OPERATIONS PRESENTATION ON SUPPLY CHAIN MANAGEMENT INCLUDING ALL THE TOPICS RELATED TO OPERATIONS MANAGEMENT SUBMITTED IN AMITY BUSINESS SCHOOL

1. SUPPLY CHAIN MANAGEMENT
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2. What is a Supply Chain?
A supply chain is the system of organizations, people,
activities, information and resources involved in moving
a product or service from supplier to customer. Supply
chain activities transform raw materials and components
into a finished product that is delivered to the end
customer.
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3. SUPPLY CHAIN
Supplier Manufacturer Distributor Retailer Customers
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4. Supply Chain Management
Supply Chain Management is
the design and management of processes
across organizational boundaries
with the goal of matching supply and demand
in the most cost effective way.
Supply Demand
Mission impossible: Matching Supply and Demand 4

5. Key Activities/Processes
Primary
• Setting customer service goals
• Transportation
• Inventory management
• Location
Secondary or supporting
• Warehousing
• Materials handling
• Acquisition (purchasing)
• Protective packaging
• Product scheduling
• Order processing
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6. Supply Chain Performance Measures
• Cost
• Total Supply Chain Cost is the sum of all supply chain costs for all
products processed through a supply chain during a given period
• Inventory Turnover is the ratio of the cost of goods sold to the value of
average inventory.
• Weeks of inventory is the ratio of average inventory to the average
weekly sales
• Customer Service
• Average Response Time is the sum of delays of ordering, processing,
and transportation between the time an order is placed at a customer
zone and the time the order arrives at the customer zone
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7. What do these measures mean?
• Inventory Turnover: How often the company
replenishes inventory. High value of inventory
turnover means that the inventory was not sitting
around a long time.
• Weeks of Supply: How many weeks worth of
inventory does the company have on hand. High value
of weeks of supply means that the firm has a lot of
inventory sitting around.
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8. Flows in a Supply Chain
Customer
Material
Information
Funds
The flows resemble a chain reaction.
Supplier
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10. Mission-Strategy-Tactics-Decisions
Mission- Mission statement
– The reason for existence of an organization
Strategy
– A plan for achieving organizational goals
Tactics
– The actions taken to accomplish strategies
Operational decisions
– Day to day decisions to support tactics 10

11. Linking SC and Business Strategy
New
Product
Development
Marketing
and
Sales
Operations Distribution Service
Finance, Accounting, Information Technology, Human Resources
Competitive (Business) Strategy
Product Development Strategy
-Portfolio of products
-Timing of product introductions
Marketing Strategy
-Frequent discounts
-Coupons
Supply Chain Strategy
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13. Logistics Vs Supply Chain Management
“Logistics is the process of planning, implementing and
controlling the efficient, cost-effective flow and storage
of raw materials, in-process inventory, finished goods
and related information from the point of origin to point
of consumption for the purpose of conforming to
customer requirements.”
SCM is the integration of all activities associated with
the flow and transformation of goods from raw materials
through to end user, as well as information flows,
through improved supply chain relationships, to achieve
a sustainable competitive advantage.
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14. SUPPLY-CHAIN PRINCIPLES
If supply-chain management has become top management's new "religion," then it needs a
doctrine. Andersen Consulting has stepped forward to provide the needed guidance, espousing
what it calls the "Seven Principles" of supply-chain management. When consistently and
comprehensively followed, the consulting firm says, these seven principles bring a host of
competitive advantages.
The seven principles as articulated by Andersen Consulting are as follows:
• Segment customers based on service needs.
Companies traditionally have grouped customers by industry, product, or trade channel and
then provided the same level of service to everyone within a segment. Effective supply-chain
management, by contrast, groups customers by distinct service needs--regardless of industry--
and then tailors services to those particular segments.
• Customise the Supply Chain Management network.
In designing their Supply Chain Management network, companies need to focus intensely on
the service requirements and profitability of the customer segments identified. The
conventional approach of creating a "monolithic" Supply Chain Management network runs
counter to successful supply-chain management.
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15. • Listen to signals of market demand and plan accordingly.
Sales and operations planning must span the entire chain to detect early warning signals of
changing demand in ordering patterns, customer promotions, and so forth. This demand-
intensive approach leads to more consistent forecasts and optimal resource allocation.
• Differentiate product closer to the customer.
Companies today no longer can afford to stockpile inventory to compensate for possible
forecasting errors. Instead, they need to postpone product differentiation in the manufacturing
process closer to actual consumer demand.
• Strategically manage the sources of supply.
By working closely with their key suppliers to reduce the overall costs of owning materials
and services, supply-chain management leaders enhance margins both for themselves and
their suppliers. Beating multiple suppliers over the head for the lowest price is out, Andersen
advises. "Gain sharing" is in.
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16. • Develop a supply-chain-wide technology strategy.
As one of the cornerstones of successful supply-chain management, information technology
must support multiple levels of decision making. It also should afford a clear view of the flow
of products, services, and information.
• Adopt channel-spanning performance measures.
Excellent supply-chain measurement systems do more than just monitor internal functions.
They adopt measures that apply to every link in the supply chain. Importantly, these
measurement systems embrace both service and financial metrics, such as each account's true
profitability. The principles are not easy to implement, the Andersen consultants say, because
they run counter to ingrained functionally oriented thinking about how companies organise,
operate, and serve customers. The organisations that do persevere and build a successful
supply chain have proved convincingly that you can please customers and enjoy growth by
doing so.
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17. SUPPLY CHAIN COMPONENTS
Business process re-engineering, buyer-supplier relationships and SCM suggests various
possible components that should receive managerial attention when managing supply
relationships. The following are the components of supply chain:
• Planning and control
• Work structure
• Organization structure
• Product flow facility structure
• Information flow facility structure
• Management methods
• Power and leadership structure
• Risk and reward structure
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19. COMPANY PROFILE
COMPANY : SYMPHONY LIMITED
PARENT COMPANY : SYMPHONY LIMITED
SECTOR : CONSUMER DURABLES
CATEGORY : MANUFACTURERS OF RESIDENTIAL AND
INDUSTRIAL
COOLERS
TYPE : PUBLIC
YEAR OF INCORPORATION : 1988
HEADQUARTERS : AHMEDABAD, INDIA
FOUNDER : MR. ACHAL BAKERI
PRODUCTS : RESIDENTIAL AND INDUSTRIAL COOLERS
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20. COMPETITORS
• USHA COOLERS
• KHAITAN COOLERS
• BAJAJ
• MAHARAJA
• KENSTAR
• BLUE STAR
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21. SYMPHONY COOLERS
• Symphony Limited located in Ahmedabad was established in the year 1988. It
is a joint stock, publicly held listed company
• The company, incorporated on 5th February 1988 as Sanskrut Comfort Systems
Ltd. (SCS), is a profit making company engaged in manufacture of consumer
durables under the brand name `Symphony‘
• SCS's coolers have plastic bodies unlike conventional metallic air coolers
manufactured by the unorganised sector, are UV stabilised and are equipped with
two air blowers and Himalayan cooling pads which combine cooling effects with
elegant looks.
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The company has facilities for manufacturing 108,000 numbers per annum (npa) of air
coolers, 60,000 npa of ventilation fans, 21,600 npa of room heaters and 24,000 npa of
domestic flour mills (all on single shift basis).
2001- The Company has launched Chota Sumo, a smaller version of its Sumo brand air cooler.
2004- Symphony, one of the leading air cooler manufacturers, has introduced a new mode of air
cooler Jumbo Cool in the market
2009- Symphony Comfort Systems Ltd has informed that Mr. Himanshu H Singh has been appointed
as a Director (Independent) on the Board of the Directors of the Company w.e.f April 30, 2009.
2010- Launch of industrial air cooling solutions in India.
- Introduced its first summer campaign.
- Company has changed its name from Symphony Comfort Systems Ltd. to Symphony Ltd.
2011- Strengthened its network and TV campaigns to promote the "first summer" concept.
- Launched a TV campaign for the South American / Mexico market-- a first by any evaporative
cooler company in the region.
- Company has splits its Face value of Shares from Rs.10 to Rs.2

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2012- Introduced Storm - world's largest tower cooler with advanced electronics.
- Symphony received coveted recognition of Star Export House from Govt. of India.
- Symphony wins Award for Excellence in Financial Reporting by The Institute of Chartered
Accountants of India for its Annual Report of FY 2009-2010.
- Recently, the Ministry of Science and Technology, Government of India accorded the
certificate of recognition to Symphony's in-house R&D centre. -Symphony Ltd has splits its
face value from Rs.10/- to Rs.2/-
2013- Symphony - Proposed Launch of "Window Range" Models of Air Coolers -
Symphony has won India Design Mark for 2013 best design of its Diet 22i air cooler. -
Company launched Winter-I Model -Symphony - ICAI Award for Excellence in Financial
Reporting
2014- Symphony has won most prestigious Quality Mark Award for year 2014.
- Symphony ''World largest air cooler company has bagged prestigious ‘Best Presented
Annual Report Award for Manufacturing Sector'' for its annual report of 2012 by South
Asian Federation of Accountants (SAFA)."Symphony eyes to tap logistics and warehouse
industry".

24. HOW SUPPLY CHAIN
MANAGEMENT OF SYMPHONY
COOLER WORKS?
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25. How the supply chain management works?
• Their basic step is to prepare a quotation which includes the price of the product per
unit and the quantity of the product which is required by them.
• Then the distributor sends the quotation to the company now the quotation reaches
to the CNF (carry and forward) and now the work of CNF begins, CNF reviews the
order and checks the quotation and if it fits according to the price then CNF
approves the orders for final delivery.
• After the order is being approved by the CNF bill generates which mentions the
truck number.
• Why truck number?
We need truck number because that helps us in knowing the lot size, different size
of Trucks can carry different amount of stock.
• A receipt of bill is generated and interstate trucks require form 38 in Uttar Pradesh
and after that state purchase don’t require any form only bill of the goods is
required for interstate transfers.
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26. What types of goods are involved in their supply chain?
In their showroom and business they only deal with symphony
coolers.
No other product of symphony they deal in they deal in all types of
coolers produced by SYMPHONY. It includes both residential and
industrial cooler.
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27. How much inventory they need to maintain for
particular order ?
• Inventory management depend according to the demand
• Demand depends on season such as demand for coolers will be high in
summers but supply of coolers will be less in winters.
• So during winters only they start purchasing the product and try to
maintain their stock of 5000 coolers, to meet the appropriate demand
with no delay.
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28. What is their re-order level of inventory?
During peak seasons within every 15 days re-orders are being placed
but basically it is a one-time investment in the beginning of the off
season when they start inventory management. Re-order level is decided
with the market demand and previous sale.
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29. How they manage their goods movement?
Mainly the goods movement is through Commercial vehicles (like tempos and
trucks) but delivery also depends on the size of the quantity to be delivered. The
delivery of goods is being handled by the agents employed by the symphony
coolers they will take care of the process of delivery they will handle how to
manage and the delivery is also taken care and is 100% protected that is ensured
by them, as they have GPS system fitted trucks and tempos which can be easily
traced and located, even the halts and the duration can be seen.
How the sellers are connected to the company?
Basically the company has a channel development manager who takes care of the
process, he hires agents and company employees who will bring orders or help in
promoting the product the channel manager helps in boosting the sale and even
creating a brand image for the trader.
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30. How the sale is managed?
• ERP (enterprise resource planning) it is a software which
helps to manage the products from one end to other.
• All the information is entered in the software and after
that data is being maintained in this software which helps
in effective and efficient working of the company.
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31. GAPANALYSIS
• A GAP analysis is a method of assessing the differences in performance
between a business & information systems or software applications to
determine whether business requirements are being met and if not, what steps
should be taken to ensure they are met successfully. Gap refers to the space
between "where we are" (the present state) and "where we want to be" (the
target state). A gap analysis may also be referred to as a needs analysis, needs
assessment or need-gap analysis.
• Gap Analysis is a formal study of what a business is doing currently and where
it wants to go in the future. It can be conducted, in different perspectives, as
follows:
1. Organization (e.g., Human Resources)
2. Business Direction
3. Business processes
4. Information Technology
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32. • GAP analysis provides a foundation for measuring investment of time, money and
human resources required to achieve a particular outcome (e.g. to turn the salary
payment process from paper-based to paperless with the use of a system). Note that
"GAP analysis" has also been used as a means of classifying how well a product or
solution meets a targeted need or set of requirements. In this case, "GAP" can be used
as a ranking of "Good", "Average" or "Poor".
• The need for new products or additions to existing lines may emerge from portfolio
analysis, in particular from the use of the Boston Consulting Group Growth-share
matrix—or the need may emerge from the regular process of following trends in the
requirements of consumers. At some point, a gap emerges between what existing
products offer and what the consumer demands. The organization must fill that gap to
survive and grow.
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33. SYMPHONY COOLER
Symphony coolers future plan is to make several type of air cooler to meet the
requirements of household people who cannot afford AC, they can easily purchase
coolers which are comparatively at lower price and because of symphonies latest
technology we have coolers having power equal to AC which makes them a good
competitor in the market.
Further strengthening the Prime Minister Narendra Modi's ambitious mission of
'Make in India', the world's largest air-cooler maker, Symphony Limited created yet
another landmark by introducing the first-ever wall-mounted air cooler for
household customers.
Branded as Symphony Cloud, the indigenously designed air cooler resembles with a
split AC and will be initially launched in Ahmedabad. In next five-six months it will
be taken to other parts of the country.
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34. "Company applied for a global patent for the 'wall-mount' design of air cooler.
Symphony cooler is the first Indian Consumer Durable company to have filed for a
global patent for a product. It took Symphony 20 years to finally come to this
design. This reinforces commitment towards Make in India," said Achal Bakeri,
chairman and managing director, Symphony Ltd.
Priced at Rs.14,991 inclusive of installation charges in Ahmedabad, the wall-
mounted air cooler has 15litres of in-built water tank and doesn't have an outdoor
unit like a split AC. The electricity consumption is believed to be ten times lower
than a split AC at merely 250 watts per hour, yet covering 100 square-feet of
room area. Unlike other air-coolers, Cloud occupies no floor space, uses automatic
water fill technology and is easy to mount on a wall.
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35. "Cloud will be a game-changer for air cooling industry globally. We have created a
detailed user manual to get the best performance. Unlike an AC, air cooler requires
windows to be open," added Bakeri.
The new model will be made at Symphony's third-party manufacturing facility in
Pune. "We will have different models in due course of time. The current model will
be equivalent to a 1.5 tonne AC," Bakeri said.
India's residential air cooler market is estimated at Rs.3000 crore or about 6 million
units, of which organized market is of around 2 million units. The overall market is
growing at around 15-20 per cent per annum.
Symphony, which holds about 50 per cent market share in the branded air cooler
segment, has total installed capacity of 1 million units per annum.
These are some of the statements we have taken from a recent interview given by
ACHAL BAKERI the chairman and managing director of Symphony ltd.
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36. This shows that company worked in the right direction and invested in right manner which
leads to good results and completion of their target. This means Symphony ltd is working on
right idea which helps them to be a monopoly or we can say above all other companies
because of their future ideas, which make them better and more advanced by the time.
• Some of the coolers like JUMBO COOLER, SYMPHONY DIET, SYMPHONY
HICOOL etc. are one of the best known coolers when we talk about residential coolers.
Jumbo coolers are designed for big rooms like halls, dining area, offices etc.
• Symphony ltd is using best information technology in their product there are large variety
of symphony coolers in both residential and commercial sector.
• Symphony coolers market share was of 3 crores in 2002 which is now 11,438 crore in
2014 -2015. Which means company started from nil now it is big pillar standing always
companies policy is to go crazy on things.
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37. • Craziness is the main strategy of this company according to their annual report of all the
financial years we can see that from 1st quarter of 2014 - 15 the company sale is really
low after that also company invested 6% of their sale in advertising and branding which is
higher than industry average investment.
• In total company invested 22 crores in branding and advertising in 2014 – 15 financial
year this created a market image of symphony coolers out of 10 around 8 people are
asking about symphony cooler which increased its market and also affected its sale of
2015 – 16.
• Due to global warming there is increase in demand of coolers as people can buy 2 to 3
coolers in which they buy 1 ac but after innovation of new wall coolers there is no
difference between the cooler and A.C.
• Symphony coolers work according to demand of people when people demanded for
different type of coolers for different location the company with 1 type of cooler
introduced more than 40 types of coolers for both residential and commercial.
• Coolers like STORM, WINTER, NINJA, DIET, ICE etc. are introduced by taking
suggestions from the people and according to the peoples demand.
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38. There are 4 major pillars of Symphony;
Air cooler boxes Design coolers Environmental Friendly Coolers
Cooling Technology Company
(packaging/control air cooling
solution)
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39. LAST 5 YEAR ANALYSIS OF COMPANIES FINANCIALS
• Form last 5 years company has seen lot of ups and downs as increase of
competition in the current market but in the financial year 2015 – 16 it is cleared
that Symphony again become one of the top brand of India. Competition is
increased from 4 to 70 which actually affect the market share of Symphony as some
of them are large brands which are offering products at cheaper rates.
• The companies sale is increasing day by day because of large market share and
more variety of coolers according to demand of people.
• Currently Symphony has more than 60 % of the coolers market and other 40% is
taken by other companies.
• There is increase in demand for coolers because of global warming the winters are
for short period of time which helped Symphony to even capture the market in low
economy.
• In last 5 years company invested huge amount in branding which help them in
retaining the leadership in the current year 2017 company lost lot of market
because of competition
• There is growth of more than 18% in sale in the year 2016 – 17 which is more than
the expected sale.
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40. PAST ISSUES FACED BY SYMPHONY COOLERS
• Problem in servicing.
• High prices of products.
• Investing in other things instead of improving its servicing problems.
• Large variety of coolers (more than 40 type of coolers).
• They re-introduced some of their coolers because of high prices and capacity issues.
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41. ACTIONS TAKEN BY COMPANY
• SYMPHONY coolers opened their service centre in all the areas in metro cities as
well as in rural areas. We can see that Symphony coolers has opened service
centres in Delhi NCR like in East Delhi, West Delhi, North Delhi and South Delhi
and several other areas near Delhi. For areas like Noida and Gurgaon they have
employed people in showrooms only who are expert in service of cooler which
leads to improvisation in Sale of the company and this helped company to take
over the market again. This leads to establishing the image of the brand and this
also affect the share price of the company in the stock market.
• When company started working more on their branding and advertising in 2014 -
2015 that helped them in capturing the current market and become one of the
leaders in the coolers market. The company after having high prices are able to
attract customer a study proved that out of 10 customers 8 are asking about
Symphony Coolers which shows the effect of branding and advertising.
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42. • Symphony coolers started offering discounts to compete in the market and
this strategy worked as discount model is successful in India in all the sectors
which helped company in increasing its sale.
• Company improvised its products and started focusing on the products quality
and again offered customers to buy the products with extended warranty.
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43. LEARNING
• It’s been estimated that over half of all activities undertaken in modern
corporations are project-based. From developing new products to
constructing new facilities, the list of projects that must be planned, executed,
and overseen is nearly endless.
• At the same time, the continuing globalization of business functions creates a
growing need for people who can effectively manage supply chains, whether
they are acquiring raw materials or distributing finished products, supply
chain managers are critical to organizational success.
• Supply Chain Management (SCM) major concentrates on developing
knowledge, skills, and abilities in supply chain management, dynamic and
important disciplines in modern corporations. Supply chain management
emphasizes the integration of manufacturing and service operations, logistics,
purchasing, and distribution that enable organizations to develop value-
creating supply chain networks. 43

44. • The SCM majorly provides students with an opportunity to develop the
quantitative and people skills necessary to design and operate today’s complex
management systems. Students learn how to manage critical components in
organizational supply chains and apply business analytic methods for
organizing and fully integrating supply chain practices throughout the
organization.
• Supply chain management plays a vital role in all the companies as with a
proper supply chain we can easily manage our work this helps in effective
working of the operations of the organisation and help us in getting good results
in less time.
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