Samrat Sehgal, Head, Supply Chain, Dabur India Ltd highlighted three practices that Dabur India has adopted to maintain an efficient supply chain. These include:
Shifting from Forecast to Replenishment Planning: Replenishment planning takes you away from forecast and it only indicates how many more products are needed in order to meet customer demand. In other words, it is the process of fulfilling or re-ordering products that are low or out-of-stock. The purpose of replenishment is to ensure that a retailer has the right quantity of product, at the right location, and at the right time to maximize sales and minimize costs.
Increased Automation in Warehousing: Increasing automation in warehouses/manufacturing units means, including all the software, hardware, and other automation-based processes to automate warehouse tasks for improved efficiency and accuracy and support the workers. It helps warehouses increase productivity, reduce labor costs, improve safety, more efficient use of materials, better product quality, shorter workweeks for labor, etc.
Focus on Total Cost of Delivery: TDC comprises aggregate cost associated with raw material sourcing, conversion of materials into finished goods, and delivery of finished goods to customers. To understand the total cost involved, Dabur focuses on the total delivered cost (TDC), the complete cost of sourcing, producing, and delivering products to customers.
“Supply chain can become a competitive advantage for the organization through adoption of technology. It is helping organizations by increasing visibility, driving automation, and improving decision making. This will result in an agile and efficient supply chain,” said Sehgal.
Enhancing Supply Chain Capabilities
Over the last few years, the world has witnessed how technology has played an important role across sectors. With time, Dabur India has also focused on Enhancing Automation, from production to the consumer end. It is also constantly focusing on increasing the visibility in the supply chain to keep an eye on the status of goods to improve customer service and cost controls, limiting disruptions and risk mitigation.
“In supply chain under business continuity planning, we ensure uninterrupted flow of products and services from suppliers to customers within a time frame to safeguard different interests related to the product, along with being the readiness to maintain critical functions after an emergency or disruption, so that it does not affect both the parties – from manufacturer to consumer,” he added.