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Round- I
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2008
Solutions

OrganizationalBackground
Reckitt Benckiser is a global force in household, health & personal care, delivering ever
better solutions to consumers. Its health and personal care products comprise of
antiseptics (Dettol), depilatories (Veet), denture care (Kukident, Steradent), analgesics
cold/flu (Lemsip, Disprin) & gastrointestinal (Gaviscon, Senokot, Fybogel). Its fabric care
catalogue includes fabric treatment, garment care, water softener, fabric softener and
laundrydetergents.
Thecompanyhassalesofover5millionconsistentlygrowingaheadoftheindustrydue
to its leading brands, its operations in over 60 countries and sales in 180, & its highly
motivatedmultinationalmanagement.

Vision
Passionatelydeliveringbettersolutionsinhouseholdcleaningandhealth&personalcare
fortheultimatepurposeofcreatingshareholdervalue

SomefactsaboutReckittBenckiser
WorldLeaderinHouseHoldCleaning(exceptLaundryDetergent)
HeadQuarteredatSlough,UnitedKingdom
Salesinover180countriesandoperationsin60countries
Turnoverof5.22billionGBP(Increaseof7%lastyear)
OperatingProfitof1.23billionGBP(Increaseof35%lastyear)
22,000employeesinover60countries
Over10millionproductssoldeveryday
Recently acquired BHI Boots Healthcare International, Adams Respiratory
Therapeutics

Reckitt
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BriefSummaryofReckittBenckiser(India)SupplyChainStructure
Reckitt Benckiser (India) does inhouse manufacturing of all the categories and there are
Six(6)Manufacturinglocations.Apartfromthisitalsohasarrangementswithabout15Co
packers. The Distribution system followed by Reckitt Benckiser (India) is typical of any
FMCGcompany.Therearetwoparalleldistributionsnetworks:
a) ManufacturingplantCFADistributorRetailer
b) Manufacturing plant Regional Mother Godown (RMG) CFA Distributor
Retailer.

Someotherfacts:
Considering the changing retail scenario and increased demand Reckitt Benckiser
(India) set up two (2) new plants, one in Uttaranchal and another in Jammu. The
existingfourplantsarequitestableandthenewplantsaregraduallystabilizing.
ThereisoneCFAperstateandalltheCFAsarehandledbylocal3PLpartners.
TheRMGaresituatedin4metros(Mumbai,Bangalore,KolkataandDelhi)
TransferofownershipofproductshappensattheCFAlevel
Existingmodeoftransportforallthecategoriesisroad
Currently mixed products are transported but for Coils which are transported
separately

Planning

ReckittBenckiserdoesaDemandPlanningfollowedbyProductionplanning.Followingare
somefactsabouttheDemandandProductionPlanningsystem:
All the plants and CFAs are enabled with JD Edward ERP system and the data for
planningisobtainedfromthesame.
Demand forecasting and planning is done separately using newly implemented
Manugisticssystem.
Productionplansare1month(firm)+2Months(rolling)
A new Oracle based Production and Distribution Planning (PDP) tool is being
implemented.
DistributionplanningisnotdoneontheJDEdwardsystem.

Supplie
No.ofSKUs:1
RetailO
ers
190
Outlets
Sup

pplyChaainNetworkofReeckittBe
Factor
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No.of
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erGodown:
ckers :
fDistributers
o.ofCFAs: 32

:6
:4
15
s:4000
2

Organizationalstructure

EmergenceofIndiaasbigretailmarket:OpportunitiesandChallenges

TheorganizedsegmentoftheIndianretailindustryisexpectedtogrowfromthecurrent5
per cent of the total market to about 1418 per cent of the expected Rs 18Lakh Crore
marketby2015(Source:McKinseyandCo)

Opportunities:
GrowingUrbanizationandincreasedconsumerism
GreateruseofCredit
ManybigplayerslikeRIL,ABG,BhartietcareenteringtheIndianRetailmarket.

Challenges:
Highinflationrate
StringentnormsofModernTrade
HighRealEstaterates.

MD
SALES MARKETING FINANCE SUPPLY
LOGISTICS MANUFACTURING PROCUREMENT QUALITY

ImpactofModernTradeonReckittBenckiser(India)

ContributionofModernTradetoReckittBenckiserbusiness 9%
Growth(yearonyear) 40%

TheCase

ReckittBenckiser(India)serves190SKUsacrossvariouscategories.Primarily,sourcingis
single sourced however a few Pareto SKUs multi sourced. It has a strong distribution
systeminplace.ReckittBenckiserisknownforitsaggressivemarketinginnovationwhich
poses many Technical and Supply Chain Challenges to the company. Reckitt Benckiser
(India) caters to both traditional Retailers and Modern Trades. Both these retail formats
pose different challenges. Modern Trades are more demanding in terms of better service
levels(expectedOFRis95%andleadtimerequired57daysfromCFA).

Issuestobeaddressed

1. CustomerServicelevels
Theissuesincustomerservicelevels,withcurrentinventorynormsof4.33weeks,aredue
to:
LowForecastAccuracy
HighLeadTimes
HighSeasonalityinDemand
MixedProductCategories

In addition to the above mentioned issues the service levels demanded by Modern Trade
Customers are substantially higher than the service levels agreed upon for Traditional
Trade. Since the systems at Modern Trade partners are still evolving there is a greater
nurturingrequiredforthisstreamofbusiness.

SuggestastrategytoincreaseServiceLevelsofModernTradetakingintoconsiderationthe
following:
Prioritygiventomoderntradeovertraditional
DifferentialNormsforModernTradeSKUs

TheSupplyChainstrategyshouldbeabletoachievethedesiredservicelevelsforboththe
organizedandunorganizedtrades.

2. Logisticscost
Someofthecontributorstotheincreasedcostsare:
Transportationcost(increasedfuelprices)
Safetystocks
Mixedproductcategories(e.g.stablesoap&fragilecoil)
HighRealEstateCosts

Suggest a strategy for Overall Logistics Cost Control and Reduction. Also evaluate
FeasibilityofMultiModalTransportation.

NOTE:Pleaserefertothefollowingdataprovidedintheexcelsheetannexedwiththecase
(Participantsareexpectedtousethisdataintheirsolution)
TableA:TransportationCost
TableB:SalesData
TableC:SourcingMatrix

3. Systemtoensureseamlessintegrationanddataavailability

Due to various tools being used by RBIL (JD Edwards ERP system, Manugistics demand
planning system, Oracle based PDP system, MRP system) for different activities, there is a
needforstreamliningitsdistributionnetwork,seamlesslyintegratingthesupplychainand
promoting collaboration among various systems. Development and implementation of a
solutiontoextendvisibilityacrossthecompanysnetworkofdistributorscanbesuggested.

4. Benchmarking
Compare the planning processes at Reckitt Benckiser with the best practices in the FMCG
space or other companies of comparative or bigger size. Also suggest areas of
improvement.

RulesandGuidelines
RulesfortheRoundI:
All the interested participants will have to participate in two activities, Case study and
OnlineSCMquiz,inRoundI.
Casestudy:ThecaseisopenforalltheBschoolparticipantsacrossIndia
(Weight:80%)

OnlineSCMQuiz:TheSCMQuizwouldbeopenedonline(www.prerana.nitie.netwebsite)
for all the participants for a period of 1 hour on Wednesday, 15
th
October at 10:00 PM
sharp (keep checking the website for further details). Solutions to the quiz should be
mailedtoprerana2008.stratagem@gmail.com.
(Weight:20%)

Based on the quiz score and the case solution score the top five teams (plus 2 wait list)
wouldbeshortlistedandinvitedfortheRoundII.
1. A team can consist of maximum two members (Management Students only) from
thesamecollege.Astudentcannotbeamemberofmorethanoneteam.
2. The team members need to register on the Prerana 2008 website
www.prerana.nitie.net(ifyouareunabletoregisteronthewebsiteforanyreasons
pleasemailyourentriesdirectlytoprerana2008.stratagem@gmail.com)
3. Thesolutionshouldnotexceed2000wordsinclusiveofallexhibitsandappendices.
4. Solutionformat:FontSize12,FontTypeTimesNewRoman,1.5linespacingand
thefileshouldbeaMicrosoftWordDocument/PDF.
5. Thefrontpageshouldcarryonlya)InstituteName,b)TeamName,c)Detailsofthe
teammembers(Name,EmailIDs,PhoneNos.)andd)PreranaRegistrationIDs.
6. The details of the participants SHOULD NOT appear anywhere else in the case
solution.

7. Send entries to prerana2008.stratagem@gmail.com with the document name as


Stratagem_TeamName_CollegeName and subject line as
ReckittBenckiser_Stratagem.
8. TheentriesmustreachusbyTuesday,October14
th
,2008(23:59:59).Shortlisted
studentswillbeintimatedbyemail.
9. Thedecisionoftheorganizersofthecontestandthepanelofjudgeswillbefinaland
bindingonallcontestants.

RulesfortheRoundII:
Five finalist teams would have to participate in two activities, online SCM game and Case
presentation,inRoundII.
Online SCM Game: The link for playing the online SCM game would be floated for the
finalistsafterconfirmationoftheirparticipationinRoundII.Theywouldbegiven3days
toplaythegameandbasedontheirperformancetheranking/scorewouldbegiven.
Timelineforgamewillbeannouncedatthetimeofshortlist.
Weight:20%

Case Presentation: The finalists would be asked to present the case to the RBIL jury in
NITIEcampus
Weight:80%

ThewinnerwouldbeselectedbasedonthescoreintheGameandPresentation.
Allparticipantsinsecondroundwillbeprovidedtwowaytraintravelfarefortheshortest
routefromtheirinstitutetoMumbai.

ForFurtherDetailsPleaseContact:
PramodkumarLakhmapure: +919324299199
VikasKumarYadav: +919769279867

www.prerana.nitie.net

Prizes

FirstPrize: Rs.30,000+PPIofferfromReckittBenckiser
SecondPrize: Rs.15,000+PPIofferfromReckittBenckiser