TANISHQ

CORPORATE TURNAROUND THROUGH EFFECTIVE SUPPLY CHAIN

Vibhuti SagarPGPABM 2007-09/32

VIBHUTI SAGARPGPABM 2007-09/32(Email: [email protected] , Mobile: 09848036874)

National Institute of Agricultural Extension and Management (MANAGE),

Hyderabad

IntroductionTitan industries limited

(1987), BangaloreMfg. plant at Hosur(TN)Market leader with 60%

shareDiversification in branded

jewellary business(1990)Brand Tanishq, first

boutique in 1996

ChallengesYr. 2000 marked fifth consecutive business

lossLow making charge of local mfg. by

compromising qualityType of boutiques: L1, L2, L3Poor inventory management

Turnover $75 m, inventory $34 m Finished good inventory 80% Poor delivery alignment in order & indent Changing customer preferences Non moving stock (sludge) No single point of decision

Deployed SCM initiative for turnaround

Strategies for market growthJewellary division as a separate SBU with

COORationalise frequency of launching new

designCapabilities created to cater need for

marketing “made to order” segmentShift premium segment to mass marketing

segLaunch of few new product every monthLocal designer for regional market

InitiativesImproving the bottom line through SC

initiativeCross functional team for short and long termProject ASPIRE for improving SC

performanceInventory management and responsive SCFour pronged strategy

Clean inside outIntroduction of new channelRemodel order generation and fulfillment

processStrategic out sourcing

Clean inside outRevamping internal supply chainSlow moving categories rationalisedNon-potential product phased outStock turn based trade margin were

introducedFor franchisees performance incentive or

disincentive for stock turnNon moving stocks recalled or recycled or

marked downCompaign “Impure to Pure” exchange

4 step mechanismAge products displayed by

best sellers or display is modified

Non-moving designs are rationalised in annual basis

Discount sale for sludge by “tanishq value mart” or “Tanishq on wheel” (> 15 months recycled)

Permissible level of sludge and penalty

Sludge 18% to 12%

Introduction to new channel

New channels were designed and pilotedPrototype enabled sale

Reduced inventory Range of design Responsive business Hub & spoke for one week delivery

Made to order Customer order with a lead time of one month 8000 designs ( 2 week)

Consignment sale By vendors stocks

Remodel order generation and fulfillment processRemodelled the Supply chainMade to replenishment (MTR) SC

500 best selling variants for distribution of region, categories & price

Stock at two level Cycle stock at boutique Safety and replenishment stock at factory

Made to boutique indent (MTBI) SC

For managing stock regulation and indenting

Initiatives• Weekly indenting system• Compressing indent processing• Declaring variant wise lead time• Monitoring and declaring weekly

production alignment

Strategic outsourcingUtilization of market potentialReducing cost than investing in productionProvided aasistance to vendors for business,

technology support,material, process & document\

Karigar ParksFor avoiding two tier middleman systemExperience and new designs

Management of Enterprise And development of WomenSHG for assembly of links and other activities

IT integrationWeb based GOLD

MINE was implemented to connect boutique , CFAs & factory

Visibility increases

The result was a success:

Thank U