BY :

RISHABH SACHDEVA

BIIB(09-11)

COMPANY PROFILE

Kansai Nerolac Paints Ltd is a subsidiary of Japan based Kansai Paint Company Limited, which is one of the top ten coating companies in the world.

It is the second largest coating company in India and market leader in Industrial Coatings.

Turnover of $350 million.

MAJOR DIVSIONS :

1. INDUSTRIAL PAINTS DIVISION – MAJOR SUPPLY T O

AUTOMOBILE COMPANIES

2. DECORATIVE PAINTS DIVISION – INTERIOR AND EXTERIOR

PAINT APPLICATIONS

MARKET LEADER IN INDUSTRIAL PAITNS WITH MARKET SAHRE

CLOSE TO 70%.

NUMBER OF SKUs – A TOTAL OF 10,000; ACTIVE – 3000.

PRODUCT LINE

Decorative Paints Automotive Coatings General Industrial Coatings High Performance Coatings Powder Coatings Speciality Coatings

REVOLUTIONARY CHANGES IN MANAGEMENTo 1920 established as Gahagan Paints and Varnish Co.

Ltd. in Mumbai.o 1957 popularised as Goodlass Nerolac PVT. LTDo 1976 Goodlass Nerolac Paints Ltd. became a part of

the Tata Forbes Group. o 1983: Goodlass Nerolac Paints Ltd. Strengthened

itself by entering in technical collaborated with Kansai Paint Co. Ltd, Japan and Nihon Tokushu Toryo Co. Ltd, Japan.

o 1999: Kansai Paint Co. Ltd, Japan took over the entire stake of Tata Forbes group and thus GNP became wholly owned subsidiary of Kansai Paint Company Ltd.

ISSUES WITH SUPPLY CHAIN

Lack of communication between dealers & depots.

Stock outs & piling up of inventory. Manual handling of CPD i.e. central planning

depot. Lack of product availability & loss of sales. Large number of sku’s 400-500. Lack of vendor management. Use of transaction based legacy system

(UNIX Cobol system)

FLOWCHART OF THE SUPPLY CHAIN SHOWING AREAS OF PROBLEM

NEED BASED ON CRITICAL PAIN AREAS

TECHNOLOGICAL IMPLEMENTATION

SAP application SAP Advanced Planning and Optimising (APO) 3.1

SAP Supply Chain SAP Business intelligence Supported portals like Dealer portals ,

Vendor portals etc. Leased lines and VSAT SAS Data Warehousing Solution.

PROCESSES FOR A RESPONSIVE SUPPLY CHAIN

IMPLEMENTING SAP SCM

SAP CONTINUED

DERIVED BENEFITS(QUANTITATIVE)

BENEFITS – REDUCTION IN FG INVENTORY

BENEFITS – REDUCTION IN LOSS OF SALE

DERIVED BENEFITS(QUALITATIVE)

PATH TO VALUE REALIZATION

CRITICAL SUCCESS FACTORS

THE WAY FORWARD FOR NEROLAC :-

THE NEW SAP ARCHITECTURE :