Transcript Supply Chain Management TATA CHEMICALS LTD

Supply
Chain
Management
TATA CHEMICALS LTD
PRESENTED BY
•
•
•
•
•
•
Janki Raval
Jay Lodaya
Lajja Reshamwala
Pratiksha Rane
Rohan Jadhav
Vaibhav Tonde
P 30
P 19
P 31
C 42
C -16
C -39
TATA Chemicals Ltd
• Established in 1939 at Mithapur
• Global company with interests in chemicals,
crop nutrition and consumer products
• It is the world's second largest producer of
soda ash
Vision
Enrich the quality of life by offering products
and services that meet the essential needs of
people.
Mission
We shall be the most respected company in the
businesses and geographies we operate in.
Our growth and success will be achieved by:
•Enhancing the value we deliver to our customers
•Being globally competitive
•Internationalisation of our business
•Improving shareholder value
•Commitment to corporate sustainability
•Strengthening stakeholder relationships
•Providing new and innovative offerings
Products
Chemicals
Crop nutrition and agri-business
Soda ash
Fertilisers: Tata Paras urea,
Sodium bicarbonate
DAP, NPK, SSP
Alkakarb
Consumer products
Chemicals: Caustic soda,
Salt: Tata Salt, I-Shakti, Tata Salt Lite
chlorine based products,
Cooking soda : Tata Samunder
bromine based products,
New business
gypsum, phosphoric and
Biofuels
sulphuric acids
Fresh produce
Sodium tripolyphosphate
Cement: Tata Shudh
Supply Chain
• ‘Made to Order’ Supply Chain
• Orders are always more than the supply of the
product
• The products which are considered for the
Supply Chain of TATA Chemicals are Soda Ash
and TATA Salt
• TATA Chemicals uses SAP for the whole Supply
Chain process
Contd…
• Soda Ash: -
Prominently used in the manufacture
of glass. Helps in the 'workability' or shaping of glass
articles such as tableware and float glass.
Major ingredient in the making of soaps and
detergents.
• Salt: -
The company makes sodium bicarbonate for
pharmaceutical and industrial use, and as a food
additive
Contd…
• Set Price Contract for a Set Quantity with its
customers
• Price for the Product is fixed for a contracted
period
• Actual price may fluctuate in the market
Procurement
• Soda Ash – Natural deposits of Soda Ash are
found at Mithapur. Soda Ash from Wyoming and
Lake Magadi is bought through Sea route to
Mithapur plant. Solvay process is used to remove
the impurities.
• Salt – Solar Salt is obtained from Saurashtra. The
salt pans are located Okhamani in Saurashtra.
Manufacturing
• Soda Ash – Solvay process is used to remove the
impurities.
The Soda Ash produced is generally of 2 varieties
– Soda Ash Light
– Soda Ash Dense
• Salt – Solar Salt is obtained from Saurashtra and Vacuum
evaporation is done at Mithapur plant.
Packaging
• Soda Ash is generally packaged in 1 metric tone PP
Bags
PP Bags are used to protect Soda Ash from Caking. It
protects Soda Ash from moisture and humidity..
• TATA Salt is packaged into 0.1kg, ½ kg, 1kg and 2kg
convenient packages
Transportation
• The packaged goods are transported to the Mumbai
Warehouse by the means of Land as well as Rail
route
• Similar model is applied all across the country except
Cochin and for Export market. For Cochin and Export
market Sea route is used.
• Road Transport is the preferred means for
transportation of the products to Mumbai
• It generally takes 1 – 1½ days for transportation from
Mithapur to Mumbai
Contd…
• TATA Chemicals has entered into agreement with
various Transport Associations, e.g. Gujarat Truck
Association, etc.
• A single 3rd Party Logistics Service provider cannot
handle the complete load of both Soda Ash and TATA
Salt.
• The loading is done generally 50 – 50 i.e. 50% Soda
Ash and 50% Salt.
• This is done to achieve proper weight balance and
maximum space utilization.
Warehousing
• 2 main Warehouse’s in Mumbai namely at Taloja and
at Boisar
• The Temperature of the Warehouse is maintained
around 30 - 35 ˚C to avoid humidity and moisture
exposure to Soda Ash and Salt
• Soda ash tends to cake when exposed to moisture or
the atmosphere for a long time
• FIFO method is used inventory control
Warehousing
• Quantity Committed Customers i.e. Contract for delivery
of fixed amount of products all throughout the year
• Warehouse closer to the Warehouse of the Buyer
Company.
• For e.g. TATA Chemicals has a Warehouse established
near the Warehouse of Unilever and St. Gobain
• Inventory of around 15 days is maintained
• For e.g. if Unilever has Quantity Set Contract with TATA
Chemicals for the supply of 100 metric tones/day of Soda
Ash then TATA Chemical carries an inventory of 1800 –
2000 metric tones
Warehousing
• At Central Warehouse 10 – 15 day inventory in the form of
onsite storage as insurance against delivery delays
• Limited access to SAP is provided at Warehouse level
• The employees at the Warehouse are provided with special
PDA’s
• PDA’s are connected to the online system of the company, the
whole data automatically gets transferred for the Warehouse
to the SAP at the Central office situated at Mumbai.
Warehousing
(Material Handling)
• Avoid damp or humid place or where there is
excessive air circulation
• When storing soda ash for an extended time under
adverse conditions, cover the bags with a tight
fitting, impermeable sheet
• Double-faced hardwood pallets are used
• Warehouse floors should be dry, smooth, free of
breaks
Distribution
• TATA Salt as mentioned above is further transported to
various Depots, Wholesalers, and Retailers across the state
from the Central Warehouse
• The Transportation for the distribution process is carried out
by the concerned Transport Association
• It is normally done by the Road Transport only
• EX WORKS Contract
 Deliver goods at his or her own place of business. All other
transportation costs and risks are assumed by the buyer
Distribution
• OTF Customers
 Checks the available quantity at the central Warehouse. If the
quantity available at the Central Warehouse is enough to
meet the needs of Quantity Set Customers as well as OTF
Customers then the distribution is done to the OTF Customers
 Delivery can take upto 7 – 10 days
• Export customer’s
• Distribution is done through the Sea route
• It is carried out through the port of Kandla which is closer to
the plant location of Mithapur
• Same is done for Cochin
Distribution
• Since for distribution various Transport Associations
are involved TATA Chemicals has better control over
the cost factor involved in the Distribution process
• Cost involved in the Owning and Maintaining of
vehicles for distribution is also eliminated
• Change in the daily shipment of the quantity fixed, is
carried out by sending a mail to the company head
office at Mumbai
Problems faced
• Distribution is one of the main problem areas for the
company, since it is handled by various Transport
Associations. Some of the problems faced by the
company are
 Paper works required for interstate transport.
 Excise duty problems.
 Overloading of Trucks.