Tanishq

CORPORATE TURNAROUND THROUGH EFFECTIVE SUPPLY CHAIN National Institute of Agricultural Extension and Management (MANAGE), Hyderabad

VIBHUTI SAGAR Vibhuti Sagar PGPABM 2007PGPABM (Email: 09/32 [email protected] 09/32 , Mobile: 09848036874)

Introduction Titan industries limited

(1987), Bangalore Mfg. plant at Hosur(TN) Market leader with 60% share Diversification in branded jewellary business(1990) Brand Tanishq, first boutique in 1996

Challenges

Yr. 2000 marked fifth consecutive business loss Low making charge of local mfg. by

compromising quality Type of boutiques: L1, L2, L3 Poor 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 growth Jewellary division as a separate SBU with COO Rationalise frequency of launching new design Capabilities created to cater need for

marketing “made to order” segment Shift premium segment to mass marketing seg Launch of few new product every month Local designer for regional market

Initiatives Improving the bottom line through SC initiative Cross functional team for short and long term Project ASPIRE for improving SC performance Inventory management and responsive SC Four pronged strategy Clean inside out Introduction of new channel Remodel order generation and fulfillment process Strategic out sourcing

Clean inside out Revamping internal supply chain Slow moving categories rationalised Non-potential product phased out Stock turn based trade margin were introduced For franchisees performance incentive or

disincentive for stock turn Non moving stocks recalled or recycled or marked down Compaign “Impure to Pure” exchange

4 step mechanism Age 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 “Tanishqon wheel” (> 15 months recycled) Permissible level of sludge and penalty

Sludge 18% to

Introduction to new channel New channels were designed and piloted vPrototype enabled sale vReduced inventory vRange of design vResponsive business vHub & spoke for one week delivery

vMade to order vCustomer order with a lead time of one month v8000 designs ( 2 week)

vConsignment sale vBy vendors stocks

Remodel order generation and fulfillment process Remodelled the Supply chain Ø Made to replenishment (MTR) SC Ø500 best selling variants for distribution of region, categories & price ØStock at two level Ø Cycle stock at boutique Ø Safety and replenishment stock at factory

Ø 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 outsourcing Utilization of market potential Reducing cost than investing in production Provided aasistance to vendors for business,

technology support,material, process & document\ Karigar Parks For avoiding two tier middleman system Experience and new designs

Management of Enterprise And development of

Women

SHG for assembly of links and other activities

IT integration Web based GOLD MINE was implemented to connect boutique , CFAs & factory Visibility increases

The result was a success:

Thank U