kirloskar brothers limited - smds...

KIRLOSKAR BROTHERS LIMITED

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A connects one

flower to another through pollination,

removing the nectar without harming the

flowers. Similarly, the Network

consists of a database to develop,sustain,

and reward grassroots innovators

without diminishing the value of

the invention for

the inventor.

HONEY BEE

SUPPLY CHAIN



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We are here to challenge ours current thinking

CURRENT THINKING

INCREASED INVESTMENTS

INCREASED KAMAYEE

INCREASED KAMAYEE

REDUCED INVESTMENTS

IS THIS POSSIBLE ?

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Business Objective

Increase Returns

Reduce INVESTMENT

Increase KAMAYEE

CHALLANGE

SUPPORT

CHALLANGE

DEMAND

There are big Challanges in demand AND supply.

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Distributor/ Dealer

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SUPPLY CHALLANGES

Cash Crunch

Focus is on stocking toget Incentives

Month End PushPressure to pick up more thanrequired to meet Demand & SupplyWe give you what we have sincesome stocks are not availablePressure to meet the targets( Overall and Product category )High lead times for productswhich you do not haveUncertanity of delivery

Stock ExcessesAND

Shortages

Distributor/ Dealer

Supply Challanges

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Demand Challanges

Distributor / Dealers

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You are not sure ofwhat to stock andhow much

Pressure of discount more

Missed sales

Uncertainties in demandRetailers expect availabilityRequirement for frequentsupplies and smaller batchesAggressive Competition : Cometition with products at lower price. Competition is offering higher margins to retailers / customers.High Days of Credit with retailers / Customers.

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Increased Returns

Possible risks associated with lower stock levels :

Missed sales opportunities

Access from other distributors

Reputation is at stake

Retailers may purchase in cash terms from other distributors further

to increase credit days

Competition makes further in-roads

Market loses confidence in new products with irregular supply

INCREASE STOCK LEVELS

INCREASE KAMAYEE REDUCE INVESTMENTS

LIMIT STOCK LEVELS

Where should the balance point be?

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Increased Returns



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Increased Returns


LIMIT STOCK LEVELS

THERE IS A CONSTANT STRUGGLE TO KEEP THE BALANCE.


You may have high stocks at one model and low stocks of another model at a point of time.

You may have high stocks at the month beginning and low stocks in between.

Where should be balance point be?

REDUCE INVESTMENTSINCREASE KAMAYEE

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Replenishment Cycle

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Stock at your

Godown /

shop

Sale to

Customer

/ Retailer

Auto generated Indent

sent to KBL

Information

received at

KBL

Product

Dispatched to

you

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What is for your ..….. We expect

What it means for you..

No indents from you

You will provide us DAILY sales,stockreceipts & currentstock data

No more bunching oforder & supplies

Frequency of delivery will improve substantially

No pushing of stocks

Delivery will happen as soon as we have a sufficient dispatchable load

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The Change

Before Henceforth

Placing orders based on pastsales and judgement.

High month end billing to achievedemand & supply.

Misalignment of inventory withactual consumption.

Long lead time due to marketfluctation and availability.

Only you are focused on yourshortages and surplus.

Auto generated order through portal basedon your previous day's sale.

Supply based on actual sales.

Continuous monitoring ofconsumption and adjustment ofbuffers to have right inventorynot too high & not too low.

Shorter lead time due to stockavailability at plant.

We both will focus on shortages,surplusas well as inventory turns.

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Benefits for Dealer

Reduced risk of high stocks.

Only moving stock.

Time availabe for marketing rather follow up.

Better availability of stocksthroughout the month.

Freed c can be invested in new products/business

ash

Money freed for investing inother set-ups like service.

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Does the model meet the criteria for a good solution ?

Reduce stock-outs

Reduce your stocks

Increase your inventry turns

Be a sustainable solution

Give you peace of mind

Give you regular billing

: Better response to market

: Reduce your investment

: Better ROI

: for the long term

: Can focus on market

: No skews in the stock

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Jointly we must address the implementation challanges.

Agreement on model Pre-requisites

100 % accurate daily consumption data

( Only Quantities)...No Indents.

100 % accurate daily stock receipts data.

Daily stock data

Agreement on managing high

demand fluctuations

Separate order for institutional sales.

Advance intimation of known seasonal peaks.

Advance planning for promotions,ads & schemes.

Capable of delivering 30% increase in demand

within replenishment time.

Agreement on " New ways of working "

in retail

Less focus on primary sales.

Greater focus on secondary sales.

Agreement on Terms & Conditions

Incorporating the significant changes

highlighted above.

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Welcome to a

Bright New Tomorrow..

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Core Contact Details for SMDS Portal :

Ankur Pathak : [email protected]

Prasanna Tiwari : [email protected]

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KIRLOSKAR BROTHERS LIMITEDCorporate Office : 'Yamuna' Survey No.98/(3-7),Baner,

Pune - 411 045 ( india ) Phone - ( 020 ) 27214444.

Email id - [email protected]

kirloskar brothers limited - smds...

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