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Supply Chain Management Of A lather SHOE MANUFACTURING FIRM,Its a new idea and plan for those who are going to start a business .This ppt can applicable for every business. Because every business needs a good supply chain...


  • Supply Chain Of SHOE MANUFACTURING FIRM Presented by: Ajay K. Sivan (22002) A. Mary Spandana (22003) K J Deepak (22010) G. Mrudula (22012) Niranjan Nahak (22021) Rajesh Sahoo(22025) Y. Naveen- M8-07
  • OUR BRAND Care and
  • FACTS FROM OUR SURVEY Hyderabad is the Diabetic capital with 16.6% of the population suffering from it in India. Followed by 11.7% in Kolkata, 11.6% in Delhi and 9.3% in Mumbai. Total population of Hyderabad is approximately 8 million with 16.6% diabetic patients. 80,00,000* 16.6%= 13,28,000 Total no. of areas in Hyderabad =50( estimated) Therefore per area population is 26,560.
  • DEMAND AND TARGET MARKET Our shoe is especially for those people who are suffering from Diabetics. Age group emerging from 40. 5.5% of the people living per area in Hyderabad are affected with Diabetics. Therefore they are our target customers. Many patients dont have much awareness about the care to be taken while they are affected with Diabetics. Demand for such type of products are quite more in urban areas. Our shoes target all the retired people, suitable for corporate peoples and working men and women.
  • OUR PRODUCT FEATURES Our shoes are very light in weight and easy to wash. It can be wore anywhere in the home and outside and are of good quality. They are especially designed and produced for the patients suffering from Diabetics. They are durable and reliable and no fear of any cut or damages. Provision for Air flow and sweat absorbing soles adds value to our shoes. They are reasonable in cost and available in different colours, designs and sizes for both men and women.
  • To take an active role in defining the future of materials, our innovation agenda focuses on four areas: What materials we use including new choices for recycled and recyclable materials Better processes employing new ways of processing with less energy, water, chemicals or waste Better choices creating and applying indexes, restricted substance lists, policies and better ways of operating, and sharing them with vendors and suppliers Bringing choices to scale increasing the scale and availability of new material choices, including sharing intellectual property and enabling recycling of materials
  • SUPPLIERS AND DISTRIBUTORS Suppliers Distributors 1. Leather- RK Leather suppliers 1.Rose Footware- Kompally 2. Color threads- Sagar Colors 2. Sai Shoes- Uppal 3. Bolts, Buckles,soles & 3. K N Distributors-Secunderabad Designer stationary- Local markets
  • BUYER-SUPPLIER RELATIONSHIP Traditional Lowest price Specification-driven Short term, reacts to market Trouble avoidance Purchasings responsibility Tactical Little sharing of information on both sides Partnership Total cost of ownership End customer-driven Long term Opportunity maximization Cross-functional teams and top management involvement Strategic Both supplier and buyer share short and long term plans Share risk and opportunity Standardization Joint ventures Share data
  • OBJECTIVES The objectives for the first three years of operation include: To create a product-based retail store whose primary goal is to exceed customer's expectations. To increase the number of clients served by 20% per year by serving an unmet need with outstanding selection and customer service. To develop a start-up business, surviving off of its own cash flow.
  • LAYOUT Layout is the physical arrangement of production machines and equipment, workstations, people, location of materials, and all kinds and stages of material handling equipment. The need for change in layout arises from such factors as product design, methods, materials and process changes.
  • PRODUCT DESIGNING PROCESS Step 1: The Design Process Establish target price, target audience and product features Produce "tech package" to send to subcontractors in factories Step 2: Raw Material Supplies Fabric Plastic Rubber Foams Metallics
  • Step 3: Manufacturing Cutting Sewing (of upper section above the sole) Stock fitting (prepares the sole) Lasting (prepares attachment of upper to the sole) Heeling (attaches and shapes heel bottom to final form) Finishing Treeing (attaches accessories) After the manufacturing process, the shoe is then shipped to distribution and trading companies where it is then distributed to retailers and sold to consumers.
  • PRODUCT MARKET SHARE DEMAND Our objective is to manufacture formal shoes and informal shoes using leather and synthetic and rubber leather. The market share we estimated is of 2-3% as we are new entries and there are many competitors to us in Andhra Pradesh. This estimation was done by calculating the total demand for shoes as there are about 40% of elderly people in our state. Demand for the shoes will be more in the market because there are less of this kind of specialty shoes which serve as a purpose. Our shoes target all the retired people, suitable for corporate peoples and working men and women.
  • PURCHASING PROCEDURES Recognition of need Requisition approval Placement of the purchase order Follow-up and expediting Receipt and approval of goods/services
  • ECONOMY MARKET (199-559) FORMAL SHOES SLEEPER CASUAL SANDAL SPORTS MARKET (555-2555) PREMIUM LEATHER (2999-4999) PRICE MODEL Our shoes will scale from the range of Rs.199 onwards to Rs.4999
  • PARTICULARS AMOUNT Direct materials 4000000 Direct labour 90000 Electricity 60000 Fuel 15000 Repairs and maintenance 50000 Factory Overhead 105000 FACTORY COST 4320000 Administrative Overhead 310000 Sales cost 25000 Distribution Cost 320000 PRODUCTION COST/ TOTAL COST 4975000 ESTIMATED SALES 7000000 NET PROFIT 2025000 Estimated Cost Sheet
  • PRODUCT EXPLANATION Leather shoes and ladies sandals are products with leather upper and PVC soles used as a walking shoe. Such conventional design shoes have cement lasted leather uppers and cemented on sole units that do not require finishing once assembled. It is usually consumed by persons of average , higher income.
  • Required Machinery Name of the machine No/ amount Over lock machine 1 Stitching machine 6 Iron regular 1 Cutters 7 Scissors 7 Factory tables 7 Scale 5 Inch tape 5 Water cooler 5 Show case 1
  • RAW MATERIALS REQUIRED Adhesives and bonding Shoe and leather coloring Footwear additions Randing and welting Soling materials Soles and heals Cork Leather board Screws, rivets and stems Cords and threads Shanks Finishing ink and Waxes Traditional Bristles
  • Working hours: 8 hours Human resources: Job /Position No.of Employees Cutting Master 2 Packing master 1 Fusion master 1 Skilled Stitcher 5 Partners 7 Sweepers 4 Total 20 Capacity: 1000 pairs of shoes in a month
  • Warehouse Plant Bowenpally Secunderabad King Koti Dilsukhnagar Mehdipatnam Reasons for choosing plant and warehouse Secunderabad is a well known area and many government institutions are located. Kompally, Nampally, Mehdipatnam covers all the directions of Hyderabad and big shopping malls and more residents are located.
  • LOGISTICS Transportation will be easier for us if our main central location of warehouse is King Koti. Because both the road and rail and airways from Koti becomes closer and not much too time taking. The goal for our business is to minimize transportation costs while also meeting demand for products. The raw materials from the suppliers also gets easily transported without not much cost and therefore the location is proved cost efficient.
  • The essential of supply chain is collaboration
  • REVERSE LOGISTICS We have the following processes for our reverse logistics: 1)Damage: If any shoe material get damaged we get that back to the plant and we re-stich it and again float it out. 2)Recycling: If the material get damaged or is of out of fashion we get it back and we recycle them for future use or for future fashion. 3)Recall: If any un-satisfaction from customers are note through RFID used. We would recall that material and solve the problem according to the customer satisfaction.
  • CHOOSING THE RIGHT RELATIONSHIPS Bottleneck items Non-critical items Leverage items Strategic items weakness large strength little Buyer power No.ofavailablesupplier Reducing dependence on these items through diversification of suppliers and substitute products Using strength carefully to draw suppliers into a relationship that ensures supply in the long term Not jointly developed; Unbranded; Do not affect performance and safety. Reducing prices and pushing for preferential treatment
  • CUSTOMER RELATIONSHIPMANAGEMENT (CRM) The biggest management challenge in the new millennium of liberalization and globalization for a business is to serve and maintain good relationship with The King The Customer. The main customers of the companies in the leather industry are the wholesalers. The product in the leather industry is complex and quality is an important factor. The CRM is a new technique in marketing where the marketer tries to develop long term relationship with the customers to develop them as life time customers.
  • CRM POLICIES Stylone Differentiating your customers. Different people use different styles of shoes and we understand their requirements for a healthy living. Interacting with the customer. RFID technology is the basis through which we can keep in touch with the customer 24*7.
  • Just In Time in Stylone Just in time is a pull system of production, so actual orders provide a signal for when a product should be manufactured. Demand-pull enables a firm to produce only what is required, in the correct quantity and at the correct time. This means that stock levels of raw materials, components, work in progress and finished goods can be kept to a minimum. This requires a carefully planned scheduling and flow of resources through the production process. Information is exchanged with suppliers and customers through EDI (Electronic Data Interchange) to help ensure that every detail is correct.
  • APPLICABILITY OF CPFR IN STYLONE Retail Link had emerged into an Internet-enabled in Stylone SCM system whose functions were not confined to inventory management alone, but also covered collaborative planning, forecasting and replenishment (CPFR). In CPFR, stylone worked together with its key suppliers on a real-time basis by using the Internet to jointly determine product-wise demand forecast. Though CPFR was a promising supply chain initiative aimed at a mutually beneficial collaboration between STYLONE and its suppliers.
  • CPFR BENEFITS: STYLONE 1. Enhanced Relationship Implicitly, CPFR strengthens an existing relationship and substantially accelerates the growth of a new one. Buyer and seller work hand-in-hand from inception through fruition on business plan, base, and promotional forecasts. Continual CPFR meetings strengthen this relationship. 2. Greater Sales The close collaboration needed for CPFR implementation drives the planning for an improved business plan between buyer and seller. The strategic business advantage directly translates to increased category sales.
  • Contd 3. Category Management Before beginning CPFR, both parties inspect shelf positioning and exposure for targeted SKUs to ensure adequate days of supply, and proper exposure to the consumer. This scrutiny will result in improved shelf positioning and facings through sound category management. 4. Improved Product Offering Before CPFR implementation, the buyer and seller collaborate on a mutual product scheme that includes SKU evaluation and additional product opportunities.
  • CPFR BENEFITS: STYLONE SUPPLY 1. Improved Order Forecast Accuracy CPFR enables a time-phased order forecast that provides additional information, greater lead time for production planning, and improved forecast accuracy vs. either stand-alone VMI/CRP or other industry tools. 2. Inventory Reductions CPFR helps reduce forecast uncertainty and process inefficiencies. How much inventory does your company hold to cover up for forecasting errors or a trading partners inability to have the product available in a timely manner? With CPFR, product can be produced to actual order instead of storing inventory based on forecast. 3. Increased Customer Satisfaction With fewer out-of-stocks resulting from better planning information, higher store service levels will prevail, offering greater consumer satisfaction.
  • STYLONE CRM TECHNIQUES Customer Quality Management Customer Innovation Management Customer Relationship Management Interactive Marketing Management Customer Quality Management tm Customer Experience Management Customer Lifecycle Management
  • IT APPLICABILITY IN STYLONE SUPPLY CHAIN Information is the driver that serves as the glue to create a coordinated supply chain Information must have the following characteristics to be useful: Accurate Accessible in a timely manner Information must be of the right kind Information provides the basis for supply chain management decisions Inventory Transportation Facility
  • CRM Provide better customer service Make call centers more efficient Cross sell products more effectively Help sales staff close deals faster Simplify marketing and sales processes Discover new customers Increase customer revenues SRM SRM focuses on keeping suppliers satisfied by evaluating and categorizing suppliers for different projects, which optimizes supplier selection.
  • AAA SUPPLY CHAIN IN STYLONE Fab expansion based on technology and market changes Evolution to service-focus business Optimized product/fab assignment Adaptability Information sharing across supply chain Collaborative relationships with customers Tight connectivity with assembly and test Trust-based, people-oriented organization Alignment Optimization-based applications Highly efficient manufacturing processes Centralized command, decentralized control Agility
  • FUTURISTIC TRENDS Today Leather products has became fashion symbol for Teenagers and young generation and even for the elders too in India and also in western world. And in future we have plan to go for globally if we succeed in Hyderabad. In future it is predicted that the winter season period is increasing as compare to the summer. Leather products are treated as fashion symbol and to protect the bodies against cold. So we have forecast that the future need/trend is bright due to the above two reasons.
  • Thank you for making us ONE among MANY