Supply Chain mgmt at xtra power system

1. RECONFIGURING THE
SUPPLY CHAIN AT XTRA
POWER ENERGY SYSTEM
PRESENTED BY:-
Rahul Yadav
Moshin Khan
Surya Prakash
Abhishek Patil
Shreyas Kelapure
Shalaka Muley

2. CONTENT
 Introduction
 Battery Industry in India
 About Xtra Power System
 Costs & Margins
 Forward Supply Chain
 Closing the Loop
 Problems & the Trade offs
 The Options

3. INTRODUCTION
 Pradeep Dutta (Dutta), proprietor of Xtra Power Group, found himself on
the horns of a dilemma. He was expecting a surge in the demand for
batteries in India – both for the new line of open shielded batteries as
well as for the reconditioned batteries (which had more margins), but
wondered whether he would be able to meet the demand considering
the supply chain issues he was facing.
 Some of Xtra Power’s prominent retail partners were unhappy about the
used batteries that they had collected from customers for reconditioning
and how these were piling up at their facility, increasing their
warehousing costs.
 Upon further investigation, Dutta found that the major problem lay with
its longstanding transportation services provider, Cretto Logistics (Cretto),
which had a low cost structure, but a lead time that was above the
industry average.

4. BATTERY INDUSTRY IN INDIA
 By the end of 2012 , India was viewed as the main battery
producer in Asia.
 Demand for batteries increase due to growth in the industrial
sector.
 Batteries market growing at a rate of 25%.
 Lead acid batteries were in great demand. Different players like
Exide industries ltd, Amara raja batteries ltd, Luminous power
technologies Pvt. ltd, Su-kam power systems ltd.

5. Cond..
 Lead considered as the most important raw material.
 India accounted for only 1% of lead production.
 The manufactures have a strong supply chain and a dynamic
distribution network.
 Battery manager had to focus on efficient logistics,
competitive pricing and better after sale service.

6. ABOUT XTRA POWER SYSTEM
 Xtra Power Group started their operations in 2005.
 By 2013, it became one of the leaders in supplier of
Automotive products.
 Xtra Power Groups had 2 divisions:-
1. Xtra Power Auto Industries
2. Xtra Power Energy System

7. Xtra Power Energy System
 Products – New & reconditioned Batteries
 Assembly types- Open shielded, Heat shielded
 According to Dutta, the batteries are dependable and
economical & perform under extreme working conditions.
 Made of high quality polypropylene material, which ensure
protection against damage & abrasion.
 Battery life
 Contribution in net revenue

8. COSTS & MARGINS
 Average Prices
 Profit Margin
 Reconditioning & Resale

9. FORWARD SUPPLY CHAIN
Manufacturer
Supplier
Retail Store
Consumer
Components of battery
Internal plates
Electrolyte
Lead terminals
Resilient plastic terminals

10.  Suppliers
Avani international
Galaxy electricals
Overhead total cost for the battery is 250/unit
 Cretto
Oldest logistics service provider
20% market share
Lead time of 12 days
Cretto ‘s condition.

11. PROBLEMS & THE TRADE OFFS
 Quarterly Feedback
 Situation becoming worse-Dashmesh Power
system(lajpat nagar)
Surya electricals (karol bhag)
 Alternative service provider
 DLSP proposal of sole supplier of lead plates and battery acid
used in xtra power.
 Reconfiguration attempt-Haley power and electrical, supplier
resilient plastic casing and lead terminal.

12. THE OPTIONS
Possible options for reconfiguration-
 Go ahead with existing suppliers
 Replace Galaxy Electricals
 Contract with DLSP & Dolphin Power
 Remove all existing suppliers