Logistic in Asian Paints

8/2/2019 Logistic in Asian Paints

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Started in 1942 by four entrepreneurs:

Champaklal choksey,

Chimanlal choksey,

Suryakant Dani and

Arvind Vakil asASIAN OIL & PAINTS COMPANY.

Within three years, their turnover reached 3.5 lacs.

In 1967, Asian paints became the 10th largest paint company in the world.


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Vision

Asian Paints aims to become one of the top 5 Decorative Coatings

companies worldwide by leveraging its expertise in the higher growth

emerging markets. Simultaneously, the company intends to build long term

value in the Industrial coatings business through alliances with established

global partners.

MISSION

TO BE THE LARGEST DECORATIVE PAINT CO. WORLDWIDE AND TO BE THE 5TH LARGEST PAINT

MANUFACTURING CO. WORLDWIDE.


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Indias largest paint company for nearly four decades.

Operates in 21 countries with 29 paint mfg. facilities with capacity of 420

mn. Lts/annum.

Asias third largest paint company and leader in 11 countries.


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Order processing: Phthalic anhydride (PAN) manufacture by asian paint. As itis an main component producing paint.

Ankleshwar in Gujarat, it has been supplying 'Phthalic Anhydride' to our paintmanufacturing plants at Ankleshwar, Bhandup, Patancheru & Kasna

Transportation Management: The company has outsourced its transportmanagement to Dynamic Logistic Pvt. Ltd.Lalji Mulji Transport Co

Inventory Management: APs average inventory level equals only 14 dayssales, while the industry average is 51 days sales. This right away provides a

45% edge in inventory costs to AP compared to its competitors. Warehousing: The company does not own warehouses instead they have 90

depots scattered all over the India which are on lease basis.

Packaging: The company has 140 packing material vendors.

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Plants: 5 paint manufacturing plants in India

It manufactures and markets more than 2,800 items of paints

The current paint plants of the company in the country are located at

Bhandup (Maharashtra) established in 1955

Ankleshwar (Gujarat) established in 1981,Patancheru (Andhra Pradesh) established in 1985,

Kasna (Uttar Pradesh),

Sriperumbudur (Tamil Nadu)

with a combined annual production capacity of 3.90 lakh KL. The capacity of

the Sriperumbudur Plant is 100,000 KL per annum spread across 25-30acres of land.

The Distribution Centres at KasnaPlant and Ankleshwar Plant have been

commissioned.The Kasna Plant is spread across 25 acres of land


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Acquisition: The acquisition gives Asian Paints a foothold in an emergingmarket and also opens the possibility of exporting to neighbouring

countries. Asian Paints has already made its presence felt in the emerging

markets after its acquisitions in Singapore (Berger International) and Egypt

(SCIB Chemicals SAE).

Subcontracting :The company has around 28 subcontractors thatmanufacture various product lines.

Vendors: Asian Paints manages more than 800 vendors that supply around

15,000 materials that are used to manufacture around 17,000 SKUs in

various categories.

Research and Development:The company has 140 R & D teams around theworld, 7 decorators, 115 scientists


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Eight of the company's paints plants in India, 2 chemical plants, 18

processing centers, 350 raw material and intermediate goods suppliers, 140

packing material vendors, 6 regional distribution centers, 72 depots are

integrated.

The supply chain runs through a wide spectrum of functions right from

materials planning to procurement to primary distribution.

The Supply Chain Management is backed by IT efforts that help the

company in demand forecasting, deriving optimal plant, depot and SKU

combinations, streamlining vendor relationships, reducing procurementcosts, and scheduling production processes for individual factories.

350 raw material &intermediary good

suppliers

2 chemical plants& 18 processing

centers

140 packaging &material vendors

6 RegionalDistribution Centers

& depots


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i2 planning solutions provide Asian Paints improved demand forecasting for

approximately 1,600 SKUs and allows the business to simultaneously plan

for procurement, production, distribution and inventory across its entire

supply chain including manufacturing locations, warehouses, distribution

centers and depots

Distribution Planning: The i2 solution generates a supply chain plan for Asian

Paints that synchronizes procurement, production and distribution

Material Planning: Given the high number of raw materials and vendors,

optimized material planning is a key requirement for Asian Paints.

Master Planning: The demand patterns experienced by Asian Paints are

typically highly skewed towards the last week of a month.

The i2 Supply Chain Planner solution allows planners to quickly re-plan, thus

optimizing distribution costs and reducing inventory stock-outs

simultaneously.

Benefits 1) The hub-and-spoke model has enabled Asian

Paints subsidiaries to interact with the parent organization easily and

effectively, removing the need for generating multiple reports.

2)Reduces IT Administration3)No More Double Reporting

Documents

Logistic in Asian Paints