A Presentation On

Presented By

Anshul Vuppuloori

Naseer Khan

Smruthi Rayudu

Sarat chandra

Introduction

GWE was incorporated in 1987 in collaboration with a Swedish MNC

By 2001, it employs more than 1000 employees with a turnover of INR 150 million.

The organisation operates four manufacturing plants with world class R&D support.

GWE is the second largest player in welding industry in India – 27% market share

Product Range

Standard Consumables

Special Consumables

Reclamation Consumables

GWE Welding Equipment

Medical Gas Equipment

Cutting Systems

Manufacturing Facilities

Four Manufacturing Facilities

Kolkata : 2 Facilities General-purpose electrodes and reclamation electrodes Welding equipments

Nagpur : MIG (Metal Insert Gas) welding consumables

Chennai : Welding Consumables

Market Segments

Lower Segment : Consumes less than Rs. 25,000 worth material per

annum

Middle Segment : Consumes Rs. 25,000 – Rs. 2,00,000

Upper Segment : Consumes more than Rs. 2,00,000

Question 1

The leading player (No.1) in the welding trade industry is maintaining inventory levels of 22/25 days. How, according to you should GWE go about to achieve that level?

Logistics Network before 1987Primary Transporters

(4)

(83)

(350)

(10600)

New logistics system:-

(4)

(160)

15000

How to reduce inventory level

The inventory depends upon the demand in the region.

GWE must reduce the replenishment lead time.

They must revise Order Cycles and Order Quantities.

The primary transportation needs to be outsourced.

Continued

Number of dealers should be reduced.

They can also increase the speed of their operations.

Replenish based on market demand

Question 2

Does GWE need to further reorganize its marketing-distribution system to overcome its current problems?

Answer 2

Yes GWE should restructure their marketing-distribution system.

They should conduct surveys to understand the market demand before sending the stock to the dealer

They must shift to e-commerce platform to do direct selling also. This will not incur much cost and also give them a new platform to sell

Continued

GWE must have their own forecast from a field survey agent to know the proper demand in the market

Question 3

Do you recommend a change in the marketing set-up (reporting structure)? If yes, how?

Answer 3

The reporting structure is highly decentralised

The Dealers should be encouraged to buy on an online platform so as to use Business Intelligence tools to analyze and predict the actual demand.

Apart from that, the reporting structure is very well structured.