment
� Oils/Serums/Tonic
� Healthcare
� Healthy refined edible oils
� Oats
� Male grooming/ styling
� Deodorants
� Hair Creams/Gels/Wax
� Skincare
� Body Lotion
3
Portfolio : Beauty & Wellness
4
What is supply chain ?
5
Integrating Environment thinking into Supply ChainManagement, including product design, procurement,
manufacturing processes, delivery of product and end life
management of product.
What is Green supply chain ?
6
Green supply chain – Marico perspective
Product & process design
Procurement
Manufacturing
Logistics
7
Green supply chain – Marico perspective
Product & process design
Procurement
Manufacturing
Logistics
8
Product & Process Design
1
Recycle
Reduce
ReuseRefuse
Reform
Purchase of environmentally
burdensome materials
waste material
Waste material
without processing
Design for current
Or other use
materials as
resources
9
Product & Process Design
• Majority products are oil based which natural oils like coconut oil,
sesame, sunflower, rice bran oil and herbal extracts
• Natural colors are used in products
• Zero toxin contents and no impact on biodiversity as formulations
are based on natural ingredients which are commonly traded
• Recyclable material used in 98% of our products as packaging
material
1
Recycle
Reduce
Reuse
Refuse
Reform
10
Product & process design – Material conservation
Projects of design & spec optimization in last 4 yearsProjects of design & spec optimization in last 4 years
Categories of Packing materialCategories of Packing material
% Packing material / Kl saved% Packing material / Kl saved
57
10
1
3.5
Recycle
Reduce
ReuseRefuse
Reform
11
Product & Process Design
• Lean processes are designed to reduced waste
• Solid waste and byproducts are reduced year on year with efficiency
improvement projects
• Packaging material design is most optimized as compared to
benchmarks through multiple innovation collaborating with
suppliers and technical expertise
• Packing material is recycled as well as reused with stringent quality
protocols
1
Recycle
Reduce
ReuseRefuse
Reform
12
Green supply chain – Marico perspective
Product & process design
Procurement
Manufacturing
Logistics
Procurement - Spend
13
Agri.
Commodities
67%
Raw Materials
20%
Packaging
Materials
13%
Chart Title
14
Procurement – Green Initiatives
2
Indigenization
Disintermediation
Farmer Remuneration improvement
Awareness Training &
propagation
15
Indigenization Program for High Oleic Safflower
Long Term Development of
Seeds
Long Term Development of
Seeds
Seed Production with
Isolation
Seed Production with
Isolation
Effective deployment on farms through
extension
Effective deployment on farms through
extension
2Target to reduce 50% import dependency by 2020Target to reduce 50% import dependency by 2020
Partners in development
� DOR
� Tamilnadu Agriculture University
(TNAU)
Disintermediation – E-buying
Disintermediation – E-buying Challenges
• Portal menu and SOP in local languages
• Basic computer training to vendors
• Second generation brought into the business
• Portal menu and SOP in local languages
• Basic computer training to vendors
• Second generation brought into the businessIT Literacy
• Tie up with local/nearby town internet cafe
• Helped them select and buy computers
• Designed SMS option
• Tie up with local/nearby town internet cafe
• Helped them select and buy computers
• Designed SMS optionConnectivity
• Lightweight and with many features
• Integration of portal with SAP
• Bidding engine with rate segregation and reject features
• Validation and Integration of SMS
• Lightweight and with many features
• Integration of portal with SAP
• Bidding engine with rate segregation and reject features
• Validation and Integration of SMS
Tech Support
Disintermediation - e-buying portal - Benefits
• Farmers/Convertors can sell directly
• Access to archived data 24X7
• Availability of quality data helps take corrective action
• Sense of belongingness - trust on MARICO by enabling access to live info on SAP
• Farmers/Convertors can sell directly
• Access to archived data 24X7
• Availability of quality data helps take corrective action
• Sense of belongingness - trust on MARICO by enabling access to live info on SAP
Vendors
• Paperless transaction
• Resource light model
• Managerial time freed up from non-core activities
• Real time data visibility
• Paperless transaction
• Resource light model
• Managerial time freed up from non-core activities
• Real time data visibility
Marico
Enhanced supplier base reaching to small and marginal vendors
19
2
19
1. Collection Centres• Started from 2003
• Transparent and inclusive buying process for small and
medium size farmers
• Assured buying channel for farmers
2. Kera Ratna program for Farmers• Loyalty program to incentivise farmers
• Demonstration and training through Farm Care Centers
Disintermediation – Collection centers
Copra Market & Collection Centre
Coconut Farmer
Copra Converter
Local Broker/Transporter
Copra traders in terminal market
Vandikaran (Market Broker)
Brokers
Oil Millers
Transportation Charges/Brokerage
VandikaranCommission
Trader Commission
Trader ProfitBrokerage
Coconut Farmer
Copra Converter
Collection Centre
Center Buying Process
Farmer brings copra to CC
Withdrawal of sample for Q Inspection
• Quality Inspection
• Moisture Analysis
Weighment of Total Lot
Preparation of payment document
• Payment (Cash/ Cheque)
More than 50% sourcing through this route
( Over Half billion nuts )
Increasing farmer remuneration
Improved
Profitability
Water Pumping by selecting electrified
villages
Partnering with Netafim/Jain
Irrigation
Reduce cost by getting them
subsidies
Growth Promoters/POP Dissemination
Monitoring through IT
enabled platforms
Water Storage Mechanisms
23
Increasing farmer remuneration
2
0
0.5
1
1.5
Safflower productivity
Productivity improved from 9%to 23%Productivity improved from 9%to 23%
24
2
24
• Hybrid Coconut Sapling
Propagation
• Scouting for innovation in eco-
system
• Providing organisational support and
infrastructure to help scale up
innovations
• Training programs /Free Samples
and Model Farms across TN & Kerala
• 200 coconuts/tree/year vis a vis 120
nuts by local variety
• Starts yielding in 4 years vis a vis 7
years for local variety
Increasing farmer remuneration
2525
• Cluster Program in Kerala
• Launched in 2007 in Kerala with Coconut Development Board
for boosting farmer income per acre by intercropping and
adequacy in fertiliser usage.
• Marico led formation of clusters and program management to
ensure successful execution
• 8000 farmers enrolled and benefited so far.
Increasing farmer remuneration
26
2
26
• Promoting Scientific Farm Management Practices
• Pest & Disease Management Sessions/Booklet for Farmers
• New Productivity Improvement Techniques training to Thanjavur District.
Almost 2 sessions per week with groups of 25 to 30 farmers
Apiculture Biochar Micro-nutrient
Increasing farmer remuneration
27
Green supply chain – Marico perspective
Product & process design
Procurement
Manufacturing
Logistics
28
Manufacturing
3
Jalgaon Edible oils
CNO Kanjikode
CNOPondicherry
VAHO Dehradun
VAHOPaonta Sahib
Edible oils Baddi
Perundurai CNO OM
VAHO Guwahati
Foods Coimbatore
Youth category - DeosAurangabad
29
Sustainability Initiatives ( Renewable Energy )
3
Wind Power for In-house and suppliers’
operations
Total KWH per annum to be used from wind in locations
-20 L Units
Co2 emission in terms of Ton
– 1000 Tons of CO2
30
Manufacturing – Renewable energy
3
37.6
73.982.6 83.8
0
20
40
60
80
100
FY '13 FY '14 FY '15 FY '16
Biomass % in Energy consumption
1.42
1.24
1.15
1.2
1.25
1.3
1.35
1.4
1.45
FY '15 FY '16
Thermal Energy intesity GJ / KL
Go
od
Go
od
• Usage of renewable bio-fuels
• Improvement in thermal
efficiencies in generation,
distribution and usage
31
Manufacturing
3
13821
51033456 3213
0
4000
8000
12000
16000
FY '13 FY '14 FY '15 FY '16
GHG Emissions tCO2 ( Scope 1 )
Go
od
0.0834
0.076
0.074
0.076
0.078
0.08
0.082
0.084
FY '15 FY '16
GHG Intesity tCO2/Kl ( Scope 1+2 )
• Consistent efforts YoY to reduce carbon
footprint through green energy
• Solar illumination / LED lights
• Process design improvements
• Baddi unit is ISO 50001 certified
32
Water conservation
0102
0304
Water RecycleAll units have treated waste
water recycling facility
Water reductionEdible unit of Jalgaon received
CII water conservation award
Corporate office has
installed water free urinals
Water free Urinals
Zero DischargeAll units are zero discharge
3
33
Operations Excellence
3
Act Now!Marico’s Operations Excellence
Model
� Developing lean
culture
� Focus on efficiency
improvement
� Capability building &
problem solving inputs
� Green practices
� Creating a visual
factory
34
Recognitions
National Energy Conservation Award
(Ministry of Power) -
CII Excellence in energy
management State energy conservation award National Energy Conservation Award
35
Green supply chain – Marico perspective
Product & process design
Procurement
Manufacturing
Logistics
36
Logistics
4
13 Manufacturing units
32 depots
1100 distributors & stockists
Over 15 Lac retail outlets
Half Billion Consumers
37
Logistics
4
Pull based system( Ship what sells )
Route optimisation
( shortest route )
Truck Utilisation
( load efficiently )
Backhaul
( reduce idle
Run )
38
Pull based system
4
Demand Driven – Produce what sells
Reduced Wastages – Materials, Expiries, Returns
Strong IT Infrastructure – Faster Response
Replenishment led order Management System
39
Route optmization
4
Reduced miles on the road
Fuel saving – decrease in carbon footprint
Hubrid distribution model to maximise efficiency
40
Truck utlization
4
Maximizing benefit through load maximisation
Appropriate selection of vehicles for each route
Correct SKU-mix to maximize vol/wght utilisation
41
Backhaul
4
Maximising vehicle run on road – High asset RoI
Reduced idle time for business acquisition
Collaboration with Peers in Industry
Collaboration with transport vendors
Planning and TAT for loading/unloading critical
Marico’s
Corporate Office
Is a
Green Building
Certified by
US Green Building Council
with
Gold Certification
Green
Building
42
Organisation purpose – Make a difference
To transform in a sustainable manner,
the lives of all those we touch,
by nurturing and empowering them
to maximize their true potential
43
What helped
• Inclusiveness – Power of Members &
Associates
• Measure and improve
• Focussed program management
• Challenging status quo
• Sustenance
• Pride among members
44
What helped
• Inclusive Growth
• Sustainable sourcing
• Value enhancement
Sustainable Profitable Growth for company
45
Business benefits
46
Market Leadership: Key to Category Choice
Brand CategoryIndicative Market
Share (%) #Rank
Penetration Level
Parachute/Nihar Coconut Oil (India) ~ 57% 1 High
Parachute Coconut Oil (Bangladesh) ~ 82% 1 High
SaffolaSuper Premium Refined Edible
Oils (India)~ 60% 1 Low
Saffola Oats (India) ~ 25%* 2 Low
Parachute Advansed, NiharNaturals, Hair & Care
Hair Oils (India) ~ 30% 1 High
X-Men Male Shampoo (Vietnam) ~ 38%* 1 Low
Fiancée / Hair Code Hair Styling (Egypt) ~ 58%* 1 Medium
Set Wet / Parachute Advansed Hair Gels & Creams (India) ~ 52%* 1 Low
Livon / Silk & Shine Post Wash Hair Serum (India) ~79% 1 Low
Parachute Advansed Body Lotion
Body Lotion (India) 6% 5 Low
# Dec’15 rolling 12 month volume market share data sourced from AC Nielsen
* Value Market Share
Marico brands have a no 1 position in their respective segments over around 90% of its turnover
47
Business benefits
Sustained stock performance against industry index
48
"We are what we repeatedly do.
Excellence, then, is not an act, but a
habit."
- Aristotle
Thank You
49
top related