Case Study: Kurlon Limited
Case Study: Kurlon Limited
Case Study: Kurlon Limited
KURLON LIMITED
KURLON LIMITED
Largest manufacturer of mattresses in India
KURLON LIMITED
The M.D of the company concerned about the
share.
Multi brand outlets as a result retailers are
constrained.
Kurlon has to keep stocks close to market and
provide quick and reliable service to retailers.
Kurlon was forced to offer a wide variety of sizes
portfolio, apart from this it is also expected to
customise its offerings.
Increased competition from the unorganised
sector.
In 1997, inventories and receivables were Rs.
Importance of SCM in
Kurlon:
High inventory compared to European firms.
Firms has to manage higher variety in future.
High receivables.
SCM cost as percentage of sales
o Supply chain related cost: cost account for
10.6% sales
o SCM cost= Inventory - carrying cost +
Distribution cost
SCM performance measures: Lost sales not
measured and customer service not tracked.
Case Objectives
Case
Evaluation Of Performance
Of SCM At Regional
Distribution Centres:
42 RDCs across the country.
Manager of each RDC send a work order
Evaluation Of Performance
Of SCM At Retail Centres:
Around 5000 retailers who stock Kurlon products as the
Analysis Of Sales
Pattern In Delhi Region
Analysis Of One Specific SKU (72*35*4)
Analysis of Sales
Pattern in Delhi Region
Analysis of one specific SKU (72*35*4)
Sales data shows interesting pattern
Week 28 represents Diwali
Skewed sales pattern : Last week 62% sales
Sales pattern at retailer shows similar
pattern
Very likely that Kurlon is dumping products
with retailer at months end resulting in high
receivable and low sales in first week of
month.
Evaluation
Of Process
Companys
Planning
Planning Process
The Supply chain planning processes and
practices at Kurlon which includes the
following can be easily examined by taking
example of one SKU (72 * 35 * 4).
1.
2.
3.
4.
Forecasting
Inventory management
Transportation planning
Production planning
compare:
1.
Indent versus sales: Measure of
forecasting capability at region.
This analysis can be done with different
units of time week, month.
2. Indent versus receipt: Measure of
service from Bangalore CW.
This analysis can be done with different
units of time week, month.
Forecasting
Transportation
Weekly transfers through road results in repeated
accidents. Monthly transfers with the improvement in
inventory and forecasting could be beneficial.
Part truck load can be considered during low sales
requests.
Production
No proper planning for non-standard sizes.
No proper safety measures as four fires in the last fifteen
years resulted in 2-3 days loss each time.
Long production process and does not match with the
sales requirements.
Keeping in view the unorganized furniture manufacturing
industry in India, Kurlon was forced to offer a wide variety
of sizes in its product portfolio. But apart from large
variety, it was also expected to customize its offering
which up to certain extent failed.
Exhibit 8a.
Monthly
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