Professional Documents
Culture Documents
Presented by
Saurabh Srivastava (16)
PGDM (2010-12)
ITM, Warangal.
Coats India-SCM
Coats India is the threads division of Madura Coats
Pvt. Ltd.
Its an Indian subsidiary of Coats Ltd.
It operates out 65 nations.
World largest manufacturer of Industrial sewing
threads & consumer needlecraft products.
Coats India manufactures & markets a complete
range of cotton, synthetic & corespun threads for the
Indian & export markets.
The threads division is the largest business of
Madura Coats, contributing to 91% of the turnover.
Obstacle & recovery
The enhanced quantities of stocks that used
to the fast moving once are dormant now.
Previously, Coats India had a SKU range of
over 30,000 covering regular colors & customer
specials.
Additionally, 10 new colors were added
everyday to this range.
Strategies
Madura Coats decided to take up the SCM
project, which it called supply Chain Optimization
through Order Frequency Analysis.
The Order Frequency Analysis (OFA) project
resulted in the following benefits to the
organization within a year of complete
implementation:
Reduction of 14% in finished goods.
Reduction of 15% in dormant stocks.
Increase from 51% to 77% in the percentage of
orders completed in 48 hours.
ORGANIZATION BACKGROUND
Business span in four segments:-
a) Consumer Threads.
b) Industrial Threads.
c) Exports.
d) Other accessories.
Direct and indirect customers.
Different types of customers.
MTO business.
SCM- THE NEED
Quality of the color.
Large number of global buyers.
Change in fashion trends.
Reduction in volume of garment production.
Demand for thread.
High cost of production.
Judgmental and inaccurate process.
THE PROJECT ARCHITECTURE
PROJECT METHODOLOGY
DORMANT STOCK
oReduced 62% from April 2002 to December 2002.
o51% reduction in 2003.
o8% reduction in 2004.
More accurate capacity addition.
Yielded better services.
Orders
oIncreased by 50% from April 2002 to mid 2004.
oOrders completing in 48 hours increased from
51% to 77%.
98% orders were completed within 6 days.
After OFA project
1) finished goods stock reduced 14%.
2) Dormant stock reduced 51%.
3) Percentage of orders completed in 48 hours
increased from 51% to 77%
IMPACT ON THE ORGANISATION
Growing trend of factory gate invoicing to
customers.
Factory warehouses were established to stock
and invoice finished goods from there.
Reducing stocks at depots considerably.
Increased stock range.
Improved manufacturing efficiency to a great
extent.
Any queries