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Home > About Us > Functions > Supply Chain Management and Purchases

Supply Chain Management and Purchases

The Supply Chain Management & Purchases Organization is organized under following sub-functions:
• Demand Planning (DP)
• Supply Planning and Sales & Operations Planning (S&OP)
• Distribution Requirement Planning (DRP)
• Supply Chain Operations - Warehousing & Transportation
• Materials Requirement Planning (MRP)
• Purchasing
• Imports & Exports

Demand planning function performs the Long Term and Short Term Sales Forecasting. Sales Forecasting is the starting of the Supply Chain process. Through this process, it is estimated - what will be customer’s requirement, what qty and when is the demand? This process considers the periodicity of demand to reflect the right demand at the right time. The output of this process is used by Supply Planning, Financial Planning, Sales Planning and Marketing.

Supply Planning and S&OP process determines how the demand as forecasted by Demand Planning would be met. This function ensures that right product is produced at the most optimum manufacturing location at the right time. This function also ensures that right inventory levels are maintained and no obsolescence gets generated. S&OP Process is a collaborative approach, through all functions – Sales, Marketing, Manufacturing, Quality, SCM and Finance come together and ensure that Customer demand is met in a most cost effective way. The output of this process is the week wise and factory wise Production Plan and estimated FG Inventory Cost.

Distribution function works to distribute the products at all 28 warehouses across the country to meet the customer’s demand on time and in most effective way. It tries to optimize the transportation cost while meeting the customer’s demand at the right time.

SCM Operations function chooses the right Transporters and the Warehouses using the Third Party Logistics Provider’s (3PL). This function is responsible for Primary Transportation, CFA operations and the Secondary Transportation. If the Planning function is the brain of SCM, the Logistics function is hands and feet of the SCM function. This function performs the movement and storage of FG.

Materials Requirements Planning (MRP) function determines what inputs (Raw Materials and Packaging Materials) are required when and at which factory based on the Production Plan in a short term and based on the sales forecast in a long term.

Purchasing Function selects and nurtures good quality of Vendors – who are reliable, quality conscious and dependable. They also negotiate the right price with Vendors and are responsible for maintaining a good Vendor base. In day to day operations, purchasing places the PO for the required materials and ensures that all factories get the right quality inputs at right time.

Imports & Exports function is the interface with CHA and provides all documentation, so that Import and Export of the goods are done efficiently, timely and in a cost effective manner.