CORPORATE

TURNAROUND
THROUGH
EFFECTIVE
SUPPLY CHAIN

National Institute of Vibhuti

VIBHUTI Sagar
SAGAR
Agricultural Extension and PGPABM 2007-
Management (MANAGE),
PGPABM
(Email: 09/32 2007-
Hyderabad 09/32
sagarsavvy@gmail.com
, 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