ITC SUPPLY CHAIN MANAGEMENT

1 Introduction to industry

2 Stages of value addition in Internal supply chain

3 Stages of value addition in External supply chain

4 Supply chain deliverables & CBSFs

5 Supply chain network

6 Logistics

7 Outcomes

8 Recommendations

ITC was incorporated in the year August 24, 1910 under the name of “Imperial Tobacco Company of India.

Company Solely focused on the growth and strengthening its cigarettes and leaf tobacco business.

ITC is a Conglomerate Industry headquartered in Kolkata, West Bengal.

ITC revenue according to 2012-2013 was about US $ 8.31 Billion.

ITC is the first corporate to receive the Annual FICCI Outstanding Vision Corporate Triple Impact Award in 2007 for the contribution in the building economic, social and natural capital for the nation. ITC creating world class brand that put India first.

ITC is a Conglomerate Indian company having five Segments :--

• FMCG (Fast Moving Consumer Goods).• Hotels• Paperboards & Packaging• Agriculture business• Information Technology

Contd..

ITC DIsTrIbuTIon neTwork In InDIa

ITC. Touching your life. Everyday

Inbound Logistics:--

•Farmer proceeds to the nearest ITC procurement hub with the note.

•Some procurement hubs are ITC factories, others are purely warehouse operations.

•ITC’s aim is to have a processing Centre within 30-40 km radius of its farmers.

•Raw materials :- Filter made of 95% cellulose acetate, Tipping paper to cover the filter, Rolling paper to cover the tobacco, Tobacco blend.

Contd..

• Men : ITC employs 25000 people at more than 60 locations.

• Machinery : ITC uses world class machines in order to match the demand.

• Materials : ITC gives world class quality product to their customers.

• Money : ITC is one of the country’s biggest foreign exchange earners.

• Environmental collaboration with suppliers.

• Environmentally friendly purchasing practice.

• Product environmental impact reduction by collaboration with designers and suppliers.

• Minimizing waste.

• Decreasing the consumption of hazardous and toxic materials.

• Environmentally friendly packaging.

• Factory

• Carry & Forward Agent

• Wholesale Distributor

• ISO 14001 certification

• Reverse Logistics

• Environmental collaboration with the customers

• Working with customers to change the product specifications

PMD : Primary manufacturing division.

SMD : Secondary manufacturing division.

ILTD : Indian leaf tobacco division.

RCTI : Reliable cigarettes and Tobacco industries pvt. Ltd. ATC : Asian Tobacco company.

HDC : Hyderabad Deccan Cigarettes Industries.

WMS : Rest of the Raw Materials.

COMPANY HUB FACTORY

Retailer

small Wholesale dealer

Wholesale dealer

Carried and forward agent

Consumer

ITC’s Distribution channel is as follows:-

• Consists of diverse categories with different priorities• More than 1000+ SKUs• Buying Value $68 MM• Warehousing space of more than 3.5m SFT around55+• Locations Products manufactured at 45+ plants• More than 650 trucks moved every day • Direct distribution from factories to Distributors • Indirect movement through RDCs• Combination of Rail/Road/Sea movement within the country depending on

the product type.(Target is Safer, Faster, cost effective)

• Analyze the manufacturing operations of a firm.

• Apply sales and operations planning, MRP and lean manufacturing concepts.

• Apply logistics and purchasing concepts to improve supply chain operations.

• Apply quality management tools for process improvement.

• The engagement with our supply chain has expanded given the growth of our new consumer goods businesses.

• ITC supply chain comprises a large number of small-scale partners.

• Third Party Seller.

• Extensive use of technology.

• Access to information about customers.

Alternate models which can be viable and feasible for the company may be followed

Mechanizing the Godown operations which are the major activities in value chain may be adopted.

Stored leaf tobacco at AGGs is being delayed for threshing operations. Therefore, it is suggested to follow the First In First Out (FIFO) inventory management method.