Hindustan Electronic Limited

8/8/2019 Hindustan Electronic Limited

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Hindustan Electronic Limited-Case Study


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Group Members

y Yash Sawant 0947

y Rahul Shankar 0950

y Rohan Trivedi 0953

y Niharika Verma 0954y Dhiren Pipaliya 0959

y Mayank Kothari 0958


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CASEy ATL & BTL

y Product Quality first

y SCM

y From made-to-stock to made-to-order

y Distribution Networky Logistics

y Forecasting

y Internet

y IT

y Warehousing & Transportation

y JIT

y

Layout


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Hindustan Electronic Ltd

y An Indian subsidiary

y HEL comparatively new player in industry

y In 2006 company achieved the growth rate of 25%

y Launched new models

y HEL competed:

First on product quality

Second on price front


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Supply Chain Management


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Supply Chain Management in HEL


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SCM - HEL

y First company to introduce supply chainmanagement

y HEL made a paradigm shift

y Distribution network - HEL

y HEL has lowest logistics cost

y Market penetration


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Efficient

Logistics &

Supply ChainRight Time

Right

Customers /

Suppliers /

Associates

Right Place

Least Cost

Right

Materials

And Products

Right Quality

& Performance

RightQuantity

7 RIGHTS OF LOGISTICS & SUPPLY CHAIN MANAGEMENT7 RIGHTS OF LOGISTICS & SUPPLY CHAIN MANAGEMENT


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Products Selling

HEL

Product

s

550

Service

Centers

5000

Dealers4 RDC

22

Branch

Offices

26 CFA


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Conty

HEL engineered their supply chain to the marketconditions

y The main stumbling block:

Accuracy in forecast

Frequency of forecast review

y Dealers requirement


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System & Softwarey

HEL uses EDI integrated with ERP system

y Online connectivity

y Two tier distribution/warehouse system

y System provides dealers:

Weekly production plan

Delivery schedule


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SUPPLIER 2

SUPPLIER 3

FINAL

CONSUMER

CUSTOMER 2

CUSTOMER 1

MATERIALS DISTRIBUTIONPRODUCTION

SUPPLIER 1

Funds & Infrm. Goods & Infrm.

FINANCE

H.R.D.

R.& D.

ERP


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MATERIALS PRODUCTION DISTRIBUTION

IMMEDIATESUPPLIER IMMEDIATECUSTOMER

IN - PLANT

LOGISTICS

OUT - BOUD

LOGISTICS

IN - BOUND

LOGISTICS

FLOW OF OUTPUTSFLOW OF INPUTS


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Cont.

Issue Related to distribution

y Solution Introduced a new system

Reduced the order cycle time

The system automation expected to reduce futureorder cycle time


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PROCUREMENT

COST

WAREHOUSING

COST

ORDER

PROCESSING

COST

PACKAGING

COST

INVENTORY

COST

INFORMATION

COST

TRANSPORT

COST

INSURANCE

COSTCUSTOMER

SERVICE COST

TOTAL LOGISTICS COSTSTOTAL LOGISTICS COSTS


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HEL - Imports

y HEL meets its requirements through import from itsparent company

y Ordering base of raw material

y Ordering of imported items

y Production schedule


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Vendor

55

Suppliers

6 are

located

overseas

11 are

beyond

100 kms

38 are

within

100

kms


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For High Storage Density &SpeedyPick Up

Company uses horizontal carousels:

Increased the picking speed

Loading capacity increased

All this helped HEL to achieve high level


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Increased Operations

y Due to rapid increase in operation companyexperienced:

Problem of data storage

Problem of order cycle time

y To shorten order cycle time- company invested incustom built automated order processing software


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Cont.

Internet

RDCBranch

Office

Manufactu

ring PlantHO


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Cont

y Dealers were connected through extranet

y

This new system helped:

Online order processing

Market improvement


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Concluding with the Learnings.

y Demand triggers must be identified as quickly aspossible

y Make sure the person who is supposed to take action

acknowledges andconfirms thisrequirement.

y Everything needs to remain in context.

y

Mechanisms for clarification are critical.

y Group similar tasks, not just similar priorities.


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y Evaluate risk :

1. The forecast

2. The demand data

3.The understanding that forecasts are skewed byprevious bad events.

y Dont reward bad suppliers with increased orders.

y Motivation should be a foundation, not anafterthought


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Hindustan Electronic Limited

Documents

Transcript of Hindustan Electronic Limited