Avery Dennison

Team-4 Divyeh shetty P.Ajay Goyal Glady stephen Gopika purshothaman Tavleen das

Company Overview  R.Stanton Avery founded Avery in 1935  Merger of Avery & Dennison in 1990  Headquarters-Pasadena,California,U.S.A  Avery Dennison has 35000 employee all over  Avery Dennison ranks 382 in Fortune 500 list  Operates in more than 60 countries  In India it operates in RIS,from 1997

PRODUCT

PRODUCT

PRODUCT

PRODUCT INFORMATION MANAGEMENT PRODUCTS:  Price tickets  Cartoon labels  RFID tags  Printing applications BRAND IDENTIFICATION PRODUCTS:  Woven & Printed labels  Graphic tags  Barcode tags

PRODUCT

PRODUCT LINE SALES-GLOBAL STAGE

40000.00 35000.00 30000.00 25000.00 20000.00 15000.00 10000.00 5000.00 0.00

60% 50% 40% 30% 20% 10% 0% Systems Group Graphics

Heat Transfer Printed - Label Woven - Label Product Line

Sales INR'000

Contribution(%)

Contribution (%)

Sales INR'000

PRODUCT LINE-INDIA

Sales INR'000 US

UK

Sp ain Sw Sw eden itz er lan d Tu rke y

SA

Be ne lux Ca na da Du ba Eu i ro pe Fr an Ge ce rm an y In dia I ta Ne ly the rla nd s Po rt u ga l RO W

Sales INR'000

35000.00 30000.00 25000.00 20000.00 15000.00 10000.00 5000.00 0.00

Country

Contribution (%) 10

Contribution (%)

80% 70% 60% 50% 40% 30% 20% 10% 0%

Business Process START

SAMPLE REQUEST TO CUSTOMER SERVICE(CS) ARTWORK PREPARATION BY GPD

GPD SENDS THE SPECIFICATION TO THE FINANCE DEPT. FOR COST CALCULATION

MAKE NECESSARY CHANGES

NO

FINANCE DEPT. CALCULATES COST & SENDS IT BACK TO THE GPD

GPD SENDS THE ARTWORK & COST TO THE CS

IS SAMPLE APPROVED

YES

CUSTOMER PLACES ORDER11

Business Operation MANUFACTURING: -Gurgaoan -Pune -Banglore

DISTRIBUTION: -Chennai -Kolkata -Hyderabad -Banglore -Delhi -Mumbai

Costing

Standard Costing Advantage -Efficiency measurement

Disadvantage -Non standard products costing

-Finding variance

-Setting standards is difficult

-Eliminating inefficiency -Cost control -Decision making

-Condition do not remain static -Applicable for Controllable variance

Raw Material Procurement % Procrement

Import 39% Local 61%

RAW MATERIAL:  Yarn  Printed fabric label  Ink  Paper  Plastic sheet  Thermal sheets

Inventory Management ABC Analysis: 

Estimate the impact of the items on overall inventory cost



Rank order is created of items depending on value and necessary control measures are taken

2000 1500

80%

1000 500

1523

254

447 15%

0 CATEGORY A

CATEGORY B CATEGORY

5% CATEGORY C

100% 80% 60% 40% 20% 0%

% OF TOTAL VALUE

NO OF ITEMS

ABC ANALYSIS

PRICE • Volume based pricing

• Geographic pricing • Target pricing

Customer Value CUSTOMER PROFITABILITY ANALYSIS 

The contribution margin of customer is evaluated depending on RBO,Product line,Location



Customer contribution statement is created periodically

0.00

Sales INR'000 Customers

Contribution (%)

KOHL'S

LEVI STRAUSS

MATALAN

LEVIS EUROPE

ANN TAYLOR

JC PENNEY

TESCO

GROUPE

TOMMY

HANESBRANDS

GAP INC C/O

GEORGE

PAXAR INDIA

WAL-

GAP INC

H & M SOLD TO

OLD NAVY /

NEXT

MOTHERCARE

MARKS &

Sales INR'000 12000.00

10000.00

8000.00

6000.00

4000.00

2000.00

Contribution(%)

80% 70% 60% 50% 40% 30% 20% 10% 0%

Buyer-Supplier Relationship

Promotion Business development team it’s basic function is to:

 Find prospective customer  Retain present customer  Privilege service  Trade promotion

STRENGTHS -Nominated supplier -Long term contracts

-Strategic alliances

STRENGTHS -Prime focus on new markets including Bangladesh,Sri lanka, Pakistan

-Pushing other products in existing market

STRENGTHS -Lean production -Make to order mechanism

-Inventory holding is less -Warehouse used for generic regular order products

STRENGTHS -Just in time raw material procurement -Buffer stock of category A product in strictly maintained by JIT

STRENGTHS -Low attrition rate -Only customer service department has problem

STRENGTHS -Responsive supply chain -Flexibility in mode of transport

MARKET STRATEGY

Thank you