A SCM case study ppt on Dora Ceramic Tiles by students of Era Business School, New Delhi (PGDM 2012-14)

1. 2012’14 Batch PGDM, Era Business School, New Delhi
Era Business School
Case Study
on
DORA CERAMIC TILES
Preparing to Meet Supply Chain
Challenges of Tomorrow
A Presentation
By
Pulkit & AJ

2. 2012’14 Batch PGDM, Era Business School, New Delhi
Aim & Scope
• AIM – To analyse an organisation’s bid
to gain competitive edge through
initiatives related to SCM.
• SCOPE – As under:– The operating Business Environment.
– Company’s Profile and Progression.
– Challenges.
– Initiatives.
– Outcomes.
– Analysis.

3. 2012’14 Batch PGDM, Era Business School, New Delhi
Operating
Business
Environment

4. 2012’14 Batch PGDM, Era Business School, New Delhi
BE
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Era of progressive lifestyle.
High growth potential.
From utility to decorative.
Long way to go: 0.1sqm vs 3.5 sqm.
2% of world production & 0.05% ex.
10% of total market.
Highly competitive and yet unorganised
80-85% cap utilisation.
Johnson, Kajaria, Somany, Bell, Peddar,
Orient, Spartek.

5. 2012’14 Batch PGDM, Era Business School, New Delhi
Porter’s 5F
Threat of
New
Entrants
High
Power of
Suppliers
Low
Competition
Intensive
Org &
Unorg
Substitutes
Many but
Low
Power of
Buyers
High

6. 2012’14 Batch PGDM, Era Business School, New Delhi
Company
&
Progression

7. 2012’14 Batch PGDM, Era Business School, New Delhi
Dora Ceramics….
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1990 – first plant in Gujarat.
50 k sqm annual cap.
Tax holiday.
Italian technology – wall & floor tiles.
Dealer network + B2B.
20-25% sales growth in first five years.
6% market share.
1996- new plant in Karnataka @ 500m.
Cutting edge dry technology; floor tiles
Tax holiday continues.

8. 2012’14 Batch PGDM, Era Business School, New Delhi
Progression
• Price advantage.
• Focus mainly on B2B; retail sector
neglected while competitors moved in.
• 2001 – bye to tax holiday- price
advantage lost.
• Loss of market share.
• Identification of KSFs:– Product features
– Product focus
– Cost structure
- Retail
- Op focus.
- Brand awareness.
• Technological edge; better value.
• Competitive edge not complete despite
implementation of KSFs.

9. 2012’14 Batch PGDM, Era Business School, New Delhi
Challenges

10. 2012’14 Batch PGDM, Era Business School, New Delhi
Inescapable
• Globalisation + increasing customer
expectations + Competitive markets.
• Total customer satisfaction must.
• Foresight:– Product – More options, quality, P&S.
– Market – Shakeouts, M&A, focus, value.
– Channel – Demanding, after-sales, onestop solutions and power of retail chain.
– Customer – More knowledge, DIY kits,
customisation, one-stop solution.
• Stale = Death in a dynamic environ.

11. 2012’14 Batch PGDM, Era Business School, New Delhi
Intrinsic State
Weaknesses
Strengths
*Cutting
*Retail vacuum
edge Dry technology
*Under-utilisation of cap
*Market share
*Quality
SWOT
Opportunities
Threats
*Changing lifestyles
*Competition
*Growth opportunities
*New price regime

12. 2012’14 Batch PGDM, Era Business School, New Delhi
Initiatives

13. What Next
2012’14 Batch PGDM, Era Business School, New Delhi
• Focus now on to SCM:– Capacity of dealers – variety and quantity.
– Depot Concept; first mover.
– Careful selection of depot sites.
– Depot outsourced to C&F – merit based.
– Depot responsibilities to include order
processing, execution, collection, sample
distribution and report generation.
– DRP software and online connectivity.
– DRP integrated with ERP.
– Evaluation based on quality of work,
minimum errors, average time for exec,
inventory and o/s payments.

14. 2012’14 Batch PGDM, Era Business School, New Delhi
Execution
• 2.25% of sales for logistics.
• Dora responsible for primary freight.
• One 3PL firm per factory.
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Dedicated fleet of vehicles.
Production and demand trends based FC.
One week in advance.
Mechanised loading and unloading.
• MRP includes secondary transportation.
• LIS. Generates reports in respect of:– Order ack
- Daily & monthly sales.
– Payment collection.
- Rejection data.
– Lorry tracking
- Error reporting

15. 2012’14 Batch PGDM, Era Business School, New Delhi
Outcomes

16. 2012’14 Batch PGDM, Era Business School, New Delhi
Effects
• The Change:– Order cycle down to 48 hrs from 02 weeks.
– 40 branches, 20 depots, 1000 dealers and
3500 retailers.
– Inventory levels down to 25 days vs 45.
– O/S payments in 45 days vs 65.
– Shorter design time.
– Smarter customer feedback system.
– Introduction of 8-12 designs per month.
– Continuous feedback and performance
appraisal for grading C&F agents.

17. 2012’14 Batch PGDM, Era Business School, New Delhi
ANALYSIS

18. 2012’14 Batch PGDM, Era Business School, New Delhi
Analysis
• ‘OT’ utmost important.
• Two trends made DC take notice:– Opportunities in terms of growth potential
of the market.
– Threats due to competition & cost
escalations.
• Holistic formulation of strategy:– Design and innovation.
– Marketing.
– SCM – cost cutting, CRM, overcoming
hurdles related to blockage in pipeline.

19. 2012’14 Batch PGDM, Era Business School, New Delhi
Way Forward
• Retail-orientation must.
• Optimisation of resource utilisation:– Capacity utilisation.
– 2.25% expenditure; efficient utilisation.
– Awareness campaign – in/out.
– Tactical optimisation eg transport routes.
– Operational optimisation – production
schedule, transit damages, inventory,
waste-control.
• Challenges will never cease; important
to visualise what may happen next!

20. 2012’14 Batch PGDM, Era Business School, New Delhi