In order to thrive in the era of modern trade, we need to deliver a service level that is higher than what the industry is used to and operate a supply chain which is superior to our competitors’,” says Arun. Business Optimization Hurdles The first part of HUL’s business optimisation strategy to enhance efficiency involved consolidation of its warehouses and branch offices.With the margins getting narrower it was essential to leverage the technological benefits. Customer Service: Undoubtedly the most important part of any SC framework. Being an FMCG, HUL had to maintain high standards of customer service and make sure that they had “fresh” feeling after consuming a HUL product Key Issues in the SCM @ HUL The whole SC can be divided into four broad steps viz: 1. Source – Purchasing 2. Make – Manufacturing 3.
Plan – Distribution Demand, Supply 4. Deliver – Customer Sales/ServiceThe current issues that HUL grapples with includes variability in purchase price, managing multiple vendors, frequent changeovers, inventory management and logistics cost. To address all these and many other issues, HUL has devised a SC process of its own where it ensures a streamlined process across the whole supply chain Supply Chain Management Demand Planning Monitor Supply Network Planning Supply Network Design Decision Support System Tactical Aggregate Planning Detailed Planning and SchedulingDistribution Planning & Deployment Plan Move Store Delivery Planning Buy Make Purchasing Production Planning & Detailed Scheduling Supply Chain Cockpit: A graphical tool for evaluating and controlling the supply chain Network Design: Strategic planning for analyzing, optimizing and reorganizing the supply chain. Long-term sourcing, production and distribution decisions are supported here. Demand Planning (DP): Aggregated and detailed demand planning with a variety of forecasting techniques based on aggregated sales figures.Supply Network Planning (SNP): Finite, cross location, mid-to long term production and procurement planning with simultaneous material planning and capacity scheduling. Deployment is used to plan short term replenishment.
Production Planning/Detailed Scheduling (PP/DS): Finite, detailed production planning. PP/DS uses simultaneous material planning and capacity scheduling, and optimization techniques to generate feasible plans that are in the optimum sequence with the optimum setup times Transportation Planning/Vehicle Scheduling (TP/VS): Optimizes use of transportation vehicles and selection of carriers.